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

  [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2007
  [ ] 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     50-0012983  
(State or other jurisdiction of incorporation or organization)     (IRS Employer Identification No.)  

1375 Semoran Boulevard, Suite 1035
Castleberry, 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 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 September 30, 2007: 234,477,965 shares of common stock

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]

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S IGNATURE L EISURE , I NC .
Index

        Page  
        Number  
PART I.     FINANCIAL INFORMATION      
Item 1.     Financial Statements      
    Consolidated Balance Sheet (unaudited)     3  
    Consolidated Statements of Operations (unaudited)     4  
    Consolidated Statements of Cash Flows (unaudited)     5  
    Notes to the Consolidated Financial Statements     6  
Item 2.     Management's Discussion and Analysis of Financial Condition      
    and Plan of Operations     10  
Item 3.     Controls and Procedures     14  
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     16  
Item 4.     Submission of Matters to a Vote of Security Holders     16  
Item 5.     Other Information     16  
Item 6.     Exhibits and Reports on Form 8-K     16  
SIGNATURES     17  

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S IGNATURE L EISURE , I NC .
Condensed Consolidated Balance Sheet
September 30, 2007
(Unaudited)

Assets          
 
Current assets:          
    Cash     $     21,756  
    Accounts receivable         19,889  
    Deposits         20,925  
    Investment in marketable securities         944,656  
    Notes receivable         32,000  
    Inventory         7,848  
 
                    Total current assets         1,047,074  
 
Equipment, less accumulated depreciation of $1,551         1,919  
 
Intangible assets:          
    Website, net         1,250  
    Contact list, net         1,250  
 
                    Total assets     $     1,051,493  
 
Liabilities and Shareholders' Equity          
 
Current liabilities:          
    Accounts payable     $     42,699  
    Deferred revenue         15,375  
    Indebtedness to related parties         581,561  
    Line of credit         18,367  
    Notes payable         122,000  
    Accrued interest payable         7,879  
 
                    Total current liabilities         787,881  
 
Shareholders' equity:          
    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,          
          234,477,965 shares issued and outstanding         23,448  
    Additional paid-in capital         7,029,355  
    Treasury Stock, 891,000 shares               (25,622)  
    Retained deficit         (6,763,569)  
                    Total shareholders' equity         263,612  
 
                    Total liabilities and shareholders’ equity     $     1,051,493  

See notes to condensed consolidated financial statements.
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S IGNATURE L EISURE , I NC .
Condensed Consolidated Statements of Operations
(Unaudited)

    For The Three Months Ended     For The Nine Months Ended  
    September 30,     September 30,  
              2007               2006               2007         2006  
 
Revenues:                          
    Consulting     $ 36,000     $     -     $ 751,000     $     -  
    Sales     18,690         -     18,690         -  
    Service revenues     -         12,440     -         23,015  
 
Total revenue     54,690         12,440     769,690         23,015  
 
Operating expenses:                          
    Subcontract     100,116         8,133     126,566         17,502  
    Selling, general and administrative     224,517         425,936     767,762         1,645,870  
          Total operating expenses     324,633         434,069     894,328         1,663,372  
          Operating income (loss)     (269,943)         (421,629)     (124,638)         (1,640,357)  
 
Interest income     10,338         -     13,453         -  
Gain on sale of marketable securities     179,753         -     164,724         -  
Unrealized gain on marketable securities     358,334         -     541,410         -  
Loss on LLC investment     -         (23,552)     -         (23,552)  
Interest expense     -         (8,409)     (32,303)         (11,607)  
          Income (loss) before income taxes     278,482         (453,590)     562,646         (1,675,516)  
 
Provision for income taxes     -         -     -         -  
          Net income (loss) from continuing operations     278,482         (453,590)     562,646         (1,675,516)  
 
Loss from discontinued operations     -         (968)     -         (19,284)  
 
          Net income (loss)     $ 278,482     $     (454,558)     $ 562,646     $     (1,694,800)  
 
 
Weighted average income (loss) per share:                          
          Basic and diluted     $ 0.00     $     (0.00)     $ 0.00     $     (0.01)  
          Weighted average number of                          
common shares outstanding     234,477,965         130,663,748     231,519,998         116,075,566  

