UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB



(Mark One)[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended: March 31, 2007Or[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from ____________ to _____________Commission File Number: 333-124060NEW DESIGN CABINETS, INC.(Exact name of registrant as specified in its charter)Nevada20-1699126(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)3313 North 83rd Place
`Scottsdale, Arizona`85251(Address of principal executive offices)(Zip Code)(602) 679-6699(Registrant's telephone number, including area code)N/A(Former name, former address and former fiscal year, if changed since last report)




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 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 [  ]



APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes [  ] No [  ]



APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 10,260,000









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NEW DESIGN CABINETS, INC.

(A Development Stage Company)





Table of Contents





PagePART I  FINANCIAL INFORMATION3Unaudited Condensed Financial Statements3Management's Discussion and Plan of Operation15Controls and Procedures17PART II  OTHER INFORMATION18Exhibits and Reports on Form 8-K18SIGNATURES19
























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PART I  FINANCIAL INFORMATION



Unaudited Condensed Financial Statements



The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission"). While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company's Registration Statement on Form 10-KSB for the year ended December 31, 2006 previously filed with the Commission on March 30, 2007, and subsequent amendments made thereto.









































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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEET

MARCH 31, 2007

(UNAUDITED)





ASSETS2007Current Assets:Cash and cash equivalents$14,291Deferred Charge43,500Total Current Assets57,791TOTAL ASSETS$57,791LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIESCurrent Liabilities:Accounts payable$1,054Deferred Revenue52,000Total Current Liabilities53,054Total Liabilities53,054STOCKHOLDERS EQUITYCommon stock, $.001 Par Value; 100,000,000 shares authorized;10,260,000 shares issued and outstanding10,260Additional paid-in capital25,740Deficit accumulated during the development stage(31,263)Total Stockholders Equity4,737TOTAL LIABILITIES AND STOCKHOLDERS EQUITY$57,791








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



















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(WITH CUMULATIVE TOTALS SINCE INCEPTION)

(UNAUDITED)



Cumulative totalsSeptember 29, 2004 (Inception)20072006through March 31, 2007OPERATING REVENUESSales, net allowance$-$-$1,400Cost of Sales--
	319GROSS PROFIT--
	1,081OPERATING EXPENSESProfessional fees3,3503,37620,750General and administrative expenses8521205,352Outside services3063562,335Advertising-9223,907Total Operating Expenses
	4,508
	4,774
	32,344NET LOSS BEFORE OTHER EXPENSES(4,508)(4,774)
	(31,263)NET LOSS BEFORE PROVISION FOR INCOME TAXES(4,508)(4,774)(31,263)Provision for income taxes---NET LOSS APPLICABLE TO COMMON SHARES$(4,508)$(4,774)
	$(31,263)WEIGHTED AVERAGE COMMON SHARESOUTSTANDING10,260,00010,260,000BASIC AND DILUTED LOSS PER SHARE$(0.00)$(0.00)








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

















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(WITH CUMULATIVE TOTALS SINCE INCEPTION)

(UNAUDITED)





Cumulative TotalsSeptember 29, 2004 (inception)20072006through March 31, 2007CASH FLOWS FROM OPERATING ACTIVITIESNet loss$(4,508)$(4,774)$(31,263)Adjustments to reconcile net loss to net cashprovided by (used in) operating activitiesChanges in assets and liabilitiesDeferred charges(14,500)(29,000)(43,500)Accounts payable1,054-1,054Deferred revenue
	23,000
	29,000
	52,000Total adjustments
	9,554
	-
	9,554Net cash provided by (used in) operating activities
	5,046
	(4,774)
	(21,709)CASH FLOW FROM FINANCING ACTIVITIESIssuance of common stock
	-
	-
	36,000Net cash provided by financing activities
	-
	-
	36,000NET INCREASE (DECREASE) INCASH AND CASH EQUIVALENTS5,046(4,774)14,291CASH AND CASH EQUIVALENTS -BEGINNING OF PERIOD
	9,245
	20,481
	-CASH AND CASH EQUIVALENTS  END OF PERIOD
	$14,291
	$15,707
	$14,291SUPPLEMENTAL CASH FLOW INFORMATION;During the period, cash was paid for the following:Interest$-$-$-Income taxes
	$-
	$-
	$-








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







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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2007 AND 2006

(UNAUDITED)





NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION



The condensed financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.  The condensed financial statements and notes are presented as permitted on Form 10-QSB and do not contain information included in the Companys annual statements and notes.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America 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.  It is suggested that these condensed financial statements be read in conjunction with the December 31, 2006 audited financial statements and accompanying notes thereto.  While management believes the procedures followed in preparing these condensed financial statements are reasonable, the accuracy of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by the Company later in the year.



