|                                                                                                      | Scout                  Acquisition, Inc. |  |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------|--|
|  (Exact                  name of small business issuer as specified in its                  charter) |

|                                                                                         |  Delaware |  |
|----------------------------------------------------------------------------------------------|----------------|--|
| (State                or other jurisdiction of incorporation or                organization) |

|                                                                            | 26-0133324 |  |
|---------------------------------------------------------------------------------|------------|--|
|  (I.R.S.                  Employer Identification                  Number) |

|                                                  | c/o                  Sands Brothers Venture Capital LLC, 90 Park Avenue, 31st Floor,                  New York, NY 10016 |  |
|-------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--|
|  (Address                  of Principal Offices) |

|                                                   |  (212)                953-4983 |  |
|--------------------------------------------------------|-------------------------------------|--|
|  (Issuer’s                Telephone Number) |

|                                                                                                                   |  No                change |  |
|------------------------------------------------------------------------------------------------------------------------|--------------------------------|--|
|  (Former                name, former address and former fiscal year, if changed since last                report) |

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**SCOUT      ACQUISITION, INC.**

**-      INDEX -**

|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                          | Page                                    |
| **PART                  I- FINANCIAL INFORMATION:**                                                                                                                                                                                                                                                                                                                                                                           |                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  1.** **                  Financial Statements (unaudited):                                                                                                                                                                                                                                                                                                                                         |                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Balance                  Sheet as of September 30, 2007                                                                                                                                                                                                                                                                                                                                                                       | F                  -                  1 |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Statements                  of Operations for the Three Months Ended September 30, 2007 and                  2006, for                  the Nine Months Ended September 30, 2007, the Period from January                  3, 2006                  (Inception) to September 30, 2006 and for the Cumulative Period                  from                  January 3, 2006 (Inception) to                  September 30, 2007 | F -                  2             |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Statement                  of Stockholders’ Deficiency from January 3, 2006 (Inception) to                  September 30, 2007                                                                                                                                                                                                                                                                                          | F                  -                  3 |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Statements                  of Cash Flows for the Nine Months Ended September 30, 2007, the                  Period                  from January 3, 2006 (Inception) to September 30, 2006 and for the                  Cumulative Period                  from January 3, 2006 (Inception) to September 30, 2007                                                                                                       | F                  -                  4 |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Notes                  to Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                                                                                    | F                  -                  5 |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  2. Management's Discussion and Analysis or Plan of                  Operation                                                                                                                                                                                                                                                                                                                           | 1                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  3. Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                              | 1                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| **PART                  II - OTHER INFORMATION**:                                                                                                                                                                                                                                                                                                                                                                             |                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  1. Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                    | 1                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  2. Unregistered Sales of Equity Securities and Use of                  Proceeds                                                                                                                                                                                                                                                                                                                         | 1                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  3. Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                      | 1                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  4. Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                  | 2                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  5. Other Information                                                                                                                                                                                                                                                                                                                                                                                    | 2                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Item                  6. Exhibits                                                                                                                                                                                                                                                                                                                                                                                             | 2                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
| Signatures                                                                                                                                                                                                                                                                                                                                                                                                                    | 3                                       |

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**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**BALANCE      SHEET **

