----

----

| Oklahoma                                       |   | 73-1251800                                           |
|------------------------------------------------|--------|------------------------------------------------------|
| (State or Other Jurisdiction of Incorporation) |   | (I.R.S. Employer or Organization Identification No.) |
|                                           |   |                                                 |
| 1314 Texas Street, Suite 400, Houston, TX      |   | 77002                                                |
| (Address of Principal Executive Offices)       |   | (Zip Code)                                           |

| Large accelerated filer | o | Accelerated filed         | o |
|-------------------------|---|---------------------------|---|
| Non-accelerated filer   | o | Smaller reporting company | x |

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|        | PART I                                                                                             | 3      |
|-------------|----------------------------------------------------------------------------------------------------|--------|
|        |                                                                                               |   |
| Item 1.     | Business                                                                                           | 3      |
| Item 1A.    | Risk Factors                                                                                       | 4      |
| Item 2.     | Property                                                                                           | 8      |
| Item 3.     | Legal Proceedings                                                                                  | 8      |
| Item 4.     | Mine Safety Disclosures                                                                            | 8      |
|        |                                                                                               |   |
|        | PART II                                                                                            | 9      |
|        |                                                                                               |   |
| Item 5.     | Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities | 9      |
| Item 6.     | Selected Financial Data                                                                            | 10     |
| Item 7.     | Management’s Discussion and Analysis of Financial Condition and Results of Operations        | 10     |
| Item 8.     | Financial Statements                                                                               | 14     |
| Item 9.     | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure               | 14     |
| Item 9A.(T) | Controls and Procedures                                                                            | 14     |
| Item 9B.    | Other Information                                                                                  | 14     |
|        |                                                                                               |   |
|        | PART III                                                                                           | 15     |
|        |                                                                                               |   |
| Item 10.    | Directors, Executive Officers, and Corporate Governance                                            | 15     |
| Item 11.    | Executive Compensation                                                                             | 16     |
| Item 12.    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters     | 17     |
| Item 13.    | Certain Relationships and Related Transactions and Director Independence                           | 17     |
| Item 14.    | Principal Accountant Fees and Services                                                             | 18     |
|        |                                                                                               |   |
|        | PART IV                                                                                            | 19     |
|        |                                                                                               |   |
| Item 15.    | Exhibits, Financial Statement Schedules                                                            | 19     |
|        |                                                                                               |   |
| Signatures  |                                                                                               | 20     |

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| (b) | Need for Additional Financing May Affect Operations and Plan of Business. |
|-----|---------------------------------------------------------------------------|

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----

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|                             |   | High   |   |   | Low    |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Quarter Ended December 31, 2010  |   |   | 0.0017 |   |   |   | 0.0004 |   |
| Quarter Ended September 30, 2010 |   |   | 0.0022 |   |   |   | 0.0009 |   |
| Quarter Ended June 30, 2010      |   |   | 0.0025 |   |   |   | 0.0007 |   |
| Quarter Ended March 31, 2010     |   |   | 0.003  |   |   |   | 0.0011 |   |

|                             |   | High   |   |   | Low    |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Quarter Ended December 31, 2009  |   |   | 0.008  |   |   |   | 0.0011 |   |
| Quarter Ended September 30, 2009 |   |   | 0.005  |   |   |   | 0.0010 |   |
| Quarter Ended June 30, 2009      |   |   | 0.003  |   |   |   | 0.0010 |   |
| Quarter Ended March 31, 2009     |   |   | 0.004  |   |   |   | 0.0010 |   |

