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

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

                For the quarterly period ended June 30, 2005

                         Commission file number 01 15109

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


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


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


                                 (713) 302 8689
               --------------------------------------------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was
required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes _X_   No ___


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

Common Stock 174,366,329 shares, Par Value $0.005 per share, were
outstanding as of June 30, 2005


Transitional Small Business Disclosure Format    Yes ___   No _X_










                                CALA CORPORATION

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















                                  CALA CORPORATION

                                     CONTENTS




Report of Independent Registered Accountant	1

Balance Sheet	                                2

Statements of Operations	                3

Statements of Cash Flows	                4

Notes to Financial Statements	         5 thru 7

Management Discussion                    8 thru 10














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



Board of Directors and Stockholders
Cala Corporation

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

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

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

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




George Brenner
Certified Public Accountant
Los Angeles, California











                                     CALA CORPORATION
                                       BALANCE SHEET
                                       JUNE 30, 2005
                                         UNAUDITED

<Table>

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

ASSETS

Current Assets:
 	Cash	                                      $	     282,426
                                                             -------

	Total current assets		                     282,426

        DEPOSITS		                               1,260
                                                             -------

		Total Assets	                     $	     283,686
                                                             =======

LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities
	Accounts payable 	                     $	      21,100
	Loan payable and accrued interest		     102,000
	Loan payable, officer		                       4,150
                                                             -------

	Total Current Liabilities		             127,250
                                                             =======

Stockholders Equity
	Common stock, par value $.005
	   200,000,000 shares authorized
	   174,366,329 issued and outstanding		     871,832
	Additional paid in capital		           9,948,617
	Stock subscription receivable		            (170,000)
	Treasury stock 1,136,800 shares		             (16,000)
	Accumulated (Deficit)		                 (10,478,013)
                                                          ----------

	Total Stockholders Equity		             156,436
                                                             -------

Total Liabilities and Stockholders Equity	    $	     283,686
                                                             =======
</Table>



See Notes to Financial Statements and Registered Accountants Review Report












                                CALA CORPORATION
                            STATEMENTS OF OPERATIONS
                                   UNAUDITED

<Table>


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

		                             Three Months Ended	       Six Months Ended
		                                  June 30,		   June 30,
Operating Expenses 		            2005           2004       2005	     2004

General and Administrative Expenses	$  151,314	$  23,693   $  288,068	   $  25,276
                                           -------         ------      -------        ------

Operating Loss		                  (151,314)       (23,693)    (288,068)	     (25,276)
Other Income (Expense)
Other Income		                        --	       --	    --	      10,000
Interest Expense		            (2,000)	       --	(6,250)		  --
                                           -------         ------      -------        -------

Net (Loss) 	                        $ (153,314)	$ (23,693)  $ (294,318)	  $  (15,276)
                                           =======         ======      =======        ======

Basic and Diluted (Loss) Per
   Common Share

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

Basic and Diluted Weighted Average
   Common Shares Outstanding		155,254,425     49,918,637 145,491,350	 49,738,021
                                        ===========     ========== ===========   ==========
</Table>


    See Notes to Financial Statements and Registered Accountants Review Report











                                     CALA CORPORATION
                                STATEMENTS OF CASH FLOWS
                                       UNAUDITED
                                    Six Months Ended
<Table>

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

			                                        June 30,
			                                    2005	 2004
Cash flows from operating activities
	(Loss) from continuing operations	        $  (294,318)  $	 (15,276)

Stock based expenses		                             30,330	      --
Adjustments to reconcile net loss to net cash
	Accounts payable and accrued expenses		     23,100	      --
	Accrued salary, officer		                    150,000	 (11,940)
                                                            -------       ------

Cash used in operations		                            (90,888)	 (27,216)

Cash flows from investing activities		                 --	      --

Cash flows from financing activities,
	Loan payable, officer		                      3,150	    (500)
	Common stock payable		                         --	  27,400
	Common stock issued for cash		            370,000	   5,000
                                                            -------       ------
Cash provided by financing activities		            373,150	  31,900
                                                            -------       ------


Cash increase (decrease)		                    282,262	   4,684

Cash at beginning of period		                        164	     457
                                                            -------       ------

Cash at end of period	                                $   282,426  $	   5,141
                                                            =======       ======

Supplemental cash flow Information
	Income taxes paid                               $     4,250  $	      --
                                                             ======       ======

Non Monetary Transaction,
	Issuance of 2,500,000 shares of common
	 stock for the elimination of a liability	$	--   $	  12,500
                                                             =====        ======
	Issuance of 14,500,000 shares of common
	  stock for accrued salary	                $  187,500   $	      --
                                                           =======        ======
	Issuance of 1,233,000 shares of common
	  stock for services	                        $   30,330   $	      --
                                                           =======        ======
</Table>


See Notes to Financial Statements and Registered Accountants Review Report












                                 CALA CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2004
                                    UNAUDITED

NOTE 1 ORGANIZATION  NATURE OF OPERATIONS

Business

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

In the opinion of the Company, the accompanying unaudited financial
statements contain the adjustments (consisting of normal recurring accruals)
necessary to present the financial position as of June 30, 2005 and the
results of operations and statements of cash flows for the six months
ended June 30, 2005 and it is not necessarily indicative of the results
to be expected for the full year.


