UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,
D.C.  FORM 10-Q (Mark
One) X QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2008 TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACTFor the transition
period from to Commission
file number 333-103621 CYCLON CAPITAL CORP. DELAWARE
333-11714(State or other jurisdiction of incorporation or
organization)
(IRS Employer Identification No.)  410 Park
Avenue, 15th Floor New
York, NY 10022 (Address
of principal executive offices)  (212) 231-8406(Issuers telephone number) (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 Securities Exchange
Act of 1934 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 the
definitions of large accelerated filer, accelerated filer and smaller
reporting company in Rule 12b-2 of the Exchange Act..  Large accelerated filer
[  ]
Accelerated filer
[  ]Non-accelerated filer
[  ] (Do not check if a smaller reporting
company)
Smaller Reporting Company
[X]  Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).
               Yes
 [    ]  No [X]  APPLICABLE ONLY TO CORPORATE ISSUERS As of July 31, 2008 the Company had 82,308,415 issued and
outstanding shares of its common stock. Transitional Small Business Disclosure Format (Check one): Yes [
 ]      No [X]   PART I
 FINANCIAL INFORMATION  ITEM 1.  INTERIM
FINANCIAL STATEMENTS Consolidated
Balance Sheets 4 Consolidated
Statements of Operations 5 Consolidated
Statements of Cash Flows 6 Notes
to Consolidated Financial Statements 7  ITEM 2.
 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION Plan
of Operations 8 Liquidity
and Capital Resources 9 Special
Note Regarding Forward Looking Statements 9  ITEM 3. CONTROLS AND PROCEDURES  PART II - OTHER
INFORMATION  ITEM
1.  LEGAL PROCEEDINGS 10  ITEM
2.  CHANGES IN SECURITIES AND USE OF PROCEEDS 10  ITEM
3.  DEFAULTS UPON SENIOR SECURITIES 10  ITEM
4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 10  ITEM
5.  OTHER INFORMATION 10  ITEM
6.  EXHIBITS AND REPORTS ON FORM 8-K 10  SIGNATURES 11  CERTIFICATIONS 12    PART I - FINANCIAL INFORMATION  The interim Financial Statements of the Company, prepared without
audit and required to be filed with this 10-QSB Quarterly Report were prepared
by management and commence on the following page, together with related Notes.
 In the opinion of management, the interim Financial Statements fairly
present the financial condition of the Company. The Company's auditors have
expressed a going concern qualification with respect to the Company's audited
financial statements at April 30, 2008.   Item 1. Interim Financial Statements  CYCLON CAPITAL
CORPORATION (A
Development Stage Company) INTERIM
CONSOLIDATED BALANCE SHEETS (Unaudited)  July 31
2008

April 30
2008unauditedASSETSCURRENT
ASSETSCash

$
184,032

$
3,160Total
current assets


184,032


3,160Due from
Martial Arts Xtreme


153,373


-Due from
Edelweiss Investment, AG


317,385


317,385Due from
Europlay Malta Ltd


788,787


788,787Due from Der
Greif


425,572


425,572TOTAL ASSETS

$
1,869,149

$
1,534,904LIABILITIES
AND STOCKHOLDERS EQUITY (DEFICIT)CURRENT
LIABILITIESAccounts
payable and accrued liabilities

$
11,641

$
11,641Total
current liabilities


11,641


11,641STOCKHOLDERS
EQUITY (DEFICIT )Capital stock
(Note 4)Authorized
200,000,000
shares of common stock, $0.0001 par value,Issued
and outstanding 82,308,415 shares of common stock


8,231


7,971(comparative
period 79,711,012)Additional
paid-in capital


19,152,307


17,152,567Subscription
receivable


(10,746,988
)

(10,746,988
)Deficit
accumulated during the development stage


(6,556,042
)

