UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-Q







|x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended June 30, 2008

or



| ̈ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to
.

Commission File Number: 1-33285





Dekania Corp.

(Exact Name of Registrant as Specified in Its Charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 84-1703721                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



|                                              |  |           
|--------------------------------------------- |  | ----------
|2929 Arch Street, Suite 1703 Philadelphia, PA |  | 19104     
|(Address of principal executive offices)      |  | (Zip Code)

Registrants telephone number, including area code: (215) 701-9555

None

(Former Name, Former Address
and Former Fiscal Year, if Changed Since Last Report)





Indicate by check mark whether the Registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes x No  ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of accelerated filer, large accelerated filer
and smaller reporting company in Rule 12b-2 of the Exchange. (Check one):

Large Accelerated Filer   ̈                    Accelerated Filer   ̈

Non-Accelerated Filer  x                     Smaller Reporting Company   ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No  ̈

The number of outstanding shares of the registrants common stock on
August 11, 2008 was 12,699,900 shares.









---

PART I  FINANCIAL INFORMATION



|ITEM 1. | FINANCIAL STATEMENTS
|------- | --------------------

DEKANIA CORP.

(a corporation in the development stage)

CONDENSED BALANCE SHEETS



|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------ | ---------- | - | ---------------- | - | ---------- | -
|                                                                                                                                                                                                                                                 |  | June 30, 2008(unaudited) |            |   | December 31,2007 |  
|ASSETS                                                                                                                                                                                                                                           |  |                          |            |   |                  |   |            |  
|Current Assets                                                                                                                                                                                                                                   |  |                          |            |   |                  |   |            |  
|Cash                                                                                                                                                                                                                                             |  | $                        | 606,558    |   |                  | $ | 789,487    |  
|Investment in trust account                                                                                                                                                                                                                      |  |                          | 96,779,356 |   |                  |   | 96,561,519 |  
|Prepaid taxes                                                                                                                                                                                                                                    |  |                          | 59,815     |   |                  |   | 96,509     |  
|Prepaid expenses and other current assets                                                                                                                                                                                                        |  |                          | 220,100    |   |                  |   | 280,563    |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|Total current assets                                                                                                                                                                                                                             |  |                          | 97,665,829 |   |                  |   | 97,728,078 |  
|Deferred tax asset                                                                                                                                                                                                                               |  |                          | 1,342,185  |   |                  |   | 1,153,491  |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|TOTAL ASSETS                                                                                                                                                                                                                                     |  | $                        | 99,008,014 |   |                  | $ | 98,881,569 |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                                                                             |  |                          |            |   |                  |   |            |  
|Current Liabilities                                                                                                                                                                                                                              |  |                          |            |   |                  |   |            |  
|Accounts payable and accrued expenses                                                                                                                                                                                                            |  | $                        | 139,994    |   |                  | $ | 139,804    |  
|Deferred interest on investments                                                                                                                                                                                                                 |  |                          | 39,136     |   |                  |   |           |  
|Due to stockholder                                                                                                                                                                                                                               |  |                          | 63,353     |   |                  |   | 55,507     |  
|Deferred underwriting fees                                                                                                                                                                                                                       |  |                          | 2,044,960  |   |                  |   | 2,044,960  |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|Total Liabilities                                                                                                                                                                                                                                |  |                          | 2,287,443  |   |                  |   | 2,240,271  |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|Common stock, $.0001 par value, 3,063,719 shares subject to possible redemption, at redemption value of $9.80 per share                                                                                                                          |  |                          | 30,024,446 |   |                  |   | 30,024,446 |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|Commitments                                                                                                                                                                                                                                      |  |                          |            |   |                  |   |            |  
|Stockholders Equity:                                                                                                                                                                                                                            |  |                          |            |   |                  |   |            |  
|Preferred stock, par value of $0.0001, authorized 1,000,000 shares; none issued or outstanding                                                                                                                                                   |  |                          |           |   |                  |   |           |  
|Common stock, par value of $0.0001, authorized 30,000,000 shares; 12,699,900 issued and outstanding as of June 30, 2008 and
December 31, 2007 (including 3,063,719 shares subject to possible redemption at June 30, 2008 and December 31, 2007) |  |                          | 1,270      |   |                  |   | 1,270      |  
|Additional paid in capital                                                                                                                                                                                                                       |  |                          | 68,876,497 |   |                  |   | 67,314,497 |  
|Deficit accumulated during the development stage                                                                                                                                                                                                 |  |                          | (2,181,642 | ) |                  |   | (698,915   | )
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|Total Stockholders Equity                                                                                                                                                                                                                       |  |                          | 66,696,125 |   |                  |   | 66,616,852 |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                                                                       |  | $                        | 99,008,014 |   |                  | $ | 98,881,569 |  
|                                                                                                                                                                                                                                                 |  |                          |            |   |                  |   |            |  

The accompanying notes should be read in conjunction with the condensed financial statements.



---

DEKANIA CORP.

(a corporation in the development stage)

