**UNITED
      STATES SECURITIES**


**AND
      EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**FORM
      10-KSB**





[X]              ANNUAL
      REPORT UNDER SECTION 13 OR 15 OF THE SECURITIES EXCHANGE ACT OF1934


For
      the fiscal year ended July
      31, 2007





Commission
      file
      number:******000-52204**





[  ]              TRANSITION
      REPORT UNDER SECTION 13 OR 15 OF THE SECURITIES EXCHANGE ACT OF1934





**PINEL
      BAY CORPORATION**


(Name
      of
      small business issuer in its charter)





**COLORADO**


(State
      or
      Other Jurisdiction of Incorporation or Organization)





**84-1380873**


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





**16200
                WCR 18E, Loveland, Colorado**
            
            **80537**(Address
                of Principal Executive Office)
            
            (Zip
                Code)





Issuer's
      telephone number: **970-635-0346**





Securities
      Registered Under Section
      12(b) of the Act: None





Securities
      Registered Under Section 12(g) of the Act:




**Common
      Stock, No Par Value**


(Title
      of
      Class)





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 past 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. [
      ]





State
      issuer's revenues for its most recent fiscal year: None.





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





The  aggregate  market
      value of the voting stock held by  non-affiliates  shares
      (220,000 of $.01 par value Common  Stock) was $0 as of July 31,
      2007.  The stock
      price  for  computation  purposes  was  $-0-,  based
      on the fact  that  there is presently no Market for the
      Company's securities.  This value is not intended to be
      a  representation  as to the  value or worth of
      the Registrant's  shares  of
      Common Stock. The number of shares of  non-affiliates of the
      Registrant has been calculated by subtracting  shares held by persons
      affiliated with the Registrant from outstanding shares.





The
      number of shares  outstanding  of
      the  Registrant's  Common  Stock as of the latest
      practicable date, July 31, 2007 was 1,020,000 shares.








INDEX
      TO
      ANNUAL REPORT


ON
      FORM
      10-KSB








PagePART
                I
            1Item
                1. DESCRIPTION OF BUSINESS
            1Item
                2. DESCRIPTION OF PROPERTY
            8Item
                3. LEGAL PROCEEDINGS
            8Item
                4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
            8PART
                II
            8Item
                5. MARKET FOR COMMON EQUITY , RELATED STOCKHOLDER MATTERS AND SMALL
                BUSINESS ISSUER PURCHASE OF EQUITY SECURITIES
            8Item
                6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
                OPERATION
            10Item
                7. FINANCIAL STATEMENTS
            10Item
                8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
                FIURE
            10Item
                8A CONTROLS AND PROCEDURES
            11Item
                8B OTHER INFORMATION
            11PART
                III
            11Item
                9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
                PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT
            11Item
                10. EXECUTIVE COMPENSATION
            11Item
                11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
                AND
                RELATED STOCKHOLDER MATTERS
            12Item
                12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
            12Item
                13. EXHIBITS AND REPORTS ON FORM 8-K
            12Item
                14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
            12SIGNATURES
            13











**PART
      I**





The
      matters  addressed in this report on Form 10-KSB,  with the
      exception of the historical information presented,  contain
      forward-looking  statements involving risks
      and  uncertainties.  The Company's actual results could
      differ  materially
      from  those  anticipated  in
      these  forward-looking  statements  as a
      result  of
      certain  factors,  including  those  factors  set  forth
      in the  Description  of Business section (Item 1) and
      elsewhere in this report.







**Item
      1. DESCRIPTION OF BUSINESS**





(a)  History
      of the Company





Pinel
      Bay
      Corporation (the "Company" or the "Registrant"), is a Colorado corporation.
      Our
      principal business address is 16200 WCR
      18E,  Loveland,  Colorado 80537. Our phone number is
      970-635-0346. We were  organized  under the laws of the
      State of  Colorado on October 28, 1996 to engage in any lawful
      corporate  undertaking,  including  selected  mergers  and
      acquisitions. We remained inactive through July 6, 2006.





Our
      only  activity to date has been to attempt to locate
      and  negotiate  with a business entity for the merger of
      that target company into our Company.





(b)  Current
      Operations





Our  current  operations  consist  solely  of  seeking  merger  or  acquisition
      candidates.





