**UNITED
        STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**









**FORM
      10-QSB**









**(Mark
      One)**




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




**For the quarterly period ended September 30, 2006**




** ̈**
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For the transition period from** **** **to** **** ****




**Commission
      file number 000-50155**









**DIAGNOSTIC
      CORPORATION OF AMERICA**


**(Name
      of Small Business Issuer in its Charter)**







**Delaware**
            **02-0563302****(State
                or Other Jurisdiction of**
              **incorporation
                or organization)**
            **(I.R.S.
                Employer**
              **Identification
                No.)**




**14375
      Myer Lake Circle, Clearwater FL 33760**


**(Address
      of Principal Executive Offices)**




**(727)
      533-8300**


**(Issuer’s
      Telephone Number)**




**N/A**


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







Copies
      to:


Greentree
      Financial Group, Inc.


7951
      SW
      6th Street, Suite 216


Plantation,
      FL 33324


(954)
      424-2345 Tel


(954)
      424-2230 Fax






Indicate
        by check mark whether the registrant (1) has filed all reports required to
        be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”) during the preceding 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  ̈
  As
        of
        November 11, 2006, there were 1,427,328 shares of our Common Stock, $.001
        par
        value outstanding.
  Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act.):    YES x NO  ̈









*Table
          of Contents*




**DIAGNOSTIC
      CORPORATION OF AMERICA**


**CAUTIONARY
      STATEMENT REGARDING FORWARD LOOKING INFORMATION**




The
      discussion contained in this 10-QSB under the Securities Exchange Act of 1934,
      as amended, contains forward-looking statements that involve risks and
      uncertainties. The issuer's actual results could differ significantly from
      those
      discussed herein. These include statements about our expectations, beliefs,
      intentions or strategies for the future, which we indicate by words or phrases
      such as "anticipate," "expect," "intend," "plan," "will," "we believe," "the
      Company believes," "management believes" and similar language, including those
      set forth in the discussions under "Notes to Financial Statements" and
      "Management's Discussion and Analysis or Plan of Operation" as well as those
      discussed elsewhere in this Form 10-QSB. We base our forward-looking statements
      on information currently available to us, and we assume no obligation to update
      them. Statements contained in this Form 10-QSB that are not historical facts
      are
      forward-looking statements that are subject to the "safe harbor" created by
      the
      Private Securities Litigation Reform Act of 1995.




2




**TABLE
      OF CONTENTS**




**Page****PART I**
            
            **FINANCIAL
                INFORMATION**
            
            4Item 1
            
            Financial
                Statements
            
            4Item 2
            
            Management’s
                Discussion and Analysis of Financial Condition and
                Results of Operations
            
            8Item 3
            
            Controls
                and Procedures
            
            12**PART II**
            
            **OTHER
                INFORMATION**
            
            12Item 1
            
            Legal
                Proceedings
            
            12Item 2
            
            Unregistered
                Sales of Equity Securities and Use of
                Proceeds
            
            12Item 3
            
            Defaults
                Upon Senior Securities
            
            13Item 4
            
            Submission
                of Matters to a Vote of Security
                Holders
            
            13Item 5
            
            Other
                Information
            
            13Item 6
            
            Exhibits
                and Reports on Form 8-K
            
            13






3
 *Table
          of Contents*




**PART
      I. FINANCIAL INFORMATION**




**Item 1.
      Financial Statements (unaudited)**




**DIAGNOSTIC
                  CORP. OF AMERICA****(A
                  DEVELOPMENT STAGE COMPANY)****Balance
                  Sheet*****As
                  of September 30, 2006***ASSETS2006CURRENT
                  ASSETSCash
                  and cash equivalents
              
              $
              933Prepaid
                  expenses and deposits
              
              
              650TOTAL
                  CURRENT ASSETS
              
              
              1,583TOTAL
                  ASSETS
              
              $
              1,583LIABILITIES
                  AND STOCKHOLDERS' DEFICITCURRENT
                  LIABILITIESAccounts
                  payable
              
              $
              19,937Accrued
                  interest payable
              
              
              12,184TOTAL
                  CURRENT LIABILITIES
              
              
              32,121STOCKHOLDERS'
                  DEFICITCommon
                  stock - $.001 par value, 50,000,000 shares authorized:1,427,328
                  shares issued and outstanding)
              
              
              1,427Additional
                  paid-in-capital
              
              
              2,008,764Deficit
                  accumulated during development stage
              
              
              (2,040,729
              )TOTAL
                  STOCKHOLDERS' DEFICIT
              
              
              (30,538
              )TOTAL
                  LIABILITIES AND STOCKHOLDERS' DEFICIT
              
              $
              1,583The
                  accompanying notes are an integral part of the financial
                  statements




*Table
          of Contents*


**DIAGNOSTIC
                  CORP. OF AMERICA****(A
                  DEVELOPMENT STAGE COMPANY)****Statements
                  of Operations****For
                  the three and nine months ended September 30, 2006 and 2005**Three
                  months endedSeptember
                  30,
              
