UNITED STATES

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 ~~March~~June 3130, 2012.

[ ] 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: 333-17627

SKAJAQUODA GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of

incorporation or organization)

45-2117356

(I.R.S. Employer

Identification No.)

1001 Society Drive, Claymont, Delaware 19703

(Address of principal executive offices) (Zip Code)

(302) 504-4448

(Registrant’s telephone number, including area code)

n/a

(Former name, former address and former fiscal year, if changes since last report)

Indicate by check mark whether the registrant: (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 [ ].

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company as defined by Rule 12b-2 of the Exchange Act:

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [x]

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. The number of shares outstanding of the issuer’s common stock, $0.00001 par value (the only class of voting stock), at ~~May~~July 145, 2012, was 1,000,000.

TABLE OF CONTENTS PART 1- FINANCIAL INFORMATION
Item1.	Financial Statements:	3
	Balance Sheets as of March 31, 2012(Unaudited)	4
	Balance Sheets as of June 30, 2012(Unaudited)	4
	Unaudited Statements of Operations for the three months ended March 31, 2012.	5
	Unaudited Statements of Operations for the three months ended June 30, 2012.	5
	Unaudited Statement of Changes in Stockholders Equity	6
	Unaudited Statements of Cash Flows for the three months ended March 31, 2012.	7
	Unaudited Statements of Cash Flows for the three months ended June 30, 2012.	7
	Notes to Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17
Item 4.	Controls and Procedures	17
	PART II-OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3.	Defaults Upon Senior Securities	20
Item 4.	(Removed and Reserved)	20
Item 5.	Other Information	20
Item 6.	Exhibits	20
	Signatures	21
	Index to Exhibits	22

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

As used herein, the terms “Company,” “we,” “our,” and “us” refer to Skajaquoda Group, inc., a Delaware corporation, and our subsidiaries and predecessors, unless otherwise indicated. In the opinion of management, the accompanying unaudited financial statements included in this Form 10-Q reflect all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.

Skajaquoda Group, Inc. (A Development Stage Entity)

Balance Sheet

UNAUDITED

				UNAUDITED June 30, 2012	AUDITED December 31, 2011
Assets
Current assets
	Cash and cash equivalents		$	61,172	99,376
	Accounts receivable			1,124,155
	Deferred offering costs			0
		Total current assets		1,185,328	99,376

Noncurrent assets
	Property, plant, and equipment			810
	Loan receivables			41,538	20,730
		Total noncurrent assets		42,348	20,730
		Total assets	$	1,227,677	20,730

Liabilities and Stockholders Equity
Current liabilities
	Current income taxes payable		$	0
		Demand loans payable to related party		103,137	103,137
		Accounts payable		1,114,077	2,500
		Total current liabilities		1,217,215	105,637
		Total liabilities		1,217,215	105,637

Stockholders' Equity
	Common stock, $0.00001 par value, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding at June 30, 2012		$	10	10
	Additional paid-in capital			20,129	20,129
	Retained earnings			(5,670)	(5,670)
	Total stockholders equity			10,462	14,469

		Total liabilities and stockholders equity	$	1,227,677	120,106

				March 31, 2012	December 31, 2011
Assets
Current assets
	Cash and cash equivalents		$	96,491	99,376
	Accounts receivable			0
	Deferred offering costs			0
		Total current assets		96,491	99,376
Noncurrent assets
	Loan receivable			20,989	20,730
		Total noncurrent assets		20,989	20,730
		Total assets	$	20,989	20,730
Liabilities and Stockholders Equity
Current liabilities
	Current income taxes payable		$	0
		Demand loans payable to related party		103,137	103,137
		Accounts payable		2,500	2,500
		Total current liabilities		105,637	105,637
		Total liabilities		105,637	105,637
Stockholders' Equity
	Common stock, $0.00001 par value, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding at March 31, 2012		$	10	10
	Additional paid-in capital			20,129	20,129
	Retained earnings			(2,626)	(5,670)
	Total stockholders equity			11,843	14,469
		Total liabilities and stockholders equity	$	117,480	120,106

The accompanying notes are an integral part of these consolidated financial statements

Skajaquoda Group, Inc. (A Development Stage Entity)

Statement of Operations Three Months Ended ~~March~~June 3130, 2012 and From April 29, 2011 (Inception) to ~~March~~June 3130, 2011 and Six Months Ended June 30, 2012 and From April 29, 2011 (Inception) to June 30, 2012

UNAUDITED

				UNAUDITED Three months Ended June 30, 2012	AUDITED From April 29, 2011 (Inception) to June 30, 2011	UNAUDITED Six Months Ended June 30, 2012	UNAUDITED From April 29, 2011 (Inception) to June 30, 2012
Revenue
	Product Sales		$	1,124,155		1,124,155	1,124,155
	Services			10		10	10
	Consulting services - related party				20,801		20,801
	Consulting services - related party				9,400		59,400
	Interest income			259		518	518
		Total revenue		1,124,424	30,201	1,124,683	1,204,884