We
      will
      attempt to locate and negotiate with a business entity for the merger of that
      target company into the Company or a wholly owned subsidiary of the Company
      formed for the purpose of such a merger. In certain instances, a target company
      may wish to become a subsidiary of the Company or may wish to
      contribute  assets to the Company  rather than
      merge.  No assurances can be given that the Company will
      be  successful in locating
      or  negotiating  a  transaction  with
      any target company.





We
      have
      attempted to provide a method for a foreign or domestic private company to
      become a
      reporting  ("public")  company  whose  securities  are
      qualified for trading in the United States secondary market.





We
      believe there are certain perceived benefits to being a reporting company with
      a
      class of publicly-traded securities.  These benefits are commonly
      thought to include the following:





*    the
      ability to use registered securities to acquire assets or
      businesses;





*     increased
      visibility in the marketplace;





*    ease
      of borrowing from financial institutions;





*    improved
      stock trading efficiency;





*    shareholder
      liquidity;


*-
          1
          -*








*    greater
      ease in subsequently raising capital;





*    compensation
      of key employees through stock options;





*    enhanced
      corporate image;





*    a
      presence in the United States capital market.





Target  companies  interested  in
      a business  combination  with the  Company may
      include the following:





*    a
      company for whom a primary  purpose of becoming  public is
      the use of its securities for the acquisition of other assets or
      businesses;





*    a
      company which is unable to find an  underwriter  of
      its  securities or is unable to find an underwriter of securities on
      terms acceptable to it;





*    a
      company  which  desires to become public with less dilution
      of its common stock than would occur upon an underwriting;





*    a
      company which believes that it will be able to obtain
      investment  capital on more favorable terms after it has become
      public;





*    a
      foreign  company  which may wish an initial  entry
      into the United States securities market;





*    a
      special situation  company,  such as a company seeking a
      public market to
      satisfy  redemption  requirements  under a
      qualified  Employee Stock Option Plan;





*    a
      company seeking one or more of the other mentioned  perceived benefits
      of becoming a public company.





A
      business  combination with a target company will normally involve the
      transfer to the target company of the majority of the issued and outstanding
      common stock of the Company,  and the election by the
      target  business of its own  management and board of
      directors.





The
      proposed  business  activities  described  herein  classify
      the Company as a "blank check"  company.  The Securities and
      Exchange  Commission and many states have enacted
      statutes,  rules and regulations limiting the sale of securities of
      blank check companies. At the present time, there is no market for the Company's
      securities.





(c)
      Risks
      Related to the Plan of Operation





The  Company's  business  is
      subject to
      numerous  risk  factors,  including  the
      following:





*-
          2
          -*


WE
        HAVE
        NO RECENT OPERATING HISTORY, NO OPERATING REVENUES, AND WE HAVE MINIMAL ASSETS.
        The Company has had no operations nor any revenues or earnings from operations.
        The Company has only limited assets and financial resources. The Company
        will,
        in all likelihood, sustain operating expenses without corresponding revenues,
        at
        least until the consummation of a business combination. This may result in
        the
        Company incurring a net operating loss which will increase continuously until
        the Company can consummate a business combination with a target company.
        There
        is no assurance that the Company can identify such a target company and
        consummate such a business combination.
 
 THE
        SPECULATIVE NATURE OF OUR PROPOSED OPERATIONS. The success of the Company's
        proposed plan of operation will depend to a great extent on the operations,
        financial condition and management of the identified target company. While
        management intends to seek business combinations with entities having
        established operating histories, there can be no assurance that the Company
        will
        be successful in locating candidates meeting such criteria. In the event
        the
        Company completes a business combination the success of the Company's operations
        may be dependent upon the management, operations, and financial condition
        of the
        target company, and numerous other factors beyond the Company's
        control.
 
 THERE
        IS
        A SCARCITY OF AND COMPETITION FOR BUSINESS OPPORTUNITIES AND COMBINATIONS.
        The
        Company is and will continue to be an insignificant participant in the business
        of seeking mergers with and acquisitions of business entities. A large number
        of
        established and well-financed entities, including venture capital firms,
        are
        active in mergers and acquisitions of companies which may be merger or
        acquisition target candidates for the Company. Nearly all such entities have
        significantly greater financial resources, technical expertise and managerial
        capabilities than the Company. Consequently, the Company will be at a
        competitive disadvantage in identifying possible business opportunities and
        successfully completing a business combination.
 