              Nine
                  months ended September 30,2006
              
              2005
              
              2006
              
              2005**Revenues**
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -**Expenses**General
                  and administrative
              
              
              -
              
              
              1,767
              
              
              4,144
              
              
              7,559Insurance
              
              
              6,252
              
              
              4,267
              
              
              16,620
              
              
              12,931Interest
              
              
              -
              
              
              14,567
              
              
              8,994
              
              
              38,567Management
                  fees
              
              
              30,000
              
              
              30,000
              
              
              90,000
              
              
              90,000Marketing
              
              
              -
              
              
              -
              
              
              849
              
              
              25,915Payroll
                  taxes
              
              
              956
              
              
              956
              
              
              2,868
              
              
              2,954Professional
                  fees
              
              
              5,300
              
              
              32,223
              
              
              52,206
              
              
              61,289Consulting
                  fees
              
              
              210,000
              
              
              -
              
              
              210,000
              
              
              -Rent
              
              
              1,960
              
              
              1,960
              
              
              5,880
              
              
              4,898Salaries
              
              
              -
              
              
              50,001
              
              
              25,002
              
              
              75,003Telephone
              
              
              1,297
              
              
              1,079
              
              
              3,891
              
              
              3,597Transfer
                  agent fees
              
              
              397
              
              
              496
              
              
              1,869
              
              
              6,025Travel
              
              
              -
              
              
              -
              
              
              1,025
              
              
              603**Total
                  expenses**
              
              
              256,162
              
              
              137,316
              
              
              423,348
              
              
              329,341**Loss
                  before other income and provisions for taxes**
              
              
              (256,162
              )
              
              (137,316
              )
              
              (423,348
              )
              
              (329,341
              )**Other
                  income**Interest
                  income
              
              
              -
              
              
              22
              
              
              -
              
              
              163Other
                  income - debt forgiveness
              
              
              46,399
              
              
              -
              
              
              46,399
              
              
              -**Loss
                  before provision for taxes**
              
              $
              (209,763
              )
              
              (137,294
              )
              $
              (376,949
              )
              
              (329,178
              )Provision
                  for taxes
              
              
              -
              
              
              -
              
              
              -
              
              
              -**Net
                  loss for the period**
              
              $
              (209,763
              )
              $
              (137,294
              )
              $
              (376,949
              )
              $
              (329,178
              )**Weighted
                  average number of common**
              
              
              742,749
              
              
              15,242,599
              
              
              613,542
              
              
              13,516,900**shares
                  outstanding - basic****Net
                  loss per common share - basic and diluted**
              
              $
              (0.28
              )
              $
              (0.01
              )
              $
              (0.61
              )
              $
              (0.02
              )The
                  accompanying notes are an integral part of the financial
                  statements




*Table
          of Contents*


**DIAGNOSTIC
                  CORP. OF AMERICA****STATEMENTS
                  OF STOCKHOLDERS' DEFICIT****As
                  of Sep. 30, 2006**Number
                  of
                Shares
              
              Common
                Stock
                ($.001
                  Par Value)
              
              Additional
                  paid-in capital
              
              Deficit
                  Accumulated During Development Stage
              
              Total
                  Stockholders' DeficitBalances
                  - December 31, 2004
              
              
              13,267,871
              
              $
              13,268
              
              $
              841,597
              
              $
              (1,264,521
              )
              $
              (409,656
              )Conversion
                  of notes payable in exchange of stock
              
              
              145,000
              
              
              145
              
              
              15,681
              
              
              -
              
              
              15,826Shares
                  issued for services rendered
              
              
              200,000
              
              
              200
              
              
              9,800
              
              
              -
              
              
              10,000Common
                  shares issued for cash
                -private
                  placement (Diagostic)
              
              
              -
              
              
              -
              
              
              50,000
              
              
              -
              
              
              50,000Common
                  shares issued for cash and accrued
                interest
                  payable-private placement (Diagostic)
              
              
              1,725,000
              
              
              1,725
              
              
              34,525
              
              
              -
              
              
              36,250Shares
                  issued for services rendered
              
              
              1,185,000
              
              
              1,185
              
              
              58,065
              
              
              -
              
              
              59,250Net
                  loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (399,259
              )
              
              (399,259
              )Balances
                  - December 31, 2005
              
              
              16,522,871
              
              $
              16,523
              
              $
              1,009,668
              
              $
              (1,663,780
              )
              $
              (637,589
              )Conversion
                  of notes payable in exchange for stock
              
              
              4,000,000
              
              
              4,000
              
              
              396,000
              
              
              -
              
              $
              400,000Shares
                  issued for services rendered
              
              
              300,000
              
              
              300
              
              
              23,700
              
              
              
              
              
              24,000Common
                  shares issued for cash and certain other
                expenses
                  - private placement (Diagostic)
              
