STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-KSB

(Mark One)

[X]      ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934

For the fiscal year ended December 31, 2006
                          -----------------

[]       TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

                  For the transition period from _____ to _____

                         Commission file number 0-28475

                                  Merilus, Inc.
                 (Name of small business issuer in its charter)

         Nevada                                            87-0635270
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

               44 West Broadway, #1805, Salt Lake City, Utah 84101
               (Address of principal executive offices) (Zip Code)

                    Issuer's telephone number (801) 949-1020

Securities registered under Section 12(b) of the Exchange Act:

Title of each class                    Name of each exchange on which registered
        None                                      Not Applicable
        ----                                      --------------

Securities registered under Section 12(g) of the Exchange Act:

                    Common Stock, par value $0.001 per share

         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act 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 [ ]

         Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]

         Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes [x] No []

         State issuer's revenues for its most recent fiscal year. $ 0.00
                                                                  ------

         State the aggregate market value of the voting and non-voting common
equity held by non-affiliates computed by reference to the price at which the
common equity was sold, or the average bid and asked price of such common
equity, as of a specific date within the past 60 days: The registrant's common
stock has had limited trading volume. On March 6, 2007 the average bid and asked
price of the common stock was $0.02, resulting in an aggregate market value of
$110,880 for non-affiliated stock.

         State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: As of March 6, 2007, the
registrant had 11,920,804 shares of common stock issued and outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE

         If the following documents are incorporated by reference, briefly
describe them and identify the part of the Form 10-KSB (e.g., Part I, Part II,
etc.) into which the document is incorporated: (1) any annual report to security
holders; (2) any proxy or information statement, and (3) any prospectus filed
pursuant to Rule 424(b) or (c) of the Securities Act of 1933 ("Securities Act").
The listed documents should be clearly described for identification purposes:
None

<PAGE>
                                     PART I

Item 1. Description of Business

Merilus, Inc. ("Company") was incorporated in Nevada in May 1985 and its initial
business endeavors were not successful. During the year 2000 the Company filed a
definitive information statement pursuant to Section 14c of the Securities Act
of 1934, to disclose that it had entered into a reorganization agreement with
the intent to acquire all of the issued and outstanding shares of Merilus
Technologies, Inc. ("MTI"), a British Columbia, Canada corporation. The Company
had issued warrants for the purchase of 2,000,000 shares of its common stock at
an exercise price of $1.00 per share and upon entering into the reorganization
agreement, the warrants were exercised and the Company received $2,000,000,
which was given to MTI in exchange for notes receivable. Terms of the
reorganization agreement included the establishment of a trust into which the
Company issued 1 share of preferred stock that represented 3,767,500
"exchangeable shares" of the Company's common stock. Upon surrender by MTI
shareholders of their MTI stock, the Company would issue its common stock to the
MTI shareholder. By end of the year 2001, the Company had issued 828,300 shares
of its common stock, which represented approximately 22% of the exchangeable
shares. Prior to the completion of the terms of the reorganization agreement,
MTI filed for bankruptcy protection and was liquidated under the laws of Canada.
The acquisition of MTI by the Company was never consummated as contemplated.

Subsequently, the Company has had no revenue producing operations and is
considered a development stage enterprise. The Company is currently seeking an
acquisition or merger with an operating entity and has received loans from a
shareholder, issued shares of its common stock, and may raise capital through
the issuance of its common stock to further these efforts. The Company does not
propose to restrict its search for a business opportunity to any particular
industry or geographical area and may, therefore, seek such business opportunity
in essentially any business in any industry. The Company has unrestricted
discretion in seeking and participating in a business opportunity, subject to
the availability of such opportunities, economic conditions, and other factors.
The selection of a business opportunity in which to participate is complex and
risky and the Company has only limited resources that it may use to find good
business opportunities. There can be no assurance that the Company will be able
to identify and acquire any business opportunity which will ultimately prove to
be beneficial to the Company and its shareholders.

The activities of the Company are subject to several significant risks that
arise primarily as a result of the fact that the Company has no specific
business and may acquire or participate in a business opportunity based on the
decision of management. The Company will select a potential business opportunity
based on management's business judgment and potentially could act without the
consent, vote or approval of the Company's shareholders. The risks faced by the
Company are further increased as a result of its lack of resources and its
inability to provide a prospective business opportunity with significant
capital. See Item 6(a) Plan of Operations in this report.

Item 2. Description of Property

The Company does not maintain an administrative office but utilizes the mailing
address of the Company's president, Alex Demitriev, for business correspondence.
Without current operations, the Company does not believe that it is necessary to
have an business office.

Item 3. Legal Proceedings

None.

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

No matters were submitted to a vote of shareholders of the Company during the
fourth quarter of the fiscal year ended December 31, 2006.


<PAGE>
                                     PART II

Item 5. Market for Common Equity and Related Stockholder Matters

Market information - The principal market for the Company's common stock is the
Pink Sheets. The following high and low bid prices for the Company's Common
Stock is based on over-the-counter quotations that reflect inter-dealer prices,
without retail mark-up, mark-down or commissions, and may not necessarily
represent actual transactions. Furthermore, the Company's common stock has
traded sporadically and in small volume. Consequently, the information provided
below may not be indicative of the Company's common stock price under different
conditions.

