UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB   XQUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2006  ___ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____   MARKET DATA CONSULTANTS, INC.(Name of small business issuer in its charter) Delaware
(State or jurisdiction of incorporation or
organization)000-51817
(Commission File Number)98-0485299
I.R.S. Employer Identification No.Rm 1901-2, Lucky Building
39 Wellington Street, Central, Hong Kong(Address of principal executive offices)Issuers telephone number (852) 2802-8663  Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes /x / No / / As of October 4, 2006, there were 8,500,000 shares of voting common stock, $.001 par value, of Market Data Consultants, Inc. issued and outstanding. Transitional Small Business Disclosure Format (check one): Yes / / No /x /  - 1 -     Table of Contents  PART I 3 ITEM 1. FINANCIAL STATEMENTS 3 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 12 ITEM 3. CONTROLS AND PROCEDURES 15 PART II 15 ITEM 1. LEGAL PROCEEDINGS 15 ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS 15 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 15 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 15 ITEM 5. OTHER INFORMATION 15 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 16 SIGNATURES 16              - 2 -    PART I    Item 1. Financial Statements   MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  CONDENSED FINANCIAL STATEMENTS  FOR THE SIX MONTHS ENDED AUGUST 31, 2006 (UNAUDITED)     INDEX    PageCondensed balance sheets4Condensed statements of operations5Condensed statements of stockholders (deficit)6Condensed statements of cash flows7Notes to condensed financial statements8 -11            - 3 -    MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  CONDENSED BALANCE SHEETS  AS OF AUGUST 31, 2006 (UNAUDITED) AND FEBRUARY 28, 2006   As ofAs ofAugust 31,February 28,20062006(Unaudited)(Audited)US$US$ASSETSCurrent assetsCash and cash equivalents2,2642,325Total assets2,2642,325LIABILITIES AND STOCKHOLDERS (DEFICIT)Current liabilitiesAccrued audit fee1,8663,225Amount due to a stockholder (Note 7)7,5321,544Total liabilities9,3984,769Stockholders (deficit)Common stock - US$0.001 par value (Note 4) :authorized 80,000,000 shares; 1,600,000 shares issued andoutstanding1,6001,600Accumulated deficit during the development stage(8,743)(4,044)Accumulated other comprehensive income9-Total stockholders (deficit)(7,134)(2,444)Total liabilities and stockholders (deficit)2,2642,325            See accompanying notes to condensed financial statements.  - 4 -     MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  CONDENSED STATEMENTS OF OPERATIONS  FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2006  AND FROM INCEPTION ON DECEMBER 15, 2005 THROUGH AUGUST 31, 2006   FromDecember 15, 2005CumulativeFor the threeFor the six(Date oftotal sincemonths endedmonths endedinception) toinceptionAugust 31, 2006August 31, 2006February 28, 2006(Unaudited)(Unaudited)(Unaudited)(Audited)US$US$US$US$Revenue----ExpensesFormation expenses563--563General and administrativeexpenses8,2122,8864,7283,484Loss from operations(8,775)(2,886)(4,728)(4,047)Interest income3215293Loss before income taxes(8,743)(2,871)(4,699)(4,044)Income taxes (Note 2)----Net loss(8,743)(2,871)(4,699)(4,044)Net loss per share:Basic and diluted (Note 3)(0.01)(0.00)(0.00)(0.00)Weighted average number ofshares:Basic and diluted1,446,1541,600,0001,600,0001,073,684           See accompanying notes to condensed financial statements.   - 5 -    MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)   CONDENSED STATEMENTS OF STOCKHOLDERS (DEFICIT)  FROM INCEPTION ON DECEMBER 15, 2005 THROUGH AUGUST 31, 2006   Common stockAccumulateddeficitAccumulatedduring theotherNo. ofdevelopmentcomprehensivesharesAmountstageincomeTotalUS$US$US$US$Issuance of common stock onJanuary 9, 2006 (Note 4)1,600,0001,600--1,600Net loss from December 15, 2005(Date of Inception) to February 28, 2006--(4,044)-(4,044)Balance, February 28, 20061,600,0001,600(4,044)-(2,444)Comprehensive loss:Net loss, six months ended August 31, 2006--(4,699)-(4,699)Foreign currency translation---99(4,690)Balance, August 31, 20061,600,0001,600(8,743)9(7,134)                 See accompanying notes to condensed financial statements.   - 6 -     MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  CONDENSED STATEMENTS OF CASH FLOWS  FOR THE SIX MONTHS ENDED AUGUST 31, 2006  AND FROM INCEPTION ON DECEMBER 15, 2005 THROUGH AUGUST 31, 2006   FromDecember 152005 (date ofCumulativeFor the sixinception) tototal sincemonths endedFebruary 28,inceptionAugust 31, 20062006(Unaudited)(Unaudited)(Audited)US$US$US$Cash flows from operating activities:Net loss(8,743)(4,699)(4,044)Change in liabilities:Accrued audit fee1,866(1,359)3,225Net cash used in operating activities(6,877)(6,058)(819)Cash flows from financing activities:Proceeds from issuance of common stock1,600-1,600Advance from a stockholder7,5325,9881,544Net cash provided by financing activities9,1325,9883,144Effect of rate changes on cash99-Net change in cash and cash equivalents2,264(61)2,325Cash and cash equivalents, beginning of period-2,325-Cash and cash equivalents, end of period2,2642,2642,325Cash paid for:Income taxes paid---Interest paid---      See accompanying notes to condensed financial statements.   - 7 -     MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  NOTES TO CONDENSED FINANCIAL STATEMENTS  AUGUST 31, 2006 (UNAUDITED)   1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES  Corporate information  Market Data Consultants, Inc. (the Company) was incorporated in the State of Delaware on December 15, 2005 for the purpose of exploring new business opportunities.    On February 1, 2006, the Company entered into a service agreement with Market Data Consultants Limited (MDCL), which is a computer software company and has acquired certain computer software license.  MDCL is not a related company although its name is similar to the name of the Company.  Pursuant to the agreement, the Company shall provide consultancy services to MDCL by looking for new business opportunities, referring potential clients to MDCL and preparing a memorandum of information efficiently.  The Company has not rendered any consultancy services to MDCL and is a development stage company during the period.  Continuance of operations  These financial statements are prepared on a going concern basis, which considers the realization of assets and satisfaction of liabilities in the normal course of business.  As of August 31, 2006, the Company had cash and cash equivalents of US$2,264, net current liabilities and stockholders (deficit) of US$7,134 and accumulated deficit during the development stage of US$8,743 respectively.  These factors raise substantial doubt about the Companys ability to continue as a going concern.  Management plans on the continuation of the Company as a going concern include financing the Companys existing and future operations through additional issuance of common stock and/or advances from the sole stockholder and seeking for profitable business opportunities.  However, the Company has no assurance with respect to these plans.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.  Cash and cash equivalents  Cash equivalents comprise highly liquid investments with original maturity of three months or less.  At August 31, 2006, cash and cash equivalents consist of bank balance of US$2,264 denominated in Hong Kong dollars (HKD).  Concentration of risk  The Company keeps cash in HKD and maintains a HKD savings account with a commercial bank in Hong Kong, which are financial instruments that are potentially subject to concentration of credit risk.  During the reporting period, the Company has not engaged in any hedging activities.  - 8 -     MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  NOTES TO CONDENSED FINANCIAL STATEMENTS  AUGUST 31, 2006 (UNAUDITED)   1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTD)  Income taxes  The Company accounts for income tax in accordance with Statement of Financial Accounting Standards No. 109, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns.  Deferred income taxes are recognized for all significant temporary differences between tax and financial statement bases of assets and liabilities.  A valuation allowance is recognized on deferred tax assets when it is more likely than not that these deferred tax assets will not be realized.  Foreign currency translation  The Company keeps cash and cash equivalents and incurred expenses in HKD during the reporting period and thus HKD is considered to be the functional currency.  Transactions denominated in currencies other than HKD are translated into HKD at the applicable rates of exchange prevailing at the dates of the transactions.  Monetary assets and liabilities denominated in other currencies are translated into HKD at the rates of exchange prevailing at the balance sheet date.  Exchange gains and losses are included in the determination of net income.  For financial reporting purposes, HKD has been translated into United States dollars (US$) as the reporting currency.  Assets and liabilities are translated into US$ at the exchange rate in effect at the period end.  Income and expenses are translated at average exchange rate prevailing during the period.  Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders equity as Accumulated other comprehensive income - foreign currency translation adjustments.  Gains and losses resulting from foreign currency translation are included in other comprehensive income/(loss).  Conversion of amounts from Hong Kong dollars into United States dollars has been made at the exchange rate of US$1.00 = HK$7.77 for the six months ended August 31, 2006 and US$1.00 = HK$7.75 from inception on December 15, 2005 to February 28, 2006.  