              
              29,100,000
              
              
              29,100
              
              
              530,900
              
              
              -
              
              
              560,000Common
                  shares retired due to reverse split
              
              
              (48,495,543
              )
              
              (48,496
              )
              
              48,496
              
              
              -
              
              
              -Net
                  loss for the period (unaudited)
              
              
              -
              
              
              -
              
              
              -
              
              
              (376,949
              )
              
              (376,949
              )Balances
                  - September 30, 2006
              
              
              1,427,328
              
              
              1,427
              
              
              2,008,764
              
              
              (2,040,729
              )
              
              (30,538
              )The
                    accompanying notes are an integral part of the financial
                    statements




*Table
          of Contents*


**DIAGNOSTIC
                  CORP. OF AMERICA****(A
                  DEVELOPMENT STAGE COMPANY)****Statements
                  of Cash Flows****For
                  the nine months ended September 30, 2006 and
                  2005**2006
              
              2005CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net
                  income (loss)
              
              $
              (376,949
              )
              $
              (329,178
              )Adjustments
                  to reconcile net loss to netcash
                  used in operating activities:Common
                  stock issued for services rendered
              
              
              24,000
              
              
              69,250Changes
                  in assets and liabilitiesPrepaid
                  expenses and deposits
              
              
              -
              
              
              25,100Accounts
                  payabe
              
              
              (34,694
              )
              
              7,266Accrued
                  interest payable
              
              
              184
              
              
              14,567Accrued
                  payroll
              
              
              (49,342
              )
              
              (56
              )Due
                  to stockholders
              
              
              (124,196
              )
              
              65,000NET
                  CASH FLOWS FROM OPERATING ACTIVITIES
              
              
              (560,997
              )
              
              (148,051
              )CASH
                  FLOWS FROM FINANCING ACTIVITIES:Proceeds
                  from sales of common stock
              
              
              560,000
              
              
              -Proceeds
                  from the issuance of common stock
              
              
              -
              
              
              50,000NET
                  CASH FLOWS FROM FINANCING ACTIVITIES
              
              
              560,000
              
              
              50,000NET
                  CHANGE IN CASH AND CASH EQUIVALENTS
              
              
              (997
              )
              
              (98,051
              )CASH
                  AND CASH EQUIVALENTS:Beginning
                  of period
              
              
              1,930
              
              
              106,924End
                  of period
              
              $
              933
              
              $
              8,873SUPPLEMENTAL
                  DISCLOSURESInterest
                  paid
              
              $
              -
              
              $
              24,000Income
                  taxes paid
              
              $
              -
              
              $
              -NON-CASH
                  INVESTING AND FINANCING ACTIVITIESConversion
                  of convertible notes payable and accrued interest
              
              $
              -
              
              $
              -payable
                  in exchange for stockConversion
                  of notes payable and accrued interest payable
                  in exchange for stock
              
              $
              400,000
              
              $
              15,826The
                  accompanying notes are an integral part of the financial
                  statements




4
 *Table
          of Contents*




**DIAGNOSTIC
      CORPORATION OF AMERICA**


**(A
      DEVELOPMENT STAGE COMPANY)**


**(A
      DELAWARE CORPORATION)**


**Clearwater,
      Florida**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**







**Note
      A - Basis of Presentation**




The
      consolidated financial statements of Diagnostic Corporation of America (the
      “Company”) included herein have been prepared by the Company, without audit,
      pursuant to the rules and regulations of the Securities and Exchange Commission
      (the “SEC”). Certain information and footnote disclosures normally included in
      financial statements prepared in conjunction with generally accepted accounting
      principles have been condensed or omitted pursuant to such rules and
      regulations, although the Company believes that the disclosures are adequate
      to
      make the information presented not misleading. These financial statements should
      be read in conjunction with the annual audited financial statements and the
      notes thereto included in the Company’s annual report on Form 10-KSB, and other
      reports filed with the SEC.




The
      accompanying unaudited interim financial statements reflect all adjustments
      of a
      normal and recurring nature which are, in the opinion of management, necessary
      to present fairly the financial position, results of operations and cash flows
      of the Company for the interim periods presented. The results of operations
      for
      these periods are not necessarily comparable to, or indicative of, results
      of
      any other interim period or for the fiscal year taken as a whole. Factors that
      affect the comparability of financial data from year to year and for comparable
      interim periods include costs incurred to raise capital and stock awards.




**Note
      B - Loans Payable - Stockholders**




During
      February 2006, the Company entered into a loan agreement with a stockholder
      of
      the Company in the amount of $5,000. The note bears interest at 10% per annum
      and is due on demand.




During
      March
      2006, the Company entered into a loan agreement with a stockholder of the
      Company in the amount of $1,500. The note bears interest at 10% per annum and
      is
      due on demand.




These
      two
      loans were settled in the third quarter of 2006 and the release letters were
      signed by the two stockholders, respectively.