Quarter Ended              High Bid Low Bid

December 2006              $0.01            $0.001
September 2006             $0.01            $0.001
June 2006                  $0.01            $0.001
March 2006                 $0.01            $0.001

December 2005              $0.006           $0.003
September 2005             $0.003           $0.003
June 2005                  $0.003           $0.001
March 2005                 $0.001           $0.001

December 2004              $0.001           $0.001
September 2004             $0.001           $0.001
June 2004                  $0.001           $0.001
March 2004                 $0.001           $0.001

Holders - At March 5, 2007, the Company had approximately 40 shareholders of
record based on information obtained from the Company's transfer agent.

Dividends - Since its inception, the Company has not paid any dividends on its
common stock and the Company does not anticipate that it will pay dividends in
the foreseeable future.

Item 6. Management's Discussion and Analysis or Plan of Operations

Special Note Regarding Forward-Looking Statements

This annual report contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 with respect to
the Plan of Operations provided below, including information regarding the
Company's financial condition, results of operations, business strategies,
operating efficiencies or synergies, competitive positions, growth
opportunities, plans and objectives of management. The statements made as part
of the Plan of Operations that are not historical facts are hereby identified as
"forward-looking statements."

a) Plan of Operations

Overview:

The Company has not had revenues from operations in each of the last two fiscal
years and is considered a development stage enterprise. The Company's current
operations have consisted of taking such action, as management believes
necessary, to prepare to seek an acquisition or merger with an operating entity.
The Company has obtained loans from a shareholder and has issued shares of its
common stock to its president for services rendered. The Company may also issue
shares of its common stock to raise equity capital. A shareholder of the Company
has financed the Company's current operations, which have consisted primarily of
maintaining in good standing the Company's corporate status and in fulfilling
its filing requirements with the Securities and Exchange Commission, including
the audit of its financial statements. Beyond the financial arrangements herein,
the Company has not entered into a definitive agreement with this shareholder,
or anyone else, regarding the receipt of future funds to meet its capital
requirements. However, management anticipates that whatever reasonable financial
requirements may be necessary to further its plan of operations, this
shareholder will continue to provide such financial resources to the Company as
needed during the next twelve months.

Nevertheless, the Company's financial statements contained in this report have
been prepared assuming that the Company will continue as a going concern. As
discussed in the footnotes to the financial statements and elsewhere in this
report, the Company is in the development stage and has not established any
source of revenue to sustain operations. These factors raise substantial doubt
that the Company will be able to continue as a going concern. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.


<PAGE>


A major shareholder of the Company has paid on behalf of the Company certain
costs and on December 14, 2005 the Company signed a promissory note payable to
the shareholder in the amount of $4,593.50. Subsequently, the Company
established a bank account and received a $4,000 cash advance and a commitment
of an additional $5,000 from the shareholder, for which the Company signed an
additional promissory note. The terms of these promissory notes require that
repayment be made in full with accrued interest at a rate of six percent per
annum the earlier of December 31, 2006 or within five days of the merger or
acquisition between the Company and another corporation or entity that has
operations. The Company and the shareholder have agreed to wait until March 31,
2007 for repayment on the note. The shareholder has loaned additional sums to
cover ongoing expenses of the Company. As of March 1, 2007, the shareholder had
loaned the Company a total of $18,473.

In 2005, Denny W. Nestripke accepted the position of the Company's sole officer
and director. Mr. Nestripke has not received any financial remuneration for his
services and it is not anticipated that any financial remuneration will be paid
to Mr. Nestripke. However, during the 4th quarter of 2005, the Company accrued a
liability payable to Mr. Nestripke in the amount of $1,500 and an additional
amount of $750 was earned during January of 2006. During January of 2006 Mr.
Nestripke received 750,000 shares of the Company's common stock valued at
$0.003, the prevailing market price during the period that the $2,250 was
earned. The services that Mr. Nestripke provided were largely related to the
preparation of financial statements, the preparation and review of filings being
made with the United States Securities and Exchange Commission, other regulatory
filings (such as tax returns), and the performance of other duties associated
with the Company's plan of operations. Mr. Nestripke resigned in late 2006 and
Alex Demitriev was appointed in his place.

Risks associated with the plan of operations:

In its search for a business opportunity, management anticipates that the
Company will incur additional costs for legal and accounting fees to locate and
complete a merger or acquisition. Other than previously discussed, the Company
does not have any revenue producing activities whereby it can meet these
financial requirements and anticipates that its cash position by the end of the
first quarter of 2007 will be minimal. On December 31, 2006, the Company's
obligations exceeded its cash position by $31,266 and the Company may further
obligate itself as it pursues its plan of operations. There can be no assurance
that the Company will receive any benefits from the efforts of management to
locate business opportunities.

The Company does not propose to restrict its search for a business opportunity
to any particular industry or geographical area and may, therefore, attempt to
acquire any business in any industry. The Company has unrestricted discretion in
seeking and participating in a business opportunity, subject to the availability
of such opportunities, economic conditions, and other factors. Consequently, if
and when a business opportunity is selected, such business opportunity may not
be in an industry that is following general business trends.

The selection of a business opportunity in which to participate is complex and
risky. Additionally, the Company has only limited resources and this fact may
make it more difficult to find good opportunities. There can be no assurance
that the Company will be able to identify and acquire any business opportunity
which will ultimately prove to be beneficial to the Company and its
shareholders. The Company will select any potential business opportunity based
on management's business judgment. At the present time, only Mr. Demitriev
serves in management and allowing only one individual to exercise his business
judgment in the selection of a business opportunity for the Company presents a
significant risk to the Company's shareholders. The Company may acquire or
participate in a business opportunity based on the decision of management that
potentially could act without the consent, vote, or approval of the Company's
shareholders.