CONDENSED STATEMENTS OF OPERATIONS



|                                                                                                                                                                                                                                                                                                                         |  |                                           |            |   |                                           |   |                                         |  |   |                                         |   |                                                                 |   |            |  |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------- | ---------- | - | ----------------------------------------- | - | --------------------------------------- |  | - | --------------------------------------- | - | --------------------------------------------------------------- | - | ---------- |  | - | ---------- | -
|                                                                                                                                                                                                                                                                                                                         |  | Three monthsendedJune 30, 2008(unaudited) |            |   | Three monthsendedJune 30, 2007(unaudited) |   | Six monthsendedJune 30, 2008(unaudited) |  |   | Six monthsendedJune 30, 2007(unaudited) |   | February 28, 2006(date of inception)to June 30, 2008(unaudited) |  
|Formation and operating costs (including stock-based compensation of $781,000 for the three months ended June 30, 2008 and 2007,
$1,562,000 for the six months ended June 30, 2008, $1,236,582 for the six months ended June 30, 2007 and $4,360,582 for the period from February 28, 2006 (inception) to June 30, 2008) |  | $                                         | 987,676    |   |                                           |   | 984,367                                 |  | $ | 2,039,420                               |   |                                                                 | $ | 1,716,135  |  | $ | 6,202,705  |  
|Interest income                                                                                                                                                                                                                                                                                                          |  |                                           | 158,374    |   |                                           |   | 1,099,567                               |  |   | 556,693                                 |   |                                                                 |   | 1,770,441  |  |   | 4,021,063  |  
|                                                                                                                                                                                                                                                                                                                         |  |                                           |            |   |                                           |   |                                         |  |   |                                         |   |                                                                 |   |            |  |   |            |  
|Net income (loss) before provision for income taxes                                                                                                                                                                                                                                                                      |  |                                           | (829,302   | ) |                                           |   | 115,200                                 |  |   | (1,482,727                              | ) |                                                                 |   | 54,306     |  |   | (2,181,642 | )
|Provision for income taxes                                                                                                                                                                                                                                                                                               |  |                                           |           |   |                                           |   | 39,987                                  |  |   |                                        |   |                                                                 |   | 18,682     |  |   |           |  
|                                                                                                                                                                                                                                                                                                                         |  |                                           |            |   |                                           |   |                                         |  |   |                                         |   |                                                                 |   |            |  |   |            |  
|Net income (loss)                                                                                                                                                                                                                                                                                                        |  | $                                         | (829,302   | ) |                                           | $ | 75,213                                  |  | $ | (1,482,727                              | ) |                                                                 | $ | 35,624     |  | $ | (2,181,642 | )
|                                                                                                                                                                                                                                                                                                                         |  |                                           |            |   |                                           |   |                                         |  |   |                                         |   |                                                                 |   |            |  |   |            |  
|Weighted average shares outstanding (basic and diluted)                                                                                                                                                                                                                                                                  |  |                                           | 12,699,900 |   |                                           |   | 12,699,900                              |  |   | 12,699,900                              |   |                                                                 |   | 10,561,062 |  |   | 8,582,581  |  
|                                                                                                                                                                                                                                                                                                                         |  |                                           |            |   |                                           |   |                                         |  |   |                                         |   |                                                                 |   |            |  |   |            |  
|Net income (loss) per share (basic and diluted)                                                                                                                                                                                                                                                                          |  | $                                         | (0.07      | ) |                                           | $ | 0.01                                    |  | $ | (0.12                                   | ) |                                                                 | $ | 0.00       |  | $ | (0.25      | )
|                                                                                                                                                                                                                                                                                                                         |  |                                           |            |   |                                           |   |                                         |  |   |                                         |   |                                                                 |   |            |  |   |            |  

The accompanying notes should be read in conjunction with the condensed financial statements.





---

DEKANIA CORP.

(a corporation in the development stage)

CONDENSED STATEMENTS OF STOCKHOLDERS EQUITY



|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|-------------------------------------------------------------------------- |  | ------------ |  | ------------------------ | ----- |  | --------------------------------------------- | ----------- | - | ------------------- | - | ---------- | - |  | - | ----------- | -
|                                                                           |  | Common Stock |  | Additionalpaid-incapital |       |  | DeficitAccumulatedDuring theDevelopment Stage |             |   | StockholdersEquity |  
|                                                                           |  | Shares       |  | Amount                   |       |  |                                              
|February 28, 2006 (inception) to June 30, 2008                             |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Common shares issued March 17, 2006 at $.0001 per share                    |  | 2,487,500    |  | $                        | 249   |  | $                                             | 24,626      |   |                     | $ |           |   |  | $ | 24,875      |  
|Net loss for the period February 28, 2006 (inception) to December 31, 2006 |  |             |  |                          |      |  |                                               |            |   |                     |   | (647       | ) |  |   | (647        | )
|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Balance, December 31, 2006                                                 |  | 2,487,500    |  | $                        | 249   |  | $                                             | 24,626      |   |                     | $ | (647       | ) |  | $ | 24,228      |  
|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Private placement issued at January 31, 2007 at $10 per share              |  | 250,000      |  |                          | 25    |  |                                               | 2,499,975   |   |                     |   |           |   |  |   | 2,500,000   |  
|Common shares issued at February 7, 2007 at $10 per share                  |  | 9,700,000    |  |                          | 970   |  |                                               | 96,999,030  |   |                     |   |           |   |  |   | 97,000,000  |  
|Common shares issued at March 21, 2007 at $10 per share                    |  | 262,400      |  |                          | 26    |  |                                               | 2,623,974   |   |                     |   |           |   |  |   | 2,624,000   |  
|Expenses of offerings                                                      |  |             |  |                          |      |  |                                               | (7,607,244  | ) |                     |   |           |   |  |   | (7,607,244  | )
|Proceeds subject to possible conversion of 3,063,719 shares                |  |             |  |                          |      |  |                                               | (30,024,446 | ) |                     |   |           |   |  |   | (30,024,446 | )
|Stock - based compensation                                                 |  |             |  |                          |      |  |                                               | 2,798,582   |   |                     |   |           |   |  |   | 2,798,582   |  
|Net loss for the year ended December 31, 2007                              |  |             |  |                          |      |  |                                               |            |   |                     |   | (698,268   | ) |  |   | (698,268    | )
|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Balance, December 31, 2007                                                 |  | 12,699,900   |  | $                        | 1,270 |  | $                                             | 67,314,497  |   |                     | $ | (698,915   | ) |  | $ | 66,616,852  |  
|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Unaudited:                                                                 |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Stock - based compensation                                                 |  |              |  |                          |       |  |                                               | 1,562,000   |   |                     |   |            |   |  |   | 1,562,000   |  
|Net loss for the six months ended June 30, 2008                            |  |              |  |                          |       |  |                                               |             |   |                     |   | (1,482,727 | ) |  |   | (1,482,727  | )
|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  
|Balance, June 30, 2008                                                     |  | 12,699,900   |  | $                        | 1,270 |  | $                                             | 68,876,497  |   |                     | $ | (2,181,642 | ) |  | $ | 66,696,125  |  
|                                                                           |  |              |  |                          |       |  |                                               |             |   |                     |   |            |   |  |   |             |  

The accompanying notes should be read in conjunction with the condensed financial statements.



