SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

          [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2005

                         Commission file number 01 15109

                                CALA CORPORATION
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)


                    Oklahoma                           73-1251800
         ------------------------------            ------------------
          (State of other jurisdiction              (I.R.S. Employer
              of incorporation or                    Identification
                 organization)                            No.)


                                 13 Main Street
                            Titusville, Florida 32796
                      ------------------------------------
                    (Address of principal executive offices)


                                 (713) 302 8689
               --------------------------------------------------
              (Registrants telephone number, including area code)

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 ___


Indicate the number of shares outstanding of each of the issuers
classes of common stock, as of the latest practicable date.

Common Stock 182,566,329 shares, Par Value $0.005 per share, were
outstanding as of September 30, 2005


Transitional Small Business Disclosure Format Yes ___   No _X_










                                CALA CORPORATION

                              FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2005
                                    UNAUDITED
                   REVIEW REPORT OF INDEPENDENT REGISTERED
                          PUBLIC ACCOUNTING FIRM















                               CALA CORPORATION

                                  CONTENTS




Report of Independent Registered Public Accounting Firm		1

Balance Sheet							2

Statements of Operations					3

Statements of Cash Flows					4

Notes to Financial Statements				    5 - 7

Management Discussion                                       8 - 10















                                  George Brenner, CPA
                               A Professional Corporation
                           10680 W. PICO BOULEVARD, SUITE 260
                            LOS ANGELES, CALIFORNIA 90064
                          310 202 6445   Fax 310 202 6494

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders
Cala Corporation

I have reviewed the accompanying balance sheet of Cala
Corporation as of September 30, 2005, and the related
statements of operations and statements of cash flows
for the nine month periods ended September 30, 2005 and
2004.  These financial statements are the responsibility
of the Companys management. My responsibility is to express
an opinion on these financial statements based on my review.

I conducted my review in accordance with the standards of the
Public Company Accounting Oversight Board (United States).
A review of interim financial information consists principally
of applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit
conducted in accordance with auditing standards generally
accepted in the United States, the objective of which is the
expression of an opinion regarding the financial statements
taken as a whole. Accordingly, I do not express such an
opinion.

Based on my review, I am not aware of any material modifications
that should be made to the accompanying financial statements for
them to be in conformity with accounting principles generally
accepted in the United States.

As discussed in Note 1, certain conditions raise substantial doubt
that the Company may be able to continue as a going concern. The
accompanying financial statements do not include any adjustments
to the financial statements that might be necessary should the
Company be unable to continue as a going concern.

George Brenner
Certified Public Accountant

Los Angeles, California
January, 2006











                                    CALA CORPORATION
                                     BALANCE SHEET
                                  SEPTEMBER 30, 2005
                                      UNAUDITED
<Table>

<S>                                               <C>     <C>

ASSETS

Current Assets:
 	Cash	                                   $	137,273
	Receivable, officer		                 28,850
                                                        -------
	Total current assets		                166,123

VEHICLES, Net		                                 43,596
DEPOSITS		                                  1,260
	                                                 ------
Total Assets	                                   $	210,979
                                                        =======
LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities
	Accounts payable	                  $	    636
	Accrued salary, officer		                 75,000
                                                         ------
	Total current liabilities		         75,636
                                                         ======
Stockholders Equity
	Common stock, par value $.005
	   200,000,000 shares authorized
   182,566,329 issued and outstanding		       912,832
Additional paid-in capital		            10,109,617
Stock subscription receivable		              (170,000)
Treasury stock		                               (16,000)
Accumulated (deficit)		                   (10,701,106)
                                                    ----------
	Total stockholders equity		       135,343
                                                       -------
Total Liabilities and Stockholders Equity	  $    210,979
                                                       =======
</Table>

See Notes to Financial Statements and Registered Accountants Review Report








                                     CALA CORPORATION
                                 STATEMENTS OF OPERATIONS
                                        UNAUDITED
<Table>

<S>                                       <C>       <C>     <C>     <C>     <C>     <C>

		                              Three Months Ended      Nine Months Ended
		                                 September 30,		 September 30
		                            2005	     2004   2005	   2004


