U.S. SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20549
                                     FORM 10QSB

(Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY
PERIOD ENDED JUNE 30, 2006

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION
PERIOD FROM ______________ TO ______________


                           COMMISSION FILE NUMBER 01 15109


                                  CALA CORPORATION
                 (Exact Name of Company as Specified in Its Charter)

                 Oklahoma                                   73-1251800
     (State or Other Jurisdiction of Incorporation        (I.R.S. Employer
                 or Organization)                          Identification No.)

                         13 Main Street, Titusville, Florida 32796
                         (Address of Principal Executive Offices)

                                     (321) 383 8077
                              (Company Telephone Number)

Indicate by check mark whether the Company (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 Company was required to file such reports),
and (2) been subject to such filing requirements for the
past 90 days.  Yes X       No.

Indicate by check mark whether the Company is a shell company
(as defined in Rule 12b2of the Exchange Act). Yes [] No [X]

As of June 30, 2006, the Company had 198,870,254 shares
of common stock issued and outstanding.

Transitional Small Business Disclosure Format (check one):
Yes    No    X
                                 TABLE OF CONTENTS

<table>


                                                                    <c>

PART I  FINANCIAL INFORMATION				               PAGE

	ITEM 1.  FINANCIAL STATEMENTS

                 BALANCE SHEET AS OF
                 JUNE 30, 2006	                                        3

        STATEMENTS OF OPERATIONS
                 FOR THE THREE MONTHS AND SIX MONTHS ENDED
                 JUNE 30, 2006 AND JUNE 30, 2005	                4

        STATEMENTS OF CASH FLOWS
                 FOR SIX MONTHS ENDED
	         JUNE 30, 2006 AND JUNE 30, 2005	                5

        NOTES TO FINANCIAL STATEMENTS	                                6

	ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS	        7

	ITEM 3.  CONTROLS AND PROCEDURES	                       13

PART II  OTHER INFORMATION

	ITEM 1.  LEGAL PROCEEDINGS	                               14

        ITEM 2.  UNREGISTERED SALES OF EQUITY
                 SECURITIES AND USE OF PROCEEDS	                       14

	ITEM 3.  DEFAULTS UPON SENIOR SECURITIES	               15

	ITEM 4.  SUBMISSION OF MATTERS TO A VOTE
                             OF SECURITY HOLDERS	               15

	ITEM 5.  OTHER INFORMATION	                               15

	ITEM 6.  EXHIBITS	                                       15

SIGNATURE	                                                       15

</table>












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


REVIEW REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders
Of Cala Corporation.

I have reviewed the accompanying balance sheet of Cala
Corporation Inc. as of June 30, 2006, and the related
statements of operations and cash flows for the three
and six months ended June 30, 2006 and 2005. These
financial statements are the responsibility of
the Companys management.

I conducted my review in accordance with 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 6, certain conditions indicate
that the Company may be unable 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.


/s/  George Brenner, CPA
George Brenner, CPA
Los Angeles, California
September 28, 2006





                                            PART I  FINANCIAL INFORMATION
                                             ITEM 1.  FINANCAL STATEMENTS.
                                                    CALA CORPORATION.
                                                     BALANCE SHEET
                                                     JUNE 30, 2006
                                                      (Unaudited)
<table>


                                                                                       <c>
ASSETS

Current assets
       Total current assets                                                          $    --
                                                                                       -----
Fixed assets
         Vehicle-net of depreciation of $ 13,038                                        40,267
         Building-net of depreciation of $ 9,295                                       590,706
        Land                                                                           150,000
                                                                                       ------
               Total fixed assets                                                      780,973
                                                                                       ------

