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

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY
PERIOD ENDED MARCH 31, 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 Incorporation   (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 12b-2 of the Exchange Act). Yes  No X

As of September 15, 2007, the Company had 286,868,847 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
         MARCH 31, 2007(UNAUDITED)	                                          3

         STATEMENTS OF OPERATIONS
         FOR THE THREE MONTHS ENDED
         MARCH 31, 2007 AND MARCH 31, 2006(UNAUDITED)	                          4

         STATEMENTS OF CASH FLOWS
         FOR THREE MONTHS ENDED
	 MARCH 31, 2007 AND MARCH 31, 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	                                         19

PART II  OTHER INFORMATION

	 ITEM 1.  LEGAL PROCEEDINGS	                                        20

         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	                                        21

	 ITEM 6.  EXHIBITS	                                                21

        SIGNATURE	                                                        22

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                                   CALA CORPORATION.
                              CONDENSED BALANCE SHEET
                                    (Unaudited)


                                       ASSETS
			                                        MARCH 31,2007
Current assets
	Cash	                                              $     29,740
                                                                    ------
	 Total current assets	                                    29,740


Fixed assets, net	                                           751,619
                                                                   =======

Other assets
	Development costs	                                   422,205



Total assets	                                             $   1,203,564
                                                                 =========


LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities
	Accounts payable and accrued liabilities	     $      15,751
	Accounts payable and accrued liabilities  related party	    49,205
	Note payable, net of accrued interest of $1,512	           100,000
	Mortgage on building - current portion	                     8,653
                                                                     -----
		Total current liabilities	                   173,609


Long-term liabilities
	Mortgage on building  longterm portion	                   578,417
                                                                   -------
		Total longterm liabilities	                   578,417
                                                                   -------

Total liabilities	                                           752,026


Stockholders equity	                                                -
	Common stock
	 $0.005 par value; 400,000,000 shares authorized
	     272,101,980 shares issued and outstanding	          1,360,509
	Paid in Capital	                                         11,466,129
        Prepaid share based compensation                           (300,000)
	Accumulated deficit	                                (12,023,984)
	Stock subscription receivable	                            (50,000)
	Treasury stock- 23,200 shares	                             (1,116)
                                                                      -----
		Total stockholders equity	                    451,538
                                                                    -------

Total liabilities and stockholders equity	           $      1,203,564
                                                                  =========
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        The accompanying notes are an integral part of theses condensed
                           financial statements





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                             CALA CORPORATION.
                   CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)

				                    For Three Months Ended March 31,
				                           2007		  2006

Revenue		                                       $      -         $      -

Operating expenses
	Genreral and administrative expense             130,745           100,690
	Depreciation		                          6,111             8,583
                                                          -----             -----
		Total operating expenses		136,856 	  109,273


	Loss from operations		               (136,856)	 (109,273)

Other income (expense)
	Interest expense		                 (9,237)	  (11,818)
	Other income		                         10,510 	   10,653
	Impairment loss		                         (1,612)	        -
                                                          -----            ------
		Total other income (expense)		   (339)	   (1,165)

	Loss from continuing operations		       (137,195)         (110,438)

	Loss from discontinued                                -            (1,067)
                                                         ------             -----

	Net                                           $(137,195)         $(111,505)
                                                        =======            =======

	Earnings per share:
	Loss from continuing operations		      $  (0.00)         $  (0.00)
                                                       ========           =========
	Loss from discontinued operations	      $       -          $  (0.00)
                                                       ========           ==========
	Net loss		                      $  (0.00)         $  (0.00)
                                                       ========           =========
	Weighted average common shares		    263,740,313         193,053,603
                                                    ===========         ===========

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


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                          CALA CORPORATION.
                CONDENSED STATEMENTS OF CASH FLOWS
                               (Unaudited)



				                      For Three Months Ended March 31,
				                           2007		    2006

CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss	                             $  (137,195)       $ (111,505)
	Less: loss from discontinued operations	               -            (1,067)
                                                              --             -----
		Loss from continuing operations	        (137,195)	  (110,438)
Adjustments to reconcile loss from continuing
operations to net cash used in operating activities,
       Depreciation	                                   6,111             8,583
       Stock issued for services	                 102,000              (900)
       Impairment loss	                                   1,612 	         -
Changes in operating assets and liabilities,
       Accounts payable and accrued liabilities	          (8,877)           (7,582)
       Accounts payable and accrued liabilities
        related party	                                  (27,750)              -
	Non-current asset	                                -           (1,434)
                                                               --            -----
	Net cash used in operating activities
        of continuing operations	                  (64,099)	  (111,771)

CASH FLOW FROM INVESTING ACTIVITIES
	Cash used on development costs	                  (50,000)	         -
                                                           ------               --
	Net cash used by investing activities
        of continuing operations	                  (50,000)		 -