**Note
      C - Loans Payable**




During
      June
      2006, the Company obtained a non-interest bearing loan with no specified
      repayment terms from WiFiMed, Inc. in the amount of $25,000, secured by
      3,000,000 shares of Company stock.




This
      loan was
      settled in the third quarter of 2006. Other than repayment of a $25,000 loan
      made by WiFiMed to the Company in connection with the proposed share exchange,
      the settlement agreement in principle does not provide for the payment of any
      termination penalties or fees as a result of termination.





**Note
      D - Unregistered Sale of Equity**




On
      September 15, 2006, The Company consummated a private sale of 29,100,000
      shares of its Common Stock (the “Shares”) to Mr. Li Gang, a citizen of
      People's Republic of China ("Mr. Li"), pursuant to the terms and conditions
      of a
      Subscription and Stock Purchase Agreement, dated September 5, 2006. The
      aggregate purchase price for the Shares was $560,000 or approximately $.02
      per
      share. This transaction was in reliance upon exemptions from the registration
      requirements of Section 5 of the Securities Act of 1933, as amended (the
“Act”), pursuant to Section 4(2) of the Act and Rule 506 promulgated
      thereunder.




As
      a result
      of this transaction, Mr. Li owns approximately 58% of the issued and outstanding
      shares of the Company’s Common Stock.




5
 *Table
          of Contents*


**DIAGNOSTIC
        CORPORATION OF AMERICA**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **(A
        DELAWARE CORPORATION)**
 **Clearwater,
        Florida**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**





**Note
      E - Other Income - Debt Forgiveness**




The
      Company
      utilized the proceeds from the sale disclosed in Note D to satisfy all existing
      indebtedness of the Company. Therefore, in the third quarter ended September
      30,
      2006, the Company had other income of $46,399 due to debt
      forgiveness.





**Note
      F - Income Taxes**




The
      components of the deferred tax asset are as follows:





September
                30,
            
            December
                31,2006
            
            2005Deferred
                tax assets:Net
                operating loss carry-forward
            
            $
            2,023,949
            
            
            1,647,0002,203,949
            
            
            1,647,000Less:
                valuation allowance
            
            
            (2,203,949
            )
            
            (1,647,000
            )Net
                deferred tax assets
            
            $
            --
            
            $
            --




The
      Company
      had available approximately $2,023,949 and $1,647,000 in unused federal and
      state net operating loss carry-forwards at September 30, 2006 and December
      31,
      2005, respectively, that may be applied against future taxable income. These
      net
      operating loss carry-forwards expire through 2025.




SFAS
      No. 109
      requires a valuation allowance to be recorded when it is more likely than not
      that some or all of the deferred tax assets will not be realized. At September
      30, 2006 and December 31, 2005, valuation allowances for the full amount of
      the
      net deferred tax asset were established due to the uncertainties as to the
      amount of the taxable income that would be enerated in future
      years.




Reconciliation
      of the
      difference between the statutory tax rate and the effective income tax rate
      is
      as follows:





September
                30,
            
            December
                31,2006
            
            2005Statutory
                federal tax (benefit) rate
            
            
            (34.0)
            %
            
            (34.0)
            %Statutory
                state tax (benefit) rate
            
            
            (5.5)
            %
            
            (5.5)
            %Effective
                tax rate
            
            
            (39.5)
            %
            
            (39.5)
            %Valuation
                allowance
            
            
            39.5
            %
            
            39.5
            %




6
 *Table
          of Contents*


**DIAGNOSTIC
        CORPORATION OF AMERICA**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **(A
        DELAWARE CORPORATION)**
 **Clearwater,
        Florida**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**


**Note
      G - Recently Issued Accounting Standards**





In
      March
      2006, the Financial Accounting Standards Board (“FASB”) issued Statement of
      Financial Accounting Standard (“SFAS”) No. 156, “Accounting for Servicing of
      Financial Assets - an amendment of FASB Statement No. 140” (“SFAS 156”). SFAS
      156 amends FASB Statement No. 140 with respect to the accounting for separately
      recognized servicing assets and servicing liabilities. SFAS 156 requires all
      separately recognized servicing assets and servicing liabilities to be initially
      measured at fair value, if practical. SFAS 156 is effective as of the beginning
      of the first fiscal year that begins after September 15, 2006. As such, the
      Company is required to adopt these provisions at the beginning of the fiscal
      year ended December 31, 2007. The Company is currently evaluating the impact
      of
      SFAS 156 on its consolidated financial statements.





**Note
      H - Going Concern**





The
      Company’s financial statements have been presented on the basis that it is a
      going concern, which contemplates the realization of assets and the satisfaction
      of liabilities in the normal course of business. The Company has reported net
      losses of $376,949 for the nine months ended September 30, 2006. As a result,
      there is an accumulated deficit of $2,040,729 at September 30,
      2006.





The
      Company’s continued existence is dependent upon its ability to raise capital or
      to successfully market and sell its products. The financial statements do not
      include any adjustments that might be necessary should the Company be unable
      to
      continue as a going concern.




