Signature Leisure Inc - Quarterly Report (10-Q)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2008
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

C OMMISSION FILE NUMBER :		000-49600

S IGNATURE L EISURE , I NC .
(Exact name of small business issuer as specified in its charter)

Colorado		50-0012982

(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

1375 Semoran Boulevard, Suite 1035
Casselberry, Florida 32707
(Address of principal executive offices)
(407) 599-2886
(Issuer's telephone number)
(Former name, former address and former fiscal year, if changed since last report)

[X]	Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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.

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

[X] Smaller reporting company

[ ]

Indicate by check whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The number of shares outstanding of each of the issuer's classes of common equity as of June 30, 2008:
395,477,965 shares of common stock

S IGNATURE L EISURE , I NC .
Index

			Page
			Number
PART I.		FINANCIAL INFORMATION
Item	1.	Financial Statements
		Balance Sheet (unaudited)	3
		Statements of Operations (unaudited)	4
		Statements of Cash Flows (unaudited)	5
		Notes to the Consolidated Financial Statements	6
Item	2.	Management's Discussion and Analysis of Financial Condition
		and Results of Operations	10
Item	3.	Quantitative and Qualitative Disclosures About Market Risk	13
Item	4T.	Controls and Procedures	13
Part II.		OTHER INFORMATION
Item	1.	Legal Proceedings	15
Item	2.	Unregistered Sales of Equity 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	15
SIGNATURES			16

S IGNATURE L EISURE , I NC .
Condensed Consolidated Balance Sheet
June 30, 2008

		June 30,	December 31,
		2008		2007

		(Unaudited)
Assets
Current assets:
Cash	$	38,243	$	33,902
Accounts receivable		-		19,989
Deposits		-		5,425
Investment in marketable securities		4,463		283,125
Notes receivable		50,000		50,000
Accrued interest		3,820		1,260
Inventory		7,849		7,848


Total current assets		104,375		401,449

Equipment, less accumulated depreciation of $2,234 and $1,901		2,767		2,296
Intangible assets, net of accumulated amortization		-		832


Total assets	$	107,142	$	404,577


Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	16,681	$	198,415
Accrued liabilities		-		1,227
Accrued liabilities – related party		493,477		695,695
Line of credit		-		18,126
Note payable - related party		350,872		129,879
Notes payable		25,000		-
Accrued interest payable		8,102		2,644


Total current liabilities		894,132		1,045,986


Shareholders' deficit:
Preferred stock, $.001 par value; 10,000,000 shares authorized,
no shares issued and outstanding		-		-
Common stock, $.0001 par value; 500,000,000 shares authorized,
395,477,965 and 234,477,965 shares issued and outstanding, respectively		39,548		23,448
Additional paid-in capital		7,281,914		7,108,013
Treasury Stock, 932,000 shares, at cost		(26,673)		(26,673)
Retained deficit		(8,081,779)		(7,746,197)

Total shareholders' equity		(786,990)		(641,409)


Total liabilities and shareholders’ deficit	$	107,142	$	404,577

See notes to condensed consolidated financial statements.

S IGNATURE L EISURE , I NC .
Condensed Consolidated Statements of Operations
(Unaudited)

	For The Three Months Ended				For The Six Months Ended
		June 30,			June 30,
	2008			2007	2008		2007


Revenues:
Consulting	$	16,389	$	655,000	$ 16,389	$	715,000
Service revenues		-		-	-		-


Total revenue		16,389		655,000	16,389		715,000


Operating expenses:
Subcontract		24,300		32,280	54,400		34,340
Selling, general and administrative	137,660			174,848	310,751		555,803

Total operating expenses	161,960			207,128	365,151		590,143

Operating income (loss)	(145,571)			447,872	(348,762)		124,857

Interest income		1,391		1,894	2,666		15,266
Gain (loss) on sale of marketable securities		69,569		(46,804)	115,423		(15,029)
Unrealized gain (loss) on marketable securities		(725)		98,824	(84,146)		170,219
Interest expense		(10,011)		(12,886)	(20,723)		(22,990)

Income (loss) before income taxes		(85,347)		488,900	(335,582)		272,323

Provision for income taxes		-		-	-		-

Net income (loss)	$	(85,347)	$	488,900	$ (335,582)	$	(272,323)



Weighted average income (loss) per share:
Basic and diluted	$	(0.00)	$	0.00	$ (0.00)	$	0.00

Weighted average number of
common shares outstanding	275,148,295			232,792,845	259,466,976		230,016,499

See notes to condensed consolidated financial statements.