<PAGE>


Since its inception, the Company has not generated any revenue and it is
unlikely that any revenue will be generated until such time as the Company
locates a business opportunity to acquire or with which it can merge. However,
the Company is not restricting its search to those business opportunities that
have profitable operations. Even though a business opportunity is acquired that
has revenues or gross income, there is no assurance that profitable operations
or net income will result therefrom. Consequently, even though the Company may
be successful in acquiring a business opportunity, such acquisition does not
assume that a profitable business opportunity is being acquired or that
shareholders will benefit through an increase in the market price of the
Company's common stock.

The acquisition of a business opportunity, no matter what form it may take, will
almost assuredly result in substantial dilution for the Company's current
shareholders. Inasmuch as the Company only has its equity securities (its common
and preferred stock) as a source to provide consideration for the acquisition of
a business opportunity, the Company's issuance of a substantial portion of its
authorized but unissued common stock is the most likely method for the Company
to consummate an acquisition. The issuance of any shares of the Company's common
stock will dilute the ownership percentage that current shareholders have in the
Company.

The Company does not intend to employ anyone in the future, unless its present
business operations were to change. Mr. Demitriev does not have a contract to
remain with the Company over any certain time period and may resign his position
prior to the time that a business opportunity is located and/or business
reorganization takes place.

At the present time, management does not believe it is necessary for the Company
to have an administrative office and utilizes the mailing address of the
Company's president for business correspondence. The Company intends to
reimburse management for any out of pocket costs other than those associated
with maintaining the mailing address.

c) Off-balance sheet arrangements.

The Company does not have any off-balance sheet arrangements and it is not
anticipated that the Company will enter into any off-balance sheet arrangements.

Item 7. Financial Statements

The Company's financial statements are presented immediately following the
signature page to this Form 10-KSB.

Item 8. Changes In and Disagreements With Accountants on Accounting and
        Financial Disclosure

The Company has had no disagreements with its principal independent accountants
with respect to accounting practices or procedures or financial disclosure.

Item 8A. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. Management believes that
the disclosure controls and procedures (as defined in Sections 13a-14c and 15d-
14c of the Securities Exchange Act of 1934, as amended) are adequate, based on
its evaluation of such disclosure controls and procedures within 90 days of this
filing.

(b) Changes in internal controls. There have been no significant changes in our
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation.

Item 8B. Other Information

None

<PAGE>

                                    PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance
        With Section 16(a) of the Exchange Act

The following table sets forth the name, age, and position of each executive
officer and director and the term of office.

Name                Age      Position                  Director or Officer Since
----                ---      --------                  -------------------------
Alex Demitriev      42       President, Secretary,
                             Treasurer, Director                2006

Set forth below is certain biographical information regarding the Company's
executive officer and director.

Mr. Demitriev has been self employed over the last five years owning a part
interest in an art gallery in Park City, Utah as well as engaging in the
importation of art, primarily from Russia. Mr. Demitriev also is an investor in
real estate projects in Utah and several foreign countries. At the present time,
Mr. Demitriev has not entered into any employment or other compensation
arrangements with Merilus, Inc. and will serve on a part time, as needed basis.
Mr. Demitriev is not an officer or director in any other companies that file
reports with the SEC. Mr. Demitriev is 42 years old and has had no prior
relationship with Merilus, Inc.

To the knowledge of management, during the past five years, no present or former
director, or executive officer of the Company:

(1) Has filed a petition under the federal bankruptcy laws or any state
insolvency law, nor had a receiver, fiscal agent or similar officer appointed by
a court for the business or property of such person, or any partnership in which
he or she was a general partner at or within two years before the time of such
filing, or any corporation or business association of which he or she was an
executive officer at or within two years before the time of such filing;

(2) Was convicted in a criminal proceeding or named subject of a pending
criminal proceeding (excluding traffic violations and other minor offenses);

(3) Was the subject of any order, judgment or decree, not subsequently reversed,
suspended or vacated, of any court of competent jurisdiction, permanently or
temporarily enjoining him from or otherwise limiting, the following activities:
         (i) Acting as a futures commission merchant, introducing broker,
commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, associated person of any of the foregoing, or as an
investment advisor, underwriter, broker or dealer in securities, or as an
affiliate person, director or employee of any investment company, or engaging in
or continuing any conduct or practice in connection with such activity;
         (ii) Engaging in any type of business practice;
         (iii) Engaging in any activity in connection with the purchase or sale
of any security or commodity or in connection with any violation of federal or
state securities laws or federal commodities laws;

(4) Was the subject of any order, judgment, or decree, not subsequently
reversed, suspended, or vacated, of any federal or state authority barring,
suspending, or otherwise limiting for more than 60 days the right of such person
to engage in any activity described above under this Item, or to be associated
with persons engaged in any such activity;

(5) Was found by a court of competent jurisdiction in a civil action or by the
Securities and Exchange Commission to have violated any federal or state
securities law, and the judgment in such civil action or finding by the
Securities and Exchange Commission has not been subsequently reversed,
suspended, or vacated.