---

DEKANIA CORP.

(a corporation in the development stage)

CONDENSED STATEMENTS OF CASH FLOWS



|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|---------------------------------------------------------------------------------------------- |  | ---------------------------------------- | ---------- | - | ---------------------------------------- | - | ----------- | --------------------------------------------------------------- |  | - | ----------- | -
|                                                                                               |  | Six months endedJune 30, 2008(unaudited) |            |   | Six months endedJune 30, 2007(unaudited) |   |             | February 28, 2006(date of inception)to June 30, 2008(unaudited) | 
|CASH FLOW FROM OPERATING ACTIVITIES                                                            |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Net Income (loss)                                                                              |  | $                                        | (1,482,727 | ) |                                          | $ | 35,624      |                                                                 |  | $ | (2,181,642  | )
|Adjustment to reconcile net income (loss) to net cash provided by (used in) operating expenses |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Stock-based compensation                                                                       |  |                                          | 1,562,000  |   |                                          |   | 1,236,582   |                                                                 |  |   | 4,360,582   |  
|Changes in operating assets and liabilities:                                                   |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|(Increase) Decrease in prepaid expenses and other current assets                               |  |                                          | 60,463     |   |                                          |   | (230,125    | )                                                               |  |   | (220,100    | )
|Increase in deferred interest                                                                  |  |                                          | 39,136     |   |                                          |   |            |                                                                 |  |   | 39,136      |  
|(Increase) in deferred tax asset                                                               |  |                                          | (188,694   | ) |                                          |   | (571,877    | )                                                               |  |   | (1,342,185  | )
|Increase in trust account due to earned interest                                               |  |                                          | (595,829   | ) |                                          |   | (201,817    | )                                                               |  |   | (4,060,199  | )
|Increase (decrease) in prepaid taxes                                                           |  |                                          | 36,694     |   |                                          |   |            |                                                                 |  |   | (59,815     | )
|Increase in income taxes payable                                                               |  |                                          |           |   |                                          |   | 140,559     |                                                                 |  |   |            |  
|Increase in accounts payable and accrued expenses                                              |  |                                          | 190        |   |                                          |   | 104,283     |                                                                 |  |   | 139,994     |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Net cash provided by (used in) operating activities                                            |  |                                          | (568,768   | ) |                                          |   | 513,229     |                                                                 |  |   | (3,324,229  | )
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|CASH FLOW FROM INVESTING ACTIVITIES                                                            |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Payment to trust account                                                                       |  |                                          |           |   |                                          |   | (96,571,520 | )                                                               |  |   | (96,571,520 | )
|Cash withdrawn from trust account                                                              |  |                                          | 377,992    |   |                                          |   |            |                                                                 |  |   | 3,852,363   |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Net cash provided by (used in) investing activities                                            |  |                                          | 377,992    |   |                                          |   | (96,571,520 | )                                                               |  |   | (92,719,157 | )
|CASH FLOW FROM FINANCING ACTIVITIES                                                            |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Payment of notes payable, stockholder                                                          |  |                                          |           |   |                                          |   | (300,000    | )                                                               |  |   | (300,000    | )
|Gross proceeds from note payable stockholder                                                   |  |                                          |           |   |                                          |   |            |                                                                 |  |   | 300,000     |  
|Gross proceeds from sale of common stock                                                       |  |                                          |           |   |                                          |   |            |                                                                 |  |   | 24,875      |  
|Gross proceeds (repayment of) from stockholders advance                                       |  |                                          | 7,846      |   |                                          |   | (83,183     | )                                                               |  |   | 63,353      |  
|Gross proceeds from public offering                                                            |  |                                          |           |   |                                          |   | 99,624,000  |                                                                 |  |   | 99,624,000  |  
|Gross proceeds from private placement                                                          |  |                                          |           |   |                                          |   | 2,500,000   |                                                                 |  |   | 2,500,000   |  
|Payment of offering costs                                                                      |  |                                          |           |   |                                          |   | (5,405,686  | )                                                               |  |   | (5,562,284  | )
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Net cash provided by (used in) financing activities                                            |  |                                          | 7,846      |   |                                          |   | 96,335,132  |                                                                 |  |   | 96,649,944  |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Net (decrease) increase in cash                                                                |  |                                          | (182,929   | ) |                                          |   | 276,840     |                                                                 |  |   | 606,557     |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Cash at beginning of period                                                                    |  |                                          | 789,487    |   |                                          |   | 253,138     |                                                                 |  |   |            |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Cash at end of period                                                                          |  | $                                        | 606,558    |   |                                          | $ | 529,978     |                                                                 |  | $ | 606,557     |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Supplemental disclosure of non cash financing activities:                                      |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Decrease in accrued offering costs                                                             |  | $                                        |           |   |                                          | $ | (235,000    | )                                                               |  | $ |            |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Accrual of deferred underwriting fees                                                          |  | $                                        | 2,044,960  |   |                                          | $ | 2,044,960   |                                                                 |  | $ | 2,044,960   |  
|                                                                                               |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Supplemental disclosure of cash flow information:                                              |  |                                          |            |   |                                          |   |             |                                                                 |  |   |             |  
|Cash paid for income taxes                                                                     |  | $                                        | 110,000    |   |                                          | $ |            |                                                                 |  | $ | 1,250,000   |  

The accompanying notes should be read in conjunction with the condensed financial statements.



---

DEKANIA CORP.

(a corporation in the development stage)

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

June 30, 2008

1. Organization
and Proposed Business Operations

Nature of Operations

Dekania Corp. (the Company) was incorporated in the State of Delaware on February 28, 2006 as a blank check company formed to acquire through a merger, capital stock exchange, asset acquisition or
other similar business combination, one or more businesses in the insurance industry in the United States, Canada, Bermuda or the Cayman Islands. The Company has not generated any material revenues. The Company has selected December 31 as
its fiscal year-end. The Company is considered to be in the development stage and is subject to the risks associated with activities of development stage companies. The Company has not acquired an entity as of June 30, 2008.