S IGNATURE L EISURE , I NC .
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	For The Six Months Ended
		June 30,
	2008			2007


CASH FLOWS FROM OPERATIONS

Net loss	$ (335,582)		$	272,323
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Stock issued for services		-		128,313
Depreciation and amortization expense		1,166		3,819
(Gain) loss on sale of equity securities	(115,423)			15,029
Unrealized (gain) loss on investments		84,186		(170,219)
Changes in assets and liabilities:
Accounts receivable		19,889		-
Notes receivable		-		(360,000)
Accrued interest receivable		(2,560)		(1,894)
Inventory and other current assets		5,424		-
Accounts payable	(181,734)			(10,778)
Accrued liabilities	207,548			-
Accrued interest payable		5,458		1,849
Accrued salaries and related expenses		-		279,200

Net cash provided by (used in) operating activities	(311,628)			157,642


CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of equity securities	(155,500)			(996,136)
Proceeds from sale of equity securities	465,399			696,615
Purchase of computer equipment		(804)		-
Proceeds from sale of computer		-		864

Net cash provided by (used in) investing activities	309,095			(298,657)


CASH FLOWS FROM FINANCING ACTIVITIES :

Proceeds from borrowings		25,000		18,985
Repayments of borrowings	(18,196)			(445)
Proceeds from loans from related parties		-		124,349
Repayments of loans from related parties		-		(69,060)

Net cash provided by financing activities		6,874		73,829


Net change in cash		4,341		(67,186)
Cash at beginning of period		33,902		83,479


Cash at end of period	$	38,243	$	16,293


Supplemental disclosure of cash flow information
Interest paid	$	-	$	-

Income taxes paid	$	-	$	-

Non cash transactions:
Stock issued for services	$	-	$	128,313

Stock issued for payment for debt	$	25,000	$	-

Stock issued for payment of debt to related party	$	165,000	$	-

See notes to condensed consolidated financial statements.

S IGNATURE L EISURE , I NC .
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Nature of business and significant accounting policies

Basis of presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation. All such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Certain amounts in the prior year statements have been reclassified to conform to the current year presentations. The statements should be read in conjunction with the financial statements and footnotes thereto included in the Company’s Form 10-KSB for the year ended December 31, 2007.

Description of organization

Signature Leisure, Inc. (referred to as “Signature” or the “Company”) has been focused on the following operations during the six months ended June 30, 2008 and 2007: On February 15, 2005, the Company acquired assets from Parker Productions for the purpose of providing modeling and event staffing services.

In July 2005, E Cubed Technologies, Inc. (“E Cubed”) was incorporated by the Company to assume the existing information technology consulting operations of Signature. Additionally, E Cubed is an authorized dealer for a company that provides document imaging and retrieval solutions through software products that securely scan, store, and retrieve documents.

In January of 2007 the Company formed a wholly owned subsidiary, Signature Leisure, Inc. in the State of Minnesota to provide business consulting services to assist non public companies who are going public. Additionally, the Company provides investor relation services to these companies by fielding inquiries from investors. During the course of these services the Company is given the opportunity to invest in the client’s common stock.

Management may also consider other opportunities as additional or alternative means to develop revenue for the company. Consolidation The condensed consolidated financial statements for the six months ended June 30, 2008 and 2007 included in this report include the activities of Signature Leisure, Inc. and its wholly-owned subsidiaries, Parker Productions, Inc., E Cubed Technologies, Inc. and Signature Leisure, Inc. (Minnesota). All significant intercompany balances and transactions have been eliminated in consolidation.

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principals requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities; 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. Accordingly, actual results could differ from those estimates.

Revenue recognition

The Company recognizes revenue for modeling and event staffing services in the period the services are provided.

The Company recognizes revenue from information technology consulting operations and document imaging and retrieval solutions when services are provided or when software is shipped.

The Company recognizes revenue from investor relation services when services are provided. Business consulting services are contracted for over a course of one year and recognized monthly.

Reclassifications

Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.