(4,890,287
)Total
stockholders equity


1,857,508


1,523,263TOTAL
LIABILITIES AND STOCKHOLDERS EQUITY

$
1,869,149

$
1,534,904    The
accompanying notes are an integral part of these financial statements    CYCLON
CAPITAL CORPORATION (A
Development Stage Company) INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)  Three months  ended
July 31, 2008
(Unaudited)

Three months
ended
July 31, 2007
(Unaudited)
Cumulative results
of
operations from
August 26, 2005
(date of inception)
to
July 31, 2008
(Unaudited)Event
revenue

$
-

$
-

$
192,220ExpensesEvent
costs


-


-


786,196Project
development costs


766,574


-


766,574Professional
fees


50,796


35,247


873,823Public
relations


73,219


-


73,219Corporate
reorganization


548,732


-


548,732Consulting
fees


-


-


191,378Financial
fees


-


-


1,384,500Directors
fees


10,000


-


10,000Travel,
meals, lodging


97,265


-


194,994General and
administration


119,169


17,333


213,4031,665,755


52,580


5,042,819Net loss from
operations


(1,665,755
)

(52,580
)

(4,850,599
)Other
expenses:Start-up costs
relating to the set-up of the office in Germany


-


-


(1,309,900
)Write off of e
Lolly, AG  business to business lending web site


-


-


(395,543
)Net Loss for
the period

$
(1,665,755
)
$
(52,580
)
$
(6,556,042
)BASIC
AND DILUTED NET LOSS PER SHARE

$
(0.02
)
$
(0.00
)WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING


80,961,011


67,980,774   The
accompanying notes are an integral part of these financial statements      CYCLON
CAPITAL CORPORATION (A
Development Stage Company) INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)  Three

Three

Cumulative results of operations from inception
(August 26, 2005) to
July 31, 2008months
monthsended
endedJuly 31,
July 31,2008
2007Cash Flows
From Operating ActivitiesNet loss

$
(1,665,755
)
$
(52,580
)
$
(6,556,042
)Adjustment
to reconcile net loss to net cash used in operating activities :Non cash
expense  common stock for services


-


-


1,384,500Increase
(decrease) in accounts payable


-


-


-Increase in accrued liabilities


-


-


5,000Net Cash
Used In Operating Activities


(1,665,755
)

(52,580
)

(5,166,542
)Cash Flows
From Investing ActivitiesAdvances
receivable


(153,373
)

-


(1,685,117
)Net Cash
Used in Investing Activities


(153,373
)




(1,685,117
)Cash Flows
From Financing ActivitiesProceeds from
sale of common stock


2,000,000


-


7,029,050Related party
advance


-


35,000


6,641Net
Cash Provided By Financing Activities


2,000,000


35,000


7,035,691Net Increase
(Decrease) In Cash


180,872


(17,580
)

184,032Cash,
Beginning Of Period


3,160


156


-Cash, End Of
Period

$
184,032

$
5,643

$
184,032 Supplemental
cash flow information and noncash financing activities: Cash paid for: Interest