----

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|                               |   |        |   | Annual compensation         |    |   | Long-term compensation               |   |
|------------------------------------|--------|-------------|--------|-----------------------------|---------|--------|--------------------------------------|--------|
|                               |   |        |   | Salary($)                   |    |   | Bonus($)                             |   |   | Other annual compensation($) |   |   | Awards |   |   | Payouts |   |   | All othercompen-sation($) |   |
|   Name and principal position |   |   Year |   | Restrictedstock award(s)($) |    |   | Securitiesunder-lyingoptions/SARs(#) |   |   | LTIPpayouts($) |   |
|                               |   |        |   |                        |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Joseph Cala,(1)                    |   | 2010        |   |                        | 300,000 | (2)    |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| President                          |   | 2009        |   |                        | 300,000 | (2)    |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                               |   | 2008        |   |                        | 150,000 | (2)    |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

| (1)   | Mr Cala was appointed a director and president in 1999. |
|-----------------|---------------------------------------------------------|

| (2)   | Accrued but not paid |
|-----------------|----------------------|

----

| Title of Class | Name and Address of Beneficial Owner                                 | Amount and Nature of Beneficial Owner | Percent of Class  |
|----------------|----------------------------------------------------------------------|---------------------------------------|-------------------|
|           |                                                                 |                                  |              |
| CommonStock    | Joseph Cala1314 Texas StreetHouston, TX 77002                        | 123,567,793                           | 38.5%             |
| CommonStock    | Larry Pfautsch1314 Texas StreetHouston, TX 77002                     | 15,500,000                            | 4.8%              |
| CommonStock    | Raymond Francis1314 Texas StreetHouston, TX 77002                    | 13,000,000                            | 5.0%              |
| CommonStock    | Shares of all directors and executive officers as a group (1 person) | 152,067,793                           | 48.3  % |

| (1)   | None of these security holders has the right to acquire any amount of the shares within sixty days from options, warrants, rights, conversion privilege, or similar obligations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                 | Cala Corporation |            |
|--------------------------------------|------------------|-----------------|
|                                 |             |            |   |
| Dated:  September 14, 2012 | By:              | /s/ Joseph Cala |   |
|                                 |             | Joseph Cala,    |   |
|                                 |             | President       |   |
|                                 |             |            |   |

| Signature                      |   | Title                                                           |   | Date               |
|--------------------------------|--------|-----------------------------------------------------------------|--------|--------------------|
|                           |   |                                                            |   |               |
| /s/  Joseph Cala     |   | President (principal financial and accounting officer)/Director |   |               |
| Joseph Cala                    |   |                                                            |   | September 14, 2012 |
|                           |   |                                                            |   |               |
| /s/  Raymond Francis |   | Director                                                        |   |               |
| Raymond Francis                |   |                                                            |   | September 14, 2012 |
|                           |   |                                                            |   |               |
| /s/  Larry Pfautsch  |   | Director                                                        |   |               |
| Larry Pfautsch                 |   |                                                            |   | September 14, 2012 |

----

|           |                                                    |   |
|----------------|---------------------------------------------------------|--------|
|           |                                                    |   |
| 1.   | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 22     |
|           |                                                    |   |
| 2.   | BALANCE SHEETS                                          | 23     |
|           |                                                    |   |
| 3.   | STATEMENTS OF OPERATIONS                                | 24     |
|           |                                                    |   |
| 4.   | STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)       | 25     |
|           |                                                    |   |
| 5.   | STATEMENTS OF CASH FLOWS                                | 26     |
|           |                                                    |   |
| 6.   | NOTES TO FINANCIAL STATEMENTS                           | 27     |