Other assets
         Deposits                                                                         5,260
         Other assets                                                                     1,434
                                                                                         -----
               Total assets                                                           $ 787,667
                                                                                        ------
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
         Bank overdraft                                                               $  26,615
         Current portion long term debt                                                  13,242
         Accounts payable and accrued expenses                                           25,605
         Stock payable                                                                   90,770
         Accrued salaries officer stockholder                                            97,017
         Notes payable                                                                   40,000
                                                                                         -----
                  Total current liabilities                                             293,249
                                                                                        ------
Total long term liabilities
          Mortgage on building                                                          594,688
          Less: current portion long term debt                                          (13,242)
                                                                                        ------
                  Total long term liabilities                                           581,446
                                                                                       -------
                      Total liabilities                                               $ 874,695
                                                                                       -------
</table>

<table>
   
                                                                                   <c>

Shareholders equity
	Common stock,
      $0.005 par value 200,000,000 shares authorized
      198,870,254 shares issued and outstanding                                         994,349
      Paid in capital	                                                             10,313,385
      Accumulated deficit	                                                    (11,314,646)
      Stock subscription receivable                                                     (80,000)
       Treasury stock 23,200 shares                                                        (116)
                                                                                          ----
	Total shareholders equity                                                       (87,028)
                                                                                        ------
	Total liabilities and shareholders equity                  	              $ 787,667
                                                                                       =======

</table>

        See accompanying notes to financial statements




















                                               CALA CORPORATION.
                                          STATEMENTS OF OPERATIONS
                                                 (Unaudited)
<table>


                                             <C>     <C>      <C>            <C>    <C>     <C>



                                                Three Months Ended              Six Months Ended
                                                      June 30,		            June 30,
                                                 2006         2005	       2006	   2005

Sales	                                      $ 234,330      $   0           $ 543,932    $       0

Cost of Sales                                    51,688          0             153,480            0
                                                -------          -             -------            -

Gross Profit (Loss)                             182,642          0             390,452            0

Selling, General, and
        Administrative Expenses                 378,995     151,314            683,508      288,068

Depreciation                                      7,622           0             15,244            0

Interest                                          7,972       2,000             23,790        6,250
                                                  -----       -----             ------        -----

		Total Expense                   394,589     153,314            722,542      294,318
                                                -------     -------            -------      -------

Net Income (Loss)
Before Income Taxes                            (211,947)   (153,314)          (332,090)    (294,318)

Income Tax Expense (Benefit)                        --          --	           --           --
                                                -------     -------            ------       -------

Net Income (Loss)                             $(211,947)  $(153,314)         $(332,090)   $(294,318)
                                                ======      ======             =======      =======

Basic and Diluted Loss per
     Common Share(Loss)                       $(0.0011)    $(0.0010)         $ (0.0017)    $(0.0015)

Weighted Average Number
   of Common Shares used to
   Compute Net Income (Loss)
     per Weighted Average Share             197,237,034  155,254,425       195,175,463   145,491,350
                                            ===========  ===========       ===========   ===========
</TABLE>





       See accompanying notes to financial statements




                                            CALA CORPORATION.
                                       STATEMENTS OF CASH FLOWS
                                               (Unaudited)
<TABLE>

<S>                                                                 <C>                   <C>

						                 Six Months	      Six Months
						                   Ended	         Ended
		         				       June 30, 2006	     June 30, 2005
Cash flows from operating activities
   Net (loss)					                $(332,090)             $(294,318)
      Adjustments to reconcile net loss to net cash
      provided by (used in) operating activities:
        Depreciation                                               15,243                     --
        Stock for services                                             --                  30,330
Increase (decrease) in liabilities
       Accrued salary officer                                      (1,133)                150,000
       Accounts payable and accrued expense                        14,193                  23,100
       Stock payable                                              130,770                      --
                                                                  -------                  -----
         Net cash used in operating activities                   (173,071)	          (90,888)
                                                                  -------                  -----

Cash flows from investing activities
       Non current asset                                          (1,434)                      --
                                                                   -----                   -----
              Net cash used by investing activity                 (1,434)                      --
                                                                   -----                   -----

Cash flows from financing activities
         Building mortgage                                        (5,312)                      --
         Bank overdraft                                           26,615                       --
         Loan payable officer                                         --                    3,150
         Stock for cash                                           91,102                  370,000
                                                                  ------                  ------
             Net cash provided by financing activities           112,405                   73,150
                                                                 -------                   -----