$
-

$
-

$
-

$
-

$
-Income
taxes

$
-

$
-

$
-

$
-

$
- The
accompanying notes are an integral part of these financial statements      CYCLON
CAPITAL CORPORATION (A
Development Stage Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS JULY 31,
2008 NOTE 1 - NATURE OF
OPERATIONS AND BASIS OF PRESENTATION Cyclon
Capital Corporation (the "Company") is in the development stage and was
organized as Eastern Exploration Company to engage in the business of natural
resource exploration in the Province of Newfoundland, Canada. Eastern
Exploration Company entered into an asset purchase agreement with Max
Entertainment Holdings SA and on June 6, 2007 the Company changed its name to
Max Entertainment Holdings Inc. On December
6, 2007 the Company changed its name to Cyclon Capital Corporation. To
date the Company's activities have been organizational, directed at acquiring a
principal asset, raising initial capital, and developing its technology and
business plan. The Company
held an option to purchase 100% undivided interest in a mining claim in the Ship
Harbour Claim Block, Port Hope Simpson Area in Eastern Labrador, Newfoundland,
Canada.
                                                         On
May 31, 2007 the option agreement terminated and the Company no longer had the
property, Ship Harbour Claim Block, Port Hope Simpson Area in Eastern Labrador,
Newfoundland, Canada with no further obligation from the Company. Principles of
consolidation The
consolidated financial statements include the accounts of the Company's wholly
owned subsidiary, Cyclon Entertainment, LLC, a Malta Corporation. Going concern The
Company commenced operations on August 26, 2005 and has not realized revenues
since inception. The Company has a deficit accumulated to July 31, 2008 in the
amount of $6,556,042. The ability of the Company to continue as a going concern
is dependent on raising capital to fund its business plan and ultimately to
attain profitable operations. Accordingly, these factors raise substantial doubt
as to the Company's ability to continue as a going concern. The Company is
funding its initial operations by way of a Private Placement and loans from
shareholders. As of July 31, 2008 the Company had issued 82,308,415 shares of
the common stock in the capital of the Company and had received proceeds of
$7,029,050. The
Companys business plan is to be an entertainment company focusing on planning,
promoting and managing entertainment events; merchandising; and the development
of music, video, video games and other forms of electronic entertainment. The
Company intends to use the potential of the internet and related technologies
such as mobile phones, VOIP, online communities, TV and radio as the means to
bring entertainment to market.  The Company is considered to be in the development stage as
defined in Statement of Financial Accounting Standards (SFAS) No. 7,
"Accounting and Reporting by Development Stage Enterprises".  The
Company has devoted substantially all of its efforts to busines planning and
development, as well as allocating a substantial portion of their time and
investment in bringing their product(s)/services to the market, and the raising
of capital.  NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  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
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period.  Actual results could
differ from those estimates.  Cash
and Cash Equivalents  The Company considers all highly liquid debt instruments and other
short-term investments with an initial maturity of three months or less to be
cash or cash equivalents.  At July 31, 2008 the Company maintained cash and cash equivalent
balances at one financial institution that is insured by the Federal Deposit
Insurance Corporation up to $100,000.  Start-up
Costs  In accordance with the American Institute of Certified Public
Accountants Statement of Position 98-5, Reporting on the Costs of Start-up
Activities, the Company expenses all costs incurred in connection with the
start-up and organization of the Company.  Income
Taxes  The Company follows the liability method of accounting for income
taxes. Under this method, deferred tax assets and liabilities are recognized for
deductible temporary differences.  Temporary differences are the
differences between the reported amounts of assets and liabilities and their tax
bases.  Deferred tax assets are reduced by a valuation allowance when, in
the opinion of management, it is more likely than not that some portion or all
of the deferred tax assets will not be realized.  Deferred tax assets and
liabilities are adjusted for the effects of changes in tax laws and rates on the
date of enactment.  As of July 31, 2008 the Company had net operating losses carried
forward. Due to the uncertainty of realization, the Company has provided a full
valuation allowance for the deferred tax assets resulting from the losses
carried forward.      NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  Earnings
(Loss) Per Share of Common Stock  Historical net loss per common share is computed using the
weighted average number of common shares outstanding. Diluted earnings (loss)