	Cost of goods sold			(1,111,577)		(1,111,577)	(1,111,577)
	Gross Profit			12,847	30,201	13,106	93,307

Expenses
	General administrative			14,228	2,250	17,113	102,984
		Total expenses		14,228	2,250	17,113	102,984

		Total income before income taxes		(1,381)	27,951	(4,007)	(9,677)

	Income tax expense			0	27,951	0	0
		Net income		(1,381)	18,448	(4,007)	(9,677)

Earnings per share
	Basic		$	(0.0014)	0.0184	(0.004)	(0.0097)
	Diluted		$	(0.0014)	0.0184	(0.004)	(0.0097)

Weighted average common shares
	Basic			1,000,000	1,000,000	1,000,000	1,000,000
	Diluted			1,000,000	1,000,000	1,000,000	1,000,000

				March 31, 2012	From April 29, 2011 (Inception) to March 31, 2012
Revenue
	Consulting services - related party		$	0	20,801
	Consulting services - related party			0	59,400
	Interest income			259	259
		Total revenue		259	80,460
Expenses
	General administrative			2,885	88,756
		Total expenses		2,885	88,756
		Total income before income taxes		(2,626)	(8,296)
	Income tax expense			0	0
		Net income		(2,626)	(8,296)
Earnings per share
	Basic		$	(0.0026)	(0.0083)
	Diluted		$	(0.0026)	(0.0083)
Weighted average common shares
	Basic			1,000,000	1,000,000
	Diluted			1,000,000	1,000,000

The accompanying notes are an integral part of these consolidated financial statements

Skajaquoda Group, Inc. (A Development Stage Entity)

Statement of Changes in Stockholders' Equity From April 29, 2011 (Inception) to ~~March~~June 3130, 2012

	Common Stock		Additional Paid-in Capital	Retained Earnings	Total
	Shares	Amount
Balance at April 29, 2011	-	$ -	$ -	$ -	$ -
Issuance of common stock	1,000,000	10	$ 20,129	-	20,139
Net income	-	-	-	(29,~~626~~677)	(29,~~626~~677)
Balance at 31 March 2012	1,000,000	$ 10	$ 20,129	$ (2,626)	$ 11,843
Balance at 30 June 2012	1,000,000	$ 10	$ 20,129	$ (9,677)	$ 10,462

The accompanying notes are an integral part of these financial statements.

Skajaquoda Group, Inc. (A Development Stage Entity)

Statement of Cash Flows ~~Three~~Six Months Ended ~~March~~June 3130, 2012 and From April 29, 2011 (Inception) to ~~March~~June 3130, 2012

UNAUDITED

			March 31, 2012	From April 29, 2011 (Inception) to March 31, 2012
			June 30, 2012	From April 29, 2011 (Inception) to June 30, 2012
Cash flow from operating activities
Net income		$	(24,~~626~~007)	(89,~~296~~677)
Adjustments to reconcile net income to net cash
	provided by operating activities:		0	0
	Increase in accounts receivable		0(1,124,155)	0(1,124,155)
	Increase in accounts payable		01,111,577	21,~~500~~114,077
	Increase in income taxes payable		0	0
Net cash provided by operating activities		$	(216,~~626~~585)	(519,~~796~~755)
Cash flow from investing activities			(259)	(259)
Purchase of property and equipment			(810)	(810)
Issuance of loan receivable			0	(20,730)
Cash flow from investing activities			(518)	(518)
Cash flow used in investing activities		$	(259)	(20,989)
Issuance of loan receivable			(20,290)	(41,020)
Cash flow used in investing activities		$	(21,618)	(42,348)
Cash flow from financing activities			0	0
Issuance of common stock			0	20,139
Payment of deferred offering costs			0	0
Proceeds from demand loans from related party			0	103,137
Cash flow provided by financing activities		$	0	123,276
Net increase (decrease) in cash and cash equivalents			(238,~~885~~203)	9661,~~491~~173
Cash and cash equivalents at beginning of period			99,376
Cash and cash equivalents at end of period		$	9661,~~491~~173	9661,~~491~~173
Interest paid		$	-	-
Taxes paid		$	-	-

The accompanying notes are an integral part of these consolidated financial statements

SKAJAQUODA GROUP, INC.