See notes to condensed consolidated financial statements.
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S IGNATURE L EISURE , I NC .
Condensed Consolidated Statements of Cash Flows
(Unaudited)

      For The Nine Months Ended  
        September 30,  
              2007             2006  
 
                                                                    CASH FLOWS FROM OPERATIONS                  
 
Net income (loss)     $ 562,646     $ (1,694,800)  
Adjustments to reconcile net loss to net cash used in operating activities:                  
    Stock issued for services     128,313         1,153,250  
    Depreciation and amortization expense         5,651         5,956  
    Loss on LLC investment         -         23,552  
    Gain on sale of equity securities     (164,724)         -  
    Unrealized gain on investments     (541,410)         -  
    Changes in assets and liabilities:                  
          Accounts receivable         (19,889)         6,463  
          Notes receivable         -         -  
          Other current assets         (20,925)         1,664  
          Accounts payable and accrued liabilities         58,289         (32,389)  
          Accrued interest payable         32,302         501  
          Accrued salaries and related expenses     343,800         243,862  
                                                Net cash provided by (used in) operating activities     384,053         (291,941)  
 
                              CASH FLOWS USED IN INVESTING ACTIVITIES:                  
 
Purchase of equity securities     (1,568,703)         -  
Proceeds from sale of equity securities     1,213,210         -  
Payment for loan to Revenge Designs, LLC         (32,000)         (200,000)  
Purchase of investment         -         (100,000)  
Purchase of equipment         (1,475)         -  
Proceeds from sale of computer         864         -  
                                                                                  Net cash used in investing activities     (388,104)         (300,000)  
 
                                    CASH FLOWS FROM FINANCING ACTIVITIES :                  
 
Proceeds from borrowings         67,826         250,000  
Proceeds from sale of common stock         -         410,000  
Purchase of treasury stock         (25,622)         -  
Repayment of borrowings         (2,459)         -  
Proceeds from loans from related parties     138,219         176,441  
Repayments of loans from related parties     (232,636)         (14,935)  
                                                                      Net cash provided by financing activities         (54,672)         821,506  
 
Net change in cash         (58,723)         229,565  
Cash at beginning of period         83,479         35,543  
 
Cash at end of period     $     24,756     $     265,108  
 
Interest paid     $     -     $     3,367  
Income tax paid     $     -     $     -  
 
Non cash transactions:                  
    Stock issued for services     $     128,313     $     1,153,250  

See notes to condensed consolidated financial statements.
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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 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-QSB 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 10KSB for the year ended December 31, 2006.

Description of organization

Signature Leisure, Inc. (referred to as “Signature” or the “Company”) has been focused on the following operations during the nine months ended September 30, 2007 and 2006: Parker Productions operates for the purpose of providing modeling and event staffing services.

E Cubed Technologies, Inc. provides the 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.

Consolidation

The unaudited condensed consolidated financial statements for the nine months ended September 30, 2007 and 2006 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.

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 and investor relations to fund its business plan. There is no assurance that the Company will be successful in raising additional funds.

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

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 “Indebtedness to related parties”.

On December 31, 2006, the Company executed a promissory note totaling $256,360 for all outstanding debt to its president. The note carries a 12% interest rate and matured on July 15, 2007 and was extended to February 28, 2008. Accrued interest payable on the note totaled $46,101 at September 30, 2007.

During the nine months ended September 30, 2007, the Company executed promissory notes to its president totaling $113,219 as reimbursement for payment of expenses. The notes matured on October 15, 2007 and were extended to February 28, 2008. Accrued interest for the period totaled $20,115. Total debt to president totaled $137,259 and accrued interest totaled $46,101 at September 30, 2007.

No interest was paid during the nine months ended September 30, 2007.

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 nine months ended September 30, 2007.

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. Accrued interest payable at September 30, 2007 totaled $7,879.

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.

Accrued compensation and common stock

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 September 30, 2007 for the auto allowance totaled $16,933, which is included in “Indebtedness to related parties”.

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 “Indebtedness to related parties”.

For the nine months ended September 30, 2007, accrued salaries totaled $229,167 of which $187,500 was owed to the Company’s President. These accruals are included in “Indebtedness to related parties”.