The financial statements at June 30, 2008 and for the three and six months ended June 30, 2008 and 2007, and for the period from
February 28, 2006 (inception) to June 30, 2008 are unaudited. In the opinion of management, all adjustments (consisting of normal adjustments) have been made that are necessary to present fairly the financial position of the Company as of
June 30, 2008, the results of its operations and its cash flows for the periods then ended. Operating results for the interim period presented are not necessarily indicative of the results to be expected for the full year. The condensed balance
sheet at December 31, 2007 has been derived from the audited financial statements.

The statements and related notes have been
prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Companys Annual Report on Form 10-K for the
fiscal year ended December 31, 2007, as filed with Securities and Exchange Commission.

The registration statement for the
Companys initial public offering (the Public Offering) was declared effective on February 1, 2007. On January 30, 2007, the Company completed a private placement (the Private Placement) and received net
proceeds of $2,500,000. The Company consummated the Public Offering on February 7, 2007 and received net proceeds of $89,600,000. On February 5, 2007, Cohen Bros. Acquisitions, LLC (Cohen Bros.), the Companys sponsor,
delivered a letter of credit in the amount of $3,291,000 which may be drawn upon in specified circumstances to increase available amounts so the Trust Account (as defined below) will have sufficient funds to distribute at least $10.00 per share with
respect to shares included as part of the units sold in the Public Offering if the Trust Account is liquidated. On March 21, 2007, the Company completed the sale of an additional 262,400 units which were subject to the over-allotment option of
the underwriters in the Public Offering and received net proceeds of $2,466,560 (the Over-allotment). On May 2, 2007, the Company commenced separate trading of the common stock and warrants included in the Companys outstanding



---

units on the American Stock Exchange. The Companys management has broad discretion with respect to the specific application of the net proceeds of the
Private Placement, the Public Offering and the Over-allotment (collectively the Offerings) although substantially all of the net proceeds of the Offerings are intended to be generally applied toward consummating a business combination
with a target business. As used herein, a target business includes an operating business in the insurance industry in the United States, Canada, Bermuda or the Cayman Islands, and a business combination means the acquisition
by the Company of such a target business.

Of the proceeds of the Offerings, $96,571,520 was deposited in a trust account (Trust
Account) at Deutsche Bank Trust Company Americas maintained by American Stock Transfer and Trust Company, and invested until the earlier of (i) the consummation of the Companys first business combination or (ii) the liquidation
of the Trust Account as part of a stockholder-approved plan of dissolution and liquidation. The amount in the Trust Account includes $2,044,960 of deferred underwriting compensation (the Deferred Compensation) which will be paid to the
underwriters if a business combination is consummated, but which will be forfeited in part to the extent that holders of shares of common stock sold in the Public Offering, other than the Initial Stockholders (as defined below) and their nominees
(the Public Stockholders) elect to have their shares redeemed for cash and in full if a business combination is not consummated. If a business combination is consummated, the proceeds remaining after amounts used to complete the business
combination may be used to pay for business, legal and accounting due diligence on prospective acquisitions and continuing general and administrative expenses.

The Company, after signing a definitive agreement for the acquisition of a target business, must submit such transaction for stockholder approval. If Public Stockholders owning 30% or more of the outstanding common
stock sold in the Offerings vote against the business combination and elect to have the Company redeem their shares for cash, the business combination will not be consummated. All of the Companys stockholders prior to the Offerings, including
all of the officers and directors of the Company (Initial Stockholders), have agreed to vote their 2,487,500 founding shares of common stock in accordance with the vote of the majority in interest of all other stockholders of the Company
with respect to any business combination and to vote any shares they acquired in the Public Offering or in the aftermarket in favor of the business combination. Cohen Bros. has also agreed to vote all 250,000 shares that it purchased in the Private
Placement in favor of a business combination. After consummation of the Companys first business combination, these voting agreements will terminate.

With respect to the first business combination which is approved and consummated, Public Stockholders who voted against the business combination may demand that the Company redeem their shares. The per share
redemption price will equal $10.00 per share (inclusive of a pro rata portion of the Deferred Compensation of approximately $0.20 per share) plus any interest earned on their portion of the Trust Account (net of taxes payable), excluding
interest to pay taxes and Trust Account interest used to fund working capital needs and expenses up to a maximum of $2,500,000. Accordingly, Public Stockholders holding 29.99% of the aggregate number of shares sold in the Offerings may seek
redemption of their shares in the event of a business combination.

The Companys Second Amended and Restated Certificate of
Incorporation provides for mandatory liquidation of the Trust Account as part of a stockholder-approved plan of dissolution and liquidation in the event that the Company does not consummate a business combination within 18 months from the date of
the consummation of the Public Offering, or 24 months from the consummation of the Public Offering if certain extension criteria have been satisfied. The Initial Stockholders have waived their right to liquidation distributions with respect to the
shares of common stock included in units purchased in the Private Placement and shares of common stock received upon formation of the Company. Accordingly, in the event of such liquidation, the amount in the Trust Account will be distributed to the
holders of the shares sold in the Public Offering.



---

2. Recently Issued Accounting Pronouncements

In December 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS)
No. 141(R) Business Combinations. This statement establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities
assumed, and any noncontrolling interest in the acquiree. The Statement also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the
financial statements to evaluate the nature and financial effects of the business combination. The guidance will become effective as of the beginning of a companys fiscal year beginning after December 15, 2008.

