Cable Net 10-Q Quarterly report

U. S. SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

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 June 30, 2008

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ________ to ________

Commission File Number 000-52472

CABLE NET INC.

(Exact name of small business issuer as specified in its charter)

Nevada	86-1010155
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4500 Bankers Hall East 855 - 2nd Street S.W. Calgary, Alberta T2P 4K7

(Address of Principal Executive Offices) (Zip Code)

(403) 298-3100

(Issuer's telephone number)

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.   

Yes x No o

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,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	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 x No o

The number of outstanding shares of the issuer's common stock, $0.001 par value, as of June 30, 2008 was 7,000,000.

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CABLE NET, INC.

(A DEVELOPMENT STAGE ENTERPRISE)

Index to Financial Statements

		Page
Part I	Financial Information
Item 1.	Financial Statements:
	Condensed Balance Sheets - June 30, 2008 (unaudited) and December 31, 2007	3
	Unaudited Condensed Statements of Operations for the three and six months ended June 30, 2008 and 2007, and cumulative from inception on December 31, 1998 through June 30, 2008	4
	Unaudited Condensed Statements of Cash Flows for the six months ended June 30, 2008 and 2007, and cumulative from inception on December 31, 1998 through June 30, 2008	5
	Statement of Stockholders' (deficit) for the period from December 31, 1998 to June 30, 2008 (unaudited)	6
	Notes to Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	8
Item 3.	Market Risk Disclosure	8
Item 4.	Controls and Procedures	8
Part II	Other Information	8
Item 1.	Legal Proceedings	8
Item 2.	Changes in Securities	8
Item 3.	Defaults Upon Senior Securities	8
Item 4.	Submission of Matters to Vote of Security Holders	8
Item 5.	Other Information	8
Item 6.	Exhibits and Reports on Form 8-K	9
	Signatures	9

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS:

CABLE NET, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED BALANCE SHEETS
	June 30,			December 31,
	2008			2007
	(unaudited)
ASSETS
TOTAL CURRENT ASSETS - Prepaid expenses	$	-		$	603
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	-		$	104
Accounts payable - related parties		77,212			53,224
Total Current Liabilities		77,212			53,328
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' (DEFICIT)
Common stock, par value $.001, 25,000,000
shares authorized, 7,000,000 issued and
outstanding		7,000			7,000
Paid in Capital		17,600			17,600
(Deficit) accumulated during the development stage		(101,812	)		(77,326	)
Total Stockholders' (Deficit)		(77,212	)		(52,726	)
	$	-		$	603
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

3

CABLE NET, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
													Cumulative
													from
													December 31,
													1998
	For the three months ended						For the six months ended						(Inception)
	June 30,						June 30,						to
	2008			2007			2008			2007			June 30, 2008
REVENUES	$	-		$	-		$	-		$	-		$	-
EXPENSES
General and administrative		15,917			4,909			24,486			10,965			101,812
Total expenses		15,917			4,909			24,486			10,965			101,812
NET (LOSS)	$	(15,917	)	$	(4,909	)	$	(24,486	)	$	(10,965	)	$	(101,812	)
NET (LOSS) PER SHARE		*			*			*			*
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING		7,000,000			7,000,000			7,000,000			7,000,000
*  less than $(.01) per share
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

4

CABLE NET, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
							Cumulative
							from
							December 31,
							1998
	For the six months ended						(Inception)
	June 30,						to
	2008			2007			June 30, 2008
OPERATING ACTIVITIES
Net (loss)	$	(24,486	)	$	(10,965	)	$	(101,812	)
Decrease in Prepaid Expenses		602						(1	)
Decrease in Accounts Payable		(104	)		(244	)		-
NET CASH (USED BY) OPERATING ACTIVITIES		(23,988	)		(11,209	)		(101,813	)
FINANCING ACTIVITIES
Accounts payable - related parties		23,988			11,209			94,813
Proceeds from sale of common stock								7,000
NET CASH PROVIDED BY FINANCING ACTIVITIES		23,988			11,209			101,813
NET INCREASE IN CASH		(0	)		-			0
CASH, BEGINNING OF PERIOD								-
CASH, END OF PERIOD	$	(0	)	$	-		$	0
SUPPLEMENTAL INFORMATION
Officer advances contributed to capital							$	17,600
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