per share (EPS) reflect the potential dilution of securities that could share in
the earning of the Company.  Because the Company does not have any
potential dilutive securities, the accompanying presentation reflects the basic
loss per share calculated as follows: 2008 2007  Numerator: Net
loss $1,665,755
    $52,580 Denominator: Weighted
average number of shares issued   80,961,011
    67,980,774  Earnings
(loss) per share $(0.02)
           $(0.00)  Recent
Accounting Pronouncements  In March 2006, the FASB issued SFAS No. 156, Accounting
for Servicing of Financial Assets, an amendment of FASB Statement No. 140.
SFAS No. 156 requires an entity to recognize a servicing asset or liability
each time it undertakes an obligation to service a financial asset by entering
into a servicing contract under a transfer of the servicers financial assets
that meets the requirements for sale accounting, a transfer of the servicers
financial assets to a qualified special-purpose entity in a guaranteed mortgage
securitization in which the transferor retains all of the resulting securities
and classifies them as either available-for-sale or trading securities in
accordance with SFAS No. 115, Accounting for Certain Investments in Debt
and Equity Securities and an acquisition or assumption of an obligation to
service a financial asset that does not relate to financial assets of the
servicer or its consolidated affiliates.     NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)  Recent Accounting
Pronouncements  Additionally, SFAS No. 156 requires all separately recognized
servicing assets and servicing liabilities to be initially measured at fair
value, permits an entity to choose either the use of an amortization or fair
value method for subsequent measurements, permits at initial adoption a one-time
reclassification of available-for-sale securities to trading securities by
entities with recognized servicing rights and requires separate presentation of
servicing assets and liabilities subsequently measured at fair value and
additional disclosures for all separately recognized servicing assets and
liabilities. SFAS No. 156 is effective for transactions entered into after
the beginning of the first fiscal year that begins after September 15,
2006. The Company is currently evaluating the effect the adoption of SFAS
No. 156 will have on its financial position or results of operations.  In September 2006, the FASB issued SFAF No. 157, Fair Value
Measurement. It establishes framework for measuring fair value and expands
disclosure about fair value measurement. The statement is effective for fiscal
years beginning after November 15, 1007 and interim periods with those fiscal
years.  The adoption of these pronouncements is not expected to have a
material effect on the Companys financial position or results of operations  NOTE
3 - PROVISION FOR INCOME TAXES  Deferred income taxes will be determined using the liability
method for the temporary differences between the financial reporting basis and
income tax basis of the Companys assets and liabilities.  Deferred income
taxes will be measured based on the tax rates expected to be in effect when the
temporary differences are included in the Companys tax return.  Deferred
tax assets and liabilities are recognized based on anticipated future tax
consequences attributable to differences between financial statement carrying
amounts of assets and liabilities and their respective tax bases. For the year
ended April 30, 2008 the provision for income taxes was $0.00.          NOTE
4 - GOING CONCERN  As shown in the accompanying financial statements, the Company has
incurred substantial net losses to July 31, 2008 and has no revenue stream to
support itself. This raises doubt about the Companys ability to continue as a
going concern.  The Companys future success is dependent upon its ability to
raise additional capital to fund its business plan and ultimately to attain
profitable operations.  There is no guarantee that the Company will be able
to raise enough capital or generate revenues to sustain its operations.
 Management believes they can raise the appropriate funds needed to support
their business plan.  The financial statements do not include any adjustments relating
to the recoverability or classification of recorded assets and liabilities that
might result should the Company be unable to continue as a going concern.  NOTE
5  OTHER ASSETS  Due
from Edelweiss Investment, AG During the year ended April 30, 2008 the Company loaned $317,385
to Edelweiss Investment AG in support of the
BrazilMasters94 project. They organize gala soccer matches between a
team consisting of certain members of the Brazil national soccer team who
won the World Cup in the United States in 1994 as well as several
other well-known Brazilian players and national/international teams.
The loan is secured by the personal guarantee of a principal of the club.  Due
from Europlay Malta Ltd During the year ended April 30, 2008 the Company advanced $788,787
cash to Europlay Malta Ltd. towards the acquisition of Europlay Malta Ltd. The
