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, 2007

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   (I.R.S. Employer
               or Organization)    Identification No.)

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

                (321) 383.8077
         (Companys 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 12b2 of the Exchange Act).
Yes [] No [X]

As of September 27, 2007, the Company had 286,868,647
shares of common stock issued and outstanding.
Transitional Small Business Disclosure Format
(check one): Yes No X

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                         TABLE OF CONTENTS

PART I  FINANCIAL INFORMATION	                              PAGE

ITEM 1.  FINANCIAL STATEMENTS

         BALANCE SHEET AS OF
         JUNE 30, 2007(UNAUDITED)	                         3

         STATEMENTS OF OPERATIONS
         FOR THE THREE MONTHS ENDED
         JUNE 30, 2007 AND JUNE 30, 2006 (UNAUDITED)	         4

         STATEMENTS OF CASH FLOWS
         FOR THREE MONTHS ENDED
	 JUNE 30, 2007 AND JUNE 30, 2006 (UNADUITED)	         5

	 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)	         6

ITEM 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS	        13

ITEM 3.  CONTROLS AND PROCEDURES	                        18

PART II  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS	                                19

ITEM 2.  UNREGISTERED SALES OF EQUITY
         SECURITIES AND USE OF PROCEEDS	                        20

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES	                20

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE
         OF SECURITY HOLDERS	                                20

ITEM 5.  OTHER INFORMATION	                                20

ITEM 6.  EXHIBITS	                                        20

SIGNATURE	                                             21-24

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                          CORPORATION.
                   CONDENSED BALANCE SHEET
                         (Unaudited)

                            ASSETS
			                           JUNE 30, 2007
Current assets
	Cash	                                  $        -
                                                          --
	  Total current assets	                           -

Fixed assets, net	                             745,507

Other assets
       Development costs	                     495,205

Total assets	                                  $1,240,712
                                                   =========

	   LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities
       Bank Overdraft	                          $   7,366
       Accounts payable and accrued liabilities	     34,004
       Accounts payable and accrued liabilities
       related party	                             27,787
       Note payable, net of accrued
       interest of $3,063	                     60,000
       Line of credit	                             15,580
       Mortgage on building current portion	      8,767
                                                      -----
	   Total current liabilities	            153,504

Long-term liabilities
      Mortgage on building long-term portion	    575,465
                                                    ------
	   Total long-term liabilities	            575,465
                                                    -------

Total liabilities	                            728,969

Stockholders equity	                                  -
	Common stock
	  $0.005 par value; 400,000,000
           shares authorized
           279,485,313 shares issued and
           outstanding	                           1,397,426
	Paidin Capital	                          11,525,212
	Prepaid share based compensation	    (200,000)
	Accumulated deficit	                 (12,159,779)
	Stock subscription receivable	             (50,000)
	Treasury stock  23,200 shares	              (1,116)
                                                       -----
	   Total stockholders equity	              511,743
			                              -------
Total liabilities and stockholders equity	 $  1,240,712
                                                    =========
</table>


             The accompanying notes are  integral part of
                      condensed financial statements





<table>


  
            
    
    
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                    CALA CORPORATION.
          CONDENSED STATEMENTS OF OPERATIONS
                       (Unaudited)

			                   For Three Months Ended June 30,  For Six Months Ended June 30,
				                 2007		2006	     2007	       2006
Revenue		                           $       -   	$          -    $      -             $      -

Operating expenses
   Genreral and administrative expense	     131,426 	     169,017      262,170              277,304
   Depreciation		                       6,111 	       7,622       12,222               15,243
                                               -----          -----        ------               ------
Total operating expenses		     137,537         176,639      274,392 	       292,547

Loss from operations		            (137,537)       (176,639)    (274,392)	      (292,547)

Other income (expense):
    Interest expense		             (11,809)	     (7,972)      (21,047)	       (19,790)
    Other income		              13,551 	      8,221 	   24,061 	        18,873
    Impairment loss		                  -   		 -        (1,612)	             -
                                                 --             --         -----                    --
Total other income (expense)		      1,742 		249        1,402 		  (917)

     Loss from continuing operations       (135,795)	    (176,390)   (272,990)	      (293,464)

     Loss from discontinued operations		  -          (35,557)	       -   	       (38,625)
                                                 --           ------          --                ------
Net loss		              $    (135,795)     $  (211,947) $ (272,990)           $ (332,089)
                                            =======          =======     =======               =======