In December 2007, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 110 (SAB 110) to permit entities, under
certain circumstances, to continue to use the simplified method in developing estimates of the expected term of plain-vanilla share options in accordance with SFAS No. 123R, Share-Based Payments (SFAS
123R). SAB 110 amended prior guidance to permit the use of the simplified method beyond December 31, 2007. The Company believes that the adoption of SAB 110 does not have a material impact on its financial statements.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157). SFAS No. 157 clarifies
the principle that fair value should be based on the assumptions market participants would use when pricing an assets or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. On February
12, 2008, the FASB issued FASB Staff Position (FSP) FAS 157-2, Effective Date of FASB Statement No. 157, which amended SFAS 157 to delay the effective date of SFAS 157 for all nonfinancial assets and nonfinancial liabilities,
except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (that is, at least annually), to fiscal years beginning after November 15, 2008. The Company adopted SFAS No. 157 for financial assets and
liabilities on January 1, 2008. SFAS 157 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. A brief description of those three levels is as follows:



| |  |  | Level 1: Observable inputs such as quoted prices in active markets for identical assets of liabilities.
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.
| | - |  | -----------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3: Significant unobservable inputs.
| | - |  | -----------------------------------------

The
Companys financial assets subject to fair value measurements are as follows:



|                           |  |                              |            |                                                                   |         |            |         |   |  |  
|-------------------------- |  | ---------------------------- | ---------- | ----------------------------------------------------------------- | ------- | ---------- | ------- | - |  | -
|                           |  | Fair Valueas ofJune 30, 2008 |            | Fair Value Measurements atJune 30, 2008Using Fair Value Hierarchy
|                           |  |                              | Level 1    |                                                                   | Level 2 |            | Level 3
|Cash and cash equivalents  |  | $                            | 606,558    |                                                                   | $       | 606,598    |         |  |  | 
|                           |  |                              |            |                                                                   |         |            |         |   |  |  
|Cash held in trust account |  |                              | 96,779,356 |                                                                   |         | 96,779,356 |         |  |  | 
|                           |  |                              |            |                                                                   |         |            |         |   |  |  
|Total                      |  | $                            | 97,385,914 |                                                                   | $       | 97,385,914 |         |  |  | 
|                           |  |                              |            |                                                                   |         |            |         |   |  |  

As of June 30, 2008, the Company does not have any financial liabilities. No gains or losses resulting for the
fair value measurement of financial assets were included in the Companys earnings. The adoption of SFAS No. 157 has not impacted the Companys results of operations and financial position.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS 159).
SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. SFAS 159 also establishes presentation and disclosure requirements designed
to facilitate comparisons between entities that chose different measurement attributes for similar assets and liabilities. SFAS 159 is effective for financial statements issued for fiscal years beginning after November 15, 2007. The Company has
elected not to measure any eligible items at fair value. Accordingly, the adoption of SFAS 157 has not impacted the Companys results of operations and financial position.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect
on the accompanying financial statements.

3. Share-Based Payments

SFAS 123R requires all share-based payments, including grants of employee stock options to employees to be recognized in the financial statements based on their fair values. Total stock-based compensation for the six
months ended June 30, 2008 and 2007 was $1,562,000 and $1,236,582 respectively. Stock-based compensation for the period February 28, 2006 (inception) to June 30, 2008 was $4,360,582.

4. Income Taxes

The Company accounts for income
taxes under SFAS No. 109, Accounting for Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and
liabilities.





---

Significant components of the Companys deferred tax asset are as follows:



|                                           |  |              |           |   |                  |   |           |  
|------------------------------------------ |  | ------------ | --------- | - | ---------------- | - | --------- | -
|                                           |  | June 30,2008 |           |   | December 31,2007 |  
|Expenses deferred for income tax purposes: |  |              | 1,845,962 |   |                  |   | 1,390,509 |  
|Less: valuation allowance                  |  |              | (503,777  | ) |                  |   | (237,018  | )
|                                           |  |              |           |   |                  |   |           |  
|Totals                                     |  | $            | 1,342,185 |   |                  | $ | 1,153,491 |  
|                                           |  |              |           |   |                  |   |           |  

5. Note Payable, Stockholder

The Company issued an unsecured promissory note to Cohen Bros., a related party, totaling $300,000 on March 27, 2006 in connection with the payment by Cohen Bros. of expenses of the Public Offering such as SEC
registration fees, NASD registration fees, blue sky fees and expenses, fees relating to listing the Companys securities on the American Stock Exchange and legal and accounting fees and expenses. The note did not bear interest and was payable
in full on the earlier of (i) December 31, 2007 or (ii) three (3) business days after the date on which the Company consummated the Public Offering. Due to the short-term nature of the promissory note, the fair value of the note
approximates its carrying value. The note was repaid by the Company on February 12, 2007.

6. Commitments

The Company has agreed to pay to Cohen Brothers, LLC, the parent of Cohen Bros. and a related party, $7,500 a month for no more than 24 months for office
space and general and administrative expenses, commencing on February 7, 2007 and terminating upon the date the Company consummates a business combination.

7. Preferred Stock

The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting
and other rights and preferences, as may be determined from time to time by the Board of Directors.

8. Subsequent Events

In July 2008, the Company met the condition under its certificate of incorporation that permits it until February 7, 2009 to complete a
business combination.



---

|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------- | -------------------------------------------------------------------------------------

Forward-Looking Statements

Statements in Managements Discussion and Analysis of
Financial Condition and Results of Operations and elsewhere in this Quarterly Report on Form 10-Q with respect to our beliefs, plans, objectives, goals, expectations, anticipations, intentions, financial condition, results of operations,
future performance and business constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We have based these forward-looking statements on
managements current expectations about future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and by words such as may, could, should,
would, believe, expect, anticipate, estimate, intend, plan or other similar words or expressions.

Any or all of the forward-looking statements in this report and in any other public statements we make may turn out to be wrong. This can occur as a
result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties. We discuss many of the risks and uncertainties that may impact our business in Item 1A, Risk Factors, in our Annual Report on Form
10-K for the year ended December 31, 2007. Because of these risks and uncertainties, our actual results may differ materially from those that might be anticipated from our forward-looking statements. Other factors beyond those referred to above
could also adversely affect us. Therefore, you are cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law.

General

We were formed on February 28, 2006 as a blank check company for the purpose of effecting a business combination with one or more businesses in the insurance industry. We intend to use cash derived from the
proceeds of our initial public offering and the private placement and/or equity or debt financing to effect a business combination.