(6) Was found by a court of competent jurisdiction in a civil action or by the
Commodity Futures Trading Commission to have violated any federal commodities
law, and the judgment in such civil action or finding by the Commodity Futures
Trading Commission has not been subsequently reversed, suspended or vacated.

Compliance With Section 16(A) Of The Exchange Act

The Company is not aware of any late reports filed by officers, directors and
ten percent shareholders.


<PAGE>

Item 10. Executive Compensation

Summary Compensation Table

The following tables set forth certain summary information concerning the
compensation paid or accrued for each of the Company's last three completed
fiscal years to the Company's or its principal subsidiaries' chief executive
officer and each of its other executive officers that received compensation in
excess of $100,000 during such period (as determined at December 31, 2006, the
end of the Company's last completed fiscal year):

                           Summary Compensation Table

<TABLE>
<CAPTION>
                                                                             Non-Equity             All
      Name and                                       Stock     Option      Incentive Plan         Other
 Principal Position   Year     Salary     Bonus     Awards     Awards       Compensation       Compensation      Total
-------------------   ----     -------    ------    ------     ------       ------------       ------------      -----
<S>                    <C>        <C>       <C>        <C>        <C>            <C>                 <C>           <C>
Alex Demitriev         2006      -0-       -0-        -0-        -0-            -0-                 -0-           -0-
Denny Nestripke        2005      -0-       -0-        -0-        -0-            -0-                 -0-           -0-
                       2004      -0-       -0-        -0-        -0-            -0-                 -0-           -0-
</TABLE>

Cash Compensation - No cash compensation was paid to any director or executive
officer of the Company during the fiscal years ended December 31, 2006, 2005,
and 2004.

Bonuses and Deferred Compensation - None

Compensation Pursuant to Plans - None

Pension Table - None

Other Compensation - None

Compensation of Directors - None

Termination of Employment and Change of Control Arrangement

There are no compensatory plans or arrangements, including payments to be
received from the Company, with respect to any person named in Cash Compensation
set out above which would in any way result in payments to any such person
because of his resignation, retirement, or other termination of such person's
employment with the Company or its subsidiaries, or any change in control of the
Company, or a change in the person's responsibilities following a changing in
control of the Company.

Item 11. Security Ownership of Certain Beneficial Owners and Management and
         Related Stockholder Matters

The following table sets forth as of March 5, 2007, the name and the number of
shares of the Company's common stock, par value $0.001 per share, held of record
or beneficially by each person who held of record, or was known by the Company
to own beneficially, more than 5% of the 11,920,804 issued and outstanding
shares of the Company's common stock, and the name and shareholdings of each
director and of all officers and directors as a group.

<TABLE>
<CAPTION>
                                                     Amount and Nature of
Title of Class    Name of Beneficial Owner           Beneficial Ownership (1)           Percent of Class
--------------    ------------------------           ------------------------           ----------------
<S>               <C>                                    <C>                                  <C>
Common            Micvic, LLC                            6,735,600 shares                     56.5%
                  4764 South 900 East
                  Salt Lake City, UT
Common            Denny W. Nestripke                       750,000 shares                      6.3%
                  10776 Wyngate Park Drive
                  South Jordan, UT
</TABLE>

<TABLE>
<CAPTION>
                  Name of Officer, Director          Amount and Nature of
Title of Class    and Nominee                        Beneficial Ownership (1)           Percent of Class
--------------    -----------                        ------------------------           ----------------
<S>               <C>                                <C>                                <C>
Common            Alex Demitriev                               -0-                             -0-

Common            All Officers and Directors
                  as a Group                                   -0-                             -0-
</TABLE>

(1) All shares are owned directly, beneficially and of record; and each
shareholder has sole voting, investment, and dispositive power, unless otherwise
noted.

<PAGE>


ITEM 12. Certain Relationships and Related Transactions

Transactions with management and others

A shareholder of the Company paid, on behalf of the Company, certain costs and
on December 14, 2005 the Company signed a promissory note payable to the Control
Shareholder in the amount of $4,594. Subsequently, the Company has received
additional cash advances from the shareholder. As of the date of this report,
the Company has received a combined total of $19,394 from the shareholder and a
commitment to receive an additional $5,000, and has signed promissory notes in
consideration thereof. The terms of these promissory notes require that
repayment be made in full with accrued interest at a rate of six percent per
annum the earlier of March 31, 2007, or within five days of the merger or
acquisition between the Company and another corporation or entity that has
operations.

Denny W. Nestripke, received 750,000 shares of the Company's common stock valued
at $0.003 (the prevailing market price during the period of his service), for
services rendered through the filing of this report. The services provided by
Mr. Nestripke were largely related to the preparation of financial statements,
the preparation and review of filings being made with the United States
Securities and Exchange Commission, other regulatory filings (such as tax
returns), and the performance of other duties associated with the Company's plan
of operations (see Item 6 of this report). The total value of the stock issued
was $2,250.