Earnings per share:
      Loss from continuing
      operations		      $       (0.00)     $     (0.00)$    (0.00)         $     (0.00)
                                               ====             ====       ====                 ====
      Loss from discontinued operations		 -   	       (0.00)        -   	       (0.00)
                                                --              ----        --                  ----
	Net loss		     $       (0.00)     $      (0.00)	$(0.00)          $     (0.00)
                                              ----              ----     ----                   ----
	Weighted average common shares	 278,155,460      197,237,034 270,987,707          195,175,463
                                         ===========      =========== ===========          ===========
</table>


           The  accompanying notes are an integral part to
                these condensed financial statements
<table>


    
                        
      
         
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                                      CALA CORPORATION.
                            CONDENSED STATEMENTS OF CASH FLOWS
                                        (Unaudited)

                                                                 		For Six Months Ended June 30,
				                                                2007		          2006

CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss	                                                   $  (272,990)		    $  (332,090)
	Less, loss from discontinued operations	                                     - 		        (38,625)
                                                                                    --                   ------
		Loss from continuing operations	                              (272,990)		       (293,465)
	Adjustments to reconcile loss from continuing
      operations to net cash used in operating activities,
		Depreciation	                                                12,222                    15,243
		Stock issued for services	                               232,000 		               -
		Impairment loss	                                                 1,612 	                       -
	Changes in operating assets and liabilities,
		Bank overdraft	                                                 7,366 	                  26,615
		Accounts payable and accrued liabilities	                 9,377 		          (1,133)
		Accounts payable and accrued liabilities related party	       (49,168)		          14,193
		Non current asset	                                             - 		              -
		Stock payable	                                                     -                   130,770
                                                                                    --                   -------
	Net cash used in operating activities of continuing operations	       (59,581)		        (107,777)

CASH FLOW FROM INVESTING ACTIVITIES
	Cash used on development costs	                                      (123,000)                       -
	Non current asset	                                                     - 		         (1,434)
                                                                                    --                    -----
	Net cash used by investing activities of continuing operations	      (123,000)		         (1,434)

CASH FLOW FROM FINANCING ACTIVITIES
	Payments on mortgage on building	                                 (4,932)		 (5,312)
	Common stock issued for cash	                                         71,000 	         91,102
	Proceeds from line of credit	                                         15,580                       -
	Proceeds from note payable	                                         60,000                       -
	Proceeds from insurance	                                                  4,834 		      -
                                                                                  -----                      --
	 Net cash provided by financing activities of continuing operations	146,482 	          85,790
                                                                                -------                   ------

NET CHANGE IN CASH FROM CONTINUING OPERATIONS	                                (36,099)		 (23,421)

NET CHANGE IN CASH FROM DISCONTINUED OPERATIONS	                                     - 		         (38,625)
                                                                                    --                    ------

NET CHANGE IN CASH	                                                        (36,099)		 (62,046)

CASH AT BEGINNING OF PERIOD	                                                 36,099                   62,046

CASH AT END OF PERIOD	                                                    $         - 	   $           -
                                                                                     ==                       ==

SUPPLEMENTAL INFORMATION,
	Interest paid	                                                    $    15,420            $           -
                                                                                 ======                       ==
	Income taxes paid	                                            $         -            $           -
                                                                                     ==                       ==

</table>

              The  accompanying notes are an integral part
                to these condensed financial statements





CALA CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1  DESCRIPTION OF BUSINESS

Cala Corporation , (formerly Magnolia Foods, Inc.),
(the Company) 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 Company
is in the development stage of building an undersea
resort and casino.

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.  Basis of Presentation. The accompanying
condensed financial statements included herein have
been prepared by the Company, without audit, pursuant
to the rules and regulations under Item 310 (b) of
Regulation SB of the Securities and Exchange Commission.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with accounting principles generally accepted in the
United States have been condensed or omitted pursuant
to such rules and regulations, although we believe that
the disclosures are adequate to make the information
presented not misleading. In the opinion of management,
all adjustments (which include normal recurring adjustments)
necessary for a fair presentation of the results for the
interim periods have been made. The results for the six
months ended June 30, 2007 are not necessarily indicative
of results to be expected for the full fiscal year. These
financial statements should be read in conjunction with
the financial statements and notes thereto included in our
 Annual Report on Form 10KSB for the year ended December
31, 2006. Certain amounts in the condensed financial
statements for the six months ended June 30, 2007 have
been reclassified to conform to the current period
presentation, the most significant of which was
discontinued operations as disclosed within Note 6 to
the condensed financial statements.