Notes to the Financial Statements as of ~~March~~June 3130, 2012

1. Incorporation and Operations

Skajaquoda Group Inc. ("Skajaquoda" or the "Company") is domiciled in Delaware, and commenced operations on April 29, 2011 (Inception). The Company plans to become a registered investment advisor.
Based on the Company's business plan, it is a development stage company since planned principle operations have not yet commenced. Accordingly, the Company has prepared its financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") that apply to developing enterprises. As a development stage entity, the Company discloses its retained earnings during the development stage and the cumulative statements of operations and cash flows from commencement of development stage to the current balance sheet date. The development stage began on April 29, 2011, when the Company was organized.

2. Going Concern

The preparation of financial statements in accordance with GAAP contemplates that operations will be sustained for a reasonable period. The Company is in the development stage and is dependent on outside sources of financing for continuation of its operations. These conditions raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period.

The company plans to improve its financial condition thru a private placement. However, there is no assurance that the company will be successful in accomplishing this objective. Management believes that this plan provides an opportunity for the Company to continue as a going concern. We cannot give any assurances regarding the success of management's plans. Our financial statements do not include adjustments relating to the recoverability of recorded assets or liabilities that might be necessary should we be unable to continue as a going concern.

SKAJAQUODA GROUP, INC.

Notes to the Financial Statements as of ~~March~~June 3130, 2012

3. Significant Accounting Policies

Cash and Cash Equivalents - For purposes of the statements of cash flows, the Company considers all highly liquid investments with original maturities of three months of less to be cash equivalents. Cash and cash equivalents are stated at cost which approximates fair value.

Accounts Receivable - The Company grants credit to customers in the normal course of operations. Accounts receivables are based on management's evaluation of outstanding receivables at year end. Allowance for doubtful accounts, if any, is provided based on the review of outstanding receivables, historical experience and economic conditions. Uncollectible accounts are expensed in the period such amounts are determined.

Loan Receivable - Loans receivable are financial assets with fixed or determinable payments that are not quoted in an active market are measured at amortized cost using the effective interest method, less any impairment. Loans receivable are assessed for indicators of impairment at the end of each reporting period, and are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Revenue - Revenue is recognized as earned from the performance of services in accordance with SEC Staff Bulletin No. 104, "Revenue Recognition" ("SAB 104"). Under SAB 104, service revenues are recognized when persuasive evidence of an arrangement exists, service has been performed, the sales price is fixed and determinable, and collectability is reasonably assured.

Income Taxes - The Company follows the asset and liability method of accounting for future income taxes. Under this method, future income tax assets and liabilities are recorded based on temporary differences between the carrying amount of assets and liabilities and their corresponding tax basis. In addition, the future benefits of income tax assets including unused tax losses, are recognized, subject to a valuation allowance to the extent that it is more likely than not that such future benefits will ultimately be realized. Future income tax assets and liabilities are measured using enacted tax rates and laws expected to apply when the tax liabilities or assets are to be either settled or realized. The Company does not have any significant deferred tax asset or liabilities at ~~March~~June 3130, 2012. The Company's effective tax rate approximates the Federal statutory rates.

Earnings Per Share - Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company has no potentially dilutive common shares at ~~March~~June 3130, 2012.

Other Comprehensive Income - Other comprehensive loss represents the change in equity of an enterprise during a period from transactions from non-owner sources. The company has no accounts or transactions that give rise to other comprehensive income.

Fair Value - The fair values of accounts receivable and taxes payable approximates their carrying values due to the short-term nature of these instruments. The fair value of loan receivable approximates its carrying value due the proximity of its issuance date to the date of the accompanying financial statements.
Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates are reasonable.

SKAJAQUODA GROUP, INC.

Notes to the Financial Statements as of ~~March~~June 3130, 2012

4. Loan Receivable

On June 23, 2011, the Company disbursed $20,730 under a $25,000 line of credit ("Note") to an unrelated party. The unpaid principal of this line of credit shall bear simple interest at the rate of 5% per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances made hereunder. The loan does not bear interest in 2011. Interest on the unpaid balance of this Note shall accrue monthly beginning in January 1 2012 but shall not be due and payable until June 22, 2016, when the principal balance of this Note becomes due and payable. No consideration was received for this disbursement.

Between May and June, 2012, the Company disbursed $20,290 under a $32,000 line of credit ("Note") to an unrelated party. The unpaid principal of this line of credit shall bear simple interest at the rate of 5% per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances made hereunder. Interest on the unpaid balance of this Note shall accrue monthly but shall not be due and payable until May 18, 2013, when the principal balance of this Note becomes due and payable. No consideration was received for this disbursement.

5. Stockholders' Equity

Common Stock - The Company is authorized to issue ten million (10,000,000) shares of shares of CommonStock, par value $.00001 per share (the "Common Stock").

As of ~~March~~June 3130, 2012, ten million (10,000,000) shares of Common Stock, par value $.00001 per share, are authorized, of which 1,000,000 shares are issued and outstanding.