ITEM 13. Exhibits

Financial Statements - the following financial statements are included in this
report:

Title of Document                                    Page

Report of Independent Registered Public Accounting Firm       F-1
Balance Sheet                                                 F-2
Statements of Operations                                      F-3
Statements of Stockholders' (Deficit)                         F-4-5
Statements of Cash Flows                                      F-6
Notes to Financial Statements                                 F-7-9

Financial Statement Schedules - There are no financial statement schedules
included as part of this report

Exhibits - The following exhibits are included as part of this report:

<TABLE>
<CAPTION>
Exhibit     Reference
Number      Number       Title of Document                           Location
<C>         <C>          <C>                                         <C>
3.01        3            Articles of Incorporation                   Incorporated by reference*

3.02        3            Amended Articles of Incorporation           Incorporated by reference**

3.03        3            Amended Articles of Incorporation           Incorporated by reference***

3.04        3            Bylaws                                      Incorporated by reference*

4.01        4            Specimen Stock Certificate                  Incorporated by reference*

31.01       31           CEO certification Pursuant to 18 USC
                         Section 1350, as adopted pursuant to
                         Section 302 of Sarbanes-Oxley Act of 2002   This Filing

31.02       31           CFO certification Pursuant to 18 USC
                         Section 1350, as adopted pursuant to
                         Section 302 of Sarbanes-Oxley Act of 2002   This Filing

32.01       32           CEO Certification pursuant to Section 906   This Filing

32.02       32           CFO Certification pursuant to Section 906   This Filing
</TABLE>

* Incorporated by reference from the Company's registration statement on Form
10-SB filed with the Commission, SEC file no.000-28475.

** Incorporated by reference from the Company's definitive 14C filed on July 31,
2000, with the Commission, SEC file no.000-28475.

*** Incorporated by reference from the Company's definitive 14C filed on January
9, 2001, with the Commission, SEC file no.000-28475.


<PAGE>


Item 14. Principal Accountant Fees and Services

(1) Audit Fees - The aggregate fees billed in each of the last two fiscal years
for professional services rendered by the Company's principal accountant for the
audit of the annual financial statements and review of financial statements
included in the Form 10-QSB or services that are normally provided by the
accountant in connection with statutory and regulatory filings or engagements
for those fiscal years are: $2,375 for 2006 and $3,525 for 2005.

(2) Audit-Related Fees - The aggregate fees billed in each of the last two
fiscal years for assurance and related services by the Company's principal
accountant that are reasonably related to the performance of the audit or review
of the financial statements and are not reported in (1) Audit Fees: $2,425
for 2006 and $0 for 2005.

(3) Tax Fees - The aggregate fees billed in each of the last two fiscal years
for professional services rendered by the Company's principal accountant for tax
compliance, tax advice, and tax planning: $0 for 2006 and $0 for 2005.

(4) All Other Fees - The aggregate fees billed in each of the last two fiscal
years for products and services provided by the Company's principal accountant,
other than the services reported in (1) Audit Fees; (2) Audit-Related Fees; and
(3) Tax Fees:
$0 for 2006 and $0 for 2005

(5) The Company does not have an audit committee

(6) Not Applicable


                                   SIGNATURES

         In accordance with section 13 or 15(d) of the Exchange Act, the
registrant caused this report to by signed on its behalf by the undersigned,
thereunto duly authorized.

                     Merilus, Inc.

                     By: /s/ Alex Demitriev
                     Alex Demitriev, Principal Executive and Financial Officer

                     Date: March 29, 2007

         In accordance with the Exchange Act, this report has been signed below
by the following person on behalf of the registrant and in the capacities and on
the dates indicated.

                    By: /s/ Alex Demitriev
                    Alex Demitriev, Principal Executive and Financial Officer

                    Date:  March 29, 2007


<PAGE>
                      Child, Van Wagoner & Bradshaw, PLLC
                      5296 South Commerce Drive, Suite 300
                        Salt Lake City, Utah 84107-5370
                            Telephone: (801)281-4700
                            Facsmilie: (801)281-4701
                                 www.cpaone.net



            REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Officers and Directors
Merilus, Inc.

We have audited the accompanying balance sheet of Merilus, Inc. as of December
31, 2006, and the related statements of operations, stockholders' deficit, and
cash flows for the years ended December 31, 2006 and 2005. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States of America). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. The company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the company's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Merilus, Inc. as of December
31, 2006, and the results of its operations, stockholders' deficit and its cash
flows for the years ended December 31, 2006 and 2005, in conformity with
accounting principles generally accepted in the United States of America.

The accompanying financial statements referred to above have been prepared
assuming that the Company will continue as a going concern. As discussed in Note
1 to the financial statements, the Company is in the development stage, and has
no established source of revenue to sustain operations. These factors raise
substantial doubt that the Company will be able to continue as a going concern.
The financial statements do not include any adjustments that might result from
the outcome of this uncertainty.



/s/ Child, Van Wagoner & Bradshaw, PLLC
Certified Public Accountants
Salt Lake City, Utah
March 12, 2007

                                      F-1

<PAGE>

                                 Merilus, Inc.
                       ( a development stage enterprise )
                                 Balance Sheet

<TABLE>
<CAPTION>
                                                                                    December 31,
                                                                                        2006
                                                                                 -------------------
                                     ASSETS:
Current Assets:
<S>                                                                              <C>
Cash in Bank                                                                     $               444
                                                                                 -------------------

                                                                    TOTAL ASSETS $               444
                                                                                 ===================


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable                                                                 $            15,100
Payable to officer and shareholder                                                            16,610

                                                                                 -------------------
Total Liabilities                                                                             31,710
                                                                                 -------------------