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 June 30, 2007, 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 statement and
accompanying notes. Actual results could differ from those
estimates.

E. Policy in Regards to Issuance of Common Stock in a
Non Cash 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.During 2005, 23,200
shares were repurchased to Treasury for $116. During
2006, 33,333 sdhares were repurchased to treasury
for $1,000.

G. Revenue Recognition. The income received by the
Company is rental income from the tenants leasing
space in the building owned by the Company which is
outside the normal operations of the Company. Revenue
is recognized when it is received from the tenants
and in accordance with the basic principal of
Financial Accounting Concept No. 5 (SFAC No.5)
and SAB-104.

H. Property and Equipment. Property and equipment
consisting of improvements, equipment and furniture
and fixtures are recorded at cost and are depreciated
using the straightline method over the useful estimated
life.  Expenditures for maintenance and repairs are
charged to earnings as incurred, additions, renewals,
and betterments are capitalized.  When property
and equipment are retired or otherwise disposed of,
the related cost and accumulated depreciation are
removed from the respective accounts, and any gain
or loss is included in operations.  A summary of
estimated useful lives is as follows.

        Description                  Useful life
         Vehicles		       5 years
         Building                  10-40 years


I. The 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 Commission 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 Registrants most critical accounting
policies include the use of estimates in the preparation
of financial statements. The methods, estimates and
judgments the Registrant uses in applying these most
critical accounting policies have a significant impact
on the results the company reports in its financial
statements.

The preparation of these financial statements requires
the Registrant 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 ongoing basis,
the Registrant evaluates these estimates, including
those related to revenue recognition and concentration
of credit risk.  The Registrant bases its estimates
on historical experience and on various other assumptions
that 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.

The Company accounts for the underwater sea resort
and ship development costs in accordance with SFAS
No. 144, Accounting for the Impairment or  Disposal
of Long Lived Assets.  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.

NOTE 3  RECENT ACCOUNTING PRONOUNCEMENTS

In September 2006, the FASB issued SFAS No. 157 Fair
Value Measurements.  SFAS No. 157 defines fair value,
establishes a framework for measuring fair value in
generally accepted accounting principles and expands
disclosure about fair values.  This statement is
effective for financial statements issued for fiscal
years beginning after November 15, 2007, and interim
periods within those fiscal years.  Management believes
that the adoption of SFAS No. 157 will not have a
material impact on the consolidated financial
results of the Company.

In September 2006, the Securities and Exchange
Commission issued Staff Accounting Bulletin No.
108, Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements
in Current Year Financial Statements (SAB 108),
which addresses how to quantify the effect of
financial statement errors. The provisions of
SAB 108 become effective as of the end of our
2007 fiscal year. We do not expect the adoption
of SAB 108 to have a significant impact on our
financial statements.

The Financial Accounting Standards Board has
published FASB Interpretation No. 48 (FIN No. 48),
Accounting for Uncertainty in Income Taxes, to address
the noncomparability in reporting tax assets and
liabilities resulting from a lack of specific guidance
in FASB Statement of Financial Accounting Standards
No. 109 (SFAS 109), Accounting for Income Taxes,
on the uncertainty in income taxes recognized in an
enterprises financial statements. Specifically, FIN
No. 48 prescribes (a) a consistent recognition
threshold and (b) a measurement attribute for the
financial statement recognition and measurement of
a tax position taken or expected to be taken in a
tax return, and provides related guidance on
derecognition, classification, interest and penalties,
accounting interim periods, disclosure and transition.
To the extent interest and penalties would be assessed
by taxing authorities on any underpayment of income
taxes, such amounts would be accrued and classified as
a component of income tax expenses on the statement of
operations.  FIN No. 48 will apply to fiscal years
beginning after December 15, 2006, with earlier adoption
permitted.  The Company has completed its evaluation of
the effects of FIN No. 48 and has concluded that the
adoption of FIN No. 48 did not impact the financial
statements for the six months ended June 30, 2007.
The Companys federal tax returns are potentially open
to examinations for fiscal years 2003 through 2006.

In February 2007, the FASB issued Statement No. 159,
The Fair Value Option for Financial Assets and Financial
Liabilities, including an amendment of FASB Statement
No. 115 (FAS 159). FAS 159 permits companies to choose to
measure many financial instruments and certain other
items at fair value that are not currently required
to be measured at fair value and establishes presentation
and disclosure requirements designed to facilitate
comparisons between companies that choose different
measurement attributes for similar types of assets
and liabilities. The provisions of FAS 159 become
effective as of the beginning of our 2009 fiscal
year. We are currently evaluating the impact that
FAS 159 will have on our financial statements.