These condensed financial statements reflect all adjustments, including normal recurring adjustments, which in the opinion of management, are necessary to present fairly the operations and cash flows for the periods presented.



New Design Cabinets, Inc. (the Company) is a manufacturer and marketer of custom cabinets and wine racks.  The Company plans to design, manufacture and market a full range of quality wine racks and custom cabinets in virtually any style.  The Company believes that its future customers will be its most important asset, followed by the products the Company intends to manufacture.  All of the items to be built by the Company will be unconditionally guaranteed to deliver quality and satisfaction.



The home furnishing industry is highly competitive and includes a large number of domestic and foreign manufacturers.  Competition is generally based on product quality, price, and service.  The Company founders have extensive experience in the cabinet industry and have seen a need for a wine rack and custom cabinet line with a broad selection of design choices and high-end finishes.  The level of skill and craftsmanship put into each product in the line is a source of pride for the founders of the Company.  The wine rack designs will be exceptionally flexible; able to store wine bottles in nearly any space in the home. The consumer will be able to combine and mix from the available styles and products to create their own unique cabinet/wine rack system.  The custom cabinets will offer the ultimate blend of quality, cost, and craftsmanship. The Company will offer a large selection of styles available for all products in the line.















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Development Stage Company



The Company is considered to be in the development stage as defined in Statement of Financial Accounting Standards (SFAS) No. 7, Accounting and Reporting by Development Stage Enterprises. The Company has devoted substantially all of its efforts to business planning, research and development. Additionally, the Company has allocated a substantial portion of their time and investment in bringing their product to the market, and the raising of capital.



Cash and Cash Equivalents



For financial statement presentation purposes, the Company considers short-term, highly liquid investments with original maturities of three months or less to be cash and cash equivalents.



The Company maintains cash and cash equivalent balances at a financial institution that is insured by the Federal Deposit Insurance Corporation up to $100,000.



Revenue Recognition



The Companys financial statements are prepared under the accrual method of accounting. Revenues will be recognized in the period the services are performed and costs are recorded in the period incurred rather than paid.



Fair Value of Financial Instruments



The Companys financial instruments are all carried at amounts that approximate their estimated fair value as of March 31, 2007.



Use of Estimates



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



















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Income Taxes



The provision for income taxes includes the tax effects of transactions reported in the financial statements. Deferred taxes would be recognized for differences between the basis for assets and liabilities for financial statement and income tax purposes. The major difference relate to the net operating loss carryforwards generated by sustaining deficits during the development stage.



Advertising Costs



Advertising and promotion costs are expensed as incurred.  Advertising expenses for the three months ended March 31, 2007 and 2006 for the period from September 29, 2004 (inception) to March 31, 2007 was $0, $922 and $3,907, respectively.



Recent Accounting Pronouncements



Share Based Payments



In December 2004, the FASB issued Financial Accounting Standards No. 123 (revised 2004) (FAS 123R), Share-Based Payment,  FAS 123R replaces FAS No. 123, Accounting for Stock-Based Compensation, and supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees. FAS 123R requires compensation expense, measured as the fair value at the grant date, related to share-based payment transactions to be recognized in the financial statements over the period that an employee provides service in exchange for the award. The Company intends to adopt FAS 123R using the modified prospective transition method as defined in FAS 123R. Under the modified prospective method, companies are required to record compensation cost prospectively for the unvested portion, as of the date of adoption, of previously issued and outstanding awards over the remaining vesting period of such awards. FAS 123R is effective January 1, 2006. This standard did not have an impact on the Companys financial position, results of operations or cash flows.