**(unaudited)**

|                                                                                                                                                     |   | **September                  30,****2007** |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-------------|
|  **ASSETS**                                                                                                                                         |   |                                       |        |   |
| **CURRENT                  ASSETS:**                                                                                                                     |   |                                       |        |   |
| Cash                                                                                                                                                     |   | **$**                                      | **8,674**   |   |
| Prepaid                  Expenses                                                                                                                        |   |                                       | **5,625**   |   |
| **TOTAL                  ASSETS**                                                                                                                        |   | **$**                                      | **14,299**  |   |
|                                                                                                                                                     |   |                                       |        |   |
|                                                                                                                                                     |   |                                       |        |   |
| **LIABILITIES                  AND STOCKHOLDERS’ DEFICIENCY**                                                                                      |
|                                                                                                                                                     |   |                                       |        |   |
| **LONG                  TERM LIABILITIES:**                                                                                                              |   |                                       |        |   |
| Accrued                  interest payable – stockholder loans                                                                                 |   | **$**                                      | **2,872**   |   |
| Loans                  from stockholders                                                                                                                 |   |                                       | **53,750**  |   |
|                                                                                                                                                     |   |                                       |        |   |
| **TOTAL                  LIABILITIES**                                                                                                                   |   |                                       | **56,622**  |   |
|                                                                                                                                                     |   |                                       |        |   |
| **STOCKHOLDERS’                  DEFICIENCY:**                                                                                                     |   |                                       |        |   |
| Preferred                  stock, $.0001 par value; 10,000,000 shares authorized; none issued                  and                  outstanding          |   |                                       | **-**       |   |
| Common                  stock, $.0001 par value; 75,000,000 shares authorized; 1,500,000                  shares                  issued and outstanding |   |                                       | **150**     |   |
| Additional                  paid-in capital                                                                                                              |   |                                       | **24,850**  |   |
| Deficit                  accumulated during the development stage                                                                                        |   |                                       | **(67,323** | ) |
|                                                                                                                                                     |   |                                       |        |   |
| **TOTAL                  STOCKHOLDERS’ DEFICIENCY**                                                                                                |   |                                       | (42,323     | ) |
|                                                                                                                                                     |   |                                       |        |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS’ DEFICIENCY**                                                                                |   | **$**                                      | **14,299**  |   |

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF OPERATIONS**

**(unaudited)**

|                                                                                                      |   | For                the Three Months EndedSeptember 30, |      | For                the NineMonthsEndedSeptember 30, |   | Period                fromJanuary                3,2006(Inception)                toSeptember30, |   | For                theCumulativePeriod                fromJanuary 3,2006(Inception)                toSeptember30, |      |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|-----------|----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                      |   | 2007                                                        |      | 2006                                                     |   | 2007                                                                                             |   | 2006                                                                                                              |      | 2007 |   |
| **REVENUE**                                                                                               |   | $                                                           | -         |                                                     | $      | -                                                                                                |   | $                                                                                                                 | -         |   | $ | - |   | $ | - |   |
|                                                                                                      |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| General                and administrative expenses                                                        |   |                                                        | 7,224     |                                                     |   | 9,107                                                                                            |   |                                                                                                              | 25,722    |   |   | 29,696 |   |   | 64,451 |   |
|                                                                                                      |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| **LOSS                BEFORE OTHER EXPENSES**                                                             |   |                                                        | (7,224    | )                                                        |   | (9,107                                                                                           | )      |                                                                                                              | (25,722   | ) |   | (29,696 | ) |   | (64,451 | ) |
|                                                                                                      |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| **OTHER                EXPENSES:**                                                                        |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| Interest                expense                                                                           |   |                                                        | 855       |                                                     |   | 187                                                                                              |   |                                                                                                              | 2,247     |   |   | 437 |   |   | 2,872 |   |
|                                                                                                      |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| **NET                (LOSS)**                                                                             |   | $                                                           | (8,079    | )                                                        | $      | (9,294                                                                                           | )      | $                                                                                                                 | (27,969   | ) | $ | (30,133 | ) | $ | (67,323 | ) |
|                                                                                                      |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| **BASIC                AND DILUTED NET LOSS PER SHARE**                                                   |   | $                                                           | *         |                                                     | $      | *                                                                                                |   | $                                                                                                                 | (.02      | ) | $ | (.02 | ) |   |   |   |
|                                                                                                      |   |                                                        |      |                                                     |   |                                                                                             |   |                                                                                                              |      |   |   |   |   |   |   |   |
| **WEIGHTED                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND                DILUTED** |   |                                                        | 1,500,000 |                                                     |   | 1,500,000                                                                                        |   |                                                                                                              | 1,500,000 |   |   | 1,500,000 |   |   |   |   |