7
 *Table
          of Contents*




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





**GENERAL
      DESCRIPTION OF BUSINESS**




As
      used
      herein the terms "We", the "Company", "DCA", the "Registrant," or the "Issuer"
      refers to Diagnostic Corp. of America, unless indicated otherwise. We are a
      development stage company, incorporated under the laws of the State of Delaware
      on October 31, 2000 as Galli Process, Inc. On December 31, 2001, Galli
      Process, Inc. became a majority owned subsidiary of City View TV, Inc., a
      Florida corporation (“City View”). On February 7, 2002, Galli Process, Inc.
      changed its name to Global Broadcast Group, Inc. On March 1, 2002, City
      View merged into Global Broadcast Group, Inc., which was the surviving entity.
      On November 12, 2004, we changed the name of the Company to Diagnostic
      Corporation of America (“DCA”). Our executive offices are located at 14375 Myer
      Lake Circle, Clearwater FL 33760 and our telephone number is
      (727) 533-8300. Our website is dgcponline.com.




We
      initially
      began developing technology and programming for the delivery of advertising
      based content through satellite transmission and the Internet. In 2004, we
      redirected our marketing efforts to focus sales of our products and services
      to
      the medical diagnostic industry. To accomplish this, we activated a wholly
      owned
      subsidiary, Diagnostic Medical Partners, LLC, a Florida limited liability
      company (“DMP”) for the purpose of marketing and leasing diagnostic medical
      equipment. In 2005, we began the process of identifying outpatient diagnostic
      healthcare facilities with the goal of consolidating several facilities into
      a
      larger network to provide management expertise and operating efficiencies.




In
      our search
      for acquisition candidates, we met the principals of WiFiMed, Inc., a Delaware
      Corporation (“WiFiMed”), and a private, development stage company, that provides
      wireless patient information through its proprietary product Tablet MDTM to
      physicians and health care providers. After preliminary inquiry, in March 2006,
      we entered into an agreement in principle with WiFiMed to effect a reverse
      merger, subject to customary due diligence, board approval and the negotiation
      and execution of a definitive agreement of merger. The proposed reverse merger
      transaction with WiFiMed was terminated by mutual agreements of the Parties
      on
      August 30, 2006, which was announced by filing the current report on Form 8-K
      with Securities and Exchange Commission.




**Factors
      Relating to Forward-Looking Statements**




In
      connection
      with forward-looking statements contained in this Form 10-QSB and those that may
      be made in the future by or on behalf of the Company which are identified as
      forward-looking by such words as “believes,” “intends” or words of a similar
      nature, the Company notes that there are various factors that could cause actual
      results to differ materially from those set forth in any such forward-looking
      statements. The forward-looking statements contained in this Form 10-QSB were
      prepared by management and are qualified by, and subject to, significant
      business, economic, competitive, regulatory and other uncertainties and
      contingencies, all of which are difficult or impossible to predict and many
      of
      which are beyond the control of the Company. Accordingly, there can be no
      assurance that the forward-looking statements contained in this Form 10-QSB
      will
      be realized or the actual results will not be significantly higher or lower.




These
      forward-looking statements have not been audited by, examined by, compiled
      by or
      subjected to agreed-upon procedures by independent accountants, and no third
      party has independently verified or reviewed such statements. Readers of this
      Form 10-QSB should consider these facts in evaluating the information contained
      herein. In addition, the business and operations of the Company are subject
      to
      substantial risks which increase the uncertainty inherent in the forward-looking
      statements contained in this Form 10-QSB. The inclusion of the forward-looking
      statements contained in this Form 10-QSB should not be regarded as a
      representation by the Company or any other person that the forward-looking
      statements contained in this Form 10-QSB will be achieved. In light of the
      foregoing, readers of this Form 10-QSB are cautioned not to place undue reliance
      on the forward-looking statements contained herein.




8
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          of Contents*




**Results
      of Operations for the Quarter ended September 30, 2006 as Compared to
      Quarter ended September 30, 2005**





The
      following discussion is based upon, and should be read in conjunction with
      our
      financial statements and related disclosures prepared with the presumption
      that
      users of the interim financial information have read or have access to our
      annual audited consolidated financial statements for the preceding fiscal year.
      Accordingly, these financial statements should be read in conjunction with
      the
      audited consolidated financial statements and the related notes thereto
      contained in our Annual Report on Form 10-KSB for the year ended December 31,
      2005.




***Revenues***




Revenues
      for
      the quarter ended September 30, 2006 were $0, no change from the $0
      reported for the quarter ended September 30, 2005.




***Selling
      Expenses***




Selling
      expenses (marketing, commissions and travel) for the quarter ended
      September 30, 2006 were $0, no change from the $0 reported for the quarter
      ended September 30, 2005.