Note 4 – Investments

The Company may purchase equity securities from its investor relations clients. These investments are classified as trading securities. The investments are recorded at market value. The cost of the investments held at September 30, 2007 was $403,246. The Company recorded an unrealized gain on equity investments of $541,410 for the nine months ended September 30, 2007. For the nine months ended September 30, 2007 the Company had realized gains of $164,724 from the sale of equity securities. However, the unrealized gain as of the date of the filing of this 10QSB has decreased by approximately $475,000.

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 Company made $18,985 in advances on the line of credit. The Company made principal payments of $445. The remaining unused line of credit at September 30, 2007 was $1,460.

Note 6 – Notes payable

On July 5, 2007 the Company borrowed $25,000 from KCG Capital, Ltd. The note is due on February, 2008. If unpaid at that date interest begins to accrue at 15% (APR) on the unpaid balance monthly.

Note 7 – Income taxes

The Company incurred net operating losses and has a valuation allowance equal to the deferred tax benefit.

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

Note 8 – Common stock

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, 2007, the Company has issued all shares under the plan. Shares issued for services are recorded at the fair value of the services provided.

During the nine months ended September 30, 2007, the Company issued 12,682,418 shares of its common stock to consultants in exchange for business legal and consulting services. Stock-based compensation expense of $128,313 was recognized in the accompanying financial statements for the nine months ended September 30, 2007.

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 September 30, 2007.

Note 9 - Commitments and contingencies

Leases – The Company entered into a lease in January of 2007 whereby it utilizes office space in exchange for providing document storage and retrieval services. The lease is on a month to month basis. The value of the services exchanged for rent is $3,000 per month.

The Company entered into a lease in January of 2007 to utilize office space for the services of investor relations. The term of the lease is for one year. Rent expenses for the nine months ended September 30, 2007 was $5,612.

Note 10 - 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. Accrued interest on the notes totaled $22,900, at September 30, 2007.

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. Accrued interest on the note totaled $20,278 at September 30, 2007.

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 loan Revenge an additional $32,000. Interest will accrue at 25% . The principal balance and any accrued interest mature on September 30, 2008.

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

Note 11 - Discontinued operations

In January 2007, The Company discontinued its auto sales operations. The Company cancelled its auto dealers license with the State of Florida. The discontinued segment did not have any long-lived assets. Additionally, there are not any contingent liabilities or on-going cash flows as a result of discontinuing the auto sale segment. No adjustments were made to any previously reported amounts. The only assets attributable to the segment were cash and inventory, which was sold in normal course of business during 2006.

Note 12 – Subsequent events

One of our investments that had an unrealized gain at September 30, 2007 has a decrease in value from September 30, 2007 to the date of the filing of this 10QSB by approximately $475,000.

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Item 2. Management's Discussion and Analysis of Financial Condition and Plan 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 September 30, 2007 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 which was started in January 2007. Our focus of operations for the next 12-month period will be develop our business segments focusing on growing operations in each entity to generate revenues. Signature Leisure, Inc. intends to use profits from operations to maintain and grow each business segment. We will continue our efforts to raise additional capital to maintain existing and generate expanded operations.

Parker Productions

Parker Productions, Inc. operations are being developed as a modeling and event staffing business. The individual models and staff that the Company provides to clients operate as independent contractors to the Company. Presently the company is providing customers with two basic forms of service. The first type of service is providing staff (models) for area conventions. Such type of services may include providing staff members to assist in managing the company's booth or assisting the client with visitors to the client's booth. The second form of service is in the form of beverage promotions. Such promotions take place in area bars, in which Parker staff assist the client to gain product awareness from the bar patrons.

E Cubed Technologies

Signature Leisure intends to build a full service IT, network/server, and computer services firm. The Company will provide both computer and network software and hardware products and services to make them useful to small businesses. The systems include both PC-based LAN systems and server-based systems. The Company's services will include design and installation of network systems, training, support, and administration.

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.

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.

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Investor Relations

In January 2007, the Company formed Signature Leisure, Inc. in Minnesota (referred to as Signature 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.

