| Delaware                                         |   | 26-0133324                              |
|--------------------------------------------------|--------|-----------------------------------------|
| (State                  or other jurisdiction of |   | (I.R.S.                  employer       |
| incorporation                  or organization)  |   | identification                  number) |

| c/o                  Sands Brothers Venture Capital LLC      |   |                        |
|--------------------------------------------------------------|--------|-----------------------------|
| 90                  Park Avenue, 31st                  Floor |   |                        |
| New                  York, New York                          |   | 10016                       |
| (Address                  of principal executive offices)    |   | (Zip                  Code) |

----

**SCOUT      ACQUISITION, INC.**

**-      INDEX -**

|                                                                                                                                                                                                                                                                                                                                                                        |   | Page(s)                                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| **PART                    I - FINANCIAL INFORMATION**:                                                                                                                                                                                                                                                                                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Item                    1. Unaudited Financial Statements                                                                                                                                                                                                                                                                                                                   |   |                                                |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Balance                    Sheet as of June 30, 2007                                                                                                                                                                                                                                                                                                                        |   | F                    -                    1         |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Statements                    of Operations for the Three Months Ended June 30, 2007 and 2006,for                    the Six Months Ended June 30, 2007, from January 3, 2006 (inception)through                    June 30, 2006 and the Cumulative Period from January 3, 2006                    (inception)                    through                    June 30, 2007 |   | F                    -                    2         |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Statement                    of Stockholders’ Deficiency from January 3, 2006 (inception) to                    June 30, 2007                                                                                                                                                                                                                                         |   |  F                    -                    3   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                     |
| Statements                    of Cash Flows for the Six Months Ended June 30, 2007, from  January                    3, 2006 (inception) through June 3, 2006 and the Cumulative Periodfrom                    January 3, 2006 (inception) through June 30,                    2007                                                                                    |   | F                    -                    4         |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Notes                    to Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                                |   | F                    -                    5 - F - 7 |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| 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                                                                                                                                                                                                                                                                                              |   | 1                                                   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Item                    5. Other Information                                                                                                                                                                                                                                                                                                                                |   | 1                                                   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Item                    6. Exhibits                                                                                                                                                                                                                                                                                                                                         |   | 2                                                   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                                                |
| Signatures                                                                                                                                                                                                                                                                                                                                                                  |   | 3                                                   |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**BALANCE      SHEET**

**(unaudited)**

|                                                                                                                                                     |   | **June                  30, 2007** |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|
| **ASSETS**                                                                                                                                               |   |                               |        |
| **CURRENT                  ASSETS:**                                                                                                                     |   |                               |        |
| Cash                                                                                                                                                     |   | **$**                              | **21,523**  |   |
|                                                                                                                                                     |   |                               |        |   |
| **TOTAL                  ASSETS**                                                                                                                        |   | **$**                              | **21,523**  |   |
|                                                                                                                                                     |   |                               |        |   |
| **LIABILITIES                  AND STOCKHOLDERS’ DEFICIENCY**                                                                                      |
|                                                                                                                                                     |   |                               |        |   |
| **CURRENT                  LIABILITIES:**                                                                                                                |   |                               |        |   |
| Accrued                  interest payable                                                                                                                |   | **$**                              | **2,017**   |   |
|                                                                                                                                                     |   |                               |        |   |
| **LONG                  TERM LIABILITIES:**                                                                                                              |   |                               |        |   |
| Loans                  from stockholders                                                                                                                 |   |                               | **53,750**  |   |
|                                                                                                                                                     |   |                               |        |   |
| **TOTAL                  LIABILITIES**                                                                                                                   |   |                               | **55,767**  |   |
|                                                                                                                                                     |   |                               |        |   |
| **STOCKHOLDERS’                  DEFICIENCY:**                                                                                                     |   |                               |        |   |
| Preferred                  stock, $.0001 par value; 10,000,000 shares authorized; none issued                  and                  outstanding          |   |                               | **-**       |   |
| Common                  stock, $.0001 par value; 75,000,000 shares authorized; 1,500,000                  shares                  issued and outstanding |   |                               | **150**     |   |
| Additional                  paid-in capital                                                                                                              |   |                               | **24,850**  |   |
| Deficit                  accumulated during the development stage                                                                                        |   |                               | **(59,244** | ) |
|                                                                                                                                                     |   |                               |        |   |
| **TOTAL                  STOCKHOLDERS’ DEFICIENCY**                                                                                                |   |                               | **(34,244** | **)** |
|                                                                                                                                                     |   |                               |        |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS’ DEFICIENCY**                                                                                |   | **$**                              | **21,523**  |   |

