UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2008

¨	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: 000-51675

LANE CO. #3, INC.

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

Delaware (State or other jurisdiction of incorporation or organization)		20-3771425 (I.R.S. Employer Identification No.)

333 Sandy Springs Circle, Suite 230
Atlanta, GA (Address of Principal Executive Offices)		30328 (Zip Code)

(404) 257-9150

(Issuer’s telephone number, including area code)

263 Queens Grant Road
Fairfield, CT 06824-1929 (Former Address of Principal Executive Offices)		203-255-0341 (Issuer’s former telephone number)

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨

State the number of shares outstanding of each of the issuer’s classes of common equity, as of February 6, 2009: 100,000 shares of common stock.

PART I

Item 1. – Financial Statements

LANE CO. #3, INC.

(a corporation in its development stage)

BALANCE SHEETS

	December 31, 2008			September 30, 2008
	(unaudited)			(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	3,541		$	341
Prepaid accounting fees		3,000			-
Total assets	$	6,541		$	341

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	750		$	8,004
Shareholders advances		39,638			24,638
Total current liabilities	$	40,388		$	32,642

Commitments and contingencies:

Stockholders' Equity
Preferred stock - $.0001 par value Authorized 10,000,000 shares; none issued	$	-		$	-
Common stock - $.0001 par value Authorized 100,000,000 shares issued and outstanding 100,000		10			10
Additional paid-in capital in excess of par		9,490			9,490
Deficit accumulated during development stage		(43,347	)		(41,801	)
Total stockholders' equity		(33,847	)		(32,301	)
Total liabilities and stockholders' equity	$	6,541		$	341

The financial information presented herein has been prepared by management without audit by independent certified public accountants.

The accompanying notes should be read

in conjunction with the financial statements.

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LANE CO. #3, INC.

(a corporation in its development stage)

STATEMENTS OF OPERATIONS

									Period from
									November 2, 2005
	For the Three Months Ended									(inception) to
	December 31,				December 31,					December 31,
	2008				2007					2008
	(unaudited)				(unaudited)				(unaudited)

Sales:		$	-			$	-			$	-
Cost of Sales			-				-				-
Gross Profit			-				-				-
General and administrative expenses			1,546				1,750				43,347
Net loss		$	(1,546	)		$	(1,750	)		$	(43,347	)
Weighted average number of shares
Outstanding (basic and fully diluted)			100,000				100,000				100,000
Net loss per share - basic and diluted		$	(0.015	)		$	(0.018	)		$	(0.433	)

The financial information presented herein has been prepared by management without audit by independent certified public accountants.

The accompanying notes should be read

in conjunction with the financial statements.

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LANE CO. #3, INC.

(a corporation in its development stage)

STATEMENTS OF CASH FLOWS

							Period from
	For the Three Months Ended						November 2, 2005
	December 31,			December 31,			(inception) to
	2008			2007			December 31, 2008
	(unaudited)			(unaudited)			(unaudited)

Cash flows from operating activities:
Net loss	$	(1,546	)	$	(1,750	)	$	(43,347	)
Adjustments to reconcile net loss to net cash used in operating activities:
Prepaid accounting fees		(3,000	)		(2,000	)		(3,000	)
Accounts payable and accrued liabilities		(7,254	)		(6,250	)		750
Net cash (used in) operating activities		(11,800	)		(10,000	)		(45,597	)

Cash flows from financing activities:
Proceeds from shareholders loan		15,000			10,100			39,638
Proceeds from issuance of common stock		-			-			7,000
Proceeds from additional capital contribution		-			-			2,500
Net cash provided by financing activities		15,000			10,100			49,138

Net increase in cash for the period then ended		3,200			100			3,541
Cash, beginning of period		341			-			-
Cash, end of period	$	3,541		$	100		$	3,541

The financial information presented herein has been prepared by management without audit by independent certified public accountants.

The accompanying notes should be read

in conjunction with the financial statements.

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LANE CO. #3, INC.

(a corporation in its development stage)

NOTES TO FINANCIAL STATEMENTS

December 31, 2008

NOTE 1 - Organization

Lane Co #3, Inc. (“the Company”) was incorporated in State of Delaware on November 2, 2005 and is currently in its development stage.

On December 15, 2005 the Company filed a Registration Statement of Form 10SB to have its common stock, par value $0.0001 registered under Section 12 (g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In accordance with the provisions of the Exchange Act such Registration Statement became effective on February 13, 2006.