NOTE 4 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
$12,159,779 and has not established revenues
sufficient to cover its operating costs.  This
uncertainty raises substantial doubt about the
Companys 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 Company's plan.
The financial statements do not include any
adjustments that might be necessary if the
Company is unable to continue as a going
concern.

NOTE 5  RELATED PARTY TRANSACTIONS

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.

During April 2007 the Company issued 600,000 shares
of common stock to an officer for consulting services
provided to the Company with a value of $18,000.
The officer is also reimbursed for expenses paid on
behalf of the Company as needed. Also, see Note 2,
Item F.

NOTE 6  DISCONTINUED OPERATIONS

On August 1, 2006 the Company assigned the lease at
3160 Danville Blvd., Suite A, Alamo, CA. to a nonaffiliated
third party. The lease held by the Company was terminated
and the operations of the restaurant were discontinued.

On August 1, 2006 the Company subleased their location at
500 Bollinger Canyon Way, Suite A17 through an assignment
of its lease and discontinued the operations of the
restaurant. The Company continues to be liable for the
primary lease until the lease expires. (See NOTE 7
Commitments and Contingencies).

In discontinuing the operations of both restaurants,
no tangible physical assets were assumed or relinquished
in association with the transaction.

In accordance with the Statement of Financial
Accounting Standards No. 144 (SFAS144) and EITF Abstract
No. 03 13, we applied the conditions in paragraphs
42 and 43 of the FASB Statement No. 144 in determining
whether to report discontinued operations. The Company
eliminated the operations and cash flow of the restaurants
from the ongoing operations of the entity as a result of
the disposal of operations and the Company has severed
all involvement in the operations of the restaurants.

The following is a summary of the condensed results of
the discontinued operations for the six months ending
June 30, 2006.

     Sales                               $  525,059
     Cost of goods sold                     153,480
     Gross  margin                          371,579
     Operating/Interest expense             410,204
                                           --------
     (Loss) discontinued operations      $  (38,625)





NOTE 7  COMMITMENTS & CONTINGENCIES

On January 9, 2006 the Company entered into a
lease at 3160 Danville Blvd. Suite A, Alamo, CA
consisting of 4,500 square feet for a restaurant.
The duration of the lease is 10 years with a renewable
option for 5 more years. The monthly rent on the space
is $ 8,500 plus taxes and common area charges.
Monthly rental may be adjusted on an annual basis.
On August 1, 2006, the Company assigned the lease to
a nonaffiliated third party and terminated the original
lease, relieving the Company of any future obligation.

On April 10, 2006 the Company entered into a lease
consisting of approximately 2,450 square feet for
a restaurant in Roman, CA. The duration of the lease
is 10 years. On August 1, 2006 the Company discontinued
its operations in the restaurant business.
As a result, the Company assigned the lease to a
nonaffiliated third party on a sub-lease basis.
The Company is still fully obligated to the terms
of this lease. However, the nonaffiliated party
will assume all its payments. Under the terms of
the agreement, the sublessee pays the monthly
lease payments of $ 5,400 for the duration of
the lease plus an additional 60 equal monthly
installments of $1,500 to the Company. The
following is a schedule by year of the future
minimum rental payments required under operating
leases that have noncancellable lease terms in
excess of one year as of June 30, 2007.

              Fiscal Year

      2007  six months		$32,129
      2008		         68,274
      2009		         70,296
      2010			 72,396
      2011		         74,574
      Thereafter		342,492
                                -------
           Total              $ 660,161

NOTE 8  LONG TERM DEBT

On July 16, 2006 the Company signed a Mortgage
Modification Agreement with the lender on the
building. Under the terms of the agreement,
the mortgage was modified to extend the maturity
date to July 15, 2036, the interest rate was
reduced to 5.25percent per annum and the
prepayment penalty was removed. If the note is
paid in full by February 16, 2007 the note will
be reduced by $ 100,000. The note was not paid
in full by the required date so the note reduction
did not take effect. In addition a late fee
penalty of 5percent was added on all payment later
than 10 days. The prepayment penalty of
$ 50,000 was eliminated.

Long term debt is payable as follows.

              Fiscal year
 2007 six months	  4,329
 2008		          9,000
 2009		          9,482
 2010                     9,995
 2011                    10,531
 Thereafter	        540,895
                        -------
		    $   584,232

NOTE 9  FIXED ASSETS

Property and equipment at June 30, 2007 consist
of the following.