Increase (decrease) in cash				        (62,046)                  282,262

Cash beginning of period                                         62,046                       146
                                                                 ------                       ---
Cash end of period					       $     --                  $282,426
                                                                    ===                   ======

Supplemental schedule of cash flow information
        Interest paid				               $ 23,790	                 $     -
                                                                 ======                      ===
        Income taxes paid                                      $      -                  $  4,250
                                                                    ===	                   =====
Supplemental schedule of non monetary transactions
      14,500,000 shares of common stock At$ 0.00603
          per share for accrued salary                         $     --                  $187,500
                                                                    ---                  -------
      1,233,000 shares of common stock @ $0.0245985
         per share for service                                 $     --                  $ 30,330
                                                                    ---                   ------
      266,666 shares of common stock @$0.03
         per share for vehicle                                 $  8,000                  $    --
                                                                  -----                   ------
</table>



           See accompanying notes to financial statements








                                CALA CORPORATION.
                           NOTES TO FINANCIAL STATEMENTS
                                    (Unaudited)

NOTE 1 DESCRIPTION OF BUSINESS

Cala Corporation (formerly Magnolia Foods, Inc.) was
incorporated on June 13, 1985 under the laws of the
State of Oklahoma. The Company's sole industry
segment was the business of owning, operating, licensing
and joint venturing restaurants. The Company is in the
development stage of building an underwater resort
and casino.  In addition the Company
operates restaurants under lease.

On January 9, 2006 the Company entered a lease on space
of 4,500 square feet for a restaurant. The duration of
the lease is 10 years with a renewable option for 5 years.
The monthly rent on the space is $ 5,950 plus taxes
and common area charges. Monthly
rental may be adjusted on an annual basis.


NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis - The Company uses the accrual method of accounting.

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 Statement of Financial Accounting
Standards No. 128 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, 2005
and 2004, 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 a
ccepted accounting principles requires management
to make estimates and assumptions that
affect the amounts reported in the financial
statement and accompanying notes. Actual
results could differ from those estimates.

E. Policy in Regards to Issuance of Common Stock
in a NonCash Transaction The companys accounting
policy for issuing shares in a non-cash transaction
is to issue the equivalent amount of stock equal
to the fair market value of the assets or
services received.

F.Shares Returned to Treasury  In 2004, 236,441 shares
were repurchased to treasury and recorded as unissued.
In addition, 1,136,800 shares were purchased for $16,000
for the treasury. In 2005 23,200 shares were purchased
for treasury at the cost of $ 116.

NOTE 3	RECENT ACCOUNTING PRONOUNCEMENTS

In December 2002, Statement of Accounting Standards
(SFAS) No. 148,Accounting for StockBased Compensation
Transition and Disclosure, was issued by the Financial
Accounting Standards Board (FASB).This Statement amends
SFAS No. 123,Accounting for Stock Based Compensation,
to provide alternative methods of transition for an
entity that voluntarily changes to the fair value
based method of accounting for stockbased
employee compensation.  In addition, this Statement
amends the disclosure requirements
of SFAS No. 123 and Accounting Principles Board Opinion
No. 28, Interim Financial Reporting, to require
prominent disclosures in both annual and interim
financial statements about the method of accounting
for stock-based employee compensation and the effect
of the method used on reported results.SFAS No.
148 is effective for fiscal years ending after
December 15, 2002 and for interim periods
beginning after December 15, 2002.

In May 2004, the FASB issued SFAS No. 150, Accounting
for Certain Financial Instruments with Characteristics
of Both Liabilities and Equity. SFAS No. 150 requires
that certain financial instruments with characteristics
of both liabilities and equity be classified
as a liability.  In November 2004, the FASB deferred
application of certain provisions of SFAS No. 150
through FASB Staff Position (FSP) No. 150 3, which
eliminates the disclosure requirements for certain
mandatory redeemable instruments and prohibits
early adoption of instruments within the scope
of the deferrals established by FSP No. 150 3.
As a result of FSP No. 150 3, the Company does
not expect the adoption of this Statement will
have a material impact on the Companys financial
position, results of operations or cash flows.