S IGNATURE L EISURE , I NC .
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 Going concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Based upon current operating levels, the Company may require additional capital or significant reconfiguration of its operations to sustain its operations for the foreseeable future.

The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company has limited capital with which to pursue its business plan. There can be no assurance that the Company’s future operations will be significant and profitable, or that the Company will have sufficient resources to meet its objectives. The Company is partially dependent upon its officers and other insiders to provide working capital. However, there is no assurance that these loans and capital advances will continue in the future. The Company intends to generate sufficient revenues from consulting, investor relations, information technology consulting, and modeling and event planning services to fund its business plan. There is no assurance that the Company will be successful in raising additional funds.

Note 3 - Related party transactions

Notes payable

The following notes were issued to the Company’s president and sole director and are included in the accompanying financial statements as “Note payable-related party”.

On December 31, 2006, the Company executed a promissory note totaling $256,360 for all outstanding debt to its president. The note carried a 12% interest rate and matures on July 15, 2007. During year end December 31, 2007 the note was repaid.

During the six months ended June 30, 2008, the Company executed promissory notes to its president totaling $245,993 as reimbursement for payment of expenses. The note carried a 12% interest rate and is due on demand.

A promissory note was issued to the Company’s vice president on December 31, 2006 in the amount of $31,576. The note was paid during the year ended December 31, 2007. No interest was paid or accrued on this note.

On September 29, 2006 K & L International loaned the Company $50,000. Payments of interest only at 15% of the unpaid balance began on January 15, 2007 and continue quarterly on the 15 ^th day of the first month of each subsequent quarter. The note matures on October 31, 2008. In January 2007, the interest payment was extended to April 15, 2007. In September 2007 K & L International loaned the Company $47,000 and combined the notes and accrued interest as of September 30, 2007 into one convertible note totaling $104,879. Interest accrues at 10%. Principle and interest are payable when the note matures on December 31, 2008. The note can be paid in either cash or can be converted at the lenders discretion into common stock of the borrower at a discount of 50 %(fifty percent) of the closing bid price of the borrower’s stock price on the day prior to the date of the conversion notice. The beneficial conversion was recorded as interest expense of $78,659 through additional paid in capital.

On February 28, 2007, a shareholder loaned the Company $25,000 in exchange for a promissory note. The principal was due on May 1, 2007. The note was amended to have principal due on September 1, 2007. This note was repaid during September 2007. No interest was paid or accrued.

Accrued liabilities – related party

Under the terms of the employment agreement, the president and sole director was awarded a monthly auto allowance of $700 per month and opportunities to receive performance-based bonuses. The balance owed at June 30, 2008 for the auto allowance totaled $25,333, which is included in “Accrued liabilities-related party”.

On January 18, 2007 the Company accrued a bonus to its president and sole director of $150,000 for the formation of a new business entity. This accrual is included in “Accrued liabilities-related party”.

For the six months ended June 30, 2008, accrued salaries totaled $251,667 of which $251,667 was owed to the Company’s President. These accruals are included in “Accrued liabilities-related party”.

As of June 30, 2008, accrued interest expense on the Note payable to the Company’s President was $66,476. This accrual is included in “Accrued liabilities-related party”.

In June 2008, the Company issued 150,000,000 shares of common stock valued at $165,000 in partial payment of accrued salary.

S IGNATURE L EISURE , I NC .
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Investments

The Company had previously acquired equity securities in a finite number of investment opportunities. These investments are classified as trading securities. The investments are recorded at market value. The cost of the investments held at June 30, 2008 and 2007 was $7,381 and $285,091, respectively. The total market value at June 30, 2008 and 2007 was $4,463 and $455,310, respectively. The Company recorded an unrealized gain (loss) on equity investments of $(84,186) and $170,219 for the six months ended June 30, 2008 and 2007, respectively. For the six months ended June 30, 2008 and 2007 the Company had realized gains (losses) of $115,423 and $(15,029), respectively, from the sale of equity securities. The company has subsequently divested itself of these investments. The company intends to refrain from any significant investment activities until such time as our assets are more substantial. The Company shall then maintain its investing activities to a level below 40% of those total assets so that we do not inadvertently become subject to the Investment Company Act of 1940.

Note 5 – Line of credit

The Company borrowed $20,000 on a MasterCard business line of credit. The interest rate is Prime plus 7.75% . The remaining unused line of credit available at June 30, 2008 was $20,000. The line of credit was paid off in April 2008.