All shares of the Company's Common Stock have equal rights and privileges with respect to voting, liquidation and dividend rights. Each share of Common Stock entitles the holder thereof to:

One non-cumulative vote for each share held of record on all matters submitted to a vote of the stockholders;
To participate equally and to receive any and all such dividends as may be declared by the Board of Directors out of funds legally available therefore; and
To participate pro rata in any distribution of assets available for distribution upon liquidation.

Stockholders have no preemptive rights to acquire additional shares of Common Stock or any other securities. Common shares are not subject to redemption and carry no subscription or conversion rights. All outstanding shares of Common Stock are fully paid and non-assessable.

Preferred Stock - As of ~~March~~June 3130, 2012, no shares of Preferred Stock are authorized and no shares are issued and outstanding.

SKAJAQUODA GROUP, INC.

Notes to the Financial Statements as of ~~March~~June 3130, 2012

6. Related Party Transactions

During 2011, the Company earned $59,400 in consulting fee revenue for services rendered to Skajaquoda Capital, LLC, a privately held company owned by our chief executive officer Einar Agustsson. Skajaquoda Capital, LLC is in the business of investing in stocks, bonds, options and other securities.

During 2011, the Company earned $20,801 in consulting fee revenue for services rendered to LA, a related party owning 1% of our common stock. LA is in the business of investing in stocks, bonds, options and other securities.

During 2011, the Company incurred $70,500 in consulting expenses for services performed by Likenia, a related party owning 1% of our common stock, and has classified these expenses as deferred offering costs in the accompanying financial statements due to their association with a proposed public offering of its securities. Likenia is in the business of providing consulting services to businesses.

The Company believes these transactions were effected at fair value based on the services performed.

These services were and are provided as needed and do not have any fixed terms. Since our Chief executive officer is currently not receiving salary we did not have any significant costs associated with providing these services.

During 2011, the Company entered into a loan agreement with Einar Agustsson the chief executive officer of the company and owner of 60% of our common stock to borrow $110,000 to fund operations. The loan does not bear interest and is due on demand.

7. Demand Loan Payable

Effective September 30, 2011, the Company entered into a loan agreement with a related party to borrow $110,000 to fund operations. The loan does not bear interest and is due on demand.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other parts of this current report contain forward-looking statements that involve risks and uncertainties. Forward-looking statements can also be identified by words such as “anticipates,” “expects,” “believes,” “plans,” “predicts,” and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include but are not limited to those discussed in the subsection entitled Forward-Looking Statements and Factors That May Affect Future Results and Financial Condition below. The following discussion should be read in conjunction with our financial statements and notes thereto included in this current report. Our fiscal year end is December 31.

PLAN OF OPERATIONS:

During this quarter we became a licensed metals retailer in the state of Delaware and started offering the sale and storage of precious metals to our clients. We have made a contract with a fully insured vault company located in Delaware to store our clients precious metals. We see this new service as a part of our planned investment management service and allows us to provide our clients with a broader range of investment opportunities.

Our attempt to become quoted on the OTC Bulletin Board has consumed more time than originally planned for and has delayed our plans of becoming a registered investment advisor. Until we become quoted we may not be able to raise the financing needed to hire the staff neccessary for such an operation.

Our plan of operations for the next twelve months is to proceed with the implementation of our business plan. We will strive to launch all aspects of our operations. We may require up to $200,000 in additional financing to expand our operations as outlined in the table below, subject to our cash on hand and actual revenues.

Goal	Expected Manner of occurance or Method of Achievment	Date When Steps Shold Be Accomplished	Cost of Completion
Complete IA Registration	Complete investment advisor registration process	6 - 9 months	$40,000
Complete corporate website	Complete design and technology of our corporate website	6 - 9 months	$30,000
Launch Marketing Phase	Implementation of markting plan	6 - 12 months	$75,000
Create Corporate Identity and brand recognition	Build our image as a trusted service provider	12 - 24 months	$55,000

Our total expenditures over the next twelve months are anticipated to be approximately $200,000 including the remaining estimated costs of this offering. Our cash on hand as of ~~March~~June 3130, 2012 is $9661,~~491~~173. We do not have sufficient cash to fund our operations for the next twelve months. Our monthly expenses consist of rent, legal fees, accounting and audit fees associated with our attempt to become quoted on the OTC Bulletin Board. We are currently in the beginning stages of the investment advisor registration process which has created minor costs.

All steps will be undertaken contemporaneously.

Limited operating history; need for additional capital

We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in dilution to shareholders.

Long-Term Liquidity Needs
We plan to meet our most significant liquidity needs beyond the next 12 months through future cash flow, the private or public issuance of debt or equity securities. We cannot provide any assurances that we will be able to access the capital markets on favorable terms, if at all.