technology held by Europlay will provide innovative low-stake games to be played
on mobile telephones and the Internet.  Due
from Der Greif On March 11, 2008 CEL entered into a Tabling Contract (the
Contract) with DER GREIF GmbH & Co., KG (DG), a German company located
in Dusseldorf and specializing in the area of merchandising and event
promotions, among other things.  Under the terms of the Contract, CEL was
to acquire 51% of the issued and outstanding shares of DG for a total purchase
price of $11,172,560 of which $425,572 has been paid in cash and the remaining
$10,746,988 has been paid to DG in the form of 4,674,488 restricted shares of
the Companys common stock. The terms of the Contract were not met and the
acquisition agreement has not completed. The Company is taking the required business steps to recover the
moneys advanced and the shares issued to DG. The Companys management believes
that the investment is secure in the expected future success of the Der Greif
venture.  Due
from Martial Arts Xtreme The
Company has advanced $153,373 for the development of extreme martial arts as a
spectator sport in furtherance of the Companys overall business
development.           NOTE
6 - STOCKHOLDERS EQUITY  Common
Stock  On May 17, 2007 (Record Date) the Company declared and paid to
all holders of  the Companys common stock as of the Record Date, a common
stock dividend of 3 shares (with par value of $.0001 per share) for each share
of common stock held as of the Record Date.  The par value of the stock,
issued as a dividend, was recorded to retained earnings.  A total of
42,525,000 shares of the Companys common stock were issued in payment of the
stock dividend.  On June 6, 2007, the Company entered into an Asset Purchase
Agreement with Max S.A.  The Company acquired the Assets of Max S.A. in
exchange for 11,280,774 shares of the Companys common stock. The asset value of
Max S.A. was undeterminable, and the par value of the Company stock was recorded
to additional paid in capital.  On January 18, 2008 the Company issued 3,250,975 shares of common
stock in exchange
           for cash in
the amount of $2,500,000 pursuant to a Stock Purchase Agreement.  The
           Company also
issued a total of 553,800 restricted shares of its common stock to
            consultants
for services rendered.  The shares issued to consultants were valued at
           $1,384,500.  On
March 19, 2008 the Company issued 3,250,975 shares of common stock in exchange
for cash in the amount of $2,500,000 pursuant to a Stock Purchase Agreement.  In
May, 2008 the Company deposited $1,000,000 for the issuance of 1,298,700 shares
of common stock.  In
June, 2008 the Company deposited $1,000,000 for the issuance of 1,298,700 shares
of common stock.  NOTE
7 - RELATED PARTY TRANSACTION  The Company owes the former sole director and President of the
Company a total of $6,641.  There are no definite terms of repayment, no
security guaranteeing repayment of the debt, nor is there any accruing interest.       Item 2. Managements Discussion and Analysis or Plan of
Operation. Forward-Looking
Statements  Certain statements,
other than purely historical information, including estimates, projections,
statements relating to our business plans, objectives, and expected operating
results, and the assumptions upon which those statements are based, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of theSecurities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934.  These forward-looking statements
generally are identified by the words believes, project, expects,
anticipates, estimates, intends, strategy, plan, may, will,
would, will be, will continue, will likely result, and similar
expressions.  We intend such forward-looking statements to be covered by
the safe-harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, and are including this
statement for purposes of complying with those safe-harbor provisions.
 Forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements.  Our
ability to predict results or the actual effect of future plans or strategies is
inherently uncertain.  Factors which could have a material adverse affect
on our operations and future prospects on a consolidated basis include, but are
not limited to: changes in economic conditions, legislative/regulatory changes,
availability of capital, interest rates, competition, and generally accepted
accounting principles.  These risks and uncertainties should also be
considered in evaluating forward-looking statements and undue reliance should
not be placed on such statements.  We undertake no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.  Further information concerning
our business, including additional factors that could materially affect our
financial results, are included herein and in our other filings with the SEC.  Results
of Operations We
have generated no revenues during the quarter ended July 31, 2008 and $nil
revenues during the comparative quarter ended July 31, 2007. During the quarter
ended July 31, 2008 we incurred $1,665,755 in expenses and have incurred $52,580
in expenses during the comparative quarter ended July 31, 2007. The