   Building                   $ 600,000
   Land			        150,000
   Vehicles                      45,307
                                 ------
                                795,307
Less accumulated depreciation	(49,800)
                                 ------
                              $ 745,507
                                =======

Depreciation expense for the six months ended June
30, 2007 and 2006 was $12,222 and $15,243,
respectively.

For the six months period ending June 30, 2007
the Company incurred an impairment loss on a
vehicle.  The loss was treated as follows,
<table>
      
                                 <c>
  Original value		        $ 8,000
  Less accumulated depreciation          (1,554)
  Less insurance payment on loss         (4,834)
  Impairment loss                         1,612
</table>

NOTE 10  INCOME TAXES

As of June 30, 2007, the Companys federal net
operating loss carryforwards were approximately
11,374,000.  The Company had a provision for
(benefit from) income taxes of $0 and $0 for
the six months ended June 30, 2007.


NOTE 11  DEVELOPMENT COST

The Company is developing an under sea resort
and ship for the recreational use by consummers.
The concept is in development stage or as better
defined as the preacquisition phase. While the
Company had expensed the development costs through
the fiscal year December 2005 while in preliminary
phase, the Company elected to capitalize the cost
forward in accordance with the preacquisition
guidance under statement of Financial Accounting
Standard No. 67, Accounting for Costs and Initial
Rental Operations of Real Estate Projects.

All common costs are allocated to each residential
unit benefited and is based on the relative fair
value before construction.  Construction costs
will be allocated to each residential unit on the
basis of relative sales value of the unit. It
is anticipated that the preacquisition phase
will be completed during the fiscal year ended
December 31, 2007 at which time construction
is expected to commence. Once the construction
phase has been completed and the residential
units are available for sale, the Company
will allocate all capitalized costs to each
residential unit and expense them upon the
sale of the residential units.

The Company has to date incurred the following
development costs,

 Design payments to ship yards         $372,205
 Engineering of glass                    73,000
 Consulting fees to administrator        50,000
                                         ------
    Total Development Costs            $495,205


NOTE 12  MERGER AGREEMENT

On February 5, 2007 the Company signed an agreement
to purchase Trinetics, Inc.  Under the terms of
the agreement the Company issued 100,000,000 shares
of common stock with a value of $ 3,000,000.  On
September 21, 2007 the Company filed a 8K
postponing the closing of the merger agreement.
The Company has not included the 100,000,000 shares
related to the merger agreement in the issued and
outstanding shares as of June 30, 2007 since the
merger agreement has not been closed and due
consideration has not been received for
such issuances.

NOTE 13  SUBSEQUENT EVENT

The Company is in receipt of  a letter from the
Securities and Exchange Commission dated August
10, 2007.  The letter pointed to certain deficiencies
in the 10KSB that was filed for the year ending
December 31, 2006. The Company is in the process
of responding to the letter and intends to file
an amended copy of the 10KSB.

Subsequent to the six months ended June 30, 2007
the Company has issued a total of 7,250,000
shares of restricted common stock with a value of
$195,000, of which 5,250,000 shares were issued
for service with a value of $155,000, and
2,000,000 shares were issued for cash with
a value of $40,000.

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 10QSB, which have been prepared
in accordance with accounting principles
generally accepted in the United States.

Overview.

The company  is in the construction stage of
building the first UnderSea Resort & Casino
including a 50,000 sq foot world class Pervonia Spa
as well as a 200,000 sq foot of convention center.
Each ship will be pre sold in full to a perspective
fortune 500 company. The Company estimates that the
average resort and casino construction should generate
approximately $600 million in gross sells, while the
actual construction cost should run about $460 million.
The company is in discussions with leaders in the
hospitality, gambling, spa, convention center and
shopping center industry to explore the possibility
to sell the entire ship for their industry use. In
addition the ships are going to be located beyond the
three miles of shore of Floridas oceans, attached to
the islands because it is consider international water
which means tax free.  The company feels strongly that
as soon as the first ship has been sold the competition
will be killed due to the  direct contact with white
sharks and 80 foot whales.