General and Administrative Expenses	  $ 223,093	 $ 238,112 $ 511,160   $ 263,388
                                            -------        -------   -------     -------
Operating loss		                   (223,093)	  (238,112) (511,160)	(263,388)
                                            -------        -------   -------     -------
Operating Loss		                   (223,093)	  (238,112) (511,160)   (263,388)

Other Income (Expense)
Other Income		                         --		--	  --	  10,000
Interest Expense		                 --		--    (6,250)	      --
                                            -------        -------     -----     -------
Net (Loss) 	                          $(223,093)	 $(238,112)$(517,410)  $(253,388)
                                            =======        =======   =======     =======
Basic and Diluted (Loss) Per
   Common Share:

(Loss) Per Share	                  $  (0.00)	 $  (0.00) $  (0.00)   $  (0.00)
                                            ======         ======    ======      ======

Basic and Diluted Weighted Average
   Common Shares Outstanding	       182,031,546    88,318,420 157,800,482 85,055,310
                                       ===========    ========== =========== ==========
</Table>

See Notes to Financial Statements and Registered Accountants Review Report









                                   CALA CORPORATION
                             STATEMENTS OF CASH FLOWS
                                     UNAUDITED
<Table>

<S>                                                     <C>      <C>      <C>

		                                           Nine Months Ended
                                                             September 30,
			                               2005		   2004
Cash flows from operating activities
	Net (Loss)	                           $(517,410)	        $(253,388)
	Shares issued for services		     102,330		  163,580
	Depreciation		                       1,711		       --
	Shares issued for interest expense	       2,000		       --
Adjustments to reconcile net loss to net cash
	Brokerage account		                  --		      580
	Website		                                  --		   (1,000)
	Accounts payable		                 636		       --
	Loan payable		                          --	     	  (25,000)
	Accrued salary   officer		     225,000		    4,360
                                                     ------                 -----
Cash used in operations		                    (185,733)		 (110,868)
                                                     -------              -------
Cash flows from investing activities
	Acquisition of fixed assets		    (45,308)		       --
                                                     ------                ------
Cash used in operations		                    (45,308)		       --
                                                     ------                ------
Cash flows from financing activities:
	Stock redeemed		                         --		  (10,000)
	Loan payable  officer, net		     (7,850)		   12,350
	Loan proceeds		                         --		  125,000
	Loan payment		                         --		  (25,000)
	Shares issued		                    376,000		   58,990
                                                    -------                ------
			                            368,150		  161,340
                                                    -------               -------
Cash increase (decrease)		            137,109		   50,472

Cash at beginning of period		                164		      457
                                                        ---                   ---
Cash at end of period	                         $  137,273	       $   50,929
                                                    =======                ======
Supplemental cash flow Information
	Income taxes paid	                 $	 --	       $       --
                                                        ===                   ===
	Interest paid	                         $    4,250	       $       --
                                                      =====                   ===


Non monetary transactions:
   Shares issued at $0.01 per share to reduce
     accounts payable 0 and 8,502,000 shares	 $	 --	       $   85,020
                                                        ===                ======
   Shares issued at $0.01 per share to reduce
     accrued salary  officer 14,500,000
     and 51,546,000 shares	                 $  187,500	       $  515,460
                                                    =======               =======
   Shares issued at $0.01 per share to reduce
     the loan payable  officer, 1,392,800
     shares 	                                 $	 --	       $   13,298
                                                        ===                ======
    Shares issued at $0.01 per share to reduce
      the loan payable, and interest, 3,400,000
      shares 	                                 $  102,000	       $       --
                                                    =======                   ===
    Shares issued for services at $0.01 to
      $0.03 per share 3,633,000 and
      11,587,000 shares	                         $  102,330	       $  163,580
                                                    =======               =======
    Shares issued as gifts at $0.01 per share
      2,200,000 and 4,400,000	                 $   22,000	       $   44,000
                                                     ======                ======
</Table>

See Notes to Financial Statements and Registered Accountants Review Report





                                     CALA CORPORATION
                              NOTES TO FINANCIAL STATEMENTS
                                        UNAUDITED

NOTE 1 - ORGANIZATION  NATURE OF OPERATIONS

Business

Cala Corporation (formerly Magnolia Foods, Inc.) was incorporated on
June 13, 1985 under the laws of the State of Oklahoma. The Companys
sole industry segment was the business of owning, operating, licensing
and joint venturing restaurants.  The Companys new business model is to
construct and operate under sea resorts.  This business has not as yet
begun.