Note 6 – Notes payable

On July 5, 2007 the Company borrowed $25,000 from KCG Capital, Ltd. During January 2008 the Company issued 11,000,000 shares of common stock in payment of this debt.

On January 24, 2008 the Company borrowed an additional $25,000 from KCG Capital, Ltd. The note is due June 30, 2008. The note is in default as of June 30, 2008.

Note 7 – Income taxes

The Company records its income taxes in accordance with Statement of Financial Accounting Standard No. 109, “Accounting for Income Taxes”. The Company incurred net operating losses during all periods presented resulting in a deferred tax asset, which was fully allowed for; therefore, the net benefit and expense resulted in no income taxes.

Note 8 – Common stock

Preferred stock

Preferred stock may be issued in series as determined by the Board of Directors. As required by law, each series must designate the number of shares in the series and each share of a series must have identical rights of (1) dividend, (2) redemption, (3) rights in liquidation, (4) sinking fund provisions for the redemption of the shares, (5) terms of conversion and (6) voting rights. The Company is authorized to issue 10,000,000 of its $0.001 par value preferred stock. No preferred stock was issued and outstanding at June 30, 2008.

Stock-based compensation plan

During the year ended December 31, 2004, the Company adopted a stock compensation plan in order to provide compensation to consultants, advisors and employees. On January 24, 2006, the Company amended the stock compensation plan in order to provide additional compensation to consultants, advisors and employees. The plan was amended to add 20,000,000 shares. The plan will terminate when the last of the 20,000,000 allocated shares is granted or in August 2014, whichever is earlier. As of June 30, 2008, the Company has issued all shares under the plan. Shares issued for services are recorded at the fair value of the services provided.

Standby Equity Distribution Agreement

During October 2004, the Company entered into a Standby Equity Distribution Agreement (the “Agreement”) with Katalyst Capital Group Ltd (Katalyst). Under the terms of the Agreement, Katalyst has committed to purchase up to $5 million of the Company’s common stock over the course of 24 months after an effective registration of the Company’s common stock. Any purchases are to be issued under the securities laws of the United States under Regulation D. The purchase price has been set at 99% of the market price, which is to be calculated based on the lowest daily volume weighted average price of the stock over the five trading days following the Company’s funding request. The registration of the Company’s common stock took effect in June of 2006. 17,522,954 shares have been issued at a value of $692,719 under the Agreement through June 30, 2008.

S IGNATURE L EISURE , I NC .
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 9 - Loan and equity purchase agreement

Revenge LLC, Loan and Equity Purchase

In July, 2006, Signature Leisure entered into a Loan and Stock Purchase Agreement with Revenge Designs, LLC (“Revenge”), Thomas Cress and Peter Collorafi (collectively “Owner”).

On July 14, 2006 the Company loaned to Revenge $50,000. On July 19, 2006 the Company loaned Revenge an additional $50,000 to bring the total loan to $100,000 with interest at 25%. Revenge agreed to pay $7,000 per quarter starting on January 1, 2007 and continuing on the 1st day of each subsequent quarter through September 30, 2008. The principal balance and any unpaid accrued interest mature on October 1, 2008.

On July 19, 2006 the Company paid to Revenge $100,000 for a 25% ownership interest. The Company is accounting for the investment under the equity method. The Company records its proportionate share of Revenge’s income or loss and reduces the investment accordingly. Through June 30, 2007, the losses incurred by Revenge reduced the Company’s investment to $0.

On September 29, 2006 the Company loaned Revenge an additional $100,000. Payments of interest only at 25% of the unpaid balance began on January 15, 2007 and continue quarterly on the 15 ^th day of the first month of each quarter. The principal balance and any unpaid accrued interest mature on October 1, 2008.

As of September 30, 2007, the Company’s management recorded an allowance against the two promissory notes and related accrued interest totaling $243,178.

On September 19, 2007 the Company loaned Revenge an additional $32,000. Interest will accrue at 25%. The principal balance and any accrued interest mature on September 30, 2008.

In October of 2007 the Company combined the $200,000 notes receivable and the $32,000 note receivable. The Company sold the note in October 2007 for $50,000. The Company received a note receivable at an interest rate of 10%, payable in monthly installments beginning June 1, 2008.