 WE
        HAVE
        NO AGREEMENT FOR ANY BUSINESS COMBINATION OR OTHER TRANSACTION. The Company
        has
        no arrangement, agreement or understanding with respect to engaging in a
        merger
        with or acquisition of a business entity. There can be no assurance the Company
        will be successful in identifying and evaluating suitable business opportunities
        or in concluding a business combination. Management has not identified any
        particular industry or specific business within an industry for evaluation
        by
        the Company. There is no assurance the Company will be able to negotiate
        a
        business combination on terms favorable to the Company. The Company has not
        established a specific length of operating history or a specified level of
        earnings, assets, net worth or other criteria which it will require a target
        business opportunity to have achieved to consider a business combination
        with
        it. Accordingly, the Company may enter into a business combination with a
        business entity having no significant operating history, losses, limited
        or no
        potential for earnings, limited assets, negative net worth or other negative
        characteristics.
 
 OUR
        MANAGEMENT HAS ONLY A LIMITED TIME COMMITMENT TO THE COMPANY. Our resident
        has
        several business interests and will devote a limited amount of his time to
        the
        Company's business. While seeking a business combination, our president
        anticipates devoting up to ten hours per month to the business of the Company.
        The Company's president has not entered into a written employment agreement
        with
        the Company and he is not expected to do so in the foreseeable future. We
        have
        not obtained key man life insurance on our president. Notwithstanding the
        combined limited experience and time commitment of our president, loss of
        the
        services of this individual would adversely affect development of the Company's
        business and its likelihood of continuing operations.


*-
          3
          -*


OUR
        SOLE
        OFFICER AND DIRECTOR MAY HAVE CONFLICTS OF INTEREST WITH THE BUSINESS OF
        OUR
        COMPANY. The Company's sole officer and director participates in other business
        ventures which may result in conflicts of interest and non- arms length
        transactions arising in the future. Management has adopted a policy that
        the
        Company will not seek a merger with, or acquisition of, any entity in which
        any
        member of management serves as an officer, director or partner, or in which
        they
        or their family members own or hold any ownership interest.
 
 BEING
        A
        REPORTING COMPANY COMPLICATES AND COULD DELAY AN ACQUISITION. Section 13
        of the
        Securities Exchange Act of 1934 (the "Exchange Act") requires us to provide
        certain information about significant acquisitions including certified financial
        statements for the company acquired covering one or two years, depending
        on the
        relative size of the acquisition. The time and additional costs that may
        be
        incurred by some target companies to prepare such statements may significantly
        delay or essentially preclude consummation of an otherwise desirable acquisition
        by the Company. Acquisition prospects that do not have or are unable to obtain
        the required audited statements may not be appropriate for acquisition so
        long
        as the reporting requirements of the Exchange
        Act are applicable.
 
 WE
        HAVE A
        LACK OF MARKET RESEARCH AND NO MARKETING ORGANIZATION. We have neither
        conducted, nor have others made available to us, results of market research
        indicating that market demand exists for the transactions contemplated by
        the
        Company. Moreover, the Company does not have, and does not plan to establish,
        a
        marketing organization. Even in the event demand is identified for the type
        of
        merger or acquisition contemplated by the Company, there is no assurance
        the
        Company will be successful in completing any such business
        combination.
 
 CERTAIN
        REGULATIONS MAY APPLY TO OUR OPERATIONS. Although the Company will be subject
        to
        regulation under the Exchange Act, management believes the Company will not
        be
        subject to regulation under the Investment Company Act of 1940, insofar as
        the
        Company will not be engaged in the business of investing or trading in
        securities. In the event the Company engages in business combinations which
        result in the Company holding passive investment interests in a number of
        entities, the Company could be subject to regulation under the Investment
        Company Act of 1940. In such event, the Company would be required to register
        as
        an investment company and could be expected to incur significant registration
        and compliance costs. We have not obtained a formal determination from the
        Securities and Exchange Commission as to the status of the Company under
        the
        Investment Company Act of 1940. If we inadvertently violate such Act, we
        could
        be subjected to material adverse consequences.
 