As a blank check company, the Company’s business is to pursue a business combination through acquisition, or merger with, an existing company. As of the date of the financial statements, the Company is continuing its efforts to locate a candidate to pursue a possible business combination. As a result, the Company has not conducted negotiations or entered into a letter of intent or any other agreement concerning any target business. No assurances can be given that the Company will be successful in locating or negotiating with any target company. Since inception, the Company has been engaged in organizational efforts.

On February 22, 2007 John D. Lane, the President and sole shareholder of the Company, sold 90,000 shares of common stock, representing ninety percent of the issued and outstanding common shares to High Capital Funding, LLC, a private investment company, for $15,000.

NOTE 2 – Summary of Significant Accounting Policies

The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States.

Significant accounting policies are as follows:

Use of Estimates

The preparation of the statement of financial condition in conformity with accounting principles generally accepted in the United States requires management to make estimated and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. On October 29, 2007, the Company established a bank account at Wachovia Bank. For the period November 2, 2005 (inception) through September 30, 2007, the Company did not maintain a bank account.

Income Taxes

The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on the differences between financial reporting basis and tax basis of the assets and liabilities and are measured using enacted tax rates that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized. See Note 5.

Loss per Common Share

Loss per share is computed by dividing the net loss by the weighted−average number of shares of common stock outstanding during the period as required by the Financial Accounting Standards Board (FASB) under Statement of Financial Accounting Standards (SFAS) No. 128.

New Accounting Pronouncement

The Company does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on its financial position or results of operations.

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LANE CO. #3, INC.

(a corporation in its development stage)

NOTES TO FINANCIAL STATEMENTS

December 31, 2008

NOTE 3 − Preferred Stock

The Company is authorized to issue 10,000,000 shares of Preferred Stock. The Preferred Stock of the Company shall be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as the Board of Directors of the Company may determine, from time to time. As of December 31, 2008, the Company had no outstanding preferred stock.

NOTE 4 − Common Stock

The Company is authorized to issue 100,000,000 shares of Common Stock. On November 3, 2005, the Company issued 100,000 shares of Common Stock for total consideration of $7,000 to the sole shareholder of the Company at that date.

During the period from November 02, 2005 (inception) to September 30, 2006, the sole shareholder of the Company made additional capital contributions of $2,500.

The Company did not issue any Common Stock, nor did the shareholder make any capital contributions during the period October 1, 2008 to December 31, 2008.

Holders of shares of Common Stock shall be entitled to cast one vote for each share held at all stockholders' meetings for all purposes, including the election of directors. The Common Stock does not have cumulative voting rights. No holder of shares of stock of any class shall be entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock of any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend.

NOTE 5 − Income Taxes

As a result of the change in control of the Company, all net operating loss carry−forwards up to February 22, 2007 amounting to $17,500 are no longer available to the Company. The Company has approximately $10,400 in gross deferred tax assets at December 31, 2008 resulting from net operating loss carry−forwards. A valuation allowance has been recorded to fully offset these deferred tax assets because the future realization of the related income tax benefits is uncertain. At December 31, 2007, the Company had $5,200 in gross deferred tax assets which were fully offset by a valuation reserve because the future realization of the related income tax benefits is uncertain. Accordingly, the net provision for income taxes is zero for the period November 02, 2005 (inception) to December 31, 2008. At December 31, 2008, the Company has federal net operating loss carry-forwards of approximately $25,800 available to offset future taxable income through 2026. The difference between the tax provision at the statutory federal and state income tax rate and the tax provision attributable to loss before income taxes is as follows (in percentages):

	For the Three Months Ended						Period from November 2,
	December 31,			December 31,			2005 (inception) to
	2008			2007			December 31, 2008

Statutory federal income taxes		-34.0	%		-34.0	%		-34.0	%
State taxes, net of federal benefits		-6.0	%		-6.0	%		-6.0	%
Valuation allowance		40.0	%		40.0	%		40.0	%

Income tax rate		0.0	%		0.0	%		0.0	%

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LANE CO. #3, INC.

(a corporation in its development stage)

NOTES TO FINANCIAL STATEMENTS

December 31, 2008

NOTE 6 − Going Concern

The Company's financial statements have been presented on the basis that it is a going concern in the development stage, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of the date of these financial statements, the Company has made no efforts to identify a possible business combination.

For the period from November 2, 2005 (inception) to December 31, 2008, the Company incurred losses of $43,347.

For the period from October 1, 2008 to December 31, 2008, the Company had no revenue, expenses of $1,546 and a loss of $1,546.

The ability of the Company to continue as a going concern is dependent upon its ability to find a suitable acquisition/merger candidate, raise additional capital from the sale of Common Stock and, ultimately, the achievement of significant operating revenues. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to recover the value of its assets or satisfy its liabilities.