***General
      and administrative expenses***




General
      and
      administrative expenses for quarter ended September 30, 2006 were $255,094,
      an increase of $117,778 or 86% as compared to $137,316 for the quarter ended
      September 30, 2005. General and administrative expenses primarily include
      salaries, management fees, professional fees, consulting fees and general
      operating expenses. The increase in General and administrative expenses for
      quarter ended September 30, 2006 was due primarily to the consulting fee of
      $210,000 in connection with the private sales of common stock of the Company.
      The management fee was $30,000 for the quarter ended September 30, 2006, payable
      to Sam Winer ("Mr. Winer"), our former Chief Executive Officer and Chairman
      of
      the Board, in connection with the management services rendered. In September
      2006, Mr. Winer resigned and agreed to settle all the payables owed to him.
      We
      also realized a 47% increase in insurance expenses for the quarter ending
      September 30, 2006, up from $4,267 for the quarter ending
      September 30, 2005 due to a monthly rate increase from United Healthcare.
      Increases were offset by a significant decrease in our professional fees from
      $32,223 for the quarter ended September 30, 2005 to $5,300 for the quarter
      ended September 30, 2006.




**Results
      of Operations for the nine months ended September 30, 2006 as compared to
      nine months ended September 30, 2005**




***Revenues***




Revenues
      for
      the nine months ended September 30, 2006 were $0, no change from the $0
      reported for the nine months ended September 30, 2005.




***Selling
      Expenses***




Selling
      expenses (marketing, commissions and travel) for the nine months ended
      September 30, 2006 were $1,874 as compared to $26,518 for the nine months
      ended September 30, 2005. The decrease was due to suspended activity
      pending due diligence of the proposed reverse merger with WiFiMed.




9
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***General
      and administrative expenses***




Total
      general
      and administrative expenses for nine months ended September 30, 2006 were
      $423,348, an increase of $94,007, or 29%, as compared to $329,341 for the nine
      months ended September 30, 2005. The increase in General and administrative
      expenses for nine months ended September 30, 2006 was due primarily to the
      consulting fee of $210,000 in connection with the private sales of common stock
      of the Company incurred in the third quarter of 2006. The management fees were
      $90,000 for the nine months ended September 30, 2006, payable to Mr. Winer,
      which were settled when Mr. Winer resigned in September 2006. We also realized
      an increase in insurance expenses, $16,620 for the nine months ending
      September 30, 2006, an increase of $3,689 or 29% up from $12,931 for the
      nine months ending September 30, 2005 due an increase in monthly premiums
      from United Healthcare. The increase was partially off set by the decrease
      in
      transfer agent fees, which were $1,869 for the nine months ending
      September 30, 2006, as compared to $6,025 for the nine months ending
      September 30, 2005, and our overall general and administrative expenses,
      which decreased 45% from $7,559 for the nine months ended September 30,
      2005 to $4,144 for the nine months ended September 30, 2006.




***Liquidity
      and Capital Resources***




As
      reflected
      in the Statement of Cash Flows for the nine months ended September 30, 2006
      and 2005, net cash flow used in operating activities for the nine months ended
      September 30, 2006 was $560,997, an increase of $412,946 or 279%, as
      compared to $148,051 for the nine months ended September 30, 2005. We
      realized a significant increase in cash flow used in operating activities due
      primarily to the decrease in accounts payable of $124,196, the decrease in
      accounts payable of $34,694 and the decrease in accrued payroll of $49,342
      during the nine moths ended September 30, 2006.




We
      don't have
      any cash flows from investing activities during the nine months ended September
      30, 2006.




Cash
      flows
      provided by financing activities were $560,000 for the nine months ended
      September 30, 2006, which was in connection with the private sale of common
      stock of the Company during the third quarter of 2006.




We
      continue
      to rely upon proceeds realized from the issuance of notes payable and stock
      sold
      to an existing or potential shareholder to meet our funding requirements. Due
      to
      the lack of any significant revenues, we have relied upon proceeds from the
      sales of our common stock through private placements and the issuance of notes
      payable to meet our funding requirements. Funds raised by us in the third
      quarter of 2006, were spent primarily in connection with the settlement of
      all
      existing indebtedness of the Company.




We
      have
      funded our cash needs for the nine months ended September 30, 2006 with a series
      of debt and equity transactions.




We
      project
      that we will need additional capital to fund operations over the next 12 months.
      We anticipate we will need an additional $250,000 in working capital during
      2006
      and $100,000 for the two years thereafter.




On
      a
      long-term basis, liquidity is dependent on continuation and expansion of
      operations, receipt of revenues, additional infusions of capital and debt
      financing. However, there can be no assurance that we will be able to obtain
      additional equity or debt financing in the future, if at all. If we are unable
      to raise additional capital, our growth potential will be adversely affected.
      Additionally, we will have to significantly modify our business
      plan.