following table provides selected financial data for the quarter ended July 31,
2008. Balance
Sheet Data: 7/31/07 Cash                                
 $184,032 Total
liabilities                  $11,641 Shareholders'
equity          $1,857,508 Cash
provided by financing activities for the quarter ended July 31, 2008 was
$2,000,000 compared to $35,000 provided by financing activities for the quarter
ended July 31, 2007. Plan
of Operation Statements
contained herein which are not historical facts are forward-looking statements
as that term is defined by the Private Securities Litigation Reform Act of 1995.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ
from those projected. The   Company
cautions investors that any forward-looking statements made by the Company are
not guarantees of future performance and actual results may differ materially
from those in the forward-looking statements. Such risks and uncertainties
include, without limitation: established competitors who have substantially
greater financial resources and operating histories, regulatory delays or
denials, ability to compete as a start-up company in a highly competitive
market, and access to sources of capital. The
following discussion and analysis should be read in conjunction with our
financial statements and notes thereto included elsewhere in this Form 10-Q.
With the exception of the historical information contained herein, the
discussion in this Form 10-Q contains certain forward-looking statements that
involve risks and uncertainties such as statements of our plans, objectives,
expectations and intentions. The cautionary statements made in this Form 10-Q
should be read as being applicable to all related forward-looking statements
wherever they appear in this Form 10-Q. The Company's actual results could
differ materially from those discussed here. We
are a start-up development-stage corporation and have not yet generated or
realized any revenues from our business operations. Our
auditors have issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay for our expenses. That
is because we have not generated any revenues to date, and no revenues are
anticipated until we begin receiving income from our business plan, and there is
no assurance that we will ever reach this point. Accordingly,
we may have to raise sufficient capital from other sources. Our only other
source for cash at this time is investments by others. As of July 31, 2008 we
had cash on hand of $184,032. This may not enable us to fund operations for the
next twelve months, if we are unable to generate enough revenues to cover our
expenses, and we may have to rely on additional loans from our directors, a
second public offering, or a private placement of securities. Over
the course of the next twelve months Cyclon Capital intends to implement the
following portions of its plan of business development and operations: more
fully develop the relationship with G4; explore potential additional alliances
and/or business combinations with other entertainment and/or martial arts
related companies; organize, promote and manage in excess of ten (10) mixed
martial arts events throughout Europe; organize, promote and manage a "Martial
Arts X-treme Championship" event; assemble, train and manage a stable of MAX
fighters; develop a MAX collection of sportswear and casual clothing to be
marketed through an "online" marketplace and also to be sold in gyms; broadcast
MAX events via Max Entertainment's websites located at www.max-holdings.com and
www.maxfighters.com; license, to gyms, Max Entertainment's marks and other
intellectual property; begin development of a MAX computer/video game product;
and to start developing a "Martial Arts X-treme" television reality show. The
plan of operations set forth above is intended to broaden the scope of Cyclon
Capital's exposure through the increased development, promotion and management
of MAX events, merchandise and multi-media offerings. The intended effect is to
increase Cyclon Capital's revenues across a broader spectrum of events, products
and licensing opportunities. The anticipated increase in revenues will in turn
allow Cyclon Capital to further expand its offerings of products and events
across a broader geographic market. If
we are unable to meet our needs for cash, then we may be unable to continue,
develop, or expand our operations.   While
the officers and directors have generally indicated a willingness to provide
services and financial contributions if necessary, there are presently no
agreements, arrangements, commitments, or specific understandings, either
verbally or in writing, between the officers and directors and Cyclon Capital. If
we are unable topay for our expenses
because we don't have enough money, we will cease operations until we raise more
money. If we cannot or do not raise more money, we will be forced to cease
operations. We
do not intend to hire any employees at this time. Limited
Operating History; Need for Additional Capital There
is no historical financial information about us upon which to base an evaluation
of our performance. We are a development stage corporation and have not