NOTE 4 RELATED PARTY TRANSACTIONS

In 2005, the officer of the Company was issued
7,000,000 shares to reduced accrued
salary of $ 112,500. In 2004, the same officer
was issued 51,546,000 shares in lieu of $515,460
of accrued salary and 7,305,000 shares for $87,500
of salary.  Also in 2004 the officer also received
1,392,800 shares to reduce the other payable
officer by $13,928.

In January 2006 an officer of the company returned
300,000 shares of common stock and received $ 15,000
in cash.  The shares were cancelled.

Common stocks were issued to the officer in exchange
for services. The stocks issued were recorded using
the fair market value of the services provided.
The officer is also reimbursed for expenses paid
on behalf of the Company as needed. Also,
see Note 2, Item F.

NOTE 5:	LONG TERM DEBT

The mortage is payable as follows

<table>

           
                                 <c>


	2006-balance of year  	            $ 6,454
	2007				     13,756
	2008				     14,898
	2009				     16,135
        2010                                 17,473
        2011                                 18,924
	Thereafter			    507,048
				           $594,688
</table>


NOTE 6:  GOING CONCERN

The Companys financial statements are prepared
using generally accepted accounting
principles applicable to a going concern which
contemplates the realization of assets
and liquidation of liabilities in the normal
course of business. The Company has a deficit
of approximately $11,315,000 and has not
established revenues sufficient to cover its
operating costs.  This uncertainty raises
substantial doubt about the Company's ability
to continue as a going concern. The ability
of the Company to continue as a going
concern is dependent on additional sources
of capital and the success of the Companys plan.
The financial statements do not include any
adjustments that might be necessary if the
Company is unable to continue as a going
concern.

NOTE7: SUBSEQUENT EVENT

On August 1, 2006 the company subleased two
restaurant locations to two separate
parties. Under the terms of the agreements,
the sub lessees pay the month lease of
$ 8,400 per month for 9 years for the one
location and $ 6,000 per month for the
second location plus $ 1,500 per month
for 60 months. The Company is liable
for the primary lease in each
location until the lease expires
which is 9 years.

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

The following discussion and analysis of the
Companys financial condition and results of
operations is based upon, and should be read
in conjunction with, its unaudited financial
statements and related notes included elsewhere
in this Form 10 QSB, which have been prepared
in accordance with accounting principles
generally accepted in the United States.

Overview.

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. The Company intends to
take advantage of any reasonable business
proposal presented which management believes
will provide the Company and its stockholders
with a viable business opportunity.  The board
of directors will make the final approval
in determining whether to complete any
acquisition, and unless required by
applicable law, the articles of
incorporation or bylaws or by
contract, stockholders
approval will not be sought.

The investigation of specific business
opportunities and the negotiation,
drafting, and execution of relevant agreements,
disclosure documents, and other instruments will
require substantial management time and attention
and will require the Company to incur costs for
payment of accountants, attorneys, and others.
If a decision is made not to participate in or
complete the acquisition of a specific business
opportunity, the costs incurred in a related
investigation will not be recoverable.  Further,
even if an agreement is reached for the
participation in a specific business opportunity
by way of investment or otherwise, the failure
to consummate the particular transaction may
result in the loss to the Company of all related
costs incurred.

If and when the Company locates a business
opportunity, management of the Company will
give consideration to the dollar amount of that
entity's profitable operations and the adequacy
of its working capital in determining the terms
and conditions under which the Company would
consummate such an acquisition.  Potential
business opportunities, no matter which form
they may take, will most likely result in
substantial dilution for the Companys
shareholders due to the issuance of stock
to acquire such an opportunity.

Results of Operations.

(a)  	Revenues.