Cash Requirements Our cash on hand as of ~~March~~June 3130, 2012 is $9661,~~491~~173. However, we will require additional financing in order to proceed with some or all of our goals as projected at more than twelve (12) months. We presently do not have any arrangements for additional financing, and no potential lines of credit or sources of financing are currently available for the purpose of proceeding with any of our goals projected at more than twelve (12) months. Any additional growth of the Company may require additional cash infusions. We may face expenses or other circumstances such that we will have additional financing requirements. In such event, the amount of additional capital we may need to raise will depend on a number of factors. These factors primarily include the extent to which we can achieve revenue growth, the profitability of such revenues, operating expenses, research and development expenses, and capital expenditures. Given the number of programs that we have ongoing and not complete, it is not possible to predict the extent or cost of these additional financing requirements. Notwithstanding the numerous factors that our cash requirements depend on, and the uncertainties associated with each of the major revenue opportunities that we have, we believe that our plan of operation can build long-term value if we are able to demonstrate clear progress toward our objectives. Progress in the development of our business plan will likely lend credibility to our plan to maintain profitability. We anticipate that we will hire several members to our sales, marketing, research and development, regulatory and administrative staff during the course of 2012 in order to fully implement our plans for growth. The failure to secure any necessary outside funding would have an adverse affect on our development and results therefrom and a corresponding negative impact on shareholder liquidity.

Future Financings Our plan of operation calls for significant expenses in connection with the implementation of our business plan over the course of the next 24 months. For the next twelve months, management anticipates that the minimum cash requirements to fund our proposed goals and our continued operations will be at least $200,000. As such, we do not have sufficient funds on hand to meet our planned expenditures over the next 24 months. Therefore, we plan to seek additional financing to meet our planned expenditures through a private placement of our common stock shortly after ~~this~~we ~~registration~~have ~~statement~~become ~~has been~~quoted ~~declared~~on ~~effective~~the OTCBB. These plans, if successful, will mitigate the factors which raise substantial doubt about the Company's ability to continue as a going concern. Obtaining additional financing would be subject to a number of factors, including development of our business plan and interest in our company. These factors may make the timing, amount, terms or conditions of additional financing unavailable to us.

RESULTS OF OPERATIONS

RESULTS OF OPERATIONS FOR THE QUARTER ENDED ~~MARCH~~JUNE 3130, 2012

REVENUE Our net revenue amounted to $~~259~~12,847 for the quarter ended ~~March~~June 3130, 2012. The revenue came from the sale of precious metals and interest on loan assets. ~~Since~~Our ~~our~~ Chief executive officer is currently not receiving salary so we did not have any significant costs associated with ~~providing these services~~salary. Net income for the quarter ended ~~March~~June 3130, 2012 is $(21,~~626~~381).

Fluctuations in our revenues are primarily the result of the nature of the business model we operate. The Company can neither predict or assess, nor prevent fluctuations. We attempt to offer services at competitive prices. Because of the unpredictable nature of fluctuations, we do not attribute fluctuations to any particular item or event. Our business model is designed to respond to fluctuation with immediate change. We do not account for or analyze the fluctuations as we do not believe it to be a prudent use of resources, given our business model. OPERATING EXPENSES Our total operating expenses for the quarter ended March 31, 2012 were $2,885. Expenses consisted primarily of general operating expenses including professional fees. Our operating expenses are mostly attributable to our accounting and legal expenses associated with our SEC filing and attempt to become listed on the OTCBB. NET PROFIT

COST OF GOODS SOLD
We had cost of goods sold of $1,111,577 or 98.88% of sales for the three months ended June 30, 2012.

OPERATING EXPENSES
Our total operating expenses for the quarter ended June 30, 2012 were $14,228. Expenses consisted primarily of general operating expenses including professional fees. Our operating expenses are mostly attributable to our accounting and legal expenses associated with our SEC filing and attempt to become listed on the OTCBB.

NET PROFIT

We had a net loss of $(1,381) for the quarter ended June 30, 2012. Our net loss for the quarter ended June 30, 2012 is attributed to our accounting and legal expenses associated with our SEC filing and attempt to become listed on the OTCBB.

LIQUIDITY AND CAPITAL RESOURCES At ~~March~~June 3130, 2012, our cash balance was $9661,~~491~~173. Cash flows from operating activities for the quarter ended ~~March~~June 3130,, 2012 were negative $(213,~~626~~959). As of September 30, 2011, a related party had loaned the Company $110,000. This loan is payable on demand, unsecured and does not accrue interest. The Director believes that the Company will in the beginning of November 2012 generate sufficient cash from its operating activities for the foreseeable future, supplemented by an anticipated infusion of capital, to fund its working capital needs, strengthen its balance sheet and support its growth strategy of expanding its geographic distribution and product offerings.