----

----

| ASSETS                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                      |   | 2010 |   |   | 2009 |   |
| Current assets                                                                                                                            |   |   |   |   |   |   |
| Cash                                                                                                                                      |   | $ | -- |   |   | $ | -- |   |
| Total current assets                                                                                                                      |   |   | -- |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Other assets                                                                                                                              |   |   |   |   |   |   |   |   |
| Website development                                                                                                                       |   |   | 3,877 |   |   |   | 13,877 |   |
| Total assets                                                                                                                              |   | $ | 3,877 |   |   | $ | 13,877 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                               |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Current liabilities                                                                                                                       |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expense                                                                                                      |   | $ | 72,270 |   |   | $ | 48,935 |   |
| Notes payable - officer/stockholder                                                                                                       |   |   | 83,272 |   |   |   | 71,978 |   |
| Officer salary payable                                                                                                                    |   |   | 733,600 |   |   |   | 433,600 |   |
| Taxes payable                                                                                                                             |   |   | 11,599 |   |   |   | 11,599 |   |
| Notes payable                                                                                                                             |   |   | 62,000 |   |   |   | 62,000 |   |
| Contingent liabilities                                                                                                                    |   |   | 321,667 |   |   |   | -- |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                         |   |   | 1,284,408 |   |   |   | 628,112 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Stockholders’ deficit                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Common stock, $0.005 par value; 400,000,000 shares authorized issued and outstanding 320,866,147 and 320,866,147, respectively: |   |   |  1,604,329 |   |   |   | 1,604,329 |   |
| Additional paid-in capital                                                                                                                |   |   | 11,861,259 |   |   |   | 11,861,259 |   |
| Accumulated deficit                                                                                                                       |   |   | (11,886,789 | ) |   |   | (11,886,789 | ) |
| Accumulated deficit during development stage                                                                                              |   |   | (2,858,214 | ) |   |   | (2,191,917 | ) |
| Treasury stock -56,533 shares @cost                                                                                                       |   |   | (1,116 | ) |   |   | (1,116 | ) |
| Total stockholders’ deficit                                                                                                         |   |   | (1,280,531 | ) |   |   | (614,235 | ) |
| Total liabilities and stockholders’ deficit                                                                                         |   | $ | 3,877 |   |   | $ | 13,877 |   |

----

|                                                |   | 2010   |        |   | 2009   |   |        | January 1, 2007 to December 31, 2010 |   |
|-----------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------------------------------------|--------|
|                                                |   |   |        |   |   |   |        |                                 |   |
| Income                                              |   | $      | --          |   |   | $      | --          |                                 |   | $ | -- |   |
|                                                |   |   |        |   |   |   |        |                                 |   |   |   |   |
| General and administrative expense                  |   |   | 324,640     |   |   |   | 326,182     |                                 |   |   | 1,580,289 |   |
| Depreciation and amortization                       |   |   | 10,000      |   |   |   | 16,595      |                                 |   |   | 77,765 |   |
| Impairment loss on fixed asset                      |   |   | --          |   |   |   | --          |                                 |   |   | 711,817 |   |
| Loss on disposal of assets                          |   |   | --          |   |   |   | --          |                                 |   |   | 121,560 |   |
| Total operating expenses                            |   |   | 334,640     |   |   |   | 342,777     |                                 |   |   | 2,491,431 |   |
|                                                |   |   |        |   |   |   |        |                                 |   |   |   |   |
| Loss from operations                                |   |   | (334,640    | )      |   |   | (342,777    | )                                    |   |   | (2,491,431 | ) |
|                                                |   |   |        |   |   |   |        |                                 |   |   |   |   |
| Other income (expense)                              |   |   |        |   |   |   |        |                                 |   |   |   |   |
| Interest expense                                    |   |   | (9,990      | )      |   |   | (13,339     | )                                    |   |   | (102,471 | ) |
| Other income                                        |   |   | --          |   |   |   | --          |                                 |   |   | 74,007 |   |
| Other expense                                       |   |   | --          |   |   |   | --          |                                 |   |   | (16,652 | ) |
| Legal claims                                        |   |   | (321,667    | )      |   |   |        |                                 |   |   | (321,667 | ) |
| Total other income (expense)                        |   |   | (331,657    | )      |   |   | (13,339     | )                                    |   |   | (366,783 | ) |
|                                                |   |   |        |   |   |   |        |                                 |   |   |   |   |
| Net loss                                            |   |   | (666,297    | )      |   | $      | (356,116    | )                                    |   | $ | (2858,214 | ) |
|                                                |   |   |        |   |   |   |        |                                 |   |   |   |   |
| Earnings per share:                                 |   |   |        |   |   |   |        |                                 |   |   |   |   |
| Net loss per share-basic                            |   | $      | (0.00       | )      |   | $      | (0.00       | )                                    |   |   |   |   |
| Weighted average number of shares outstanding-basic |   |   | 320,866,147 |   |   |   | 319,638,750 |                                 |   |   |   |   |