 THERE
        WILL BE A CHANGE IN MANAGEMENT. A business combination involving the issuance
        of
        the Company's common stock will, in all likelihood, result in shareholders
        of a
        target company obtaining a controlling interest in the Company. Any such
        business combination may require our Management to sell or transfer all or
        a
        portion of the Company's common stock held by them, and to resign as directors
        and officers of the Company. The resulting change in control of the Company
        will
        likely result in removal of the present officer and director of the Company
        and
        a corresponding reduction in or elimination of his participation in the future
        affairs of the Company.




*-
          4
          -*


THE
        PLAN
        OF OPERATION PROVIDES FOR SUBSTANTIAL DILUTION TO OUR EXISTING SHAREHOLDERS
        AS A
        RESULT OF A MERGER. Our plan of operation is based upon a business combination
        with a business entity which, in all likelihood, will result in the Company
        issuing securities to shareholders of such business entity. The issuance
        of
        previously authorized and unissued common stock of the Company would result
        in a
        reduction in percentage of shares owned by the present shareholders of the
        Company and would most likely result in a change in control or management
        of the
        Company.
 
 WE
        MAY
        NOT BE ABLE TO ENGAGE IN A TAX FREE ACQUISITION. We intend to structure any
        business combination so as to minimize the federal and state tax consequences
        to
        both the Company and the target entity. However, there can be no assurance
        that
        such a business combination will meet the statutory requirements of a tax-free
        reorganization or that the parties will obtain the intended tax-free treatment
        upon a transfer of stock or assets. A non- qualifying reorganization could
        result in the imposition of both federal and state taxes which may have an
        adverse effect on the parties to the transaction and therefore the transaction
        itself.
 
 THE
        REQUIREMENT OF AUDITED FINANCIAL STATEMENTS MAY DISQUALIFY BUSINESS
        OPPORTUNITIES. Management of the Company will require any potential business
        combination entity to provide audited financial statements. One or more
        attractive prospects may choose to forego the possibility of a business
        combination with the Company rather than incur the expenses associated with
        preparing audited financial statements.
 
 Such
        audited financial statements may not be immediately available. In such case,
        the
        Company intends to obtain certain assurances as to the target company's assets,
        liabilities, revenues and expenses prior to consummating a business combination,
        with further assurances that an audited financial statement will be provided
        after closing of such a transaction. Closing documents relative thereto will
        include representations that the audited financial statements will not
        materially differ from the representations included in such closing
        documents.
 
 (d)
        Plan
        of Operation
 
 We
        intend
        to merge with or acquire a business entity in exchange for our securities.
        We
        have no particular acquisition in mind and have not entered into any
        negotiations regarding such an acquisition. We
        anticipate seeking out a target business through solicitation. Such solicitation
        may include newspaper or magazine advertisements, mailings and other
        distributions to law firms, accounting firms, investment bankers, financial
        advisors and similar persons, the use of one or more World Wide Web sites
        and
        similar methods. No estimate can be made as to the number of persons who
        will be
        contacted or solicited. Such persons will have no relationship to
        management.
 
 We
        have
        no full time employees. The Company's president has agreed to allocate a
        portion
        of his time to the activities of the Company as a consultant. The president
        anticipates that the business plan of the Company can be implemented by his
        devoting approximately 10 hours per month to the business affairs of the
        Company
        and, consequently, conflicts of interest may arise with respect to the limited
        time commitment by such officer.


*-
          5
          -*


The
        Company's president is currently involved with other companies which have
        a
        business purpose similar to that of the Company. A conflict may arise in
        the
        event that another blank check company with which management is affiliated
        is
        formed and actively seeks a target business. Management anticipates that
        target
        businesses will be located for the Company and other blank check companies
        in
        chronological order of the date of formation of such blank check companies.
        It
        may be that a target business may be more suitable for or may prefer a certain
        blank check company formed after the Company. In such case, a business
        combination might be negotiated on behalf of the more suitable or preferred
        blank check company regardless of date of formation.
 