10
 *Table
          of Contents*




**Financing/Capital
      Commitments**




In
      connection
      with the proposed reverse merger, WiFiMed loaned $25,000 to the Company. The
      loan was secured by 3,000,000 shares of the Company common stock subject to
      the
      terms and conditions of a Stock Pledge Agreement and Promissory Note. On August
      30, 2006, this proposed reverse merger transaction was terminated by mutual
      agreements of the Parties. Other than repayment of a $25,000 loan made by
      WiFiMed to DCA in connection with the proposed reverse merger, the agreement
      in
      principle does not provide for the payment of any termination penalties or
      fees
      as a result of termination.




Although
      our
      stockholders have committed to providing additional funds if funding is not
      available from any other sources, we cannot give assurance that our stockholders
      will continue to fund us or that we will enter into any new commitment, or
      that
      the terms of any such commitments will be on terms favorable to us. We may,
      if
      necessary, conduct a private placement or public offering of our stock.




**Off-Balance
      Sheet Items**




We
      have no
      material off-balance sheet arrangements.




**Application
      of Critical Accounting Policies**




Our
      financial
      statements and accompanying notes are prepared in accordance with generally
      accepted accounting principles in the United States. Preparing financial
      statements requires management to make estimates and assumptions that affect
      the
      reported amounts of assets, liabilities, revenues, and expenses. These estimates
      and assumptions are affected by management’s application of accounting policies.
      Our critical accounting policies include revenue recognition, accounting for
      income taxes and earnings per share, and accounting and reporting for
      development stage companies. A summary of our significant accounting policies
      is
      set forth in Note C to our consolidated financial statements attached to our
      Form 10-KSB filed March 23, 2006.




**Recently
      Issued Accounting Standards**




Several
      Statements of Financial Accounting Standards were recently issued that apply
      to
      the Company and will likely be adopted by the Company in 2006. These statements
      are more fully described in Note C to our consolidated financial statements
      attached to our Form 10-KSB filed March 23, 2006, and apply to accounting
      changes and error corrections and accounting for certain hybrid financial
      instruments. We are currently evaluating the impact of these statements on
      our
      future consolidated financial statements and operations.




**Plan
      of Operation**




On
      November
      15, 2006, we entered into a Plan of Exchange ("Agreement") between and among
      our
      Company, Liaoning
      Neng Fa Weiye Pipe Network Construction and Operation Co. Ltd., a
      corporation organized under the laws of the Peoples’ Republic of China (“Neng
      Fa”) ,
      the
      shareholders of Neng Fa (“Neng Fa Shareholders”) and Li Gang, our President and
      Director ("Mr. Li").




11
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          of Contents*




Pursuant
      to the terms of the Agreement, we
      would
      acquire 100% of the capital stock of Neng Fa in exchange for an issuance by
      DGCP
      of 12,000,000 new shares of Common Stock to Neng Fa, which will
      give  Neng
      Fa a
      'controlling interest' in DGCP representing approximately 89.4% of the
      issued and outstanding shares
      of
      DGCP. Neng
      Fa will not
      convert these shares for one year but shall be allowed to use them towards
      a
      shareholder vote. The
      transaction will immediately close upon the approval of Board of Directors
      of
      DGCP and Neng Fa, respectively .
      Upon
      completion of the exchange, Neng Fa will be a 100% owned subsidiary of the
      Company, and we will cease all of our current remaining operations in favor
      of
      adoption and implementation of the business plan of Neng Fa.





Neng
      Fa's
      core business is the manufacture and sale of low voltage large calibre valves
      (LL Valves). Neng Fa supplies energy-efficient solutions to utilities networks
      in cities across China, including an energy-saving reconstruction of pipeline
      networks and contractual energy management. Based on the reputation of its
      brand
      and its proven manufacturing capability and experience, Neng Fa should have
      the
      ability to grow its business in the fields of energy-saving technological
      services and public utilities.




**ITEM 3.
      CONTROLS AND PROCEDURES**




The
      Company
      maintains disclosure controls and procedures designed to ensure that information
      required to be disclosed in reports filed under the Securities Exchange Act
      of
      1934 (“Exchange Act”) is recorded, processed, summarized and reported within the
      specified time periods. The Company’s Chief Executive Officer and its Chief
      Financial Officer (collectively, the “Certifying Officers”) are responsible for
      maintaining and disclosure controls and procedures for the Company. The controls
      and procedures established by the Company are designed to provide reasonable
      assurance that information required to be disclosed by the issuer in the reports
      that it files or submits under the Exchange Act is recorded, processed,
      summarized and reported within the time periods specified in the Commission’s
      rules and forms.




As
      of the end
      of the period covered by this report, the Certifying Officers evaluated the
      effectiveness of the Company’s disclosure controls and procedures. Based on the
      evaluation, the Certifying Officers concluded that the Company’s disclosure
      controls and procedures were effective to provide reasonable assurance that
      information required to be disclosed by us in the reports that we file or submit
      under the Exchange Act is recorded, processed, summarized and reported, within
      the time periods specified in the applicable rules and forms, and that it is
      accumulated and communicated to our management, including the Certifying
      Officers, as appropriate to allow timely decisions regarding required
      disclosure.