In October 2007 the Company received 2,400,000 shares of preferred stock in Revenge Designs, Inc. for its 25% share in Revenge Designs, LLC, which represents a 30% interest in the new company.

In February of 2008 the Company declared a dividend to its shareholders of the 2,400,000 shares of preferred stock in Revenge Designs, Inc. The dividend is payable to shareholders of record on April 7, 2008. The shares were issued in May 2008.

S IGNATURE L EISURE , I NC .

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

This statement may include projections of future results and “forward looking statements” as that term is defined in Section 27A of the Securities Act of 1933 as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934 as amended (the “Exchange Act”). All statements that are included in this Quarterly Report, other than statements of historical fact, are forward looking statements. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.

Summary of Operations

The business of Signature Leisure, Inc. during the period ending June 30, 2008 included the operations of Parker Productions, Inc., a modeling and event staffing business, E Cubed Technologies, an information technology services company; and, an investor relations and business consulting segment, a Minnesota based corporation under the name of Signature Leisure, Inc.

The focus of operations for the next 12-month period will be primarily the operations of Signature Leisure, Inc. (Investor Relations Division). E Cubed Technologies and Parker Productions are currently functioning operating units but have not historically generated significant revenues. Signature Leisure, Inc. expects to use profits from each operating units' operations to maintain and grow the operations of each operating unit. Parker Productions operations is a modeling and event staffing business. The individual models and staff that we provide to our clients operate as independent contractors. E Cubed Technologies is a network and technologies service company which currently is a non-exclusive dealer for the DocSTAR archival system. Investor relations and consulting operations began in January 2007and will continue to be developed as our primary business segment in 2008.

Signature Leisure, Inc. (Investor Relations Division)

Signature Leisure, Inc. operations are being developed as investor relations and consulting business. The Company has formed a Minnesota based corporation under the name of Signature Leisure, Inc. Signature presently has offices in Champlain, MN. This business segment was started in January 2007.

Presently the company is providing customers with two basic forms of service. The first form of service is providing investor relations services for publicly traded companies. Signature represents client companies as the primary point of contact for investors acting as an Investor Relations representative for our clients. We field phone calls and emails from investors so that the company management of our clients can focus on operating and growing their businesses rather than fielding inquiries from investors. Presently, we are focused on developing a list of clients that are listed on either the Pink Sheets or the Over-The-Counter Bulletin Boards.

The second form of services is in the form of providing privately held companies with general business consulting services. Signature assists client companies with various projects and business management services. In addition, Signature provides services relating to business structure and organizational management, corporate planning and strategic growth management.

Parker Productions

Parker Productions, Inc. is a modeling and event staffing business. The individual models and staff that the Company provides to clients operate as independent contractors to the Company.

Parker Productions generates revenues by contracting models and event staff for client companies and organizations to utilize for special events and promotions. Some projects get billed as a flat fee for the entire promotional project; however, the majority is single event contracts which we charge the client a premium rate per hour for the contracted staff.

S IGNATURE L EISURE , I NC .

E Cubed Technologies

E Cubed Technologies has business operations in the greater Orlando, Florida area. We are an authorized dealer for DocStar, one of the leading document imaging solution builders. DocSTAR, which is a product of AuthentiDate, Inc., provides clients with a document imaging and retrieval solution. DocSTAR (Document Storage and Retrieval) offers software products for the document imaging industry with a suite of software solutions that securely scans stores and retrieves documents.

As per our agreement with DocSTAR, the counties of Orange, Seminole, Volusia, Brevard, Lake, and Osceola in the state of Florida are our direct market territories. Clients outside of that area would require us to involve DocSTAR corporate and, in many cases, another DocSTAR partner. The agreement does not prohibit us from selling and servicing other products. The agreement does not have minimum requirement for sales over any period of time. The agreement can be terminated by either party at anytime for any reason. In the event that DocSTAR terminates the agreement we will have a period of twelve months to continue servicing clients owing to the incidental fact that any particular client may have an existing service contract in place with us that may not have yet expired.

E Cubed Technologies is an authorized reseller of Dell products. This means we have the ability to purchase computer and network hardware and software at reseller pricing for resale to our clients. It gives us the ability to access a partner website were we can get customized support, training options and partner only specials.