The company strongly believes that the acquisition
with Trinetics is very positive because is a minor
leader in the plastic laser welding industry. The
company feels strongly that Trinetics President Marc
Hofius will add values to the company growth, Marc
is one of the leading mechanical engineer in the
country and his knowledge will be useful when the
Undersea Resort construction will take place. Marc
Hofius will also be in charge for the undersea windows
which is a technology owned by the company.
In addition, Marc Hofius will work closely with our
Undersea Resort President Mr. Francis and myself
Joseph Cala. Trinetics has been in business since 1970
and was founded by Genius David Hofius Sr. Trinetics
client list are Fortune 100 such as Siemens, Mercedes
Benz and so on. Trinetics is a world class boutique
engineering firm that specialized in solving complicated
and complex innovation mechanical engineering solutions
especially, for the medical industry. The current Trinetics
market share is less than 1% because founder David Hofius
was very satisfy to keep the company within his family.
Therefore, founder Hofius discouraged growth. Trinetics
annual sales is a little shy of $2 million while the net
profit is about 25percent.

The company was in the final stage to take over the
Marsa shipyard in Malta. However, the Minister of
Industry and Finance Dr. Gatt with the shipyard Chairman
Mr. White Cassar as well the shipyard CEO Chris Bell
stonewalled the transaction for months for their personal
gain.

Furthermore, as back up the company tried to have the
Maltese government to build our Ships but again the above
gentlemen were dealing with our company in bad faith.
Therefore, the company had no other choices than to
ceased to waste our precious times and money. Its very
important to note that our company in principal secured
had the finance from a World leader Investment Banker.
The only thing left was the Minister of Finance and
Industry to execute the  contracts. We learned the
truth about the Minister of Industry and Finance Dr.
Gatt greedy agenda from the most powerful business
families in Malta.  The Malta shipyards which includes
the Marsa shipyards are located at the heart of the
most expensive real estate in the south of Europe
therefore, Minister Dr.Gatt with his special interest
buddies have carved the best secretive transfer of a
multibillion dollars properties to their personal holdings
while the skillful and hard working shipyard employees
are left holding the bags.

The company would like to acknowledge the great hospitality
and cooperation we received from the following outstanding
gentlemen. His Excellency Ambassador Lowell, President of
General Worker Union Tony Zarb, Malta Enterprise Executive
Joseph Vassallo, Malta Best Citizen Matthew Frendo and
Family. Malta Stock Exchange and Nick Cammarata President
of Cammarata and Camilleri Investment Banker.  Ms. Rosanna
Zummit from The Malta News and Alek Ferrugia from El Torca
News which is the Union Newspaper.



Malta significantly worsens in perceptions of public sector
corruption
by David Lindsay


Malta, along with fellow EU member state Austria,
has significantly worsened in terms of public
sector corruption as perceived by business
people and country analysts around the world,
according to the 2007 Corruption Perceptions
Index (CPI), released yesterday by
Transparency International.

In compiling its annual index,
Transparency International   a global
coalition against corruption  sources
14 different surveys by 12 bodies including
the World Bank, the Economist Intelligence
Unit, the African Development Bank and the
Asian Development Bank.

A countries CPI Score indicates the degree
of public sector corruption as perceived
by businesspeople and country analysts.

This year Malta descended in the
international bodys ranking by five
places, after having been ranked
28th in 2006 and falling to 33rd
out of a total of 180 countries
included in this years index.

The index ranks countries on a scale of
zero, highly corrupt, to 10, virtually
corruption free. In 2006 Malta achieved
a 6.4 score, while descending to 5.8
this year.

Malta, however, received the third
highest ranking of the countries
joining the EU with Malta in 2004
and was only outdone in this
respect by Slovenias 27th place,
and Estonias 28th.

Of the EU27, Malta was ranked 16th
and was followed by, in order,
Hungary, Cyprus, the Czech Republic,
Italy, Slovakia, Latvia, Lithuania,
Greece, Poland, Bulgaria and Romania.

The top five EU member states, meanwhile,
were, Denmark, Finland, Sweden,
The Netherlands and Luxemburg.

The top five corruption free countries
this year were. New Zealand, Denmark,
Finland, Singapore and Sweden. The
bottom five were Tonga, Haiti,
Iraq, Somalia and Myanmar.

The CPI ranks countries in terms
of the degree to which corruption
is perceived to exist among public
officials and politicians. It is a
composite index, or a poll of polls,
that draws on corruptionelated data
from expert and business surveys
carried out by a variety of independent
and reputable institutions. The CPI
reflects views from around the world,
including those of experts who are
living in the countries evaluated.

The CPI focuses on corruption in the
public sector and defines corruption
as the abuse of public office for
private gain. The surveys used in
compiling the CPI ask questions
that relate to the misuse of public
power for private benefit, for
example bribery of public officials,
kickbacks in public procurement,
embezzlement of public funds or
questions that probe the strength
of anticorruption policies,
thereby encompassing both
administrative and political
corruption.