Basis of Presentation

The accompanying unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United
States for interim financial information and the instructions for Form
10QSB and Regulation SB.  Accordingly, they do not include all of the
information and footnotes required by accounting principles generally
accepted in the United States for complete financial statements.
All adjustments that, in the opinion of management, are necessary for
a fair presentation of the results of operations for the interim periods
have been made and are of a recurring nature unless otherwise disclosed
herein.  The results of operations for the quarter and the nine months
ended September 30, 2005, are not necessarily indicative of the results
that will be realized for a full year.  For further information, refer
to the financial statements and notes thereto contained in the Companys
Annual Report on Form 10KSB for the year ending December 31, 2004.

Going Concern

For the fiscal year ended December 31, 2004, the independent auditors
report included an explanatory paragraph calling attention to a going
concern issue.  The accompanying financial statements have also been
prepared assuming that Cala Corporation will continue as a going
concern.  However, the Companys ability to generate sufficient cash
flows to meet its obligations, either through future revenues and, or
additional debt or equity financing, cannot be determined at this time.
In addition, the Company has suffered recurring losses and at
June 30, 2004 has a stockholders deficit.  These uncertainties raise
substantial doubt about the Companys ability to continue as a going
concern.  Management plans to raise additional debt and, or equity
capital and to initiate revenues over the balance of this fiscal year.
These financial statements do not include any adjustments relating to
the recoverability and classification of recorded assets, or the amounts
and classification of liabilities that might be necessary in the event
the Company cannot continue in existence.


See Registered Accountants Report


                                       CALA CORPORATION
                                NOTES TO FINANCIAL STATEMENTS
                                            UNAUDITED


NOTE 1  ORGANIZATION  NATURE OF OPERATIONS (continued)
Recent Accounting Pronouncements

In December 2004, the Financial Accounting Standards Board (FASB)
issued SFAS No. 123R Share Based Payment. This statement is a
revision to SFAS 123 and supersedes Accounting Principles Board
(APB) Opinion No. 25,Accounting for Stock Issued to Employees,
and amends FASB Statement No. 95, Statement of Cash Flows. This
statement requires a public entity to expense the cost of employee
services received in exchange for an award of equity instruments.
This statement also provides guidance on valuing and expensing these
awards, as well as disclosure requirements of these equity arrangements.
This statement is effective for the first interim reporting period
that begins after June 15, 2005.
SFAS 123R permits public companies to choose between the following
two adoption methods,
1. A modified prospective method in which compensation cost is
recognized beginning with the effective date (a) based on the
requirements of SFAS 123R for all share based payments granted
after the effective date and (b) based on the requirements of
Statement 123 for all awards granted to employees prior to the
effective date of SFAS 123R that remain unvested on the effective date,
or
2. A modified retrospective method which includes the requirements of
the modified prospective method described above, but also permits
entities to restate based on the amounts previously recognized under
SFAS 123 for purposes of pro forma disclosures either (a) all prior
periods presented or (b) prior interim periods of the year of adoption.


As we do not currently have share based payments, we expect no impact
to the financial statements due to the adoption of SFAS 123R.