Consultants/Employees

Signature Leisure currently utilizes two consultant/employees, in addition to our sole officer and director Mr. Carnes, for operations in our business segments. Additional services required for our operations are provided by subcontractors engaged as required.

Signature Leisure, Inc. (Parent)
- Stephen W. Carnes, President
- Cynthia Wainwright, Administrative Assistant
- Barbara Moran, Staff Attorney
Signature Leisure, Inc. (Investor Relations Division)
- Stephen W. Carnes, President
Parker Productions (Event Staffing)
- Stephen W. Carnes, President
- Cynthia Wainwright, Administrative Assistant
E Cubed Technologies (Information Technology Services)
- Stephen W. Carnes, Sales Director

Parker Productions, Inc. maintains a list of independent contractors for use at tradeshows and promotional events, these contractors used on a random basis wholly dependent upon client need. All independent contractors are contracted on an "as needed" basis.

S IGNATURE L EISURE , I NC .

Financial Summary

Results of Operations for the Three-Months Ended June 30, 2008

The Company reports a net loss from operations of $85,347 for the three-month period ending June 30, 2008. Selling, general and administrative expenses totaled $137,660. Subcontract expenses were $24,300. Revenues for the period totaled $16,389. Operating losses were significantly influenced by gain on the sale of marketable securities during the period of $69,569. The total for these operating expenses and the subsequent operating loss for the three-month period ending March 31, 2008 was $335,582.

The Company reported a net gain from operations of $488,900 for the three-month period ending June 30, 2007. Selling, general and administrative expenses for the period were $174,848. Subcontract expenses were $32,280. Revenues for the period totaled $655,000. The total for these operating expenses and the subsequent operating loss for the three-month period ending March 31, 2007 was $272,323.

The Company reports no revenue income for the three months ended March 31, 2008; revenue income for the three months ended June 30, 2008 was $16,389; all revenues for the period were from consulting.

Liquidity and Capital Resources

During the six months ended June 30, 2008 the Company's cash position increased by $4,341. Net cash used in operating activities totaled $311,628; net cash provided by investing activities was $309,095; and, net cash provided by financing activities was $6,874.

Results of Operations

The company has, subsequent to the three month period ended June 30, 2008, divested itself of equity investments obtained in prior periods. The company intends to refrain from any significant investment activities until such time as our assets are more substantial. The Company shall then maintain its investing activities to a level below 40% of those total assets so that we do not inadvertently become subject to the Investment Company Act of 1940.

The company has changed policy regarding activities that could be considered investing activities due to a potential issue of the company inadvertently falling under the requirements of the Investment Company Act of 1940. It was never the company’s intention to be an investment company, nor had we ever held ourselves out to be such a company.

We had begun to develop more significant revenue through the operations of our business segment which provides consulting services. We had previously accepted equity as payment for some services in this segment of operation and as a result of our revised policies will not be accepting equity as a form of payment. This could negatively impact our ability to develop revenues in this segment as many potential clients have limited cash and in many instances would prefer to pay for services in some part with equity.

We cannot anticipate at this time when enough positive internal operating cash flow will develop to sustain operations. Until such time as we can generate sustained and substantial revenues we will rely on additional financing to maintain operations. In the event we cannot obtain the necessary capital to pursue our strategic plan, we may have to cease or significantly curtail our operations. This would materially impact our ability to continue operations.

Our near term cash requirements are anticipated to be offset through the receipt of funds from private placement offerings and loans obtained through private sources. Since inception, we have financed cash flow requirements through debt financing and issuance of common stock for cash and services. As we expand operational activities, we may continue to experience net negative cash flows from operations and will be required to obtain additional financing to fund operations through common stock offerings and bank borrowings to the extent necessary to provide working capital.

Over the next twelve months we believe that existing capital and anticipated funds from operations may not be sufficient to sustain operations and planned expansion. Consequently, we may be required to seek additional capital in the future to fund growth and expansion through additional equity or debt financing or credit facilities. No assurance can be made that such financing would be available, and if available it may take either the form of debt or equity. In either case, the financing could have a negative impact on our financial condition and our Stockholders.

S IGNATURE L EISURE , I NC .