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENT      OF STOCKHOLDERS’ DEFICIENCY**

**(unaudited)**

|                                                       |   |                           |   |                        |   | AdditionalPaid-inCapital |   | (Deficit)AccumulatedDuring                the DevelopmentStage |      | Stockholders’                Deficiency |   |
|------------------------------------------------------------|--------|--------------------------------|--------|-----------------------------|--------|--------------------------|--------|----------------------------------------------------------------|-----------|-----------------------------------------------|--------|
|                                                       |   |                           |   |                        |   |                     |   |                                                           |      |
|                                                       |   |                           |   |                        |   |
|                                                       |   | Preferred                Stock |   | Common                Stock |   |
|                                                       |   | Shares                         |   | Amount                      |   | Shares                   |   | Amount                                                         |      |
| **BALANCE,                JANUARY 3, 2006**                |   |                           | -      |                        | $      | -                        |   |                                                           | -         |                                          | $      | - |   | $ | - |   | $ | - |   | $ | - |   |
| Issuance                of common stock                    |   |                           | -      |                        |   | -                        |   |                                                           | 1,500,000 |                                          |   | 150 |   |   | 24,850 |   |   | - |   |   | 25,000 |   |
| Net                (loss)                                  |   |                           | -      |                        |   | -                        |   |                                                           | -         |                                          |   | - |   |   | - |   |   | (39,354 | ) |   | (39,354 | ) |
| **BALANCE,                DECEMBER 31, 2006**         |   |                           | -      |                        |   | -                        |   |                                                           | 1,500,000 |                                          |   | 150 |   |   | 24,850 |   |   | (39,354 | ) |   | (14,354 | ) |
| Net                (loss) (unaudited)                      |   |                           | -      |                        |   | -                        |   |                                                           | -         |                                          |   | - |   |   | - |   |   | (27,969 | ) |   | (27,969 | ) |
| **BALANCE,                SEPTEMBER 30, 2007 (UNAUDITED)** |   |                           | -      |                        | $      | -                        |   |                                                           | 1,500,000 |                                          | $      | 150 |   | $ | 24,850 |   | $ | (67,323 | ) | $ | (42,323 | ) |

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF CASH FLOWS**

**(unaudited)**

|                                                                                                        |   | For                the NineMonthsEndedSeptember 30,2007 |    | Period                fromJanuary                3,2006(Inception)                to September30,                2006 |   | For                theCumulativePeriod                fromJanuary                3,2006(inception)                to September30,                2007 |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                    |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| Net                loss                                                                                     |   | $                                                            | (27,969 | )                                                                                                                     | $      | (30,133                                                                                                                                               | )      | $ | (67,323 | ) |
| Adjustments                to reconcile net (loss) to net cash used in operating                activities: |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| Changes                in operating assets and liabilities:                                                 |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| Decrease                (increase) in prepaid expenses                                                      |   |                                                         | 625     |                                                                                                                  |   | (9,375                                                                                                                                                | )      |   | (5,625 | ) |
| Increase                (decrease) in accounts payable and accrued expenses                                 |   |                                                         | 747     |                                                                                                                  |   | 6,439                                                                                                                                                 |   |   | 2,872 |   |
| **Net                cash used in operating activities**                                                    |   |                                                         | (26,597 | )                                                                                                                     |   | (33,069                                                                                                                                               | )      |   | (70,076 | ) |
|                                                                                                        |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                    |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| Proceeds                from issuance of common stock                                                       |   |                                                         | -       |                                                                                                                  |   | 25,000                                                                                                                                                |   |   | 25,000 |   |
| Proceeds                from stockholder loans                                                              |   |                                                         | 35,000  |                                                                                                                  |   | 18,750                                                                                                                                                |   |   | 53,750 |   |
| **Net                cash provided by financing activities**                                                |   |                                                         | 35,000  |                                                                                                                  |   | 43,750                                                                                                                                                |   |   | 78,750 |   |
|                                                                                                        |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| **NET                INCREASE IN CASH**                                                                     |   |                                                         | 8,403   |                                                                                                                  | $      | 10,681                                                                                                                                                |   | $ | 8,674 |   |
|                                                                                                        |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| Cash,                beginning of period                                                                    |   |                                                         | 271     |                                                                                                                  |   | -                                                                                                                                                     |   |   | - |   |
|                                                                                                        |   |                                                         |    |                                                                                                                  |   |                                                                                                                                                  |   |   |   |   |
| **CASH,                END OF PERIOD**                                                                      |   | $                                                            | 8,674   |                                                                                                                  | $      | 10,681                                                                                                                                                |   | $ | 8,674 |   |