In March 2005, the FASB issued FASB Interpretation (FIN) No. 47
Accounting for Conditional Asset Retirement Obligations an
Interpretation of FASB Statement No. 143 (FIN No. 47). FIN No.
47 clarifies the timing of liability recognition for legal
obligations associated with the retirement of a tangible long
lived asset when the timing and, or method of settlement are
conditional on a future event. FIN No. 47 is effective for us
no later than December 31, 2005. We do not expect that the
adoption of FIN No. 47 will have a material impact on our financial
condition or results of operations.
In May 2005,  the FASB issued SFAS No. 154, Accounting Changes and
Error Corrections, a replacement of APB No. 20 and FASB Statement
No. 3 (SFAS No. 154).  SFAS No. 154 requires retrospective
application to prior periods financial statements of a voluntary
change in accounting principle unless it is impracticable.
APB Opinion No. 20 Accounting Changes, previously required that
most voluntary changes in accounting principle be recognized
by including in net income of the period of the change the
cumulative effect of changing to the new accounting principle.
This statement is effective for our Company as of January 1, 2006.
The Company does not believe that the adoption of SFAS No. 154
will have a material impact on our financial statements.


See Registered Accountants Report




                                   CALA CORPORATION
                            NOTES TO FINANCIAL STATEMENTS
                                       UNAUDITED

NOTE 2  COMMON STOCK

The Company issued 10,000,000 shares of common stock to the
sole officer and director of the Company, in replacement of
personal shares that had been used for collateral in a potential
merger.  The officers shares were subsequently cancelled upon
dissolution of the merger agreement in 2002.

The Company issued 3,633,000 shares of common stock in lieu of $102,330
of directors fees, consulting fees and investor relation services.

The Company issued 3,400,000 shares at $0.03 per share in satisfaction
of a loan $100,000 and interest of $2,000.

NOTE 3  INCOME TAXES

Deferred income taxes are provided for the tax effect of transactions
reported in the financial statements in a period different from which
they are reported for income tax purposes.  Compensation for the
officers salary is deductible for tax purposes only when paid.

The Company had a substantial net operating loss carry-forward
(NOL) and because if its losses has been unable to use it.  Carry
forward losses incurred prior to August 6, 1997 can be carried
forward 15 years, losses after that date can be carried forward
20 years.  The Company was incorporated in 1985 consequently
the NOL carry forward period may be expiring.

Because of the uncertainty of the Companys future profitability,
and because any net operating losses applied against future
profits are uncertain, no tax benefits are recorded in these
financial statements.

A valuation allowance for the entire deferred tax benefit on
the $540,000 accrued officer salary has been provided.







MANAGEMENT DISCUSSION


Item 1.  Managements Discussion and Analysis of Operations,

     Management has been laying the groundwork over the past
year so that the company can grow at a faster pace in the coming
year. The company has made great headway with the addition of Mr.
Ray Francis as the master behind the UnderSea Resort and Residence
design. This addition has allowed the Company to solve all naval
engineering problems originally presented by the project. Mr.
Francis brings to the table over 40 years of maritime experience
that is second to none in the maritime industry. Mr. Francis
talents allow for a design that benefits the customers safety,
maximizes the openness and space of the facility, and maintains
the primary focus of human contact with marine life. This
coupled with Joseph Calas vast knowledge and experience
in the hospitality industry, along with eight years of
intensive study and seemingly endless trial and error,
enabled the Company to overcome extreme obstacles and to
succeed in finalizing two naval engineered designs for the
Undersea Resort and Residence. With that task accomplished,
the Company has been fortunate to attract Mr. Clive Jones, a
former senior executive with Economic Research Associates,
to help with business development. Mr. Jones has over 40 years
of experience in worldwide leisure travel and tourism development,
and he was the visionary behind of many landmark resorts and
theme parks.  In addition, the company is working with prestigious
maritime companies such as Stodga of Poland and FinCantieri
of Italy.


     The company plans to build the first UnderSea Resort & Casino,
the first Undersea Residence, and the first Residence Fractional
Ownership. The first development will be the residence and the
fractional ownership, and the project will be financed from pre
selling individual units. The Company estimates that the average
residential development should generate approximately $600 million
while the total development cost should run around $460 million.
Therefore, the management believes that the project has a great
chance of success. Further, the company is in discussions with
leaders in the timeshare and fractional unit industry to explore
the possibility of a partnership or contractual arrangement with
the Company. The possibilities in this industry are tremendous,
because demand for oceanic properties is the highest it has ever
been and the supply is scarce. The undersea residences have the
entire ocean available with no purchase costs, and without the
limitations of land. According to the recently released Future
Timeshare Buyers 2004 Market Profile, 13.4 million adults are
interested in purchasing some form of timeshare during the next
two years. The next generation of owners is well educated and
the highest concentration of interest in purchasing is among
GenXers. In addition, the study documents that prospective
owners are experienced and enthusiastic travelers.


