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  <TITLE> Smart Online, Inc. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	July 2, 2007
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  	Smart Online, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Delaware
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  	001-32634
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  	95-4439334
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	2530 Meridian Parkway, 2nd Floor, Durham, North Carolina
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  	27713
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
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  	Registrant&#146;s telephone number, including area code:
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  	&nbsp;
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  	919-765-5000
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  As previously reported by Smart Online, Inc. (the "Company") in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on February 27, 2007, the Company entered into Registration Rights Agreements (the "Agreements") with two new investors (the "Investors") in connection with the sale of shares of the Company's common stock.  Under the Agreements, the Company has an obligation to register the shares sold for resale by the Investors by filing a registration statement within 30 days of February 21, 2007, and to have the registration statement declared effective 90 days after filing if the SEC reviews the registration statement. If a registration statement was not timely filed or declared effective by the SEC by the dates set forth in the Agreements, the Company was obligated to pay a cash penalty of 1% of the purchase price on the day after the filing or declaration of effectiveness is due, and 0.5% of the purchase price per every 30 day period thereafter, to be prorated for partial periods, until the Company fulfilled these obligations.<br><br>As previously reported in the Company's Annual Report on Form 10-K, filed with the SEC on March 30, 2007, the Agreements were amended on March 28, 2007 (the "First Amendments").  Under the First Amendments, the registration filing obligation date was extended an additional eleven calendar days. On April 3, 2007, the Company filed the registration statement within the extended filing obligation period, thereby avoiding the potential penalty.  The registration statement was reviewed by the SEC.<br><br>Effective July 2, 2007, the Company entered into another amendment to the Agreements (the "Second Amendments") with the Investors to extend the registration effectiveness obligation date to July 31, 2007.  If the registration statement is not declared effective by July 31, 2007, the Company is obligated to pay the penalty set forth above, the prorated portion to be calculated beginning on July 3, 2007, the effectiveness obligation date under the Agreements.
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  	SIGNATURES
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  	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 hereunto duly authorized.
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  	Smart Online, Inc.
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  <I>
  	July 9, 2007
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  <I>
  	By:
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  <I>
  	/s/ Michael Nouri
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  <I>
  	Name: Michael Nouri
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  <I>
  	Title: President and CEO
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_21338.htm", "description": "LIVE FILING", "secsgml_size_bytes": 10266}]
metadata_filer: {"company-data": {"conformed-name": "SMART ONLINE INC", "cik": "0001113513", "assigned-sic": "7372", "irs-number": "954439334", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32634", "film-number": "07969903"}, "business-address": {"street1": "2530 MERIDIAN PARKWAY", "city": "DURHAM", "state": "NC", "zip": "27713", "phone": "919-806-4521"}, "mail-address": {"street1": "P.O. BOX 12794", "city": "RESEARCH TRIANGLE PARK", "state": "NC", "zip": "27709"}}
text: Smart Online, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  July 2, 2007
  Smart Online, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Delaware
  001-32634
  95-4439334
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  2530 Meridian Parkway, 2nd Floor, Durham, North Carolina
  27713
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  919-765-5000
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  As previously reported by Smart Online, Inc. (the "Company") in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on February 27, 2007, the Company entered into Registration Rights Agreements (the "Agreements") with two new investors (the "Investors") in connection with the sale of shares of the Company's common stock.  Under the Agreements, the Company has an obligation to register the shares sold for resale by the Investors by filing a registration statement within 30 days of February 21, 2007, and to have the registration statement declared effective 90 days after filing if the SEC reviews the registration statement. If a registration statement was not timely filed or declared effective by the SEC by the dates set forth in the Agreements, the Company was obligated to pay a cash penalty of 1% of the purchase price on the day after the filing or declaration of effectiveness is due, and 0.5% of the purchase price per every 30 day period thereafter, to be prorated for partial periods, until the Company fulfilled these obligations.
  As previously reported in the Company's Annual Report on Form 10-K, filed with the SEC on March 30, 2007, the Agreements were amended on March 28, 2007 (the "First Amendments").  Under the First Amendments, the registration filing obligation date was extended an additional eleven calendar days. On April 3, 2007, the Company filed the registration statement within the extended filing obligation period, thereby avoiding the potential penalty.  The registration statement was reviewed by the SEC.
  Effective July 2, 2007, the Company entered into another amendment to the Agreements (the "Second Amendments") with the Investors to extend the registration effectiveness obligation date to July 31, 2007.  If the registration statement is not declared effective by July 31, 2007, the Company is obligated to pay the penalty set forth above, the prorated portion to be calculated beginning on July 3, 2007, the effectiveness obligation date under the Agreements.
  Top of the Form
  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 hereunto duly authorized.
  Smart Online, Inc.
  July 9, 2007
  By:
  /s/ Michael Nouri
  Name: Michael Nouri
  Title: President and CEO