Exchange of Non-Monetary Assets



On December 16, 2004, FASB issued Financial Accounting Standards No. 153, Exchanges of Non-monetary Assets, an amendment of APB Opinion No. 29, Accounting for Non-monetary Transactions ("FAS 153"). This statement amends APB Opinion 29 to eliminate the exception for non-monetary exchanges of similar productive assets and replaces it with a general exception for exchanges of non-monetary assets that do not have commercial substance. Under FAS 153, if a non-monetary exchange of similar productive assets meets a commercial-substance criterion and fair value is determinable, the transaction must be accounted for at fair

















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)



Exchange of Non-Monetary Assets (Continued)



value resulting in recognition of any gain or loss. FAS153 is effective for non-monetary transactions in fiscal periods that begin after June 15, 2005. This standard did not have an impact on the Companys financial position, results of operations or cash flows.



Accounting Changes and Error Corrections



In May 2005, the FASB issued FAS No. 154, Accounting Changes and Error Corrections. FAS No. 154 replaces Accounting Principles Board (APB) Opinion No. 20, Accounting Changes and FAS No. 3, Reporting Accounting Changes in Interim Financial Statements. FAS No. 154 requires retrospective application to prior periods financial statements of a voluntary change in accounting principle unless it is impracticable. APB No. 20 previously required that most voluntary changes in accounting principle be recognized by including the cumulative effect of changing to the new accounting principle in net income in the period of the change. FAS No. 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. This standard did not have an impact on the Companys financial position, results of operations or cash flows.



Accounting for Certain Hybrid Financial Instruments



In February 2006, the FASB issued FAS No. 155, Accounting for Certain Hybrid Financial Instruments, an amendment of FASB Statements No. 133 and 140. FAS No. 155 resolves issues addressed in FAS No. 133 Implementation Issue No. D1, Application of Statement 133 to Beneficial Interests in Securitized Financial Assets, and permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation, clarifies which interest-only strips and principal-only strips are not subject to the requirements of FAS No. 133, establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation, clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives and amends FAS No. 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. FAS No. 155 is effective for all financial instruments acquired or issued after the beginning of the first fiscal year that begins after September 15, 2006.















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)



Accounting for Certain Hybrid Financial Instruments (Continued)



This standard did not have an impact on the Companys financial position, results of operations or cash flows.



Accounting for Servicing of Financial Assets



In March 2006, the FASB issued FAS No. 156, Accounting for Servicing of Financial Assets, an amendment of FASB Statement No. 140. FAS No. 156 requires an entity to recognize a servicing asset or liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract under a transfer of the servicers financial assets that meets the requirements for sale accounting, a transfer of the servicers financial assets to a qualified special-purpose entity in a guaranteed mortgage securitization in which the transferor retains all of the resulting securities and classifies them as either available-for-sale or trading securities in accordance with FAS No. 115, Accounting for Certain Investments in Debt and Equity Securities and an acquisition or assumption of an obligation to service a financial asset that does not relate to financial assets of the servicer or its consolidated affiliates. Additionally, FAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, permits an entity to choose either the use of an amortization or fair value method for subsequent measurements, permits at initial adoption a one-time reclassification of available-for-sale securities to trading securities by entities with recognized servicing rights and requires separate presentation of servicing assets and liabilities subsequently measured at fair value and additional disclosures for all separately recognized servicing assets and liabilities. FAS No. 156 is effective for transactions entered into after the beginning of the first fiscal year that begins after September 15, 2006. This standard did not have an impact on the Companys financial position, results of operations or cash flows.



Fair Value Measurements



In September 2006, the FASB issued SFAS No. 157 Fair Value Measurements, which provides a definition of fair value, establishes a framework for measuring fair value and requires expanded disclosures about fair value measurements. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The provisions of SFAS No. 157 should be applied prospectively. Management is assessing the potential impact on its financial condition and results of operations.