Stockholders' Equity (Deficit)
Preferred Stock - $1.00 par value, 1 share authorized,
0 share issued and outstanding                                                                     0
Common Stock - $0.001 par value, 100,000,000 shares authorized,
11,920,804 shares issued and outstanding                                                      11,921
Additional paid-in capital                                                                 3,201,957
Deficit accumulated during the development stage                                          (3,245,144)
                                                                                 -------------------
Total Stockholders' Equity (Deficit)                                                         (31,266)
                                                                                 -------------------

                            TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $               444
                                                                                 ===================
</TABLE>


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

                                      F-2


<PAGE>



                                  Merilus, Inc.
                       ( a development stage enterprise )
                            Statements of Operations


<TABLE>
<CAPTION>
                                                                                          From the date
                                                                                           of inception
                                                                                          (May 7, 1985)
                                               For the Years Ended                            through
                                           December 31,            December 31,            December 31,
                                               2006                    2005                    2006
                                        -------------------    --------------------    --------------------
<S>                                     <C>                    <C>                     <C>
Revenue                                 $                 0    $                  0    $                  0
                                        -------------------    --------------------    --------------------

Expenses:
General and administrative                           22,662                   7,790                 122,575
Loss on investment                                        0                       0               3,121,853
Interest expense                                        703                      13                     716
                                        -------------------    --------------------    ---------------------
                          Total Expense              23,365                   7,803               3,245,144
                                        -------------------    --------------------    ---------------------

                               Net Loss $           (23,365)   $             (7,803)   $         (3,245,144)
                                        ===================    ====================    ====================

                     Net loss per share
                        of common stock $             (0.00)   $              (0.00)
                                        ===================    ====================


                Weighted average number
of common shares outstanding                     11,858,304              11,170,804
                                        -------------------    --------------------
</TABLE>


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

                                      F-3
<PAGE>


                    Merilus, Inc.
          ( a development stage enterprise )
        Statements of Stockholders' (Deficit)
   From the date of inception (May 7, 1985) through
                  December 31, 2006

<TABLE>
<CAPTION>
                                   Preferred          Common         Preferred       Common         Paid in         Accumulated
                                     Shares           Shares           Stock         Stock          Capital           Deficit
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, May 7, 1985
<S>                               <C>             <C>               <C>            <C>            <C>             <C>
 - date of inception                         0                 0    $          0   $         0    $          0    $              0
Common Stock issued for
 cash through
 December 1991
 ($0.006 / share)                            0         3,750,000               0         3,750          18,750                   0
Common Stock issued for
 cash through
 December 1992
 ($0.005 / share)                            0         1,000,000               0         1,000           4,000                   0
Common Stock issued for
 cash through
 December 1999
 ($0.009 / share)                            0         2,000,000               0         2,000          15,500                   0
Net Operating Loss
 from the date of
 inception through
 December 31, 1999                           0                 0               0             0               0             (45,500)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 1999                   0         6,750,000               0         6,750          38,250             (45,500)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Issuance and exercise of
 warrants for the
 purchase of common
 stock, November 2000
 ($1.00 / share)                             0         2,000,000               0         2,000       1,998,000                   0
Issuance of preferred stock
 in trust in contemplation
 of acquiring shares of
 Merilus Technologies, Inc.,
 December 2000 (Note 2)                      1                 0               1             0              (1)                  0
Net Operating Loss for
 the year ended
 December 31, 2000                           0                 0               0             0               0              (7,775)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 2000                   1         8,750,000               1         8,750       2,036,249             (53,275)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Shares of common stock issued
 for cash, June 2001 ($1.00
 / share - Note 2)                           0           600,000               0           600         599,400                   0
Shares of common stock issued
 for cash, November 2001
 ($0.85 / share - Note 2)                    0           182,504               0           183         154,945                   0
Shares of common stock issued
 for legal services,
 November 2001 ($0.85 / share
 - Note 2)                                   0            35,000               0            35          29,715                   0
Shares of common stock issued
 for cash, December 2001
 ($0.50 / share - Note 2)                    0           750,000               0           750         374,250                   0
Issuance of shares of common
 stock pursuant to
 an exchange agreement,
 December 2001
 ($0.001 / share - Note 2)                   0           828,300               0           828            (828)                  0
Issuance of shares of common
 stock for services,
 December 2001 ($0.25
 / share - Note 2)                           0            25,000               0            25           6,350                   0
Termination of trust agreement
 (Note 2)                                   (1)                0              (1)            0               1                   0
Net Operating Loss for the
 year ended December 31, 2001
 (Note 2)                                    0                 0               0             0               0          (3,157,978)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 2001                   0        11,170,804    $          0   $    11,171    $  3,200,082    $     (3,211,253)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
</TABLE>

                                  (continued)

                                      F-4
<PAGE>

                    Merilus, Inc.
          ( a development stage enterprise )
                Statements of Stockholders' (Deficit) (continued)
   From the date of inception (May 7, 1985) through
                  December 31, 2006