CASH FLOW FROM FINANCING ACTIVITIES
	Payments on mortgage on building	           (2,094)	    (3,243)
	Common stock issued for cash	                   45,000          106,500
	Proceeds from note payable	                   60,000 	         -
	Proceeds from insurance	                            4,834                -
                                                            -----               --
	 Net cash provided by financing activities
          of continuing operations	                  107,740          103,257
                                                          -------          -------

NET CHANGE IN CASH FROM CONTINUING OPERATIONS	           (6,359)	    (8,514)

NET CHANGE IN CASH FROM DISCONTINUED OPERATIONS	                - 	    (1,767)
                                                               --            -----

NET CHANGE IN CASH	                                    (6,359)	   (10,281)

CASH AT BEGINNING OF PERIOD	                            36,099          62,046
                                                            ------          ------

CASH AT END OF PERIOD	                                  $ 29,740 	  $ 51,765
                                                            ======          ======

SUPPLEMENTAL INFORMATION:
	Interest paid	                                  $  7,724        $      -
                                                           =======         ========
	Income taxes paid	                          $      -        $      -
                                                           =======         ========
</table>




                    The accompanying notes are an integral part to these
                                      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
three months ended March 31, 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 three months ended March 31, 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
shortterm, 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
(SFAS) 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 March 31, 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 principle of
Financial Accounting Concept No. 5 (SFAC No.5) and SAB104.

H.Property and Equipment  Property and equipment consisting
of improvements, equipment and furniture and fixtures are
recorded at cost and are depreciated using the straight line
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 to  40 years

H.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 underSea 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 exceed 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 quarter
ended March 31, 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
$12,023,984 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 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.

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 February 2007, the Company issued 15,000,000 shares of
common stock to the Chief Executive Officer in exchange for
compensation with a value of $300,000. During February 2007,
the Company issued 5,000,000 shares of common stock to an officer
of the company for consulting services provided to the Company
with a value of $100,000. 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 E.

NOTE 6, DISCONTINUED OPERATIONS

On August 1, 2006 the Company assigned the lease at 3160
Danville Blvd., Suite A, Alamo, CA. to a non-affiliated 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 its location at 500
Bollinger Canyon Way, Suite A-17 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 (SFAS-144) 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.
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 & 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 three months
ending March 31, 2006,

          Sales                        $  298,950
          Cost of goods sold               99,792
                                           ------
          Gross  margin                   199,158
          Operating/Interest expense      200,225
                                          -------
         (Loss) discontinued operations $( 1,067)
                                          ======



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 non-affiliated 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 non-affiliated third party on a
sublease 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 sub-lessee pays the
monthly lease payment 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 March 31, 2007

                          Fiscal Year

      2007    9 months		         $49,693
      2008				  68,274
      2009				  70,296
      2010				  72,396
      2011				  74,574
      Thereafter		         342,492
                                         -------
                     Total             $ 677,725
                                         =======


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 5.25 percent per annum and the
prepayment penalty removed. If the note is paid in full by
February 16, 2007 the note will be reduced by $ 100,000. The payment
was not made by the required date so the note reduction did not take
effect. In addition a late fee penalty of 5 percent 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, nine months		       6,447
		2008				       9,000
		2009				       9,482
   		2010                                   9,995
    		2011                                  10,531
     		Thereafter			     541,615
                                                     -------
					          $  587,070
                                                     =======


NOTE 9  FIXED ASSETS

Fixed Assets at March 31, 2007 consist of the following

           Building                        $ 600,000
           Land			             150,000
           Vehicles                           45,307
                                              ------
                                             645,307
           Less accumulated depreciation     (43,688)
                                              ------
                                           $ 751,619
                                             =======

Depreciation expense for the three months ended March 31, 2007 and
2006 was $6,111 and $8,583 respectively.

For the three months ended March 31, 2007, the Company incurred
an impairment loss on a vehicle.  The loss was treated as follows
	    Original value	                $ 8,000
	    Less accumulated depreciation        (1,554)
	    Less insurance payment on loss       (4,834)
                                                  -----
            Impairment loss                       1,612


NOTE 10 - INCOME TAXES

As of March 31, 2007, the Companys federal net operating loss
carryforwards were approximately $11,368,000.  The Company
had a provision for (benefit from) income taxes of $0 and
$0 for the three monthsended March 31, 2007.



NOTE 11  DEVELOPMENT COST

The Company is developing an under sea resort and ship for
the recreational use by con- summers.  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 ending 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 design                       25,000
     Consulting fees to administrator                  25,000
                                                       ------
        Total Development Costs                      $422,205









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 March 31, 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 for the year end
December 31, 2006.