Operating Activities The Company has no current liabilities besides a loan agreement with a related party to of $110,000 to fund operations. The loan does not bear interest and is due on demand. Working capital (the difference between the Company's current assets and current liabilities) was ($931,~~146~~887) at ~~March~~June 3130, 2012. Our net income for the ~~year~~quarter, as adjusted for amortization and future income taxes, was $(21,~~626~~381) for the quarterly period ended ~~March~~June 3130, 2012. Financing Activities During the period from April 29, 2011(inception) to ~~March~~June 3130, 2012, we had $20,139 in cash provided from the issuance of common stock through financing activities, sold to our Chief Executive Officer and other investors. On June 23, 2011, the Company disbursed $20,730 under a $25,000 line of credit ("Note") to an unrelated party. The unpaid principal of this line of credit shall bear simple interest at the rate of 5% per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances made hereunder. Interest on the unpaid balance of this Note shall accrue monthly but shall not be due and payable until June 22, 2016, when the principal balance of this Note becomes due and payable. As of September 30, 2011, a related party had loaned the Company $110,000. This loan is payable on demand, unsecured and does not accrue interest.

On June 23, 2011, the Company disbursed $20,730 under a $25,000 line of credit ("Note") to an unrelated party. The unpaid principal of this line of credit shall bear simple interest at the rate of 5% per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances made hereunder. Interest on the unpaid balance of this Note shall accrue monthly but shall not be due and payable until June 22, 2016, when the principal balance of this Note becomes due and payable.

As of September 30, 2011, a related party had loaned the Company $110,000. This loan is payable on demand, unsecured and does not accrue interest.

Off-Balance Sheet Arrangements
The Company has no material transactions, arrangements, obligations (including contingent obligations), or other relationships with unconsolidated entities or other persons that have or are reasonably likely to have a material current or future impact on its financial condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses.

Market Risk
In the normal course of business, the Company is exposed to foreign currency exchange rate and interest rate risks that could impact its results of operations.
Substantial portion of the company's net sales, cost of sales and operating expenses could be denominated in foreign currencies. This exposes the Company to risks associated with changes in foreign currency exchange rates that can adversely impact revenues, net income and cash flow.

Critical Accounting Policies and Estimates
Management has identified the following policies and estimates as critical to the Company's business operations and the understanding of the Company's results of operations. Note that the preparation of this report requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Company's financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and the differences could be material.

Revenue Recognition
SAB No. 104 requires that four basic criteria be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectibility is reasonably assured. Should changes in conditions cause management to determine that these criteria are not met for certain future transactions, revenue recognized for a reporting period could be adversely affected.

Goodwill
The Company has not attributed any value to goodwill.

Accounting for Income Taxes
The Company accounts for income taxes under the asset and liability method. Under this method, deferred assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be recoverable against future taxable income.

Code of Ethics

We have adopted a Code of Ethics and Business Conduct for Officers, Directors and Employees that applies to all of our officers, directors and employees.

Investment Advisor Registration Process
In recent years the registration system for Investment advisers was overhauled. Previously, Investment advisers were required to register with the SEC, and with each state in which they did business. Today Investment advisers are regulated by either the SEC or the States, but not both. Of course, both groups of regulators maintain jurisdiction over the activities of these advisers, the change has been in the registration requirements.
Simplifying the structure, firms that have less than $25 million of assets under continuous and regular management generally must register with the state or states in which they have a place of business and in which they have clients, while firms that have more than $30 million under management must register with the SEC. Between $25 and $30 million the firm is allowed to register with the SEC or applicable states. (There are other exceptions to state registration, such as for firms doing business in 30 or more states and firms doing an Internet based business.) Firms that are registered with the SEC usually have to provide a copy of their Form ADV and pay a filing fee to states in which they have clients.

Filings

The main document in the registration of an investment adviser is Form ADV. All advisers now register with the SEC and the States electronically through IARD, a secure Internet based data system. Setting Up an IARD Account is the first step in the registration process. Once an adviser establishes an IARD account, the adviser can access Form ADV (Part 1) on IARD, complete this part of Form ADV, and submit it electronically through IARD to the SEC. Part II of Form ADV is completed in paper form as discussed below.

The SEC generally has 45 days after receipt of the Form ADV to declare an applicant's registration effective. The SEC will mail an Effective Order to an adviser once an adviser's registration is declared effective. An adviser can also check on IARD under the heading "Registration Status" to see if its registration has been declared effective by the SEC. The process for State registered advisers varies from state to state, but is similar to the SEC process.

Form ADV has two parts.

Part 1 asks for information about an adviser's business, the persons who own or control the adviser, and whether the adviser or certain of its personnel have been sanctioned for violating the securities laws or other laws. Part 1 is available in electronic format and is both filed and amended through IARD. See the General Instructions to Form ADV (No. 4) for information on updating Form ADV.