The Company reported revenues of $ 234,330
for the three months and $ 543,923 for
the six months period ended June 30, 2006.
This compares to no revenue for both periods
ended June 30, 2005.  The Company experienced
revenue due to the leased restaurants that were
operated during the period

(b)Selling, General, and Administrative
   Expenses.

The Company incurred total selling, general and
administrative expenses of $378,995
for the three months and $683,508 for
the six months ended June 30, 2006 as compared to
$151,314 the three months and $288,068 for the
six months ended June 30, 2005; representing
an increase of $227,681 and $395,440 for the
three and six months respectively.  This
increase is due primarily to the expenses
for the quarter in ship design of $ 157,515
and  expenses of the restaurant operations.
No expenses were incurredfor either of these
categories in the same period in 2005.

(c)Depreciation and Amortization.

Depreciation and amortization for the three
months was $ 7,622 and $ 15,244 for the
six months ended June 30, 2006 and zero
both periods ended June 30, 2005.  The
depreciation is attributable to the
building and vehicle which were purchased
in the last quarter of 2005.

(d) Interest Expense.

The Company incurred interest charges
$7,972 in the three months and $ 23,790 for
the six months ended June 30, 2006, compared
with $2,000 for the three months and $ 6,250
for the six months ended June 30, 2005. The
interest expense increase in the six months
ended June 30, 2006 is the result of the
mortgage on the building purchased by
the Company.

(e)Net Operating Loss Carryforward.

At June 30, 2006, the Company had available
net operating loss carryforwards of
approximately $11,3 million that may provide
future tax benefits expiring beginning in
June of 2006; this compares with net operating
loss carryforwards of approximately $10.5
million at June 30, 2005.

(f) Net Loss.

The Company reported a net loss of $211,947
for the three months and $ 332,090 for
the six months ended June 30, 2006 as compared
to a net loss of $153,314 for the three months
and $294,318 for the six months ended June 30, 2005.

Factors That May Affect Operating Results.

The operating results of the Company can vary
significantly depending upon a number of factors,
many of which are outside its control.  General
factors that may affect the Companys operating
results include:

market acceptance of and changes in demand for
products and services,

a small number of customers account for, and may
in future periods account for, substantial portions
of the Companys revenue, and revenue could decline
because of delays of customer orders or the failure
to retain customers;

gain or loss of clients or strategic relationships.

announcement or introduction of new services and
products by the Company or by,its competitors,
price competition the ability to upgrade and
develop systems and infrastructure to
accommodate growth

the ability to introduce and market products
and services in accordance with market
demand changes in governmental regulation and

reduction in or delay of capital spending by
clients due to the effects of terrorism,
war and political instability.

Key Personnel.

The Companys success is largely dependent on
the personal efforts and abilities of its
senior management.  The loss of certain
members of the Companys senior management,
including the companys chief executive officer,
chief financial officer and chief technical
officer, could have a material adverse
effect on the companys business and
prospects.

Operating Activities.

The net cash used in operating activities
was $173,071 for the six months ended
June 30, 2006 compared to $90,888 for
the six months ended June 30, 2005.
This increase is attributed to many
changes from period to period, but
primarily to the loss incurred
during the six months period.

Investing Activities.

Net cash used in investing activities
was $1,434 for the six months period
ending June 30, 2006 and zero for the
same period ending June 30, 2005.

Financing  Activities.

Net cash provided by financing activities
was $112,405 for the six months
period ending June 30, 2006 and
$ 373,150 for the same period ending
June 30, 2005. This was due primarily to
the sale of stock for cash.

Liquidity and Capital Resources.

As of June 30, 2006, the Company had no
and total current liabilities of $293,249,
resulting in net working capital deficit of
$ 293,249. The Company has no cash.
During the three months and six months
ended June 30, 2006, the Company incurred
losses of $211,947 and $332,090, respectively.
The Company has an accumulated deficit of
$11,314,646 as of June 30, 2006.  These
factors raise substantial doubt as to
the Companys ability to continue
as a going concern.  In fact, the
Companys independent accountants audit
report included in the Form 10 KSB for the
year ended December 31, 2005 includes a
substantial doubt paragraph
regarding the Companys ability to
continue as a going concern.