----

|                                                                          |   | Common Stock |        |   | Additional |   |      |    |   |   | Development Stage |   |   |         |        |   | Treasury     |   |       | Total Stockholders' |   |
|-------------------------------------------------------------------------------|--------|--------------|-------------|--------|------------|--------|-----------|---------|--------|--------|-------------------|--------|--------|--------------|-------------|--------|--------------|--------|------------|---------------------|--------|
|                                                                          |   | Number       |        |   | $0.005     |   |      | Paid in |   |   | Accumulated       |   |   | Accumulative |        |   | Stock        |   |       |                |   |   |   |   |   | Equity/ |   |
|                                                                          |   | Shares       |        |   | Amount     |   |      | Capital |   |   | Deficit           |   |   | Deficit      |        |   | Subscription |   |       | Shares              |   |   | Amount |   |   | (Deficit) |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |
| Balance 12/31/2006                                                            |   |         | 249,251,980 |   |       |   | 1,246,258 |    |   |   | 11,133,380        |   |   |         | (11,886,789 | )      |         |   | -          |                |   |   | (50,000 | ) |   |   | (56,533 | ) |   |   | (1,116 | ) |   |   | 441,733 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash @ $0.01 -0.35 per share                                |   |         | 13,814,167  |   |       |   | 69,071    |    |   |   | 133,379           |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 202,450 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services classified as a capitalized cost @ $0.02 per share |   |         | 10,600,000  |   |       |   | 53,000    |    |   |   | 215,000           |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 268,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services @ $0.02 - 0.03 per share                           |   |         | 1,250,000   |   |       |   | 6,250     |    |   |   | 25,750            |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 32,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for salaries @$0.02 per share                                   |   |         | 15,000,000  |   |       |   | 75,000    |    |   |   | 225,000           |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 300,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued in lieu of debt @$0.01 per share                                |   |         | 5,000,000   |   |       |   | 25,000    |    |   |   | 120,000           |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 145,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for outstanding receivable                                          |   |         | -           |   |       |   | -         |    |   |   | -                 |   |   |         | -           |   |         |   | -          |                |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                      |   |         | -           |   |       |   | -         |    |   |   | -                 |   |   |         | -           |   |         |   | (721,403   | )                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (721,403 | ) |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance 12/31/07                                                              |   |         | 294,916,147 |   |       |   | 1,474,579 |    |   |   | 11,852,509        |   |   |         | (11,886,789 | )      |         |   | (721,403   | )                   |   |   | - |   |   |   | (56,533 | ) |   |   | (1,116 | ) |   |   | 717,780 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash $0.01 per share                                        |   |         | 6,950,000   |   |       |   | 34,750    |    |   |   | 41,750            |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 76,500 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock issued in lieu of Accounts payable                                      |   |         | 3,000,000   |   |       |   | 15,000    |    |   |   | 15,000            |   |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                      |   |         | -           |   |       |   | -         |    |   |   | -                 |   |   |         | -           |   |         |   | (1,114,398 | )                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,114,398 | ) |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance 12/31/08                                                              |   |         | 304,866,147 |   |       |   | 1,524,329 |    |   |   | 11,909,259        |   |   |         | (11,886,789 | )      |         |   | (1,835,801 | )                   |   |   | - |   |   |   | (56,533 | ) |   |   | (1,116 | ) |   |   | (290,118 | ) |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for service                                                     |   |         | 11,000,000  |   |       |   | 55,000    |    |   |   | (33,000           | )      |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for reduction of advances- officer                              |   |         | 5,000,000   |   |       |   | 25,000    |    |   |   | (15,000           | )      |   |         | -           |   |         |   | -          |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                      |   |         | -           |   |       |   | -         |    |   |   | -                 |   |   |         | -           |   |         |   | (356,116   | )                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (356,116 | ) |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance 12/31/09                                                              |   |         | 320,866,147 |   |       |   | 1,604,329 |    |   |   | 11,861,259        |   |   |         | (11,886,789 | )      |         |   | (2,191,917 | )                   |   |   | - |   |   |   | (56,533 | ) |   |   | (1,116 | ) |   |   | (614,234 | ) |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                      |   |         | -           |   |       |   | -         |    |   |   | -                 |   |   |         | -           |   |         |   | (666,297   | )                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (666,297 | ) |
|                                                                          |   |         |        |   |       |   |      |    |   |   |              |   |   |         |        |   |         |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance 12/31/10                                                              |   |         | 320,866,147 |   |       |   | 1,604,329 |    |   |   | 11,861,259        |   |   |         | (11,886,789 | )      |         |   | (2,858,214 | )                   |   |   | - |   |   |   | (56,533 | ) |   |   | (1,116 | ) |   |   | (1,280,531 | ) |