Part II is a written disclosure statement (or a written brochure) that provides information about business practices, fees, and conflicts of interest the adviser may have with its clients. Part II must be completed in paper format. IARD is not prepared to accept an electronic filing of Part II at this time. You can print a blank copy of Part II from the SEC website.
Part II is a disclosure statement that an adviser must use to provide information to clients and potential clients. Read rule 204-3 under the Investment Advisers Act of 1940 regarding your legal obligations 1) to deliver a copy of Part II (or a brochure containing comparable information) to prospective clients and 2) to offer annually a copy of Part II (or a brochure containing comparable information) to all current customers. You must keep your Part II current, maintain a copy in your files, and make it available to SEC staff upon request. Do not send your Part II to the SEC. Check with state securities authorities to determine what their filing requirements are for Part II.

Ongoing Requirements

While the requirements for registration and maintaining the registration vary from state to state, there are some general principles which apply in all states. Each state requires that IAs who do business in their state:
        State advisers to register or become licensed.
        Federal covered advisers to make a notice filing of their Form ADV.
        A passing score on a competency examination for each individual acting as an investment adviser or investment adviser representative.
        Payment of a fee for processing the applications.
        Certain disclosures to the securities agency and/or the public.
        Registration of branch offices of the adviser.
        A bond or minimum net capital.

A notice filing for a federal covered adviser is usually made by:
        Filing a complete copy of its Form ADV as filed with the US SEC.
        Filing a Form U-4 application for each investment adviser representative who will provide services on behalf of the investment adviser.
        Payment of any required notice filing fees.

The State and the SEC require electronic filing via the Investment Adviser Registration Depository (IARD). Firms must register with the IARD prior to making a filing. Complete information regarding the IARD system is available at http://www.iard.com/GetStarted.asp

Annual Renewals

Investment advisers and investment adviser representatives must renew their registration/license annually. In many states, the term is from January 1 to December 31 of a given year. However, some states have different renewal dates. If an adviser becomes registered/licensed in the middle of a year, the fee is usually not prorated. Today, the renewal process for investment advisers is handled by IARD.

Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters (a) No shares of the Company's common stock have previously been registered with the Securities and Exchange Commission (the "SEC") or any state securities agency or authority. The Company has made an application to FINRA for the Company's shares to be quoted on the OTCBB. The Company's application to the FINRA consists of current corporate information, financial statements and other documents as required by Rule 15c211 of the Securities Exchange Act of 1934, as amended. Inclusion on the OTCBB permits price quotation for the Company's shares to be published by such service. The Company is not aware of any existing trading market for its common stock. The Company's common stock has never traded in a public market. There are no plans, proposals, arrangements or understandings with any person(s) with regard to the development of a trading market in any of the Company's securities. If and when the Company's common stock is traded in the OTCBB, most likely the shares will be subject to the provisions of Section 15(g) and Rule 15g-9 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), commonly referred to as the "penny stock" rule. Section 15(g) sets forth certain requirements for transactions in penny stocks and Rule 15g9(d)(1) incorporates the definition of penny stock as that used in Rule 3a51-1 of the Exchange Act. The Commission generally defines penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Rule 3a51-1 provides that any equity security is considered to be a penny stock unless that security is: registered and traded on a national securities exchange meeting specified criteria set by the Commission; authorized for quotation on The NASDAQ Stock Market; issued by a registered investment company; excluded from the definition on the basis of price (at least $5.00 per share) or the issuer's net tangible assets; or exempted from the definition by the SEC. If the Company's shares are deemed to be a penny stock, trading in the shares will be subject to additional sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors, generally persons with assets in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 together with their spouse. For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such securities and must have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction, of a risk disclosure document relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the securities. Finally, the monthly statements must be sent disclosing recent price information for the penny stocks held in the account and information on the limited market in penny stocks. Consequently, these rules may restrict the ability of broker dealers to trade and/or maintain a market in the Company's common stock and may affect the ability of shareholders to sell their shares. (b) Holders. At ~~March~~June 3130, 2012, there were 41 record holders of 1,000,000 shares of the Company's Common Stock. (c) Dividends. The Registrant has not paid any cash dividends to date and does not anticipate or contemplate paying dividends in the foreseeable future. It is the present intention of management to utilize all available funds for the development of the Registrant's business.

Equity Compensation Plans
We have no equity compensation program including no stock option plan and none are planned for the foreseeable future.

Dividends

There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends.
We have not declared any dividends, and we do not plan to declare any dividends in the foreseeable future.