If we issue additional
shares of our capital stock as consideration in a business combination it may result in:

| |  |  | significant dilution of the interest of our public investors in our company
| | - |  | ---------------------------------------------------------------------------



| |  |  | a change in control of our company (if we issue a sufficient number of shares), which may among other things, result in the resignation or removal of our existing
officers and directors and could reduce or eliminate our ability to use our net operating loss carry-forwards, if any, for tax purposes; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | reduced market prices for our common stock and warrants.
| | - |  | --------------------------------------------------------

Similarly, if we issue notes or other debt securities, it could result in:



| |  |  | increased expenses to pay debt service;
| | - |  | ---------------------------------------



| |  |  | if the debt has a variable rate, increased vulnerability to changes in market interest rates, since our revenues may not increase, or may decrease, if interest
rates rise;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---

| |  |  | default and foreclosure on our assets if our operating revenues after a business combination are insufficient to service our debt obligations;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | acceleration of our obligations to repay the indebtedness even if we have made all principal and interest payments when due if the debt security contains covenants
that require the maintenance of certain financial ratios or reserves and any such covenant is breached without a waiver or renegotiation of that covenant;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our inability, or limitations on our ability, to obtain additional financing, if necessary, if the debt contains covenants restricting our ability to obtain
additional financing while the debt is outstanding;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | prohibitions or limitations on our ability to pay dividends on our common stock;
| | - |  | --------------------------------------------------------------------------------



| |  |  | requirements that we dedicate a substantial portion of our cash flow to pay principal and interest on our debt, which would reduce the funds available for dividends
on our common stock, working capital, capital expenditures, business combinations and other general corporate purposes; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limitations or prohibitions on business combinations, capital expenditures or other business operations unless we meet particular financial or operational tests.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

Results of Operation and Liquidity

Our entire activity since inception has been limited to organizational activities, activities relating to our initial public offering and, since our initial public offering, activities relating to identifying and
evaluating prospective acquisition targets. We have neither engaged in any operations nor generated any revenues to date, other than interest income earned on the proceeds of our initial public offering and private placement.

For the three months ended June 30, 2008 and 2007, our net income (loss) after taxes was $(829,302) and $75,213, respectively. Since we did not have
any operations, all of our income was derived from interest income, all of which was earned on funds held in the trust account. Our interest income for the three months ended June 30, 2008 was $158,374, as compared to $1,099,567 for the three months
ended June 30, 2007. The reduction in interest income was due to a decrease in yields obtainable on the Treasury Bills in which we invested the funds held in the trust account during the three months ended June 30, 2007, resulting from the
significant changes in the credit markets beginning in the second half of 2007. Our operating expenses during the three months ended June 30, 2008 and 2007 were $987,676 and $984,367, respectively, consisting primarily of stock based
compensation of $781,000 for the three months ended June 30, 2008 and 2007, expenses related to pursuing potential business combinations, professional fees, and the monthly administrative fee of $7,500 paid to Cohen Brothers, LLC, d/b/a
Cohen & Company, the parent of our sponsor, Cohen Bros. Acquisitions, which we refer to as our Sponsor.

For the six months ended
June 30, 2008 and 2007, our net income (loss) after taxes was $(1,482,727) and $35,624, respectively. Since we did not have any operations, all of our income was derived from interest income, all of which was earned on funds held in the trust
account. Our interest income for the six months ended June 30, 2008 was $556,693, as compared to $1,770,441 for the six months ended June 30, 2007. The reduction in interest income was due from reduced yields on the Treasury Bills, as referred to in
the preceding paragraph. Our operating expenses during the six months ended June 30, 2008 and 2007 were $2,039,420 and $1,716,135, respectively, consisting primarily of stock based compensation of $1,562,000 and $1,236,582, respectively,
expenses related to pursuing a business combination, professional fees, and the monthly administrative fee of $7,500 paid to Cohen Brothers, LLC.

On January 30, 2007, we sold 250,000 units in a private placement to our Sponsor and on February 7, 2007, we consummated our initial public offering of 9,700,000 units. Each unit in the private placement and the public offering
consisted of one share of common stock and one redeemable common stock purchase warrant. Each warrant entitles the holder to purchase from us one share of our common



---

stock at an exercise price of $8.00. Our common stock and warrants started trading separately as of May 2, 2007. The gross proceeds from the sale of the
units in our initial public offering and the private placement were $99,500,000. Of that amount, after deducting offering expenses of $610,000 (including reimbursement of $300,000 advanced by our Sponsor to pay offering expenses), underwriting
discounts and commissions of $4,850,000, deferred underwriting compensation of $1,940,000 and working capital of $40,000, we deposited $92,060,000 in the Trust Account maintained by American Stock Transfer & Trust Company, as trustee, which
we refer to as the Trust Account. In addition, we deposited $1,940,000 of deferred underwriting compensation into the Trust Account. The gross proceeds from the sale of the additional 262,400 units to the underwriters of our initial public offering
in connection with the exercise of their overallotment option were $2,624,000. Of that amount, after deducting the underwriters discount of $52,480, we deposited $2,571,520 into the Trust Account (including $104,960 of deferred underwriting
compensation). The funds deposited in the Trust Account will be used to effectuate a business combination or, if we do not complete a business combination, returned to our public stockholders upon the implementation of a stockholder-approved plan of
dissolution and liquidation. We also have a $3,291,000 irrevocable letter of credit from our Sponsor issued by Commerce Bank held for the benefit of the Trust Account and the stockholders whose shares were issued in our initial public offering, who
we refer to as our public stockholders, which may be drawn upon by the trustee of our Trust Account to provide a pro rata payment to our public stockholders, if we do not complete a business combination within the required time periods, and funds in
the Trust Account are less than $10.00 per share. As of June 30, 2008, there was $96,779,356 held in the Trust Account, or $9.71 per share of common stock issued in our initial public offering (including $2,044,960 of deferred underwriting
compensation).

The amount of the letter of credit is the amount that, together with the proceeds of our initial public offering and the
amount of the underwriters deferred compensation, will result in the Trust Account and, to the extent required, American Stock Transfer & Trust Company, as trustee for the Trust Account, having available $10.00 per share for
distribution to our public stockholders. However, there is a risk that if third parties bring claims against us and seek reimbursement from the Trust Account, the amount in the Trust Account, together with amounts drawn on the letter of credit, will
be less than $10.00 per share. In order to protect the Trust Account to the extent necessary to ensure that claims by creditors do not reduce the amount in the Trust Account, our Sponsor has agreed to indemnify us for all claims of creditors that
have not executed a valid and binding waiver of their right to seek payment of amounts due to them out of the Trust Account, provided and to the extent that (with the approval of our Chief Executive Officer and the vote or written consent of no less
than a majority of our board of directors, including all of the non-independent directors) we have elected to forego obtaining valid and enforceable waivers from such creditors. We have not asked our Sponsor to reserve for such an eventuality, and
we cannot assure you that our Sponsor will be able to satisfy those obligations, despite the fact that Cohen & Company, the parent of our Sponsor, has agreed with our Sponsor to provide our Sponsor with any funds our Sponsor may require to
satisfy these obligations.