5

CABLE NET, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF STOCKHOLDERS' (DEFICIT)
							(Deficit)
							Accumulated
							During the
	Common Stock				Paid-in		Development
	Shares		Amount		Capital		Stage			Total
Balances, at inception		-	$	-	$	-	$	-		$	-
Issuance of stock, January 12,1999
at $.001 per share		7,000,000		7,000							7,000
Net (loss) for the year								(3,735	)		(3,735	)
Balances, December 31, 1999		7,000,000		7,000		-		(3,735	)		3,265
Net (loss) for the year								(4,485	)		(4,485	)
Balances, December 31, 2000		7,000,000		7,000		-		(8,220	)		(1,220	)
Net (loss) for the year								(4,185	)		(4,185	)
Balances, December 31, 2001		7,000,000		7,000		-		(12,405	)		(5,405	)
Net (loss) for the year								(4,335	)		(4,335	)
Balances, December 31, 2002		7,000,000		7,000		-		(16,740	)		(9,740	)
Net (loss) for the year								(4,358	)		(4,358	)
Balances, December 31, 2003		7,000,000		7,000		-		(21,098	)		(14,098	)
Paid in capital						17,600					17,600
Net (loss) for the year								(8,127	)		(8,127	)
Balances, December 31, 2004		7,000,000		7,000		17,600		(29,225	)		(4,625	)
Net (loss) for the year								(15,661	)		(15,661	)
Balances, December 31, 2005		7,000,000		7,000		17,600		(44,886	)		(20,286	)
Net (loss) for the year								(15,690	)		(15,690	)
Balances, December 31, 2006		7,000,000		7,000		17,600		(60,576	)		(35,976	)
Net (loss) for the year								(16,750	)		(16,750	)
Balances, December 31, 2007		7,000,000		7,000		17,600		(77,326	)		(52,726	)
(unaudited)
Net (loss) for the period								(24,486	)		(24,486	)
Balances, June 30, 2008 (unaudited)		7,000,000	$	7,000	$	17,600	$	(101,812	)	$	(77,212	)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

6

CABLE NET, INC.

(A DEVELOPMENT STAGE ENTERPRISE)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position as of June 30, 2008 and the results of its operations and cash flows for the three and six months ended June 30, 2008 have been made.  Operating results for the six months ended June 30, 2008 are not necessarily indicative of the results that may be expected for the year ended December 31, 2008.

These condensed financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Form 10-KSB for the year ended December 31, 2007.

NOTE 2 – GOING CONCERN

Our financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  Our ability to continue in existence is dependent on our ability to develop additional sources of capital, locate and merge with a profitable merger candidate, or achieve profitable operations. Since our inception, we have sustained losses and have a deficit in equity. Management’s plan is to pursue a stock exchange transaction with a viable entity.  The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties.

NOTE 3 – ACCOUNTS PAYABLE – RELATED PARTIES

Since we do not have a bank account, we were advanced funds for our overhead and operating expenses by an affiliated company owned by our President since 2004. During the quarters ended June 30, 2008 and 2007, the affiliate was credited with incurred accounting fees of $2,869, legal fees of $11,037 and various fees of $2,507, totaling $16,413, and accounting fees of $2,569 and various fees of $1,940, totaling $4,509, respectively. We also accrued payroll for our President for each of the periods ending June 30, 2008 and 2007, of $375, and office rent of $300, which we consider to be the fair value for such items. No accruals to our President have been paid since he took office in 2004.  As of June 30, 2008 we owed the affiliate $67,612, and our President $9,600.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

PLAN OF OPERATION

For the near term, we continue to seek merger and/or acquisition candidates.  We have had no operations since inception and are financially dependent on our shareholders, who have financed our existence to date.  Management of the Company believes that its shareholders will continue to provide the finances the Company requires, without the need to raise additional capital.

ITEM 3. MARKET RISK DISCLOSURE

Not Applicable

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer, as appropriate, to allow timely decisions regarding required disclosure.

At end of the period covered by this report, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15 and 15d-15(e). This evaluation was done under the supervision and with the participation of our Principal Executive Officer.  Due to the lack of any revenue generating activities, and the limited expenses incurred to maintain corporate existence and compliance, the nature of our business is simple. Our President is currently the only active person in the company who relies mainly on outside professionals retained to assist him in the required information gathering and reporting process, but there are no formally established internal controls for this process. Based on these circumstances, our President has concluded that our disclosure controls and procedures are effective in gathering, analyzing and disclosing information needed to satisfy our disclosure obligations under the Exchange Act. Having said this, our arrangements can only provide reasonable, but not absolute assurance as to the system requirements.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 2. CHANGES IN SECURITIES

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

None

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

EXHIBIT NO.	DESCRIPTION
31.1	Certificate of CEO as Required by Rule 13a-14(a)/15d-14
31.2	Certificate of CFO as Required by Rule 13a-14(a)/15d-14
32.1	Certificate of CEO as Requlred by Rule 13a-14(b) and Rule 15d-14(b) (17 CFR 240.15d(b)) and Section 1350 of Title 18 of the United States Code

(b) Reports on Form 8-K

Form 8-K/A filed with the U.S. Securities and Exchange Commission on April 17, 2008.

Form 8-K/A filed with the U.S. Securities and Exchange Commission on May 6, 2008.

SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the registrant caused this registration statement to be signed on its behalf by the undersigned, thereto duly authorized.

	CABLE NET INC. (Registrant)
By:/s/ Frank Marasco Frank Marasco Principal Executive Officer	Date: August 12, 2008
By:/s/ Maria Marasco Maria Marasco Principal Financial Officer	Date: August 12, 2008
By:/s/ Maria Marasco Maria Marasco Principal Accounting Officer	Date: August 12, 2008

In accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:/s/ Frank Marasco Frank Marasco Director Date: August 12, 2008

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