Going Concern

Our auditors included an explanatory statement in their report on the Company’s financial statements for the periods ended December 31, 2011, expressing an opinion as to our ability to continue as a going concern as a result of a working capital deficit. Our ability to continue as a going concern is subject to the ability of the Company to obtaining additional funding from outside sources. Management’s plan to address the Company’s ability to continue as a going concern includes (i) increasing our gross profit; (ii) financing from private placement sources; and (iii) converting outstanding debt to equity. Although the Company believes that it will be able to remain a going concern, through the methods discussed above, there can be no assurances that such methods will prove successful.

Stock-Based Compensation

We have adopted Accounting Standards Codification Topic (“ASC”) 718, Share-Based Payment, which addresses the accounting for stock-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments.

We account for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 505. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

In connection with the preparation of this report on Form 10-Q, an evaluation was carried out by the Company’s management, with the participation of the chief executive officer and the chief financial officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)). Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms and that such information is accumulated and communicated to management, including the chief executive officer and the chief financial officer, to allow timely decisions regarding required disclosures.

Based on that evaluation, the Company’s management concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were ineffective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and that such information was not accumulated and communicated to management, including the chief executive officer and the chief financial officer, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the period ended ~~March~~June 3130, 2012, that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not aware of any pending or threatened legal proceedings, in which we are involved. In addition, we are not aware of any pending or threatened legal proceedings in which entities affiliated with our officers, directors or beneficial owners are involved.

ITEM 1A. RISK FACTORS

The information to be reported under this item has not changed since the previously filed 10K, for the year ended December 31, 2011.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On 04/29/2011 we sold 600,000 shares of our common stock to our Chief Executive Officer, Einar Agustsson, at 0.0002316 per share. The shares were sold pursuant to the exemption for non-public offerings under Section 4(2) of the Securities Act.

On 05/17/2011the company filed a notice of exempt offering of securities according to regulation D rule 506 of the securities act. The company sold 400,000 shares of its common stock to outside investors in a private placement. Each investor bought 10,000 shares of common stock for 0.05 per share. After the purchase each investor that participated in the offering holds 1% of the company's common stock. The names of the investors that bought shares in the offering are: Bjorgvin F ehf, Vergar Capital AF inc, Luxury Adventures ltd, Rivers of Iceland, SQDA 1 ltd, AH Klast ltd, IHF Group ltd, AGSN ehf, LA ltd,
ROI ltd, Likenia inc, Alphacrux inc, TA Group ltd, AT Group ltd, AH Group ltd, Janulus inc, Strigiform ltd, Agust Fannar Einarsson, BS Fridriksson LLC, Soley Rut Magnusdottir, Pointer White ltd, SQDA 2 ltd, Waterthorn ltd, Worros ltd, Mattport ltd, Marrots ltd, Mjolnir Energy Fund, Nebulark ltd, WE Moray ltd, Ducard Holdings ltd, Wolfray ltd, Leapdoor ltd, Dragensaw ltd, Wertoch ltd, Smokebay ltd, Gahrt ltd, Erethizon Finance ltd, Mammansara ltd, Pennanti ltd, Felynx ltd.

The Company complied with the exemption requirements of Section 4(2) of the Securities Act based on the following factors: (1) the offers were isolated private transactions by the Company which did not involve public offerings; (2) the offeree has access to the kind of information which registration would disclose; and (3) the offeree is financially sophisticated.

The Company complied with the requirements of Regulation D of the Securities Act by: (i) foregoing any general solicitation or advertising to market the securities; (ii) offering only to an accredited offeree; (iii) having not violated antifraud prohibitions with the information provided to the offeree; (iv) being available to answer questions by the offeree.

ITEM 3. DEFAULTS ON SENIOR SECURITIES

None.

ITEM 4. (REMOVED AND RESERVED)

Removed and reserved

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibits required to be attached by Item 601 of Regulation S-K are listed in the Index to Exhibits on page 28 of this Form 10-Q, and are incorporated herein by this reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Skajaquoda Group, inc. Date

/s/ Einar Agustsson ~~May~~July 145, 2012

By: Einar Agustsson

Its: Chief Executive Officer and Director

/s/ Einar Agustsson ~~May~~July 145, 2012

By: Einar Agustsson

Its: Chief Financial Officer and Principal Accounting Officer

INDEX TO EXHIBITS

Number Description

3.1.1* Articles of Incorporation filed with the Delaware Secretary of State on April 29, 2011. Incorporated by reference as Exhibits to the Form S-1 filed on September 8, 2011.

3.2* Bylaws. Incorporated by reference to the Company’s Registration Statement on Form S-1 filed with the Commission on September 8, 2011.

14* Code of Ethics adopted October 6, 2011. Incorporated by reference to the Company’s Form 10-K filed with the Commission on September 8, 2011.

31.1 Certification of the Chief Executive Officer pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (attached).

31.2 Certification of the Chief Financial Officer pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (attached).

32.1 Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (attached).

32.2 Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (attached).

* Incorporated by reference from previous filings of the Company.

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