There is a comprehensive income of US$9 due to the effect of rate changes during the reporting period.  Use of estimates  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in these financial statements and the accompanying notes during the reporting period.  Actual results could differ from those estimates.  - 9 -     MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  NOTES TO CONDENSED FINANCIAL STATEMENTS  AUGUST 31, 2006 (UNAUDITED)   1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTD)  Fair values of financial instruments  Financial instruments include cash and cash equivalents.  Management of the Company does not believe that the Company is subject to significant interest, currency or credit risks arising from these financial instruments.  The respective carrying values of financial instruments approximate their fair values.  Fair values were assumed to approximate carrying values since they are short-term in nature or they are receivable or payable on demand.   2. INCOME TAXES  A reconciliation of income taxes at statutory rate is as follows :- FromDecember 15,2005 (date ofFor the threeFor the sixinception) tomonths endedmonths endedFebruary 28,August 31, 2006August 31, 20062006(Unaudited)(Unaudited)(Audited)US$US$US$Loss before income taxes(2,871)(4,699)(4,044)Expected benefit at statutory rate of 34%(976)(1,598)(1,375)Valuation allowance9761,5981,375---  Recognized deferred income tax asset is as follows :- As ofAs ofFebruary 28,August 31, 20062006(Unaudited)(Audited)US$US$Operating losses available for future periods2,9731,375Valuation allowance(2,973)(1,375)--  At August 31, 2006, the Company has incurred operating losses of US$8,743 which, if unutilized, will expire through to 2026.  Future tax benefits arising as a result of these losses have been offset by a valuation allowance.  - 10 -     MARKET DATA CONSULTANTS, INC.  (A DEVELOPMENT STAGE COMPANY)  NOTES TO CONDENSED FINANCIAL STATEMENTS  AUGUST 31, 2006 (UNAUDITED)     3. NET LOSS PER SHARE  During the reporting period, the Company did not issue any dilutive instruments.  Accordingly, the reported basic and diluted loss per share is the same.   4. COMMON STOCK  The Company was incorporated on December 15, 2005 with authorized capital of 80,000,000 shares of common stock of US$0.001 par value.  On January 9, 2006, 1,600,000 shares of common stock of US$0.001 par value totaling US$1,600 was issued for cash.   5. STOCK INCENTIVE PLAN  The Company has not established any stock incentive plan since its incorporation.   6. COMMITMENTS AND CONTINGENCIES  The Company had no commitments or contingent liabilities as of August 31, 2006.   7. RELATED PARTY TRANSACTIONS  The sole stockholder, who is also the director, advanced US$1,544 and US$5,988 to the Company financing its working capital for the period from inception on December 15, 2005 through February 28, 2006 and for the six months ended August 31, 2006, respectively.  The advance is interest-free, unsecured and repayable on demand.  7. SUBSEQUENT EVENT  On September 10, 2006, 6,900,000 shares of common stock of US$0.001 par value totaling US$6,900 were issued for cash.    - 11 -    Item 2. Managements Discussion and Analysis or Plan of Operation   Forward Looking Statements  Certain statements in this report, includes forward-looking statements that include risks and uncertainties. We use words such as "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions to identify such forward-looking statements. This Form also contains forward-looking statements attributed to certain third parties relating to their estimates regarding the operation and growth of our business and spending. You should not place undue reliance on these forward-looking statements, which apply only as of the date hereof. We have based these forward-looking statements on our current expectations and projections about future events. Our actual results could differ materially from those discussed in this registration as we are a development stage company with no operations to date. Our ability to generate revenue is subject to substantial risks.  Management's Discussion and Analysis or Plan of Operation We are a development stage company formed to explore business opportunities and provide consulting services to business partners. To date, the Companys only activities have consisted of developing its business plan, raising initial capital, and signing an agreement with a business partner. On February 1, 2006, the Company entered into an agreement with Market Data Consultants Limited (MDC Limited), a British Virgin Islands corporation, in which it agreed to resell a market data management software product called INFOmatch (the Products). MDC Limited acquired the right to license INFOmatch from a Netherlands-based company called Screen Consultants (Screen) on November 7, 2005. INFOmatch is a software package that identifies and organizes costs for items related to information services used by professional investors in the financial investment industry.  