The accompanying financial statements
have been prepared assuming that the Company
continues as a going concern that contemplates
the realization of assets and the satisfaction
of liabilities in the normal course of business.
However, the ability of the Company to
continue as a going concern on a longer term
basis will be dependent upon its ability to
generate sufficient cash flow from operations
to meet its obligations on a timely basis,
to retain its current financing, to obtain
additional financing, and ultimately attain
profitability.

Our current cash flow will not be sufficient
to maintain our capital requirements for the
next twelve months.  Accordingly, the Company
will need to continue raising capital through
either debt or equity instruments.  The Company
believes it will need to raise additional
capitalto continue executing the business plan.
Whereas the Company has been successful in
the past in raising capital, no assurance can
be given that these sources of financing will
continue to be available to us and,or that
demand for our equity,debt instruments will be
sufficient to meet our capital needs, or that
financing will be available on terms favorable
to the Company.  The financial statements
do not include any adjustments relating to the
recoverability and classification of liabilities
that might be necessary should the
Company be unable to continue as a going concern.

If funding is insufficient at any time in the
future, the Company may not be able to take
advantage of business opportunities or respond
to competitive pressures, or may be required to
reduce the scope of our planned product
development and marketing efforts, any of which
could have a negative impact on its business
and operating results. In addition, insufficient
funding may have a material adverse effect on
our financial condition, which could require
us to curtail operations significantly.

sell significant assets.

seek arrangements with strategic
partners or other parties that may
require the company to relinquish
significant rights to products,
technologies or markets,or explore other
strategic alternatives including a merger
or sale of the Company.

To the extent that the Company raises
additional capital through the sale of equity
or convertible debt securities, the issuance of
such securities may result in dilution to
existing stockholders. If additional funds are
raised through the issuance of debt securities,
these securities may have rights, preferences
and privileges senior to holders of common
stock and the terms of such debt could impose
restrictions on our operations. Regardless
of whether our cash assets prove to be
inadequate to meet our operational needs,
we may seek to compensate providers of
services by issuance of stock in lieu of cash,
which may also result in dilution to existing
shareholders.

Off Balance Sheet Arrangements.

The Company does not engage in any off balance
sheet arrangements that are reasonably
likely to have a current or future effect on
our financial condition, revenues, and results of
operations, liquidity or capital expenditures.

Inflation.

The impact of inflation on our costs and the
ability to pass on cost increases to its customers
over time is dependent upon market conditions.
We are not aware of any inflationary pressures
hat have had any significant impact on our
operations over the past quarter, and the company
does not anticipate that inflationary factors will
have a significant impact on future operations.

Critical Accounting Policies.

The Securities and Exchange Commission (SEC) has
issued Financial Reporting Release No. 60,
Cautionary Advice Regarding Disclosure About
Critical Accounting Policies (FRR 60), suggesting
companies provide additional disclosure and
commentary on their most critical accounting
policies.
In FRR 60, the SEC has defined the most critical
accounting policies as the ones that are most
important to the portrayal of a companys financial
condition and operating results, and require
management to make its most difficult and subjective
judgments, often as a result of the need to
make estimates of matters that are inherently
uncertain.  Based on this definition, the
Companys most critical accounting policies
include: (a) use of estimates in the preparation
of financial statements; (b) non-cash compensation
arrangements; and (c) revenue recognition.  The
methods,estimates and judgments the Company uses
in applying these most critical accounting policies
have a significant impact on the results the
Company reports in its financial statements.

(a)Use of Estimates in the Preparation of Financial
   Statements.

The preparation of these financial statements requires
the Company to make estimates and judgments that affect
the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of
contingent assets and liabilities.
On an on going basis, the Company evaluates these
estimates, including those related to revenue recognition
and concentration of credit risk.  The Company bases its
estimates,on historical experience and on various other
assumptions that are believed to be reasonable under
the circumstances, the results of which form the basis
for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other
sources.
Actual results may differ from these estimates under
different assumptions or conditions.