NOTE 7 − Appointment of Director and Officers

On April 16, 2007, David A. Rapaport was appointed as a Director, Executive Vice President, Secretary and General Counsel; and Fred A. Brasch was appointed as Chief Financial Officer and Treasurer of the Company.

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Item 2. - Management's Discussion and Analysis of Financial Conditions and Results of Operations Plan of Operation

The Company is continuing its efforts to locate a candidate to pursue a business combination through acquisition, or merger. It is possible that the Company will be successful in locating such a candidate and closing such an acquisition or merger. However, if the Company cannot effect a non−cash acquisition, the Company may have to raise funds from a private offering of its securities under Rule 506 of Regulation D. There is no assurance that the Company would obtain any such equity funding.

Results of Operation

The Company did not have any operating income from November 2, 2005 (inception) through December 31, 2008. The Company recognized a net loss of $43,347 for the period of November 2, 2005 (inception) through December 31, 2008. The Company recognized a net loss of $1,546 for the period from October 1, 2008 to December 31, 2008. Expenses from inception comprised of costs mainly associated with legal and accounting.

Liquidity and Capital Resources

At December 31, 2008, the Company had no capital resources and will rely upon the issuance of Common Stock, additional capital contributions and loans from shareholders to fund administrative expenses pending acquisition or merger of an operating company.

Management anticipates seeking out a target company through solicitation. Such solicitation may include newspaper or magazine advertisements, mailings and other distributions to law firms, accounting firms, investment bankers, financial advisors and similar persons, the use of one or more World Wide Web sites and similar methods. No estimate can be made as to the number of persons who will be contacted or solicited. Management may engage in such solicitation directly or may employ one or more other entities to conduct or assist in such solicitation. Management and its affiliates will pay referral fees to consultants and others who refer target businesses for mergers into public companies in which management and its affiliates have an interest. Payments are made if a business combination occurs, and may consist of cash or a portion of the stock in the Company retained by management and its affiliates, or both.

The Company and/or shareholders will supervise the search for target companies as potential candidates for a business combination. The Company and/or shareholders may pay as their own expenses any costs incurred in supervising the search for a target company. The Company and/or shareholders may enter into agreements with other consultants to assist in locating a target company and may share stock received by it or cash resulting from the sale of its securities with such other consultants.

Item 3. - Quantitative and Quantitative Disclosures About Market Risk.

N/A

Item 4. - Controls and Procedures

(a)

Evaluation of disclosure controls and procedures.

Our Chief Executive Officer and Chief Financial Officer (collectively the "Certifying Officers") maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Security and Exchange Commission's rules and forms to allow timely decisions regarding required disclosure. The Certifying Officers necessarily applied their judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management's control objectives.

Our Certifying Officers carried out an evaluation, on the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rules13a−15 and 15d−15 as of the end of the period covered by this report. Based upon that evaluation, the Company's Chief Executive Officer and Chief Accounting Officer concluded that the Company's disclosure controls and procedures are effective in timely alerting them to information relating to material information required to be included in the Company's Exchange Act reports.

While the Company believes that its existing disclosure controls and procedures have been effective to accomplish their objectives, the Company intends to continue to examine, refine and document its disclosure controls and procedures and to monitor ongoing developments in this area.

- 8 -

(b)

Changes in internal controls.

During the quarter ended December 31, 2008, there were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Item 4T. - Controls and Procedures

N/A

PART II − OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is currently not a party to any pending legal proceedings and no such action by or to the best of its knowledge, against the Company has been threatened.

Item 1A. Risk Factors.

N/A

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

On November 3, 2005, the Company issued 100,000 shares of common stock for total consideration of $7,000 to the sole shareholder of the Company under the exemption from registration afforded the Company under Section 4(2) of the Securities Act of 1933, as amended.

Item 3. Defaults Upon Senior Securities.

None

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

No matter was submitted during the quarter ending December 31, 2008, covered by this report to a vote of the Company's shareholders, through the solicitation of proxies or otherwise.

Item 5. Other Information.

None

Item 6. Exhibits.

(a)

Exhibits

	31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

	32.1	Certification of Principal Executive Officer pursuant to pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes Oxley Act of 2002

(b)

Reports of Form 8−K

None

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the issuer caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: February 6, 2009

Lane Co. #3, Inc.

By: /s/ John D. Lane

Signature:

Title: John D. Lane, President

Principal Executive Officer

By: /s/ Fred A. Brasch

Signature:

Title: Fred A. Brasch, Chief Financial Officer

Principal Financial Officer

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LANE CO 3 INC 10-Q