**See      accompanying notes to unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF OPERATIONS**

|                                                                    |   | For                the Three Months Ended June 30, |      | For                the Six Months Ended June 30, |   | Period                from January 3, 2006 (Inception) to June 30, |   | For                the Cumulative Period from January 3, 2006 (inception) to June                30, |      |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------|-----------|-------------------------------------------------------|--------|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|-----------|
|                                                                    |   | 2007                                                    |      | 2006                                                  |   | 2007                                                               |   | 2006                                                                                                 |      | 2007 |   |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |
| **REVENUE**                                                             |   | $                                                       | -         |                                                  | $      | -                                                                  |   | $                                                                                                    | -         |   | $ | - |   | $ | - |   |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| General                and administrative expenses                      |   |                                                    | 5,922     |                                                  |   | 8,089                                                              |   |                                                                                                 | 18,498    |   |   | 20,589 |   |   | 57,227 |   |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| **(LOSS)                BEFORE OTHER EXPENSES**                         |   |                                                    | (5,922    | )                                                     |   | (8,089                                                             | )      |                                                                                                 | (18,498   | ) |   | (20,589 | ) |   | (57,227 | ) |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| **OTHER                EXPENSES:**                                      |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| Interest                expense                                         |   |                                                    | 1,088     |                                                  |   | 125                                                                |   |                                                                                                 | 1,392     |   |   | 250 |   |   | 2,017 |   |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| **NET                (LOSS)**                                           |   | $                                                       | (7,010    | )                                                     | $      | (8,214                                                             | )      | $                                                                                                    | (19,890   | ) | $ | (20,839 | ) | $ | (59,244 | ) |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| **BASIC                AND DILUTED NET (LOSS) PER SHARE**               |   | $                                                       | (.00      | )                                                     | $      | (.00                                                               | )      | $                                                                                                    | (.01      | ) | $ | (.01 | ) |   |   |   |
|                                                                    |   |                                                    |      |                                                  |   |                                                               |   |                                                                                                 |      |   |   |   |   |   |   |   |
| **WEIGHTED                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING** |   |                                                    | 1,500,000 |                                                  |   | 1,500,000                                                          |   |                                                                                                 | 1,500,000 |   |   | 1,500,000 |   |   |   |   |

**See      accompanying notes to unaudited financial      statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENT      OF STOCKHOLDERS’ DEFICIENCY**

|                                                         |   |                             |   | Additional                  Paid-in Capital |   | (Deficit)                  Accumulated During the Development Stage |   | 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)                      |   |                             | -      |                                        |   | -                                                                   |   |                                            | -         |   |   | - |   |   | - |   |   | (19,890 | ) |   | (19,890 | ) |
| **BALANCE,                  JUNE 30, 2007 (UNAUDITED)** |   |                             | -      |                                        | $      | -                                                                   |   |                                            | 1,500,000 |   | $ | 150 |   | $ | 24,850 |   | $ | (59,244 | ) | $ | (34,244 | ) |

**See        accompanying notes to        unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**STATEMENTS      OF CASH FLOWS**

|                                                                                                             |   |   | For                the Six Months Ended June 30, 2007  |   |   | Period                from January 3, 2006 (Inception) to June 30, 2006 |   |   | For                the Cumulative Period from January 3, 2006 (inception) to June 30,                2007 |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------|--------|
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                    |   |   |                                                             |   |   |                                                                    |   |   |                                                                                                      |   |
| Net                (loss)                                                                                   |   | $      | (19,890                                                          | )      | $      | (20,839                                                                 | )      | $      | (59,244                                                                                                   | )      |
| Adjustments                to reconcile net (loss) to net cash used in operating                activities: |   |   |                                                             |   |   |                                                                    |   |   |                                                                                                      |   |
| Changes                in operating assets and liabilities:                                                 |   |   |                                                             |   |   |                                                                    |   |   |                                                                                                      |   |
| Decrease in                prepaid expenses                                                            |   |   | 6,250                                                            |   |   | -                                                                       |   |   | -                                                                                                         |   |
| Increase                (decrease) in accounts payable and accrued expenses                                 |   |   | (108                                                             | )      |   | 8,339                                                                   |   |   | 2,017                                                                                                     |   |
| **Net                cash used in operating activities**                                                    |   |   | (13,748                                                          | )      |   | (12,500                                                                 | )      |   | (57,227                                                                                                   | )      |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                    |   |   |                                                             |   |   |                                                                    |   |   |                                                                                                      |   |
| Proceeds                from issuance of common stock                                                       |   |   | -                                                                |   |   | 25,000                                                                  |   |   | 25,000                                                                                                    |   |
| Proceeds                from stockholder loans                                                              |   |   | 35,000                                                           |   |   | 12,500                                                                  |   |   | 53,750                                                                                                    |   |
| **Net                cash provided by financing activities**                                                |   |   | 35,000                                                           |   |   | 37,500                                                                  |   |   | 78,750                                                                                                    |   |
|                                                                                                        |   |   |                                                             |   |   |                                                                    |   |   |                                                                                                      |   |
| **NET                INCREASE IN CASH**                                                                     |   |   | 21,252                                                           |   |   | 25,000                                                                  |   |   | 21,523                                                                                                    |   |
|                                                                                                        |   |   |                                                             |   |   |                                                                    |   |   |                                                                                                      |   |
| Cash,                beginning of period                                                                    |   |   | 271                                                              |   |   | -                                                                       |   |   | -                                                                                                         |   |
| **CASH,                END OF PERIOD**                                                                      |   | $      | 21,523                                                           |   | $      | 25,000                                                                  |   | $      | 21,523                                                                                                    |   |

**See        accompanying notes to        unaudited financial statements**

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**June      30, 2007**

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

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

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

***(c)***
***Cash      and Cash Equivalents:***

***(d)***
***Income      Taxes:***

***(e)***
***Loss      per Common Share:***

----

**SCOUT      ACQUISITION, INC.**

**A      Development Stage Company**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

**June      30, 2007**

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

**(Continued):**

***(f)***
***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**

**June      30, 2007**

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

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

----

**Item      2. Management’s Discussion and Analysis or Plan of Operation.**

**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 |   | 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 June 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 9, 2006,                and                incorporated herein by this                reference. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                  |                                                            |                         |
|-----------------------|-----------------------------------------------------------------|------------------------------|
|                  | SCOUT              ACQUISITION,              INC.               |
|             |                                                       |                    |
| Date: August 13, 2007 | By:                                                   | /s/              Scott Baily |
|                  | Name:                Scott BailyTitle:                President |

----