 The
        Articles of Incorporation of the Company provide that the Company may indemnify
        officers and/or directors of the Company for liabilities, which can include
        liabilities arising under the securities laws. Therefore, assets of the Company
        could be used or attached to satisfy any liabilities subject to such
        indemnification.
 
 Our
        plan
        is to seek, investigate and, if such investigation warrants, acquire an interest
        in a business entity which desires to seek the perceived advantages of a
        corporation which has a class of securities registered under the Exchange
        Act.
        The Company will not restrict its search to any specific business, industry,
        or
        geographical location and the Company may participate in a business venture
        of
        virtually any kind or nature. This discussion of the proposed business is
        not
        meant to be restrictive of the Company's virtually unlimited discretion to
        search for and enter into potential business opportunities.
  We
        may
        seek a business opportunity with entities which have recently commenced
        operations, or which wish to utilize the public marketplace in order to raise
        additional capital in order to expand into new products or markets, to develop
        a
        new product or service, or for other corporate purposes.
  The Company
        may acquire assets and establish wholly-owned subsidiaries in various businesses
        or acquire existing businesses as subsidiaries.
 
 We
        anticipate that the selection of a business opportunity in which to participate
        will be complex and extremely risky. Due to general economic conditions,
        rapid
        technological advances being made in some industries and shortages of available
        capital, management believes that there are numerous firms seeking the perceived
        benefits of a publicly registered corporation. Such perceived benefits may
        include facilitating or improving the terms on which additional equity financing
        may be sought, providing liquidity for incentive stock options or similar
        benefits to key employees, and providing liquidity for shareholders and other
        factors. Business opportunities may be available in many different industries
        and at various stages of development, all of which will make the task of
        comparative investigation and analysis of such business opportunities difficult
        and complex.
 
 The
        Company has, and will continue to have, only limited capital with which to
        provide the owners of business opportunities with any cash or other assets.
        However, we believe the Company will be able to offer owners of acquisition
        candidates the opportunity to acquire a controlling ownership interest in
        a
        publicly registered company without incurring the cost and time required
        to
        conduct an initial public offering. Management has not conducted market research
        and is not aware of statistical data to support the perceived benefits of
        a
        merger or acquisition transaction for the owners of a business
        opportunity.


*-
          6
          -*


The
        analysis of new business opportunities will be undertaken by, or under the
        supervision of the Company's president who is not a professional business
        analyst. In analyzing prospective business opportunities, management will
        consider such matters as available technical, financial and managerial
        resources; working capital and other financial requirements; history of
        operations, if any; prospects for the future; nature of present and expected
        competition; the quality and experience of management services which may
        be
        available and the depth of that management; the potential for further research,
        development, or exploration; specific risk factors not now foreseeable, but
        which then may be anticipated to impact the proposed activities of the Company;
        the potential for growth or expansion; the potential for profit; the perceived
        public recognition or acceptance of products, services, or trades; name
        identification; and other relevant factors. Management will meet personally
        with
        management and key personnel of the target business entity as part of its
        investigation. To the extent possible, the Company intends to utilize written
        reports and personal investigation to evaluate the above factors. The Exchange
        Act requires that any merger or acquisition candidate comply with all certain
        reporting requirements, which include providing audited financial statements
        to
        be included in the reporting filings made under the Exchange Act. The Company
        will not acquire or merge with any company for which audited financial
        statements cannot be obtained at or within a reasonable period of time after
        closing of the proposed transaction.
 
 We
        will
        in all likelihood not be experienced in matters relating to the business
        of a
        target company, and management will rely upon its own experience in
        accomplishing the business purposes of the Company. Therefore, it is anticipated
        that outside consultants or advisors may be utilized to assist us in the
        search
        for and analysis of qualified target companies.
 
 The
        Company will not restrict its search to any specific kind of firm, but may
        acquire a venture which is in its preliminary or development stage, one which
        is
        already in operation, or in a more mature stage of its corporate existence.
        The
        acquired business may need to seek additional capital, may desire to have
        its
        shares publicly traded, or may seek other perceived advantages which the
        Company
        may offer. However, the Company does not intend to obtain additional funds
        to
        finance the operation of any acquired business opportunity until such time
        as
        the Company has successfully consummated the
 merger
        or
        acquisition transaction.
 