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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)



Employers Accounting for Defined Benefit Pension and Other Postretirement Plans



In September 2006, the FASB issued SFAS No. 158 Employers Accounting for Defined Benefit Pension and Other Postretirement Plans, which amends SFAS No. 87 Employers Accounting for Pensions (SFAS No. 87), SFAS No. 88 Employers Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits (SFAS No. 88), SFAS No. 106 Employers Accounting for Postretirement Benefits Other Than Pensions (SFAS No. 106), and SFAS No. 132R Employers Disclosures about Pensions and Other Postretirement Benefits (revised 2003) (SFAS No. 132R). This statement requires companies to recognize an asset or liability for the overfunded or underfunded status of their benefit plans in their financial statements. SFAS No. 158 also requires the measurement date for plan assets and liabilities to coincide with the sponsors year-end. The standard provides two transition alternatives related to the change in measurement date provisions. The recognition of an asset and liability related to the funded status provision is effective for fiscal year ending after December 15, 2006 and the change in measurement date provisions is effective for fiscal years ending after December 15, 2008. This pronouncement has no effect on the Company at this time.



Net (Loss) Per Share of Common Stock



The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2007 and 2006:



2007
	2006Net loss
	$  (4,508)
	
	$  (4,774)Weighted average common10,260,00010,260,000shares outstanding (Basic)Options-
	-Warrants-
	-Weighted average common sharesoutstanding (Diluted)
	10,260,000
	
	10,260,000










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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)



Net (Loss) Per Share of Common Stock (Continued)



There are no common stock equivalents outstanding at March 31, 2007.



Historical net (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted earnings per share (EPS) include additional dilution from common stock equivalents, such as stock issuable pursuant to the exercise of stock options and warrants.



All dilutive securities were not included in the calculation of dilutive earnings per share because the effect would be anti-dilutive when the Company has incurred a loss from operations. The Company currently has no potentially dilutive securities outstanding.



NOTE 3 - STOCKHOLDERS EQUITY



On October 13, 2004 the Company was formed with one class of common stock, par value $.001. The Company authorized 100,000,000 shares of common stock.



In November 2004, the Company issued 10,000,000 shares of stock to its founder for cash of $10,000.



On February 22, 2005, the Company issued 260,000 shares of stock for cash of $26,000.



There were no stock transactions for year ended December 31, 2006 or for the three month period ended March 31, 2007.



NOTE 4 - GOING CONCERN



As shown in the accompanying financial statements, as is typical of companies going through the development stage, the Company incurred net losses since September 29, 2004 (Inception) through March 31, 2007. The Company is currently in the development stage, and there is no guarantee whether the Company will be able to generate enough revenue and/or raise capital to support current operations and generate anticipated sales.  This raises substantial doubt about the Companys ability to continue as a going concern.



Management believes that the Companys capital requirements will depend on many factors including the success of the Companys service development efforts. Managements plans include marketing of their services and establishment of key











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NEW DESIGN CABINETS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2007 AND 2006

(UNAUDITED)



NOTE 4 - GOING CONCERN(CONTINUED)



management personnel to support the business plan. With the business plan being followed, management believes along with working capital being raised that the operations and sales will make the Company a viable entity over the next twelve months.



The financial statements do not include any adjustments relating to the recoverability or classification of recorded assets and liabilities that might result should the Company be unable to continue as a going concern.



NOTE 5 - PROVISION FOR INCOME TAXES



Deferred income taxes will be determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Companys assets and liabilities. Deferred income taxes will be measured based on the tax rates expected to be in effect when the temporary differences are included in the Companys tax return. Deferred tax 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.



At March 31, 2007 and 2006, deferred tax assets consist of the following:



2007
	2006Deferred tax assets$   9,379
	$   5,713Less: valuation allowance(9,379)
	(5,713)Net deferred tax assets$   -
	$   -






At March 31, 2007 and 2006, the Company had accumulated deficits during the development stage of $31,263 and $19,043 available to offset future taxable income through 2021. The Company established valuation allowances equal to the full amount of the deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.















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Management's Discussion and Plan of Operation



Forward-Looking Statements



This Quarterly Report contains forward-looking statements about New Design Cabinets, Inc.s business, financial condition and prospects that reflect managements assumptions and beliefs based on information currently available.  We can give no assurance that the expectations indicated by such forward-looking statements will be realized.  If any of our managements assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, New Design Cabinets actual results may differ materially from those indicated by the forward-looking statements.



The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, managements ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.