----

|                                                                                                     |   | 2010   |     |   | 2009   |   |     | From January 1, 2007to  December 31, 2010(Development Stage Period) |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|-------------------------------------------------------------------------------|--------|
|                                                                                                     |   |   |     |   |   |   |     |                                                                          |   |
| CASH FLOW FROM OPERATING ACTIVITIES                                                                      |   |   |     |   |   |   |     |                                                                          |   |
| Net loss                                                                                                 |   | $      | (666,297 | )      |   | $      | (356,117 | )                                                                             |   | $ | (2,858,214 | ) |
| Adjustments to reconcile net loss from continuing operations to net cash used in operating activity |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| Depreciation and amortization                                                                            |   |   | 10,000   |   |   |   | 16,595   |                                                                          |   |   | 77,762 |   |
| Impairment on assets                                                                                     |   |   | --       |   |   |   | --       |                                                                          |   |   | 711,818 |   |
| Stock issued for services                                                                                |   |   | --       |   |   |   | 22,000   |                                                                          |   |   | 354,000 |   |
| Loss on disposition of assets                                                                            |   |   | --       |   |   |   | --       |                                                                          |   |   | 121,560 |   |
| Bad debt expense                                                                                         |   |   | --       |   |   |   | --       |                                                                          |   |   | 60,500 |   |
| Financing cost                                                                                           |   |   | --       |   |   |   | --       |                                                                          |   |   | 105,000 |   |
| Legal Claims                                                                                             |   |   | 321,667  |   |   |   |     |                                                                          |   |   | 321,667 |   |
| Change in operating  assets and liabilities:                                                   |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| (Increase) in accounts receivable                                                                        |   |   | --       |   |   |   | --       |                                                                          |   |   | (10,500 | ) |
| Accounts payable and accrued liabilities                                                                 |   |   | 23,335   |   |   |   | (1,038   | )                                                                             |   |   | 66,882 |   |
| Officer salary payable                                                                                   |   |   | 300,000  |   |   |   | 300,000  |                                                                          |   |   | 733,600 |   |
| Increase (decrease) in taxes payable                                                                     |   |   |     |   |   |   | --       |                                                                          |   |   | (28 | ) |
| Net cash provided(used) in operating activities                                                          |   |   | (11,295  | )      |   |   | (18,560  | )                                                                             |   |   | (315,954 | ) |
|                                                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| CASH FLOW FROM INVESTING ACTIVITIES:                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| Cash used on development costs                                                                           |   |   | --       |   |   |   | --       |                                                                          |   |   | (70,001 | ) |
| Disposal of fixed asset                                                                                  |   |   | --       |   |   |   | --       |                                                                          |   |   | 4,832 |   |
| Net cash used in investing activities                                                                    |   |   | --       |   |   |   | --       |                                                                          |   |   | (65,169 | ) |
|                                                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| CASH FLOW FROM FINANCING ACTIVITIES:                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| Proceed from note payable                                                                                |   |   | --       |   |   |   | 2,000    |                                                                          |   |   | 62,000 |   |
| Proceeds on notes payable- related party                                                                 |   |   | 11,295   |   |   |   | 16,560   |                                                                          |   |   | 16,317 |   |
| Proceeds from issuance of common stock                                                                   |   |   | --       |   |   |   | --       |                                                                          |   |   | 278,950 |   |
| Payments made on mortgage payable                                                                        |   |   | --       |   |   |   | --       |                                                                          |   |   | (12,244 | ) |
| Net cash provided(used) by financing activities                                                          |   |   | 11,295   |   |   |   | 18,560   |                                                                          |   |   | 345,023 |   |
|                                                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| NET CHANGE IN CASH                                                                                       |   |   | --       |   |   |   | --       |                                                                          |   |   | (36,099 | ) |
|                                                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| CASH AT BEGINNING OF YEAR                                                                                |   |   | --       |   |   |   | ---      |                                                                          |   |   | 36,099 |   |
|                                                                                                     |   |   |     |   |   |   |     |                                                                          |   |   |   |   |
| CASH AT END OF YEAR                                                                                      |   |   | --       |   |   | $      | --       |                                                                          |   | $ | -- |   |