Our proposed business plan is to introduce MDC Limited to new business opportunities by locating potential customers of the Products within Hong Kong, Singapore, Australia, Taiwan, and China.  Because the Company is most familiar with the Hong Kong market, it will focus on the Hong Kong region first. MDCI will also provide consulting services to MDC Limited. We will conduct research on market information, on statistical data, and on performance of companies that provide market data consulting services within the region and will provide analysis and reports to MDC Limited. Such research will be used to assist MDC Limiteds management in better understanding the market trend for strategic planning purposes.  We are also responsible for designing the marketing and promotional plans to market INFOmatch for MDC Limited. We will bear the costs of hiring and retaining marketing and public relations professionals but will not bear the organizing costs associated with such marketing events. The costs of organizing these events will be reimbursed by MDC Limited according to actual expenses. We need to obtain approval from MDC Limited for the marketing proposals and estimated expenses before implementing these plans.     - 12 -    MDCI is entitled to receive a commission of 40% of the total contract value for any new client which MDCI brings to MDC Limited.Moreover, MDCI will receive a total amount of $200,000 from MDC Limited for the consulting services we will provide in the first year. The Company has minimal cash and has not yet earned revenue from any business operations.  There is no assurance that we will achieve or sustain profitability on an annual or quarterly basis. Because the Company has been a development stage company since inception and has not generated revenues, the Company operates with minimal overhead.  The Company will need to raise additional funds, either in the form of an advance or an equity investment by the Company's President; or in the form of equity investment by outside investors, or some combination of each. Liquidity and Capital Resources As of August 31, 2006, the Company remains in the development stage. For the period ended August 31, 2006, the Company's balance sheet reflects current and total assets of $2,264 in the form of cash and cash equivalent, net current liability and stockholders (deficit) of $7,134 and accumulated deficit during the development stage of $8,743 respectively. The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities. The Company has no agreement in place with its shareholders or other persons to pay expenses on its behalf, but it is currently anticipated that the Company will rely on loans from the sole shareholder, Mr. Wilson Cheung, to pay any daily operating expenses prior to any fund raising exercise. The Company anticipates that this arrangement will not change until the Company is able to consummate a business transaction. Plan of Operations in the next 12 months The Company recorded a net loss of $2,871 and $4,699 for the three and six month periods ended August 31, 2006, compared to a net loss of $4,044 from inception on December 15, 2005 through February 28, 2006. As the Company has minimal cash and has not yet earned revenue from any business operations, it is planning to raise additional capital through the sale of 200,000 shares common stock in the next 12 months. Through the sale of 200,000 shares of common stock at a price of $0.5 per share, it is expected that the Company will raise an aggregate of $100,000 for operating expenses and business expansion.  The Company plans to allocate 30% of any proceeds received to cover the expenses incurred in the offering.  If the offering is 30% or less subscribed, all proceeds will be used to pay the expenses of the offering.  We will use the proceeds from this offering to develop our business and acquire equipment to improve our efficiency.  If the offering is fully subscribed, we plans to allocate 55% of the proceeds received to working capital. If only 75% or 50% of the offering is subscribed, we may allocate 45% or 25% of the proceeds received to working capital, respectively. The remaining 5% and 10% of any proceeds received will be used for future administrative expenses and business development.  Funds allocated to working capital are intended to be used for hiring two employees in the coming 12 months. One employee will be a professional salesperson, and the other will be responsible for drafting the marketing reports and promotional plans for MDC Limited. If we do  - 13 -    not obtain enough funds from this offering, we may hire only one marketing professional to assist MDCIs Director and President, Mr. Wilson Cheung.  