----

**SCOUT          ACQUISITION, INC.**

**A          Development Stage Company**

**NOTES          TO UNAUDITED FINANCIAL STATEMENTS**

**September          30, 2007**

**NOTE      1 - **
**ORGANIZATION      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:**

|  | ***(a)*** | ***Organization                and Business:*** |
|--|-----------|-------------------------------------------------|

|  | ***(b)*** | ***Use                of Estimates:*** |
|--|-----------|----------------------------------------|

|  | ***(c)*** | ***Income                Taxes:*** |
|--|-----------|------------------------------------|

|  | ***(d)*** | ***Loss                per Common Share:*** |
|--|-----------|---------------------------------------------|

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**September      30, 2007**

**NOTE      1 - **
**ORGANIZATION      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES **
**(Continued):**

|  | ***(e)*** | ***Fair                Value of Financial                Instruments:*** |
|--|-----------|--------------------------------------------------------------------------|

**NOTE      2 - **
**LOANS      FROM STOCKHOLDERS:**

**NOTE      3 - **
**CAPITAL      STOCK:**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**September      30. 2007**

**NOTE      4 - **
**RECENT      ACCOUNTING PRONOUNCEMENTS:**

**NOTE      5 - **
**INTERIM      FINANCIAL STATEMENTS:**

----

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations. **

***Off-Balance      Sheet Arrangements***

** **

**Item      3. Controls and Procedures.**

**PART      II — OTHER INFORMATION**

**Item          **
**1.          Legal Proceedings.**

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item      3. Defaults Upon Senior Securities.**

----

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information.**

**Item      6. Exhibits.**

| Exhibit                  No. |   | Description                                                                                                                                                                                                                                                                                                                                                       |
|------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |   |                                                                                                                                                                                                                                                                                                                                                              |
| *3.1                         |   | Certificate                  of Incorporation, as filed with the Delaware Secretary of State                  on January                  3, 2006.                                                                                                                                                                                                                |
|                         |   |                                                                                                                                                                                                                                                                                                                                                              |
| *3.2                         |   | By-Laws.                                                                                                                                                                                                                                                                                                                                                          |
|                         |   |                                                                                                                                                                                                                                                                                                                                                              |
| 31.1                         |   | Certification                  of the Company’s Principal Executive Officer and Principal Financial                  Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,                  with                  respect to the registrant’s Quarterly Report on Form 10-QSB for the                  quarter ended September 30, 2007. |
|                         |   |                                                                                                                                                                                                                                                                                                                                                              |
| 32.1                         |   | Certification                  of the Company’s Principal Executive Officer and Principal Financial                  Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant                  to Section                  906 of the Sarbanes Oxley Act of                  2002.                                                                   |

| * |   | Filed                    as an exhibit to the Company's Registration Statement on Form                    10-SB, as                    filed with the Securities and Exchange Commission on June 30,                    2006, and                    incorporated herein by this                    reference. |
|---|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Dated:                  November 14, 2007 | **SCOUT                  ACQUISITION, INC.** |
|-------------------------------------------|----------------------------------------------|
|                                      |                                         |   |
|                                      |                                         |   |
|                                      | By:                                          | /s/                  Scott Baily |
|                                      |                                         | Name:                  Scott Baily |
|                                      |                                         | Title:                  President |

----