<TABLE>
<CAPTION>
                                   Preferred          Common         Preferred       Common         Paid in         Accumulated
                                     Shares           Shares           Stock         Stock          Capital           Deficit
                                  ------------    --------------    ------------   -----------    ------------    ----------------
<S>                               <C>             <C>               <C>            <C>            <C>             <C>
BALANCE, December 31, 2001                   0        11,170,804    $          0   $    11,171    $  3,200,082    $     (3,211,253)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Net Operating Loss for the
 year ended
 December 31, 2002                           0                 0               0             0               0                   0
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 2002                   0        11,170,804               0        11,171       3,200,082          (3,211,253)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Net Operating Loss for the
 year ended
 December 31, 2003                           0                 0               0             0               0                (125)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 2003                   0        11,170,804               0        11,171       3,200,082          (3,211,378)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Net Operating Loss for the
 year ended
 December 31, 2004                           0                 0               0             0               0              (2,598)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 2004                   0        11,170,804               0        11,171       3,200,082          (3,213,976)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Payment of accounts payable
 by shareholder                              0                 0               0             0             375                   -
Net Operating Loss for the
 year ended
 December 31, 2005                           0                 0               0             0               0              (7,803)
                                  ------------    --------------    ------------   -----------    ------------    ----------------
BALANCE, December 31, 2005                   0        11,170,804               0        11,171       3,200,457          (3,221,779)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

Issuance of shares of common
 stock for services,
 February 2006, ($0.003
 / share - Note 5)                           0           750,000               0           750           1,500                   0
Net Operating Loss for the
 year ended
 December 31, 2006                           0                 0               0             0               0             (23,365)
                                  ------------    --------------    ------------   -----------    ------------    ----------------

BALANCE, December 31, 2006                   0        11,920,804    $          0   $    11,921    $  3,201,957    $     (3,245,144)
                                  ============    ==============    ============   ===========    ============    ================
</TABLE>


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

                                      F-5
<PAGE>


                                  Merilus, Inc.
                       ( a development stage enterprise )
                            Statements of Cash Flows


<TABLE>
<CAPTION>
                                                                                          From the date
                                                                                           of inception
                                               For the Years Ended through                (May 7, 1985)
                                           December 31,            December 31,            December 31,
                                               2006                    2005                    2006
                                        -------------------    --------------------    --------------------
 OPERATING ACTIVITIES:
<S>                                     <C>                    <C>                     <C>
Net loss from operations                $           (23,365)   $             (7,803)   $         (3,245,144)
Adjustment to reconcile net loss
 to net cash position:
  Stock issued for services                             750                       0                  38,375
  Accounts payable                                   11,058                   1,320                  15,100
  Payable to officer / director                           0                   1,500                       -
  Payable to shareholder                                703                       0                     716
  Loss on investments                                     0                       0               3,121,853
                                        -------------------    --------------------    --------------------
            Net cash used for operating
                             activities             (10,854)                 (4,983)                (69,100)
                                        -------------------    --------------------    --------------------

 INVESTING ACTIVITIES:
Investment in Merilus
 Technologies, Inc. (Note 2)                              0                       0              (3,130,128)
                                        -------------------    --------------------    --------------------
            Net cash used for investing
                             activities                   0                       0              (3,130,128)
                                        -------------------    --------------------    --------------------

 FINANCING ACTIVITIES:
Proceeds from issuance of
 common stock                                             0                       0               3,175,128
Loans from shareholder                                7,300                   8,606                  15,894
Donation of capital                                       0                     375                   8,650
                                        -------------------    --------------------    --------------------
                 Net cash provided from
                   financing activities               7,300                   8,981               3,199,672
                                        -------------------    --------------------    --------------------

        Net increase (decrease) in cash              (3,554)                  3,998                     444

   Net cash position at start of period               3,998                       0                       0
                                        -------------------    --------------------    --------------------

     Net cash position at end of period $               444    $              3,998    $                444
                                        ===================    ====================    ====================
</TABLE>


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

                                      F-6


<PAGE>


                                  Merilus, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements



Note 1: Summary of Significant Accounting Policies

Development stage enterprise

Merilus, Inc. (the "Company") was incorporated under the laws of the State of
Nevada on May 7, 1985. The Company's initial operations proved unsuccessful.
During 1999 the Company forward split its outstanding shares of common stock on
a basis of 200 for 1, and during the year 2000 the Company again forward split
its common stock on a basis of 10 for 1 and amended its articles of
incorporation to authorize the issuance of a preferred class of stock. The
financial statements of the Company retroactively reflect the effects of both of
these forward splits.

During the year 2000 the Company entered into a reorganization agreement
("Agreement") with the intent to acquire all of the issued and outstanding
shares of a development stage enterprise, Merilus Technologies, Inc. ("MTI"), a
British Columbia corporation. During 2001 the Company attempted to complete the
terms of the Agreement; however, the acquisition of MTI was never consummated as
contemplated and in 2003 MTI filed for bankruptcy (See Note 2). Subsequent
thereto the Company became dormant and during 2005, the Company commenced its
efforts to acquire an operating entity.

Going concern

These financial statements have been prepared in contemplation of the Company
continuing as a going concern. However, the Company has not had revenues from
operations in each of the last two fiscal years, is considered a development
stage enterprise as defined by SFAS 7, and is seeking an acquisition or merger
with an operating entity. The Company's ability to meet its ongoing financial
requirements has been dependent on loans from a shareholder. The Company assumes
that this arrangement will continue during the next 12 months; however, no
assurance thereof can be given. A change in these circumstances would have a
material adverse effect on the Company's plan of operations. (See Note 3 and 6)

Use of estimates

These financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America and require that management
make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities. The use of
estimates and assumptions may also affect the reported amounts of revenues and
expenses. Actual results could differ from those estimates or assumptions.

Net loss per share of common stock

The loss per share of common stock is computed by dividing the net loss during
the period presented by the weighted average number of shares outstanding during
that same period.