Despite some gains, corruption
remains an enormous drain on
resources sorely needed for
education, health and
infrastructure, comments
Huguette Labelle, Chair
of Transparency International.
Low scoring countries need
to take these results seriously
and act now to strengthen
accountability in public
institutions. But action
from top scoring countries
is just as important, particularly
in cracking down on corrupt
activity in the private sector.

The index finds, Countries with
a significant improvement
include Costa Rica, Croatia,
Cuba, Czech Republic,
Dominica, Italy, FYR
Macedonia, Romania
and Suriname.

Countries with a significant
worsening in perceived levels
of corruption in 2007
include Austria, Bahrain,
Belize, Bhutan, Jordan,
Laos, Macao, Malta,
Mauritius, Oman, Papua
New Guinea and Thailand.



As the negative results from the Malta
shipyards fiasco the company had no other
choices than to find a suitable shipyard
to build our Undersea ships. Therefore,
the company was successful to present
the project to the largest shipbuilder
in the Americas, Northrop Grumman
www.northropgrumman.com   The feed back
from Northrop Grumman Headquarter
located in DC was very positive but
they declined on the basis of large
on going US government contracts.
We were treated very well by the
corporate office especially by
top Executive Richard Sandifer.
The company management felt very
proud to have the most prestigious
shipbuilder Northrop Grumman to
give a thumb up to Mr. Francis well
executed design. I personally feel
that Northrop Grumman statement
speaks very high volumes.

In a different negotiations the company
was in the final negotiation to purchase
major hotels in the San Francisco Bay
Area, Atlanta Airport, Boston Logan
Airport, New Orleans, New York City
and Miami. However, the company got
outbid by large private equity funds
and large hospitality operators. The company
also was in the final stage to purchase the
San Domingo Hilton a five star hotel with
ocean access. The San Domongo Hilton
financials were not audit according GAAP
or Sarbannes & Oxley therefore, the company
investor refused to provide the necessary
funds to complete the deal.  In addition,
the company is also in discussion with the
owners of a five star hotel in San Domingo
but the company cannot divulge details of
the deal due to the confidentiality agreement.
However, the company does not forsee the
purchase to go through due to numerous
outstanding issues.  At the same time,
the company is in progress to become a
Franchisor for a new hotel concept that
the company will launch on the third quarter.
Again, the company has chosen a new
hospitality market that does not exist
therefore, our lips are sealed until the
appropriate time. We feel strongly that this
new hotel concept development will generate
very positive cash flow for the company.

The company has been successful in attracting
prospective buyers for the first ship in the
full amount of $460 million.  The prospective
buyers are Fortune 500 companies and billionaire
individuals such as members of the Royal
Family of Saudi Arabia, the Hilton Grand
Vacation, The Hyatt Grand Vacation, The Starwood
Grand Vacation, and Sotheby's International Real
Estate. .Simultaneously, our company is in discussions
regarding the construction of our own shipyard with
several US states and foreign governments.  The
company will announce the details as these various
iscussion come to fruition.  The company is asking
that the states and the foreign governments
finance the construction and development of
the shipyards in the full amount of the anticipated
cost, $300 million each.  This is necessary
because the company does not have the resources
to do this on its own.  These governmental entities
have a strong incentive to provide the financing
based on the estimated 5,000 highly payed new
jobs which will be created. As today, the company
has no affirmative purchase contract or contracts
signed because we do not have a shipyard as yet.

The Company also 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 and fits within the
objectives of the Company and its business development.
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.


Along with the development of the Undersea Resort and
Casino, 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 no revenues for the three months
and six months ended June 30, 2007 and no revenue
for the same periods ended June 30, 2006. The Company
does receive rental income from the building it owns
and this revenue is classified as Other Income.

(b)	General and Administrative Expenses.

The Company incurred total selling, general and
administrative expenses of $131,426 for the three months
and $ 262,170 for the six months ended June 30, 2007 as
compared to $169,017 for the three months and $ 277,304
for the six months ended June 30, 2006; representing an
slight decrease in general and administrative expenses
in 2007 verses the same periods in 2006. This decrease
is due primarily to some expenses reduction in consulting
services and operations.

(c)  	Depreciation.

Depreciation for the three months and six months ended
June 30, 2007 was $6,111 and $12,222 verses $7,622 in the
three months and $15,243 in the six months ended June 30,
2006.  The depreciation is attributable to the building
and vehicles owned by the Company with a lower amount due
to the impairment of a vehicle during the 2007 periods.