**PART
      II - OTHER INFORMATION**




**ITEM 1.
      LEGAL PROCEEDINGS**




As
      of the
      date of this report, we are not a party to any pending legal proceeding and
      are
      not aware of any threatened legal proceeding.




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




In
      June 2006,
      we agreed to reserve 3,000,000 shares of restricted common stock to secure
      a
      $25,000 promissory note from WiFiMed pursuant to the terms of our agreement
      in
      principle with WiFiMed and subject to completion of a definitive merger
      agreement. This transaction was exempt from registration under Section 4(2)
      of the Securities Act. However, on August 30, 2006, this proposed reverse merger
      transaction was terminated by mutual agreements of the Parties. Other than
      repayment of a $25,000 loan made by WiFiMed to DCA in connection with the
      proposed reverse merger, the agreement in principle does not provide for the
      payment of any termination penalties or fees as a result of termination.




On
      September 15, 2006, The Company consummated a private sale of 29,100,000
      shares of its Common Stock (the “Shares”) to Mr. Li Gang, a citizen of
      People's Republic of China ("Mr. Li"), pursuant to the terms and conditions
      of a
      Subscription and Stock Purchase Agreement, dated September 5, 2006. The
      aggregate purchase price for the Shares was $560,000 or approximately $.02
      per
      share. This transaction was in reliance upon exemptions from the registration
      requirements of Section 5 of the Securities Act of 1933, as amended (the
“Act”), pursuant to Section 4(2) of the Act and Rule 506 promulgated
      thereunder.




As
      a result
      of this transaction, Mr. Li owns approximately 58% of the issued and outstanding
      shares of the Company’s Common Stock.




The
      Company
      utilized the proceeds from this sale to satisfy all existing indebtedness of
      the
      Company.




12
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          of Contents*




**ITEM 3.
      DEFAULTS UPON SENIOR SECURITIES**




There
      have
      been no material defaults in the payments of principal, interest, a sinking
      or
      purchase fund installment, or any other material default not cured within thirty
      days during the quarter covered by this report **.**




**ITEM 4.
      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**




No
      matter has
      been submitted to a vote of security holders through solicitation or proxies
      during the quarter covered by this report.




**ITEM 5.
      OTHER INFORMATION**




*Termination
      with WiFiMed*




We
      terminated
      the proposed reverse merger transaction with WiFiMed by mutual agreements of
      the
      Parties on August 30, 2006. Other than repayment of a $25,000 loan made by
      WiFiMed to the Company in connection with the proposed reverse merger, the
      agreement in principle does not provide for the payment of any termination
      penalties or fees as a result of termination. The termination is more fully
      described in Item 2 of this Report and on Form 8-K filed September 1, 2006.




*Plan
      of Exchange with Neng Fa*




As
      mentioned
      above, on November 15, 2006, we entered into a Plan of Exchange between and
      among our Company, Neng
      Fa ,
      the
      Neng Fa Shareholders and Mr. Li. It is important to note that Mr. Li is also
      the
      President of Neng Fa and is an interested party to the transaction. Please
      refer
      to the Plan of Operation in Item 2 above for detailed information regarding
      this
      transaction.





**ITEM 6.
      EXHIBITS AND REPORTS ON FORM 8-K**




(a)
      The
      exhibits required by Item 601 of Regulation S-B, as described in the
      following index of exhibits, are incorporated by reference or filed with this
      report as follows:




**Exhibit
                No.**
            **Description**31.1
            Certification
                of Chief Executive
                Officer31.2
            Certification
                of Chief Financial
                Officer32.1
            Statement
                required by 18 U.S.C. Section 1350, as adopted
                pursuant to section 906 of the Sarbanes-Oxley Act of
                200232.2
            Statement
                required by 18 U.S.C. Section 1350, as adopted
                pursuant to section 906 of the Sarbanes-Oxley Act of
                2002




(b) Reports
      on Form 8-K filed in the third quarter of 2006




(1)
            On
                September 1, 2006, the Company filed an 8-K report under Item 1.02,
                Termination of a Material Definitive Agreement****reporting
                the termination of a proposed reverse merger transaction with WiFiMed,
                Inc.





(2)
            On
                September 18, 2006, the Company filed an 8-K report to announce the
                private sale of 29,100,000 shares of the Company and the changes
                in the
                Company’s management.





Reports
      on Form 8-K filed subsequent to the end of the quarter





(3)
            On
                October 27, 2006, the Company filed an 8-K report to announce the
                appointment of a new director of the
                Company.





13
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          of Contents*




**SIGNATURES**




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




**DIAGNOSTIC
              CORPORATION OF AMERICA**Date:
                November 11, 2006
            
            /s/
                Li, GangLi,
                GangPresident,
                Chief Executive Officer
              and
                Chairman of the Board of Directors










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