(b)Stock-Based Compensation Arrangements.

The Company may issue shares of common stock to
various individuals and entities for management,
legal, consulting and marketing services.  These
issuances will be valued at the fair market
value of the services provided and the number
of shares issued is determined, based upon the
open market closing price of common stock as
of the date of each respective transaction.
These transactions will be reflected as a
component of selling, general and administrative
expenses in the Companys statement of operations.

(c)Revenue Recognition.

Sales are recognized when the product or
service is delivered to the customer.

Forward Looking Statements.

Information in this Form 10 QSB contains
forward looking statements within
the meaning of Rule 175 of the Securities
Act of 1933, as amended, and Rule 3b 6 of
the Securities Act of 1934, as amended.
When used in this Form 10 QSB, the words
expects,anticipates,believes,plans,will and
similar expressions are intended to
identify forward looking statements.
These are statements that relate to future
periods and include, but are not limited to,
statements regarding our adequacy of
cash, expectations regarding net losses and
cash flow, our need for future financing,
our dependence on personnel, and our operating
expenses.

Forward looking statements are subject to certain
risks and uncertainties that could cause actual
results to differ materially from those projected.
These risks and uncertainties include, but are not
limited to, those discussed above as well
as risks set forth above under Factors That
May Affect Our Results.  These forward looking
statements speak only as of the date hereof.
The Company expressly disclaims any obligation
or undertaking to release publicly any updates
or revisions to any forward-looking statements
contained herein to reflect any change in its
expectations with regard thereto or any change
in events, conditions or circumstances on
which any such statement is based.

ITEM 3.  CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls
and Procedures.

The Company maintains disclosure controls and
procedures (as defined in Rule
13a-15(e) and Rule 15d-15(e) under the
Securities Exchange Act of 1934, as amended)
that are designed to ensure that information
required to be disclosed in our periodic
reports filed under the Exchange Act is
recorded, processed, summarized and reported
within the time periods specified in the SECs
rules and forms, and that such
information is accumulated and communicated
to our management, including our
principal executive officer, to allow timely
decisions regarding required disclosure.

As of the end of the period covered by this report,
our management carried out an evaluation, under
the supervision and with the participation
of our principal executive officer, of our disclosure
controls and procedures
(as defined in Rule 13a 15(e) and Rule 15d 15(e)
of the Exchange Act). Based upon the evaluation,
our principal executive officer concluded that our
disclosure controls and procedures are effective
to ensure that information required
to be disclosed by us in the reports that we
file or submit under the Exchange Act
is recorded, processed, summarized and reported,
within the time periods specified
in the Commissions rules and forms.

Because of the inherent limitations in all
control systems, no evaluation of
controls can provide absolute assurance that
all control issues and instances of fraud,
if any, will be or have been detected.  These
inherent limitations include the realities
that judgments in decision-making can be faulty,
and that breakdowns can occur because
of simple error or mistake.  Additionally, controls
can be circumvented by the individual
acts of some persons, by collusion of two or
more people, and,or by management override of
the control.  The design of any system of controls
also is based in part upon certain
assumptions about the likelihood of future events,
and there can be no assurance that
any design will succeed in achieving its stated goals
under all potential future conditions
over time, controls may become inadequate because
of changes in conditions, and,or the
degree of compliance with the policies and
procedures may deteriorate. Because of the
inherent limitations in a cost effective internal
control system, misstatements due to
error or fraud may occur and not be detected.

Changes in Disclosure Controls and Procedures.

There were no significant changes in the Companys
disclosure controls and procedures,
or in factors that could significantly affect
those controls and procedures, since
their most recent evaluation.

PART II   OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.
Other than as set forth below, the Company is
not a party to any material
pending legal proceedings and, to the best of
its knowledge, no such action by or
against the Company has been threatened.