 MANNER
        OF
        ACQUISITION
 
 In
        implementing a structure for a particular business acquisition, the Company
        may
        become a party to a merger, consolidation, reorganization, joint venture,
        or
        licensing agreement with another entity. We also may acquire stock or assets
        of
        an existing business. On the consummation of a transaction it is probable
        that
        the present Management and shareholders of the Company will no longer be
        in
        control of the Company. In addition, the Company's president and director,
        as
        part of the terms of the acquisition transaction, likely will be required
        to
        resign and be replaced by one or more new officers and directors without
        a vote
        of our shareholders.


*-
          7
          -*


It
        is
        anticipated that any securities issued in any such reorganization would be
        issued in reliance upon exemption from registration under applicable federal
        and
        state securities laws. In some circumstances, however, as a negotiated element
        of a transaction, the Company may agree to register all or a part of such
        securities immediately after the transaction is consummated or at specified
        times thereafter. If such registration occurs, of which there can be no
        assurance, it will be undertaken by the surviving entity after the Company
        has
        entered into an agreement for a business combination or has consummated a
        business combination and the Company is no longer considered a blank check
        company. Until such time as this occurs, the Company will not attempt to
        register any additional securities. The issuance of substantial additional
        securities and their potential sale into any trading market which may develop
        in
        the Company's securities may have a depressive effect on that
        market.
 
 While
        the
        actual terms of a transaction to which the Company may be a party cannot
        be
        predicted, it may be expected that the parties to the business transaction
        will
        find it desirable to avoid the creation of a taxable event and thereby structure
        the acquisition as a "tax-free" reorganization under Sections 351 or 368
        of the
        Internal Revenue Code of 1986, as amended.
 
 With
        respect to any merger or acquisition, negotiations with target company
        management are expected to focus on the percentage of the Company which the
        target company shareholders would acquire in exchange for all of their
        shareholdings in the target company. Depending upon, among other things,
        the
        target company's assets and liabilities, the Company's shareholders will
        in all
        likelihood hold a substantially lesser percentage ownership interest in the
        Company following any merger or acquisition. The percentage ownership may
        be
        subject to significant reduction in the event the Company acquires a target
        company with substantial assets. Any merger or acquisition effected by the
        Company can be expected to have a significant dilutive effect on the percentage
        of shares held by the Company's shareholders at such time.
 
 The
        Company will participate in a business opportunity only after the negotiation
        and execution of appropriate agreements. Although the terms of such agreements
        cannot be predicted, generally such agreements will require certain
        representations and warranties of the parties thereto, will specify certain
        events of default, will detail the terms of closing and the conditions which
        must be satisfied by the parties prior to and after such closing, will outline
        the manner of bearing costs, including costs associated with the Company's
        attorneys and accountants, and will include miscellaneous other
        terms.
 
 We
        are
        presently subject to all of the reporting requirements included in the Exchange
        Act. Included in these requirements is the duty of the Company to file audited
        financial statements as part of its Form 8-K to be filed with the Securities
        and
        Exchange Commission upon consummation of a merger or acquisition, as well
        as the
        Company's audited financial statements included in its annual report on Form
        10-K (or 10-KSB, as applicable). If such audited financial statements are
        not
        available at closing, or within time parameters necessary to insure the
        Company's compliance with the requirements of the Exchange Act, or if the
        audited financial statements provided do not conform to the representations
        made
        by the target company, the closing documents may provide that the proposed
        transaction will be voidable at the discretion of the present management
        of the
        Company.


*-
          8
          -*


**COMPETITION**
 
 The
        Company will remain an insignificant participant among the firms which engage
        in
        the acquisition of business opportunities. There are many established venture
        capital and financial concerns which have significantly greater financial
        and
        personnel resources and technical expertise than the Company. In view of
        the
        Company's limited financial resources and limited management availability,
        the
        Company may be at a competitive disadvantage compared to the Company's
        competitors.





**Item
      2. DESCRIPTION OF PROPERTY**





The  Company  currently  occupies  offices
      in the home of its  president,  which
      location  also serves as offices for
      Amery  Coast  Corporation  as well as other
      companies.  From inception through June
      2006,  affiliates  provided free office space to the
      Company,  on an as needed  basis. From  July
      2006  through present  the president of the Company
      contributed office space valued at  $100 per month.