(d)  	Interest Expense.

The Company incurred interest charges $11,809 in the three
months and $ 21,047 for the six months ended June 30, 2007,
compared with $7,972 in the three months and $19,790 for
the six months ended June 30, 2006. The interest expense
difference in the periods ended June, 2006 is the result
a net increase in interest due to increased notes payable
and decreased interest on the building due to the note
that was rewritten in July 2006 resulting in decreased
interest charges.

(e)	Net Operating Loss Carryforward.

At June 30, 2007, the Company had available net operating
loss carryforwards of approximately $11.4 million that may
provide future tax benefits expiring beginning in June of
2007; this compares with net operating loss carryforwards
of approximately $ 11.3 million at June 30, 2006.

(f)  	Net Loss.

The Company reported a net loss of $135,795 for the three
months and $ 272,990 for the six months ended June 30,
2007 as compared to a net loss of $211,947 for the three
months and $ 332,090 for the six months ended June 30,
2006. The loss for the periods ending June 30, 2006 included
losses from discontinued operations of $ 35,557 for the
three months period and $ 38,625 for the six months period
respectively. On a comparative basis excluding the losses
from discontinued operations the decreased general and
administrative costs during the period ending during the
respective periods ending June 30, 2007 attributed to a
smaller net loss in 2007.

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 company's 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
$ 59,581. for the six months ended June 30, 2007
compared to net cash used of $107,777 for the six
months ended June 30, 2006. This decrease is due to an
increased amount of stock for services issued in 2007
verses 2006 for the respective period.

Investing Activities.

Net cash used in investing activities was
$ 123,000 for the six months period ending
June 30, 2007 and $ 1,434 for the same period
ending June 30, 2006. The cash used in investing
activities for the period ending June 30, 2007
was attributed to development costs of the
Undersea Resort and Casino.

Financing Activities.

Net cash provided by financing activities was
$146,482 for the six months period ending
June 30, 2007 and $85,790 for the same period
ending June 30, 2006. Financing activities for
the period ending June 30, 2007 were slightly
higher due to debt issuance and the addition
of an overdraft line of credit.
..
Liquidity and Capital Resources.

As of June 30, 2007, the Company had no
current assets and total current liabilities
of $153,504, resulting in net working capital
deficit of $ 153,504.  During the six months
ended June 30, 2007 and 2006, the Company
incurred losses of $ 272,990 and $332,089,
respectively. The Company had an accumulated
deficit of $12,159,779 as of June 30, 2007.
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
10KSB for the year ended December 31, 2006
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
longerterm 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 capital to 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 that 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 ongoing 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 10QSB 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 10QSB, the words expects,
anticipates, believes, plans, will and similar
expressions are intended to identify forwardlooking
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.

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 period ending June
30, 2007
  (a)  On April 12, 2007, the Company sold a total of
300,000 shares of common stock to two individuals for cash.
These shares were valued at a total of $6,000 ($0.02
per share).
   (b)  On April 12, 2007, the Company issued a total
of 1,000,000 shares of common stock to three individuals
for service for a total value of $30,000 ($0.03
per share).
   (c)   On April 12, 2007 issued a total of 5,000,000
shares of common stock to one individual for debt. These
shares were valued at $ 40,000 ($0.008 per share.)
   (d)   On April 21, 2007 issued a total of 500,000
shares of common stock to one individual for cash. These
shares were valued at $ 10,000 ($0.02 per share.)
   (e)   On April 25, 2007 issued a total of 250,000
shares of common stock to one individual for cash. These
shares were valued at $ 5,000 ($0.02 per share.)
   (f)   On June 25, 2007 issued a total of 333,333
shares of common stock to one individual for cash. These
shares were valued at $ 5,000 ($0.015 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.

On September 24, 2007 the Company filed a 8K voiding
the merger agreement between the Company and
Trinetics, Inc.

ITEM 6.  EXHIBITS.

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

32 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 1, 2007		By: /s/ Joseph Cala
		             Joseph Cala, President
	                    Principal Executive Officer
                           and Chief Financial Officer



RULE 13a 14(a)/15d 14(a) CERTIFICATION

I, Joseph Cala, certify that:

1.	I have reviewed this quarterly report on Form
10QSB 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 included in this report,
fairly present in all material respects the financial
condition, 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 1, 2007	     /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 10QSB
for the quarter ended March 31, 2007 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 1, 2007        /s/ Joseph Cala
                             Joseph Cala, Principal
                             Executive Officer and
                         Principal Financial Officer