There may be other risks and circumstances that management may be unable to predict.  When used in this Quarterly Report, words such as,  "believes,"  "expects," "intends,"  "plans,"  "anticipates,"  "estimates"and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.



Managements Discussion and Plan of Operation



New Design Cabinets, Inc. was incorporated in the State of Nevada on September 29, 2004.  For the three months ended March 31, 2007 and 2006, we did not generate any revenues from sales of our wine racks and custom cabinetry construction services.  Since our inception through March 31, 2007, we have generated a total of $1,400 in revenues from sales of our products.  Taking into consideration cost of goods sold of $319, our gross profit from inception to March 31, 2007 was $1,081.  We do not have any long-term agreements to sell wine racks or to provide cabinetry services to any one customer.  As a result, we are unable to predict the stability of, and ability to continue to generate, ongoing revenues.



On March 23, 2006, we agreed to perform services on behalf of a luxury custom home builder related to the oversight of various construction activities in the aggregate amount of $60,500.  The services are related specifically to the oversight of cabinets and built-in furniture being constructed by a home builder in Fountain Hills, Arizona.  As of March 31, 2007, we collected $52,000 in cash related to this project in advance.  We did not render the services in full as of March 31, 2007, thus we have classified the monies received as deferred revenues.  In relation to this project, we recorded deferred charges in the amount of $43,500 as of March 31, 2007.  The deferred charges relate to amounts paid to a subcontractor for construction work performed, but not yet completed.  During the quarter ended March 31, 2007, the subcontractor previously performing the actual cabinet fabrication and installation was terminated.  As a result, we have verbally committed to perform the building and installation of the cabinets ourselves.  We expect to have this project completed during the second quarter of 2007.



Cost of sales related to revenues generated in the three month period ended March 31, 2007 and 2006 was $0, which resulted in no gross profit during that period.  Resultantly, our gross profit for the first quarter of 2006 was zero.  Since our inception, cost of sales totaled $319.  The resultant gross profit since from our inception on September 29, 2004 through March 31, 2007 was $1,081.



Total expenses for the three months ended March 31, 2007 were $4,508, consisting of general and administrative expenses in the amount of $852, professional fees totaling $3,350, and $306 for outside services.  For the three months ended March 31, 2006, we incurred total expenses of $4,774, consisting of $3,376 in professional fees, $922 in advertising expenses, $356 for outside services and $120 in general and administrative expenses.  Total expenses since our inception to March 31, 2007 were $32,344, of which $5,352 is attributable to general and administrative expenses, $2,335 to outside services expenses, $3,907 to advertising, and $20,750 to professional fees.  We expect to continue to incur general and administrative expenses for the foreseeable future, although we cannot estimate the extent of these costs.  As we continue to pursue establishing our base of operations, we expect aggregate expenses to increase.





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As a result of our expenses related to pursuing our planned business objective and lack of substantial revenues, we have incurred net losses since our inception.  For the three months ended March 31, 2007 and 2006, our net losses were $4,508 and $4,774, respectively.  From the date of our inception to March 31, 2007, we had a cumulative deficit of $31,263.  We expect to incur ongoing losses for the next 12 months of operations unless we are able to increase our revenue generating ability significantly.  Our independent registered public accountants have expressed substantial doubt about our ability to continue as a going concern in their report to the financial statements included in this quarterly report.  If our business fails, our investors may face a complete loss of their investment.



We believe that our cash on hand as of March 31, 2007 of $14,291 is sufficient to continue operations for the next 12 months without obtaining additional capital infusions.  However, if our expenses are greater than anticipated or if we do not generate sufficient cash flow to support our operations over the next 9 to 12 months, we may need to raise additional capital by issuing capital stock in exchange for cash in order to continue as a going concern.  There are no formal or informal agreements to attain such financing.  We can not assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms.  Without realization of additional capital, it would be unlikely for us to continue as a going concern.  Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern because we have limited operations.  Generating sales in the next 12 months is imperative for us to continue as a going concern.  We believe that we will be required to generate a minimum of approximately $12,000 in revenues over the next 12 months in order for us to support ongoing operations.  Over the course of fiscal year 2007, we expect to use the Internet as our primary marketing tool.  The website www.newdesigncabinets.com was created to offer information about our company and custom cabinetry services.  The site contains pictures of custom woodwork designed and manufactured by our sole officer and director, Mr. Kenneth Laurent.  All customer contacts will be directed to view our website to see the work samples and, if interested, contact us for additional information or for price quotes.  Most potential sales leads are anticipated to be derived as a result of our services being provided to a custom home builder.  It is anticipated that these architects and contractors will act as referral sources for our business, thus we do not expect to incur additional marketing and advertising expenses.