ITEM 2.  UNREGISTERED SALES OF EQUITY.

The Company made the following sales of
unregistered (restricted) securities
during the three months period ending
June 30, 2006

(a)  On June 6, 2006, the Company sold a total
of 1,300,000 shares of common stock
to two individuals for cash.  These shares
were valued at a total of $32,500
($0.025 per share).
(b)  On June 9, 2006, the Company issued a total
of 1,086,858 shares of common stock
to two individuals for a total value of
$25,000 ($0.015 to 0.025 per share).

No commissions were paid in connection with any
of these sales.  These sales were undertaken under
Rule 506 of Regulation D under the Securities
Act of 1933.
Each of the transactions did not involve a public
offering and each of the investors
represented that he/she was a sophisticated or
accredited investor as defined in
Rule 502 of Regulation D.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

Not Applicable.

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

         None



ITEM 5.  OTHER INFORMATION.

         None

ITEM 6.  EXHIBITS.



Rule 13a 14(a),15d 14(a) Certification of Joseph Cala.

Section 1350 Certification of Joseph Cala.




SIGNATURE
Pursuant to the requirements of Section 13
or 15(d) of the Securities Exchange Act of 1934,
the Company has duly caused this report to be
signed on its behalf by the undersigned,
thereunto duly authorized.

Cala Corporation.


Dated: October 9, 2006		By: /s/ Joseph Cala
                               Joseph Cala, President
	                       Principal Executive Officer
                               and Chief Financial Officer





RULE 13a 14(a), 15d14(a) CERTIFICATION

I, Joseph Cala, certify that:

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

2.Based on my knowledge, this 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 report

3.Based on my knowledge, the financial statements,
and other financial information
results of operations and cash flows of the small
business issuer as of, and for, the
periods presented in this report,

4.I am responsible for establishing and maintaining
disclosure controls and procedures
(as defined in Exchange Act Rules 13a 15(e) and
15d 15(e)) [omitted pursuant to extended
compliance period] for the small business issuer and
have:

(a) Designed such disclosure controls and procedures,
or caused such disclosure controls and procedures to be
designed under my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made
known to me by others within those entities,
particularly during the period in which this
report is being prepared,

(b)  omitted pursuant to extended compliance period

(c) Evaluated the effectiveness of the small business
issuers disclosure controls and
procedures and presented in this report our conclusions
about the effectiveness of the
disclosure controls and procedures, as of the end of
the period covered by this report
based on such evaluation; and

(d) Disclosed in this report any change in the
small business issuers internal control
over financial reporting that occurred during
the small business issuers most recent
fiscal quarter (the small business issuers
fourth fiscal quarter in the case of an annual
report) that has materially affected, or is
reasonably likely to materially affect, the small
business issuers internal control over financial
reporting, and

5.I have disclosed, based on my most recent
evaluation of internal control over financial
reporting, to the small business issuers auditors
and the audit committee of the small business
issuers board of directors (or persons performing
the equivalent functions).

(a) All significant deficiencies and material weaknesses
in the design or operation of internal
control over financial reporting which are reasonably
likely to adversely affect the small
business issuers ability to record, process, summarize
and report financial information, and

(b) Any fraud, whether or not material, that involves
management or other employees who have a
significant role in the small business issuers
internal control over financial reporting.


Dated: October 9, 2006		/s/ Joseph Cala
                               Joseph Cala, Principal Executive
                               Officer and Principal
                               Financial Officer










SECTION 1350 CERTIFICATION

In connection with the quarterly report
of Cala Corporation... (Company) on Form
10 QSB for the six months ended June 30, 2006
as filed with the Securities and Exchange
Commission (Report),the undersigned, in the
capacity and on the date indicated below,
hereby certifies pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (18 U.S.C.
Section 1350), that to his knowledge.

1.The Report fully complies with the
requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934,
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 October 9, 2006	    /s/ Joseph Cala
                           Joseph Cala, Principal
                           Executive Officer and
                           Principal Financial Officer