The fees charged by Commerce Bank in connection with the issuance of the letter of credit and all periodic and
other fees related to the letter of credit are being paid by our Sponsor and reimbursed by us from amounts we are permitted to draw from the interest earned on the Trust Account. However, any amounts drawn under the letter of credit will be the sole
responsibility of our Sponsor. The letter of credit will expire on the earlier to occur of:



| |  |  | completion of a business combination;
| | - |  | -------------------------------------



| |  |  | completion of our dissolution or liquidation; or
| | - |  | ------------------------------------------------



---

| |  |  | accrual of $5,600,000 of interest income, after payment of or reserves for taxes, on funds held in the Trust Account, including up to $2,500,000 of the interest
income that we may withdraw for working capital and, if necessary, up to $100,000 of the interest income that we may withdraw for expenses of dissolution and liquidation.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, the letter of credit will expire if on August 1, 2008 (or, if by August 1, 2008 a letter of intent or definitive agreement with
respect to a business combination has been executed but the business combination contemplated by such letter of intent or definitive agreement has not been consummated, on February 1, 2009) there is at least $99,624,000 in the Trust Account,
including interest earned on funds in the Trust Account but net of payment of or reserves for taxes, outstanding claims and accrued expenses payable out of the $2,500,000 we are permitted to draw as working capital and, if necessary, payment of up
to $100,000 for dissolution and liquidation expenses. To the extent that there is less than $99,624,000 in the Trust Account on August 1, 2008 or February 1, 2009, as applicable, our Sponsor may cause termination of the letter of credit by
contributing to the Trust Account an amount in cash equal to the difference between $99,624,000 and the amount then available in the Trust Account. Our Sponsor will receive no additional consideration for such contribution other than the termination
of its letter of credit obligations.

The funds held in the Trust Account are currently invested in Treasury Bills issued by the United
States government having a maturity of 180 days or less. We also have the option to invest the funds in money market funds meeting the criteria under Rule 2a-7 under the Investment Company Act of 1940, as amended. Interest earned will be applied in
the following order of priority:



| |  |  | payment of taxes on Trust Account interest;
| | - |  | -------------------------------------------



| |  |  | our working capital requirements before we complete a business combination, to a maximum of $2,500,000, and, if necessary, funding up to $100,000 of the costs of
our potential dissolution and liquidation;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | solely if we complete a business combination, payment of interest on the amount of deferred underwriters compensation payable to the underwriters in our
initial public offering; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the balance, if any, to us if we complete a business combination or to our public stockholders if we do not complete a business combination.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------

Through June 30, 2008, we have withdrawn all of the $2,500,000 of interest income on funds in the Trust Account we
are permitted to withdraw for working capital, and hold $606,558 in cash and cash equivalents. We believe that the funds we have on hand will be sufficient to fund our ongoing operations and costs relating to the acquisition of a target business or
to fund the costs and expenses relating to our liquidation and dissolution if we do not consummate a business combination.

We expect to
use substantially all of the funds in the Trust Account, other than interest applied as described above, to acquire a target business. To the extent that we use debt or equity securities as consideration in a business combination and do not use all
or any of the funds in the Trust Account, we will use the Trust Account funds in the operations of the target business.

Before our initial
public offering, our Sponsor loaned us $300,000, without interest, which we used to pay a portion of the expenses of our initial public offering, such as SEC registration fees, NASD registration fees, blue sky fees and expenses, fees relating to
listing our securities on the American Stock Exchange and legal and accounting fees and expenses. We repaid this loan from the proceeds of our initial public offering, as referred to above.



---

Critical Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Refer to our Annual Report on Form 10-K for the year ended
December 31, 2007 for a discussion of our critical accounting policies. During the six months ended June 30, 2008, there were no material changes to these policies.

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No., or FIN, 48 Accounting for Uncertainty in
Income Taxes, an interpretation of SFAS No. 109 (FIN 48). FIN 48 clarifies the accounting for uncertainty in tax positions recognized in a companys financial statements in accordance Statement of Financial Accounting
Standards (SFAS) No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to
be taken in a tax return. The Company adopted FIN 48 effective January 1, 2007. The adoption of FIN 48 did not have any impact on the accompanying financial statements since we have not identified any uncertain tax positions as defined by
FIN 48.

In December 2004, the FASB issued SFAS No. 123R, Share-Based Payments (SFAS 123R). SFAS 123R requires
all share-based payments, including grants of employee stock options to employees to be recognized in the financial statements based on their fair values. We adopted SFAS 123R effective January 1, 2006.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect
on the accompanying financial statements.

Off-Balance Sheet Arrangements

We have issued warrants in conjunction with our initial public offering and private placement, and have also issued incentive warrants. These warrants may
be deemed to be equity-linked derivatives and, accordingly, represent off balance sheet arrangements. As more particularly discussed in Note 3 to the notes to our audited financial statements contained in our annual report on Form 10-K for the year
ended December 31, 2007, and as permitted under Emerging Issues Task Force Issue 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Companys Own Stock, we account for these
warrants as stockholders equity and not as derivatives.

Contractual Obligations

We did not have any long term debt, capital lease obligations, operating lease obligations, purchase obligations or other long term liabilities at
June 30, 2008. On February 1, 2007, in connection with our organizing activities and our public offering, we entered into a Service Agreement with the parent of our Sponsor requiring us to pay $7,500 per month. The agreement terminates on
the earlier of the completion of a business combination or upon our dissolution.