Subsequent to the quarter ended March 31, 2007, the Company has issued
a total of 14,633,333 shares of restricted common stock with a value of
$ 291,000; of which 6,250,000 shares were issued for service with a value
of $ 185,000, 5,000,000 shares were issued for loan repayment with a value
of $ 40,000 and 3,383,333 shares were issued for cash with a value of
$66,000.

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 planning and development stage of
building the first UnderSea Resort & Casino, the first
Undersea Residence, and the first Residence Fractional
Ownership. The development will be the residence and the
fractional ownership, and the project will be financed
from preselling individual units. The Company estimates
that the average resort and casino including 50,000 square
feet world class Spa by Pevonia and a 200,000 square feet
convention center. The development should generate
approximately $600 million while the total development
cost should run around $460 million. The company is in
discussions with leaders in the hospitality, gambling,
Spa and Convention industry to explore the possibility
of a partnership or contractual arrangement with the
Company. The undersea resort ships have the ocean
available without the limitations of land. In addition,
several locations are going to be three miles offshore
of Florida coast because its consider international water
which mean tax free.  The company feels strongly that as
soon as the first ship has been sold the competion will
be killed due to the undersea experience where guests
will have the direct contact with white sharks and 80
feet whales including million of sealife habitat.

The company is in the final stage with the Governemnt of
The Republic of Malta regarding either taking over the
management of Marsa shipyard or to have the current
management to build our ships. The Government of Malta
sent His Excellency John Lowell Ambassador of Malta to
visit our Headquarter office to discuss in details the
transactions. The company will be able to give a full
report regarding the Marsa shipyard outcome on the second
financial quarter.

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
entitys 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 ended
March 31, 2007.  and no revenue for the three months ended
March 31, 2006.  The Company does receive rental income from
the building it owns and this revenue is classified as Other
Income.

(b) Selling, General, and Administrative Expenses.

The Company incurred total selling, general and administrative
expenses of $130,745 for the three months ended March 31, 2007 as
compared to $100,690 for the three months ended March 31, 2006
representing an increase of $30,055.  This increase is due
primarily to the increase in expenses for consulting services
and operations.

(c) Depreciation and Amortization.

Depreciation and amortization for the three months ended
March 31, 2007 was $6,111 and 8,583 in the three months
ended March 31, 2006.  The depreciation is attributable
to the building and vehicles owned by the Company and are
lower in the period ending March 31, 2007 due to the
impairment of a vehicle during the quarter reducing the
depreciation.

(d)  Interest Expense.

The Company incurred interest charges $9,237 in the three
months ended March 31, 2007, compared with $11,818 in the
three months ended March 31, 2006. The interest expense
difference in the quarter ended March 31, 2006 is the result
higher interest on the mortgage on the building that was
rewritten in July 2006 resulting in decreased interest
charges.

(e) Net Operating Loss Carryforward.

At March 31, 2006, 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 $ 11.1 million at
March 31, 2006.

(f) Net Loss.

The Company reported a net loss of $137,195 for the three
months ended March 31, 2006 as compared to a net loss of
$111,505 for the three months ended March 31, 2006. The higher
loss was attributable to increased general and administrative
costs during the period ending March 31, 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 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 $ 64,099 for
the three months ended March 31, 2007 compared to net cash
used of $111,771 for the three months ended March 31, 2006.
This decrease is due primarily to the issuance of stock for
services of $102,000 for the three months ended
March 31, 2007.



Investing Activities.

Net cash used in investing activities was $ 50,000 for the
three months period ending March 31, 2007 and zero for the
same period ending March 31, 2006.  The cash used in investing
activities for the period ending March 31, 2007 was attributed
to the construction in progress and development of the
Undersea Resort and Casino.

Financing Activities.

Net cash provided by financing activities was $110,740 for the
three months period ending March 31, 2007 and $ 103,257 for
the same period ending March 31, 2006.  Financing activities
for the period ending March 31, 2007 were slightly higher
due to a combination of stock sales and note issued totaling
$ 108,000 in the period ended March 31, 2007 verses stock
sales of $ 106,500 in the period ended March 31, 2006.
..
Liquidity and Capital Resources.

As of March 31, 2007, the Company had total current assets
of $ 29,740 and total current liabilities of $173,609,
resulting in net working capital deficit of $ 143,869.
During the three months ended March 31, 2007 and 2006,
the Company incurred losses of $ 137,195 and $111,505,
respectively. The Company had an accumulated deficit of
$12,023,984 as of March 31, 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) noncash 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) StockBased 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.

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 March 31, 2007
          (a)  On January 12, 2007, the Company sold a total
               of 1,500,000 shares of common stock to two
               individuals for cash.  These shares were valued
               at a total of $20,000 ($0.01 to 0.02 per share).
          (b)  On February 26, 2007, the Company issued a total
               of 1,250,000 shares of common stock  to three
               individuals for cash for a total value of $25,000
               ($0.02 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 betweent 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 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 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