We anticipate that we may incur additional operating losses over the next twelve months. Our sources of revenue, as compared to our prior operating history makes predictions of future operating results difficult to ascertain. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their development stage. Such risks include, but are not limited to, an evolving and unpredictable business model and the management of growth. To address these risks we must, among other things, obtain a customer base, implement and successfully execute our business and marketing strategy, continue to develop and upgrade technology and products, respond to competitive developments, and attract, retain and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our business prospects, financial condition and results of operations.

Going Concern

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable

Item 4T. 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 June 30, 2008. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Stephen Carnes and with the assistance of Terry L. Johnson, CPA our outside accountant. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2008, our disclosure controls and procedures have been identified utilizing the guidance provided by the PCAOB preliminary staff views published October 17, 2007 and the COSO publication “internal control over financial reporting – guidance for smaller public companies” published in June of 2006.

We have indentified and tested the internal control procedures based on the referenced guidance. We have indentified weaknesses regarding the fact that the company has only three employees, one of which does the accounting and bookkeeping for the company. To mitigate this weakness all transactions are approved by the Chief Financial Officer or outside accountant as to how they are to be reported in the books and records to assure proper reporting in the financial statements. There have been no significant changes in our internal controls over financial reporting during the six months ended June 30, 2008 that have materially affected or are reasonably likely to materially affect such controls.

S IGNATURE L EISURE , I NC .

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. The Company has established disclosure controls and procedures to ensure that information disclosed in this MD&A and the related financial statements was properly recorded, processed, summarized and reported to the Company‘s Board of Directors. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

There has been no change in the Company’s disclosure controls during 2008 that has materially affected or is likely to materially affect its control over financial reporting.

Management's Report on Internal Control over Financial Reporting

The CEO and CFO of the Company acknowledge that they are responsible for designing internal controls over financial reporting or causing them to be designed under their supervision in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Rule 240.13a-15(f) or Rule 240.15d-15(f) . This report shall not be deemed to be filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section.

Management and the Board of Directors work to mitigate the risk of a material misstatement in financial reporting, however, there can be no assurance that this risk can be reduced to less than a remote likelihood of a material misstatement.

Management has identified the critical disclosure controls and procedures associated with the Company’s internal control over financial reporting using the above guidance for the six months ended June 30, 2008 and we have tested the effectiveness of these disclosure controls and procedures. The Company has indentified weaknesses regarding the fact that the company has only three employees, one of which does the accounting and bookkeeping for the company. This material weakness could materially affect the Company’s control over financial reporting. To mitigate this weakness all transactions are approved by the Chief Financial Officer or outside accountant as to how they are to be reported in the books and records to assure proper reporting in the financial statements.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error.

Weaver & Martin LLC, the Company’s independent registered public accounting firm, was not required to and has not issued a report concerning the effectiveness of the Company’s internal control over financial reporting as of June 30, 2008.

S IGNATURE L EISURE , I NC .

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

None, for the period ending June 30, 2008

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

During the six month period ending June 30, 2008:

On July 5, 2007 the Company borrowed $25,000 from KCG Capital, Ltd.

During January 2008 the Company issued 11,000,000 shares of common stock in payment of this debt. In June 2008, the Company issued 150,000,000 shares of common stock valued at $165,000 in partial payment of accrued salary for the Company’s President.

All shares were issued as exempted transactions under Section 4(2) of the Securities Act of 1933 and are subject to Rule 144 of the Securities Act of 1933. The recipient(s) of our stock took their shares for investment purposes without a view to distribution. Furthermore, they had access to information concerning our Company and our business prospects; there was no general solicitation or advertising for the purchase of our shares; there were no commissions paid; and the securities are restricted pursuant to Rule 144.

Item 3. Defaults Upon Senior Securities

On January 24, 2008 the Company borrowed $25,000 from KCG Capital, Ltd. The note was due June 30, 2008. The note is in default as of June 30, 2008.

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

None, for the period ending June 30, 2008

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

Exhibits
Signature Leisure, Inc. includes herewith the following exhibits:
31.1 Certification of Principal Executive Officer (Rule 13a-14(a)/15(d)-14(a))
32.1 Certification of Principal Executive Officer (18 U.S.C. 1350)

Reports on Form 8-K
None, for the period ending June 30, 2008

S IGNATURE L EISURE , I NC .

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.

		Signature Leisure, Inc.

Date: August 13, 2008		By: /s/ Stephen W. Carnes, President

		Stephen W. Carnes, President
		Principal Executive Officer
		Principal Accounting Officer