Recent Developments

On July 16, 2008, we met the condition under our Amended and Restated Certificate of Incorporation that permits us until February 7, 2009
to complete an appropriate acquisition.



|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------

Market risk is the sensitivity of income to changes in interest rates, foreign exchange rates, commodity prices, equity prices, and other market-driven rates or prices. We are not presently engaged in and, unless we consummate a business
combination within the prescribed time periods, we may not



---

engage in, any substantive commercial business. Accordingly, we are not and, until such time as we consummate a business combination, we will not be, exposed
to risks associated with foreign exchange rates, commodity prices, equity prices or other market-driven rates or prices. The net proceeds of our initial public offering held in the Trust Account have been invested only in Treasury Bills issued by
the United States having a maturity of 180 days or less. Thus, we are subject to market risk primarily through the effect of changes in interest rates on government securities. If the interest rate on the Treasury Bills increased or decreased by 1%,
our interest income net of deferred interest on the deferred underwriting compensation would increase or decrease by $1,584 for the three months ended June 30, 2008 and $5,567 for the six months ended June 30, 2008.



|ITEM 4. | CONTROLS AND PROCEDURES
|------- | -----------------------

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports
pursuant to the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the periods specified in the SECs rules and forms, and that such information is accumulated and
communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, our
management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures.

Our management carried out an evaluation, with the
participation of our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of June 30, 2008. Based upon this evaluation, our
chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level.

Internal Control Over Financial Reporting

During the period covered by this report, there have been no significant changes
in our internal control over financial reporting (as defined in Rule 13-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



---

PART IIOTHER INFORMATION



|ITEM 6. | EXHIBITS
|------- | --------

(a) Exhibits



|            |  |                                                                                                                                                       
|----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                           
|            | 
|3.1         |  | Second Amended and Restated Certificate of Incorporation(1)                                                                                           
|            | 
|3.2         |  | Amended and Restated By-laws(2)                                                                                                                       
|            | 
|4.1         |  | Specimen Unit Certificate(3)                                                                                                                          
|            | 
|4.2         |  | Specimen Common Stock Certificate(2)                                                                                                                  
|            | 
|4.3         |  | Specimen Warrant Certificate(3)                                                                                                                       
|            | 
|4.4         |  | Form of Warrant Agreement between American Stock Transfer & Trust Company and Dekania Corp.(1)                                                        
|            | 
|4.5         |  | Form of Incentive Warrant(1)                                                                                                                          
|            | 
|4.6         |  | Form of Subscription Agreement between Dekania Corp. and Cohen Bros. Acquisitions, LLC(1)                                                             
|            | 
|10.1(a)     |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Cohen Bros. Acquisitions, LLC(2)
|            | 
|(b)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Daniel Cohen(2)                 
|            | 
|(c)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Christopher Ricciardi(2)        
|            | 
|(d)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and David Nathaniel(2)              
|            | 
|(e)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Thomas Friedberg(2)             
|            | 
|(f)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Paul Vernhes(2)                 
|            | 
|(g)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Carl de Stefanis(2)             
|            | 
|(h)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Scott DePetris(2)               



---

|            |  |                                                                                                                                                                                               
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                   
|            | 
|(i)         |  | Form of Letter Agreement among Dekania Corp., Maxim Group LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Steven Qua(2)                                                           
|            | 
|10.2        |  | Form of Investment Management Trust Agreement between American Stock Transfer & Trust Company and Dekania Corp.(1)                                                                            
|            | 
|10.3        |  | Form of Stock Escrow Agreement between Dekania Corp., American Stock Transfer & Trust Company and the Initial Stockholders(1)                                                                 
|            | 
|10.4        |  | Form of Letter Agreement between Cohen Brothers, LLC and Dekania Corp. regarding administrative support(2)                                                                                    
|            | 
|10.5        |  | Promissory Note dated March 27, 2006 issued to Cohen Bros. Acquisitions, LLC(5)                                                                                                               
|            | 
|10.6        |  | Form of Registration Rights Agreement among Dekania Corp. and the Initial Stockholders(4)                                                                                                     
|            | 
|10.7        |  | Form of Letter of Credit from Commerce Bank(3)                                                                                                                                                
|            | 
|10.8        |  | Form of Keep Well Agreement between Cohen Bros. Acquisitions, LLC and Cohen Brothers, LLC(2)                                                                                                  
|            | 
|31.1        |  | Certification of Chief Executive Officer pursuant to Rules 13a-14a and 15d-14a of the Securities and Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002
|            | 
|31.2        |  | Certification of Chief Financial Officer pursuant to Rules 13a-14a and 15d-14a of the Securities and Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002
|            | 
|32.1        |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350                                                                                                                   
|            | 
|32.2        |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350                                                                                                                   





|(1) | Incorporated by reference to Dekania Corp.s registration statement on Form S-1/A filed on January 31, 2007) (File No. 333-134776).
|--- | -----------------------------------------------------------------------------------------------------------------------------------



|(2) | Incorporated by reference to Dekania Corp.s registration statement on Form S-1/A filed on August 14, 2006 (File No. 333-134776)
|--- | --------------------------------------------------------------------------------------------------------------------------------



|(3) | Incorporated by reference to Dekania Corp.s registration statement on Form S-1/A filed on October 10, 2006 (File No. 333-134776).
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|(4) | Incorporated by reference to Dekania Corp.s registration statement on Form S-1/A filed on September 15, 2006 (File No. 333-134776)
|--- | -----------------------------------------------------------------------------------------------------------------------------------



|(5) | Incorporated by reference to Dekania Corp.s registration statement on Form S-1 filed on June 6, 2006 (File No. 333-134776).
|--- | ----------------------------------------------------------------------------------------------------------------------------



---

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                       |  |  |  |               |  |                         |  |                                                                    
|---------------------- |  |  |  | ------------- |  | ----------------------- |  | -------------------------------------------------------------------
|                       |  |  |  | DEKANIA CORP.
|                       |  |  | 
|Dated: August 14, 2008 |  |  |  | By:           |  | /s/ THOMAS H. FRIEDBERG
|                       |  |  |  |               |  |                         |  | Thomas H. Friedberg Chairman, President and Chief
Executive Officer