Item 3.  Market for Registrants Common Stock and Related
Stockholder Matters

     The company did not issue any Preferred Stocks known
as Class A shares or any Option Shares known as gratis shares to
the companys top management.

Item 4. Submission of Matters to a Vote of Security Holders

There were no matters submitted to a vote of security holders
in this quarter.

Item 5.  Directors and Executive Officers of the Registrant

The directors and officers of Cala Corporation as of September 30, 2005
are identified below. No family relationships exist between or among
any directors or officers of Cala Corporation.

Joseph Cala, is Chairman of the Board, and CEO of Cala Corporation.
Mr. Cala has been an International business owner most of his
professional life prior to taking over the company.

John Del Favero, is Director of the board. Mr. Del Favero has
been both a futurist in the high tech and a pioneer in the
tourist space industries.

Robert Mosely is a Director on the board. Mr. Mosely has served
on the boards of many publicly held companies. Mr. Mosely is
currently a full time CPA.


Item 6.  Executive and Directors Compensation

Joseph Cala, Chairman, CEO and Director will accrue an
annual salary of US$ 300,000 for the year 2005.

John Del Favero, Director will receive 250,000 restricted
shares for the year 2005.

Robert Mosley, Director will receive 200,000 restricted
shares for the year 2005.

Item 7.  Reports on Forms Filed

During the quarter, the Company filed one form of reports
with the Securities and Exchange Commission.

31 Rule 13a thru 14(a) 15d thru 14(a) Certifications.
32 Certifications pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes Oxley
Act of 2002 by Joseph Cala, Chairman, Chief Executive Officer.



Signatures

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

                                             CALA CORPORATION



Date: January 16, 2006               By: /s/ Joseph Cala
                                      ---------------
                                 Joseph Cala, Chairman & CEO

Exhibit 31

                           CERTIFICATION PURSUANT TO
                     SECURITIES EXCHANGE ACT RULE 13A & 14(a)


I, Joseph Cala, certify that:

1.   I have reviewed this quarterly report on Form 10Q
of Cala Corporation.

2.   Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this
quarterly report.

3.   Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations and cash  flows of the registrant as of, and for, the
periods presented in this quarterly report.

4.   I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a thru
14 and 15d thru 14) for the registrant and I have.

     a)   designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared.

     b)   evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the Evaluation Date) and

     c)   presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date.

5.   I have disclosed, based on our most recent evaluation, to the registrants
auditors and the audit committee of registrants board of directors
(or persons performing the equivalent function)

     a)   all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls and

     b)   any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrants
internal controls and

6.   I have indicated in this quarterly report whether or not there
were significant changes in internal controls or in other factors
that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


     Date: January 16, 2006            By: /s/ Joseph Cala
                                         ---------------
                                          Joseph Cala
                                       Chairman and CEO
Exhibit 32

                           CERTIFICATION PURSUANT TO
                            18 U.S.C. SECTION 1350,
                       AS ADOPTED PURSUANT TO SECTION 906
                       OF THE SARBANES OXLEY ACT OF 2002


In connection with the Quarterly Report on Form 10Q of Cala
Corporation (the Company) for the quarter ended September 30, 2005,
as filed with the Securities and Exchange Commission on the date hereof
(the Report), I, Joseph Cala, Chairman and Chief Executive Officer of
the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to
my knowledge.

1.   The Report fully complies with the requirements of section
13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a)
or 78o(d) and

2.   The information contained in the Report fairly presents,
in all material respects, the financial condition and results
of operations of the Company.


     Dated: January 16, 2006           By: /s/ Joseph Cala
                                        ---------------
                                   Joseph Cala, Chairman & CEO