generated any revenues from operations. We cannot guarantee we will be
successful in our business operations. Our business is subject to risks inherent
in the establishment of a new business enterprise, including limited capital
resources, and possible cost overruns due to price and cost increases in
services, supplies, and equipment. We
have no assurance that future financing will be available to us on acceptable
terms. If financing is not available on satisfactory terms, we may be unable to
continue, develop or expand our operations. Equity financing could result in
additional dilution to existing shareholders. Liquidity
and Capital Resources We
cannot guarantee that we will have enough funds to forward our business plan. If
that is the case, we will attempt to raise additional money by way of loans from
officers of the company, loans from third-parties, and/or sale(s) of additional
securities. Additional equity financing would result in additional dilution to
our existing shareholders. At
the present time, we have not made any arrangements to raise additional cash. If
we need additional cash and cannot raise it, we will either have to suspend
operations until we do raise the cash, or cease operations entirely. Other than
as described in this paragraph, we have no other financing plans. As
of July 31, 2008 our total current assets were $184,032 and our total current
liabilities were $11,641. Application
of Critical Accounting Policies Our
financial statements have been prepared on a going concern basis. We have
accumulated a deficit of $6,556,042 from inception to July 31, 2008. Our ability
to continue as a going concern is dependent upon our ability to generate
profitable operations in the future and/or to obtain the necessary financing to
meet our obligations and repay our liabilities arising from normal business
operations when they come due. The outcome of these matters cannot be predicted
with any certainty at this time. We have historically satisfied our working
capital needs primarily by sales of securities and at July 31, 2008 we had
working capital of $172,391. These financial statements do not include any
adjustments to the amount and classification of assets and liabilities that may
be necessary should we be unable to continue as a going concern. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Actual results
could differ from those estimates.   The
Company has no off balance-sheet arrangements.  PART II  OTHER INFORMATION ITEM
3. Quantitative and Qualitative Disclosures About Market Risk Not
applicable.  ITEM
4.  Controls and Procedures  We carried out an
evaluation of the effectiveness of the design and operation of our disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) as of July 31, 2008.  This evaluation was carried out under the
supervision and with the participation of our Chief Executive Officer and Chief
Financial Officer, Mr. Mark Horrelt.  Based upon that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that, as of July 31,
2008 our disclosure controls and procedures are effective.  There have been
no changes in our internal controls over financial reporting during the quarter
ended July 31, 2008.  Disclosure controls
and procedures are controls and other procedures that are designed to ensure
that information required to be disclosed in our reports filed or submitted
under the Exchange Act are recorded, processed, summarized and reported within
the time periods specified in the SEC's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in our reports filed under the
Exchange Act is accumulated and communicated to management, including our Chief
Executive Officer and Chief Financial Officer, to allow timely decisions
regarding required disclosure.  PART II - OTHER
INFORMATION  ITEM 1.
Legal Proceedings  To the
Companys knowledge, there are no lawsuits nor were any lawsuits commenced
against the Company during the quarter ended July 31, 2008 nor did the Company
commence any lawsuits during the same period.  ITEM 2.
 Changes in Securities and Use of Proceeds  During the three
months ended July 31, 2008 the Company issued the following securities: - In May, 2008 the
Company deposited $1,000,000 for the issuance of 1,298,700 shares of common
stock. - In June, 2008 the
Company deposited $1,000,000 for the issuance of 1,298,700 shares of common
stock.  Use
of Proceeds:  business development  ITEM 3.
 Defaults Upon Senior Securities  Not applicable.  ITEM 4. Submission
of Matters to a Vote of Security Holders    No matters were put
forward to a vote of the security holders of the Company this quarter.  ITEM 5. Subsequent
Events  None. ITEM 6. Exhibits
and Reports on Form 8-K  Reports on Form
8-K  None.  Exhibits  Exhibit No.
Document
Location3.1
Articles of
Incorporation
Previously Filed3.2
Amendment to Articles
Previously Filed3.3
Bylaws
Previously Filed31
Rule
13a-41(a)/15d-14(a) Certificates
Included32
Section
1350 Certifications
Included    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.   CYCLON CAPITAL CORPORATION    September
17, 2008 /s/Mark
Horrelt Date Mark Horrelt, President, Chief Executive Officer, Principal Financial Officer