| Supplemental schedule of cash flow information: |   |   |   |   |
|-------------------------------------------------|--------|--------|--------|--------|
| Interest paid                                   |   | $      | --     |   |   | $ | 991 |   |   | $ | 53,495 |   |
| Income tax                                      |   | $      | -      |   |   | $ | - |   |   | $ | - |   |

| Supplemental schedule of non-monetary transactions          |   |
|-------------------------------------------------------------|--------|
|                                                        |   |
| Satisfaction of accounts payable with common stock          |   |   |   |   |   |   |
| 3,000,000 shares @ $0.01 per share                          |   | $ | -- |   |   | $ | -- |   |   | $ | 30,000 |   |
| Satisfaction of note payable with common stock              |   | $ | -- |   |   | $ | -- |   |   | $ | 145,000 |   |
| Shares issued for services classified as a capitalized cost |   | $ | -- |   |   | $ | -- |   |   | $ | 268,000 |   |
| Satisfaction of notes payable- related party                |   | $ | -- |   |   | $ | 10,000 |   |   | $ | 10,000 |   |

----

| A. | Basis - The accompanying financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Cash and cash equivalents - The Company considers all short term, highly liquid investments that are readily convertible within three months to known amounts as cash equivalents. Currently, it has no cash equivalents. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Loss per share - Net loss per share is provided in accordance with FASB ASC 260"Earnings Per Share". Basic loss per share reflects the amount of losses for the period available to each share of common stock outstanding during the reporting period, while giving effect to all dilutive potential common shares that were outstanding during the period, such as stock options and convertible securities. As of December 31, 2010 and 2009, the Company had no issuable shares qualified as dilutive.  Had there been dilutive securities they would be excluded from the loss per share calculation because their inclusion would be antidilutive. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Estimates - The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Stock Based Compensation - The company adopted the provisions of ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company’s common stock for common share issuances. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F.   | Shares Returned to Treasury- In 2006, 33,333 shares were repurchased to treasury for $ 1,000.  In 2005, 23,200 shares were purchased for treasury at the cost of $ 116.  The repurchased treasurer shares are carried at cost. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G.   | Revenue Recognition- The Company’s revenue is recognized pursuant to ASC 605 “Revenue Recognition.” The Company recognizes its revenue from services as those services are performed. Revenue recognition is limited to the amount that is not contingent upon delivery of any future service or meeting other specified performance conditions. During both the years ending December 31. 2010 and 2009 the Company had no revenue. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| H.   | The Company accounts for the underwater sea resort and ship development costs in accordance with ASC Topic 360 for Property, Plant and Equipment.  The Company reviews its long-lived assets for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used in measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceeds the fair value of the asset.  Assets to be disposed of are reported at the lower of the carrying amount or fair market value less costs to sell. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| I. | The accompanying consolidated financial statements have been prepared in accordance with the Statement FASB ASC 915-205 "Development-Stage Entities".  A development-stage enterprise is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenue there from. Development-stage companies report cumulative costs from the enterprise's inception. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2011  |   |   | 102,000 |   |
|-------|--------|--------|---------|--------|
| 2012  |   |   | 102,000 |   |
| 2013  |   |   | 102,000 |   |
| 2014  |   |   | 102,000 |   |
| 2015  |   |   | 102,000 |   |
| 2016  |   |   | 2,267   |   |
| Total |   |   | 512,267 |   |