The Company has entered into six annual contracts to provide business consulting relating to assisting companies that are going public. Each of these contracts is for $150,000 over a period of 12 months for a total of $600,000. These contracts are to provide services for the period April 1, 2007 to March 31, 2008.

Consultants/Employees

Signature Leisure currently utilizes five 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)
- Barbra Moran, General Counsel
- Cynthia Wainwright, Administrative Assistant
- Evan Weybright, V.P. Operations
- Ed Miers, Special Advisor
  Parker Productions (event staffing)
- Evan Weybright, Operations Coordinator
  E Cubed Technologies (information technology services)
- Evan Weybright, Operations Director
- Matt Lettau, Sales Director

Financial Summary

Results of Operations for the Three-Months Ended September 30, 2007

The Company reports revenues of $54,690 for the three months ended September 30, 2007; versus revenue income of $12,440 for the three months ended September 30, 2006. Significant factors for change for the two comparative periods include; for the period ending September 30, 2007 revenues were from consulting and sales, and for the period ending September 30, 2006 revenues were from service.

The net income for the three months ended September 30, 2007 of $278,482 is primarily comprised of income from gain on sale of marketable securities of $179,753 and unrealized gain on marketable securities of $358,334. General and administrative expenses for the period ending September 30, 2007 were $269,943. The comparative net loss for the three months ended September 30, 2006 of $454,558 is primarily comprised of loss from operations.

Revenues during the nine month period ending September 30, 2007 were $769,690 vs. $23,015 for the comparative prior period. This increase is due to the new operations of the investor relations segment.

Liquidity and Capital Resources

During the 9-months ended September 30, 2007 the Company's cash position decreased by $58,723. Net cash provided by operating activities totaled $384,053; net cash used for investing activities was $388,104; and $54,672 was used in financing activities.

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Investment Activities

a)       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 September 30, 2007.
 
b)       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. Accrued interest on the notes totaled $22,900, at September 30, 2007.
 
  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. Accrued interest on the note totaled $20,278 at September 30, 2007.
 
  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 loan Revenge an additional $32,000. Interest will accrue at 25% . The principal balance and any accrued interest mature on September 30, 2008.
 
c)       Investor Relations Clients
 
  In January 2007, the Company formed Signature Leisure, Inc. in Minnesota (referred to as Signature Minnesota) to provide business consulting services to assist non public companies who are going public. Additional, the Company provides investor relation services to these companies by fielding inquiries from investors.
 
  The Company may purchase equity securities from its investor relations clients. These investments are classified as trading securities. The investments are recorded at market value. The cost of the investments held at September 30, 2007 was $403,246. The Company recorded an unrealized gain on equity investments of $541,410 for the nine months ended September 30, 2007. For the nine months ended September 30, 2007 the Company had realized gains of $164,724 from the sale of equity securities. However, the unrealized gain as of the date of the filing of this 10QSB has decreased by approximately $475,000.
 

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S IGNATURE L EISURE , I NC .

Management’s Plan of Operations

We have begun to develop more significant revenue through the operations of our new segment Signature Minnesota which provides consulting services. We cannot anticipate at this time that enough positive internal operating cash flow until such time as we can generate sustained and substantial revenues. 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. We anticipate that we may incur additional operating losses over the next twelve months. Our recently developed 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

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. As shown in the accompanying financial statements, the Company has incurred recurring losses, used significant cash in support of its operating activities and, based upon current operating levels, requires additional capital or significant reconfiguration of its operations to sustain its operations for the foreseeable future. These factors, among others, may indicate that the Company will be unable to continue as a going concern.

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.

Item 3. Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report. There were no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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S IGNATURE L EISURE , I NC .

Part II.     OTHER INFORMATION  
Item 1.     Legal Proceedings  
    None, for the period ending June 30, 2007  
Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds  
    None, during the nine month period ending September 30, 2007.  
Item 3.     Defaults Upon Senior Securities  
    None      
Item 4.     Submission of Matters to a Vote of Security Holders  
    None, for the period ending September 30, 2007  
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 three month period ending September 30, 2007.  

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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: November 13, 2007     By: /s/ Stephen W. Carnes, President  
    Stephen W. Carnes, President  
    Principal Executive Officer  
    Principal Accounting Officer  

15

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