Basis of Presentation

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

Going Concern

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

See Registered Accountants Report




                                CALA CORPORATION
                         NOTES TO FINANCIAL STATEMENTS
                                  UNAUDITED

Recent Accounting Pronouncements

In December 2004,the Financial Accounting Standards Board (FASB) issued
sfas No 123r Share Based Payment. This statement is a revision to sfas 123
and supersedes Accounting Principles Board (APB) Opinion No 25, Accounting
for Stock Issued to Employees, and amends FASB Statement No 95, Statement
of Cash Flows. This statement requires a public entity to expense the cost
of employee services received in exchange for an award of equity instruments.
This statement also provides guidance on valuing and expensing these awards,
as well as disclosure requirements of these equity arrangements. This
statement is effective for the first interim reporting period that begins
after June 15, 2005.
sfas 123r permits public companies to choose between the following
two adoption methods,
1. A modified prospective method in which compensation cost is recognized
beginning with the effective date (a) based on the requirements of
SFAS 123R for all share-based payments granted after the effective date
and (b) based on the requirements of Statement 123 for all awards granted
to employees prior to the effective date of SFAS 123R that remain unvested
on the effective date, or
2. A modified retrospective method which includes the requirements of the
modified prospective method described above, but also permits entities
to restate based on the amounts previously recognized under SFAS 123 for
purposes of pro forma disclosures either (a) all prior periods presented
or (b) prior interim periods of the year of adoption.
As we do not currently have share based payments, we expect no impact
to the financial statements due to the adoption of SFAS 123R.
In March 2005, the FASB issued FASB Interpretation (FIN)
No. 47 Accounting for Conditional Asset Retirement Obligations
an Interpretation of FASB Statement No. 143 (FIN No. 47).
FIN No. 47 clarifies the timing of liability recognition for legal
obligations associated with the retirement of a tangible long lived
asset when the timing and, or method of settlement are conditional
on a future event. FIN No. 47 is effective for us no later than
December 31, 2005. We do not expect that the adoption of FIN
No. 47 will have a material impact on our financial condition or
results of operations.
In May 2005,  the FASB issued SFAS No. 154, Accounting Changes
and Error Corrections, a replacement of APB No. 20 and FASB
Statement No. 3 (SFAS No. 154).  SFAS No. 154 requires
retrospective application to prior periods financial statements
of a voluntary change in accounting principle unless it is
impracticable.  APB Opinion No. 20 Accounting Changes, previously
required that most voluntary changes in accounting principle be
recognized by including in net income of the period of the change
the cumulative effect of changing to the new accounting principle.
This statement is effective for our Company as of January 1, 2006.
The Company does not believe that the adoption of SFAS No. 154 will
have a material impact on our financial statements.


See Registered Accountants Report






                                  CALA CORPORATION
                            NOTES TO FINANCIAL STATEMENTS
                                     UNAUDITED

NOTE 2  COMMON STOCK

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

The Company issued 1,233,000 shares of common stock in lieu of $30,330 of
directors fees, consulting fees and investor relation services.


See Registered Accountants Report





MANAGEMENT DISCUSSION,

Item 1  Management has been laying the groundwork over the past year
so that the company can grow at a faster pace in the coming year. The
company has made great headway with the addition of Mr. Ray Francis as
the master behind the UnderSea Resort and Residence design. This
addition has allowed the Company to solve all naval engineering problems
originally presented by the project. Mr. Francis brings to the table over
40 years of maritime experience that is second to none in the maritime
industry. Mr. Francis talents allow for a design that benefits the
customer's safety, maximizes the openness and space of the facility,
and maintains the primary focus of human contact with marine life.
This coupled with Joseph Calas vast knowledge and experience in the
hospitality industry, along with eight years of intensive study and
seemingly endless trial and error, enabled the Company to overcome
extreme obstacles and to succeed in finalizing two naval engineered
designs for the Undersea Resort and Residence. With that task
accomplished, the Company has been fortunate to attract Mr. Clive Jones,
a former senior executive with Economic Research Associates, to
help with business development. Mr. Jones has over 40 years
of experience in worldwide leisure travel and tourism development,
and he was the visionary behind of many landmark resorts and theme
parks. In addition, the company is working with prestigious maritime
companies such as Stodga of Poland and FinCantieri of Italy.

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

The Company also obtained a judgment against the Mancinis, Querino
Caparrelli and IMOIL Oil of USA and Italy in the amount of $2.7 million.

Item 2.  Market for Registrants Common Stock and Related Stockholder
Matters,

The company did not issue any Preferred Stocks known as Class
A shares or any Option Shares known as gratis shares to the
companys top management. The only shares issued to top management
were in lieu of salaries.

Item 3. Submission of Matters to a Vote of Security Holders,

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

Item 4.  Directors and Executive Officers of the Registrant:

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

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

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

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

Item 5.  Executive and Directors Compensation:

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

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

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

Item 6. During the quarter, the Company filed no forms of reports with
the Securities and Exchange Commission.

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



Signatures

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

                                             CALA CORPORATION



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


Exhibit 31

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


I, Joseph Cala, certify that

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

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

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

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

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

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

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

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

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

     b)   any fraud, whether or not material, that involves
management orother employees who have a significant role in
the registrant's internalcontrols and

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


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

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


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

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

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


     Dated: January 16, 2006           By: /s/ Joseph Cala
                                           ---------------
                                           Joseph Cala
                                           Chairman and Ceo