| 2011                                               |   |   | 74,574  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| 2012                                               |   |   | 76,812  |   |
| 2013                                               |   |   | 79,113  |   |
| 2014                                                         |   |   | 81,492  |   |
| 2015                                               |   |   | 83,937  |   |
| 2016                                               |   |   | 21,138  |   |
| Total                                                                                           |   | $      | 417,066 |   |

----

| ·   | 13,814,167 shares at $0.01-$0.35 per share  with a value of $202,450 for cash. |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | 11,850,000  shares at $0.02 - $0.03 per share with a value of $300,000 for service. |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | 15,000,000 shares to a related party at $0.02 with a value of $300,000 for officer’s salary. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | 5,000,000 shares at $0..029  with a value of $145,000 for debt. |
|--------------------|---------------------------------------------------------------------------|

| ·   | 6,950,000 at $0.01-$0.02 with a value of $76,500 for cash. |
|--------------------|------------------------------------------------------------|

| ·   | 3,000,000 shares at $0.01 with a value of 30,000 for accounts payable. |
|--------------------|------------------------------------------------------------------------|

| ·   | 11,000,000 at $0.02 with a value of $22,000 for service. |
|--------------------|----------------------------------------------------------|

| ·   | 5,000,000 shares at $0.02 with a value of 10,000 for reduction of advances from an officer. |
|--------------------|---------------------------------------------------------------------------------------------|

----

|                                                          |   | As of December 31, 2010 |       |   | As of December 31, 2009 |   |
|---------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|
| Deferred tax assets:                                          |   |                    |       |   |                    |   |
|    Net operating loss carryforward             |   |                    | 5,160,751  |   |                    |   | 4,952,842 |   |
|    Stock based compensation                    |   |                    | -          |   |                    |   | 11,200 |   |
|                                                          |   |                    |       |   |                    |   |   |   |
|       Total deferred tax assets |   |                    | 5,160,751  |   |                    |   | 4,964,042 |   |
|                                                          |   |                    |       |   |                    |   |   |   |
| Net deferred tax assets before valuation allowance            |   |                    | 5,160,751  |   |                    |   | 4,964,042 |   |
|                                                          |   |                    |       |   |                    |   |   |   |
| Less: Valuation allowance                                     |   |                    | (5,160,751 | )      |                    |   | (4,964,042 | ) |
| Net deferred tax assets                                       |   |                    | 0          |   |                    | $      |   |   |

|                                                 |   | As of December 31, 2010 |   |   | As of December 31, 2009 |   |
|------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------------------|--------|
| Statutory federal income tax                         |   |                    | (35.0  | %)     |                              |   | (35.0 | %) |
| Statutory state income tax                           |   |                    | (6.0   | %)     |                              |   | (6.0 | %) |
| Change in valuation allowance on deferred tax assets |   |                    | 41.0   | %      |                              |   | 41.0 | % |
|                                                 |   |                    |   |   |                              |   |   |   |
| Effective tax rate                                   |   |                    | 0.0    | %      |                              |   | 0.0 | % |

----

----

| Number |   | Description                                                             |
|--------|--------|-------------------------------------------------------------------------|
|   |   |                                                                    |
| 31     |   | Rule 13a-14(a)/15d-14(a) Certification of Joseph Cala (filed herewith). |
|   |   |                                                                    |
| 32     |   | Section 1350 Certification of Joseph Cala (filed herewith).             |

----