Funds allocated to business development are intended to be used to prepare marketing materials for us to locate new business partners. We hope to build up our corporate reputation and align with more business partners to provide our consultancy services to them. The funds allocated to administrative expenses are intended to be used for indirect expenses to maintain the daily operation of the business, such as travel expenses, stationary and postage expenses, and utility expenses. Management plans to temporarily advance capital to maintain normal operations. Management has agreed to provide temporary financing to the Company, but is not contractually obligated to do so. If we fail to raise additional funding, we may have to delay, scale back or discontinue some or all of our operations.  The Company does not maintain an office and its employees will be stationed at the office of the President, for which the Company pays no rent. It is expected that the Company will not purchase any property in the coming 12 months.  Employees  At present, we have no full or part-time employees. MDCI is currently managed by Mr. Wilson Kin Cheung, the President and Director of the Company. Mr. Cheung devotes approximately 25% of his time to our operations and we have not signed any employee agreement with Mr. Cheung.  We presently do not have pension, health, annuity, insurance, stock options, profit sharing and similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any employees.  Product research and development  Although we are not the developer of the Products, we can obtain feedback from our clients and inform MDC Limited of that feedback. We will invite clients to fill in feedback questionnaires to express their opinions and comments on the usage of the Products and communicate with MDC Limited from time to time.  We will also use the feedback to request changes from MDC Limited. Description of Property Office Facilities We have no real property and currently operate from limited office space provided by Easterly Financial Investment Limited (Easterly), for which we pay no rent. Easterly is located at Room 1901-02, Lucky Building, 39 Wellington Street, Central, Hong Kong. We have no plans to obtain additional office space for the next twelve months until our business is more developed. Description of Securities The Company's authorized capital is 80,000,000 shares of common stock with $0.001 par value. As of August 31, 2006, there were 1,600,000 common voting shares issued and outstanding.  - 14 -    On September 10, 2006, 6,900,000 shares of common stock of US$0.001 par value totaling US$6,900 were issued for cash.    Item 3. Controls and Procedures  The Company's Chief Executive Officer and Chief Financial Officer (or those persons performing similar functions), after evaluating the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended) as of a date within 90 days before the filing date of this quarterly report (the "Evaluation Date"), have concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures were designed to ensure the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. The Companys Chief Executive Officer and Chief Financial Officer have also concluded that, as of the Evaluation Date, the Companys disclosure controls and procedures were effective to achieve these goals.  There were no significant changes in the Company's internal controls or in other factors that could significantly affect the internal controls subsequent to the Evaluation Date.     PART II    Item 1. Legal Proceedings   The Company knows of no material, active or pending legal proceedings against them; nor is the Company involved as a plaintiff in any material proceeding or pending litigation.    Item 2. Changes in Securities and Use of Proceeds  None   Item 3. Defaults Upon Senior Securities  None    Item 4. Submission of Matters to a Vote of Security Holders  None    Item 5. Other Information  None.     - 15 -      Item 6. Exhibits    (a) Exhibits  The following exhibits are filed herewith:  3.1 Articles of Incorporation (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on May 18, 2006).  3.2 Bylaws (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on May 18, 2006).  10.1 Contract with Market Data Consultants Limited signed on February 1, 2006 (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on May 18, 2006).  31.1 Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.  31.2 Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.  32.1 Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  32.2 Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.      - 16 -    SIGNATURES  In accordance with Section 12 of the Securities Exchange Act of 1934, the registrant caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.  MARKET DATA CONSULTANTS, INC.  By:/s/ Wilson Cheung Wilson Cheung, President and Director  Date: October 12, 2006   By:/s/ Wilson Cheung Wilson Cheung, Chief Financial Officer  Date: October 12, 2006             - 17 -