Income taxes

The Company has not had any income in prior periods and therefore, no income
taxes have been paid. Management is of the opinion that future taxable income
may not be allowed to offset prior losses and therefore has not established a
deferred tax asset.

Revenue recognition

The Company has not had any realizable sources of revenue and consequently, has
not established a policy for the recognition of revenue.

                                      F-7

<PAGE>

                                  Merilus, Inc.
                        (a development stage enterprise)
                    Notes to Financial Statements (continued)



Note 1: Summary of Significant Accounting Policies (continued)

New accounting pronouncements

In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of
Financial Assets - an amendment of FASB Statement No. 140. This pronouncement
requires an entity to recognize a servicing asset or servicing liability each
time it undertakes an obligation to service a financial asset and permits an
entity to use either the amortization method or the fair value measurement
method for each class of separately recognized servicing assets and servicing
liabilities.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. This
pronouncement defines fair value, establishes a framework for measuring fair
value, and expands disclosures about fair value measurements.

In September 2006, the FASB issued SFAS No. 158, Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB
Statements No. 87, 88, 106, and 132(R). This pronouncement requires entities to
recognize a net liability or asset of their defined benefit pension and other
postretirement benefit plans on their balance sheets.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities, including an amendment of FASB
Statement No. 115. This pronouncement permits entities 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.

The Company believes that these new accounting pronouncements will not have any
impact on its financial statements.

Note 2: Reorganization Agreement

During the year 2000 and in contemplation of entering into the Agreement for the
purpose of acquiring all of the issued and outstanding shares of MTI, the
Company issued warrants for the purchase of 2,000,000 shares of its common stock
at an exercise price of $1.00 per share. Upon entering into the Agreement the
warrants were exercised and the Company received $2,000,000, which was given to
MTI in exchange for notes receivable. Pursuant to the Agreement a trust was
established into which the Company issued 1 share of preferred stock that
represented 3,767,500 "exchangeable shares" of the Company's common stock. Upon
surrender by MTI shareholders of their MTI stock, the Company would issue its
common stock to the MTI shareholder. By the end of the year 2001, the Company
had issued 828,300 shares of its common stock, which represented approximately
22% of the exchangeable shares. Subsequent to this issuance, no further shares
of the Company's common stock were issued to MTI shareholders pursuant to the
Agreement and the Company cancelled the preferred share that had been issued.
The 828,300 shares that were issued were valued on the Company's financial
statements at the par value of its common stock or $0.001.

During the year 2001, the Company conducted its operations as though it had
acquired MTI even though its control of MTI was only through the Agreement and
the officers and directors that were elected pursuant thereto. During 2001 the
Company issued shares of its common stock for the benefit of MTI in the
following amounts: 60,000 shares for services valued at the approximate fair
market value at the time of issuance of $36,125 (per share price ranging between
$0.25 and $1.00); and 1,532,504 shares for cash, valued at the cash
consideration received (per share price ranging between $0.25 and $1.00).

During 2003 MTI filed for bankruptcy in British Columbia, Canada, listing the
Company as an unsecured creditor. The Company has not collected any amounts from
the bankruptcy proceedings and does not anticipate the collection of any
amounts.


                                       F-8

<PAGE>

                                  Merilus, Inc.
                        (a development stage enterprise)
                    Notes to Financial Statements (continued)




Note 3: Related Party Transactions

The Company has received unsecured cash advances from a shareholder in the
amount of $15,894. The Company signed interest bearing (6% per annum) promissory
notes that are due in full with accrued interest the earlier of December 31,
2006 or within five days of the merger or acquisition between the Company and
another corporation or entity that has operations. At December 31, 2006 the
Company had accrued interest in the amount of $716 on these notes. See Note 6.

During February 2006 the Company issued 750,000 shares of common stock to its
then President in consideration of amounts due, resulting from management
services that had been rendered. These services were valued at $2,250 and
represent an equivalent of $.003 per share (which amount approximated the market
value of the Company's common stock during the period when the services were
performed).

Note 4: General and Administrative Expenses and Interest Expenses

During the year ended December 31, 2006, the Company incurred general and
administrative losses in the amount of $22,662 comprised of stock transfer agent
fees ($595), legal fees ($11,613); audit fees ($6,650), non-audit fees ($2,425),
management fees ($750); filing fees ($574), and other expenses ($55). During the
year ended December 31, 2005, the Company incurred general and administrative
expenses in the amount of $7,790, comprised of stock transfer agent fees ($745),
filing fees ($227), legal and accounting fees ($5,318), and management fees
($1,500). In 2006, the Company accrued $703 of interest on a note payable to a
shareholder ($13 in 2005).

Note 5: Contingent Liabilities

To the extent that the Company was a party to any financial transactions that
were not discharged through MTI's bankruptcy proceedings, including the
obligations associated with the issuance of the one share of preferred stock, or
that may not have been listed as part of MTI's bankruptcy, the Company may have
contingent liabilities. To the best of management's knowledge and belief the
financial statements accurately reflect the financial position of the Company as
of the dates presented and no contingent liabilities exist.

Note 6: Subsequent Events

During January 2007, a shareholder advanced an additional $3,500 to the Company
and during March 2007, the Company signed an extension agreement with the
shareholder that extended the repayment period for its existing notes payable to
March 31, 2007 or within five days of the merger or acquisition between the
Company and another corporation or entity that has operations.


                                      F-9