If we do not generate sufficient revenues to meet our expenses over the next 12 to 18 months, we may need to raise additional capital by issuing capital stock in exchange for cash in order to continue as a going concern.  There are no formal or informal
agreements to attain such financing.  We can not assure you that any financing can be obtained or, if obtained, that it will be on reasonable terms.  In the event we are unable to obtain further funding, we will be unable to conduct further operations and, consequently, go out of business.  Without realization of additional capital, it would be unlikely for us to continue as a going concern.



There are no known trends, events or uncertainties that have had or that are reasonably expected to have a material impact on our revenues from continuing operations.  Additionally, we do not believe that our business is subject to seasonal factors.  Our management does not expect to incur costs related to research and development.  We currently do not own any significant plant or equipment that we would seek to sell in the near future.  Our management does not anticipate the need to hire additional full- or part- time employees



Our management does not anticipate the need to hire additional full- or part- time employees over the next 12 months, as the services provided by our sole officer and director appear sufficient at this time.  We believe that our operations are currently on a small scale that is manageable by one individual.  While we believe that the addition of employees is not required over the next 12 months, we intend to contract sales representatives to market our products for us as independent contractors and will be paid on a commissioned basis.  Thus, these representatives are not intended to be employees of our company.



Our management does not expect to incur research and development costs.



NDCI does not have any off-balance sheet arrangements.



16





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We currently do not own any significant plant or equipment that we would seek to sell in the near future.



We have not paid for expenses on behalf of any of our directors.  Additionally, we believe that this fact shall not materially change.



Controls and Procedures



The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by the Company in the reports filed under the Securities Exchange Act, is recorded, processed, summarized and reported within the time periods specified by the SECs rules and forms.  Disclosure controls are also designed with the objective of ensuring that this information is accumulated and communicated to the Companys management, including the Companys chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.



Based upon their evaluation as of the end of the period covered by this report, the Companys chief executive officer and chief financial officer concluded that, the Companys disclosure controls and procedures are not effective to ensure that information required to be included in the Companys periodic SEC filings is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms.



The Companys board of directors was advised by Bagell, Josephs, Levine & Company, L.L.C., the Companys independent registered public accounting firm, that during their performance of audit procedures for 2006 Bagell, Josephs, Levine & Company, L.L.C. identified a material weakness as defined in Public Company Accounting Oversight Board Standard No. 2 in the Companys internal control over financial reporting.



This deficiency consisted primarily of inadequate staffing and supervision that could lead to the untimely identification and resolution of accounting and disclosure matters and failure to perform timely and effective reviews.  However, the size of the Company prevents us from being able to employ sufficient resources to enable us to have adequate segregation of duties within our internal control system.  Management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.





















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PART II  OTHER INFORMATION



Exhibits and Reports on Form 8-K



|Exhibit Number | Name and/or Identification of Exhibit                                             
|-------------- | ----------------------------------------------------------------------------------
|               |                                                                                   
|3              | Articles of Incorporation & By-Laws                                               
|               |                                                                                   
|               | (a) Articles of Incorporation *                                                   
|               |                                                                                   
|               | (b) By-Laws adopted *                                                             
|               |                                                                                   
|31             | Rule 13a-14(a)/15d-14(a) Certification                                            
|               |                                                                                   
|32             | Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)





*  Incorporated by reference herein filed as exhibits to the Companys Registration Statement on Form SB-2 previously filed with the SEC on April 14, 2005, and subsequent amendments made thereto.









































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SIGNATURES



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





EXPERT SYSTEMS, INC.(Registrant)SignatureTitleDate/s/ Kenneth P. LaurentPresident andMay 10, 2007Kenneth P. LaurentChief Executive Officer


















































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