**Item
      3. LEGAL PROCEEDINGS**





No
      legal  proceedings  to which the Company is a party
      were  pending  during the
      reporting  period,  and the Company knows of no
      legal  proceedings of a material nature,  pending or
      threatened,  or judgments  entered against the sole director
      and officer of the Company in his capacity as such.








**Item
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**





The  Company  did
      not submit any matter to a vote
      of  security  holders  through solicitation of
      proxies or otherwise during the reporting period.








**PART
      II**





**Item
      5. MARKET FOR THE COMPANY'S COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS**





(a)  Principal
      Market or Markets. The Company's stock has not traded and, at the present time,
      it has no trading symbol.





(b)  Approximate  Number
      of  Holders of Common  Stock.  The number of
      holders of record of the Company's Common Stock as of July 2007 was
      approximately 25 .





(c)  Dividends.  Holders
      of common stock are entitled to receive such  dividends as may be
      declared by the Company's Board of Directors. No dividends on the common stock
      were paid by the Company  during the
      periods  reported  herein nor does the Company anticipate
      paying dividends in the foreseeable future.





(d)  Recent
      Sales of Unregistered Securities. NOT APPLICABLE





*-
          9
          -*


**Item
      6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATION**





Forward-Looking
      Statements





Certain
        statements contained in this annual report on Form 10-KSB including without
        limitation, statements containing the words "believes," "anticipates,"
        "estimates," "expects," and words of similar import, constitute "forward-looking
        statements." You should not place undue reliance on these forward-looking
        statements. Our actual results and the structure of transactions which may
        occur
        in the future could differ materially from those described in these
        forward-looking statements for many reasons, including those set forth in
        the
        risk factors included herein and for other reasons including the demands
        of the
        specific business entity with which the company may elect to engage in a
        transaction.


Plan
      of
      Operation





See
      Part
      I, Item 1., "Description of Business-Plan of Operation."





Liquidity
      and Capital Resources





At
      July
      31, 2007, the Company's  fiscal year end, the Company had cash and
      cash equivalents  of $1,379,  reflecting  a
      decrease in cash of $6,621 from July 31,2006. While the Company has no
      foreseeable capital commitments,  it also has no
      present  expectations of generating any cash flow from
      operations  until such
      time  as  it  may  successfully   complete  the  acquisition  of  the  business,
      operations, or assets of an operating entity.





At
      present time, Management has plans to
      raise  additional  funds through the issuance of equity and
      subject to the success of Management’s plan, we believe  that our
      current  cash and  equivalents, supplemented with cash from
      sale of shares,  will satisfy our  expected working capital
      requirements through fiscal 2008.








**Item
      7. FINANCIAL STATEMENTS**





The
      report of the independent  auditors on the
      financial  statements  appears at Page F-2 and the financial
      statements and their accompanying footnotes appear at Pages F-3 through F-9
      hereof.  These financial statements and related financial information
      required to be filed hereunder are incorporated herein by
      reference.








**Item
      8. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
      FINANCIAL  DISCLOSURE**





The  Company  did  not  have  any  disagreements  on  accounting  and  financial
      disclosures with its present accounting firm during the reporting
      period.


*-
          10
          -*


**PINEL
      BAY CORPORATION**


**(A
      Development Stage Company)**


**Index
      to Financial Statements**








**Page**Report
                of Independent Registered Public Accounting Firm
            F-2Balance
                Sheet at July 31, 2007
            F-3Statement
                of Operations for the year ended July 31, 2007, for the
                periodfrom
                July 6, 2006 (inception) through July 31, 2006, and for the
                periodfrom
                July 6, 2006 (inception) through July 31, 2007
            F-4Statement
                of Changes in Shareholders' Deficit for the period fromJuly
                6, 2006 (inception) through July 31, 2007
            F-5Statement
                of Cash Flows for the year ended July 31, 2007, for the
                periodfrom
                July 6, 2006 (inception) through July 31, 2006, and for the
                periodfrom
                July 6, 2006 (inception) through July 31, 2007
            F-6Notes
                to Financial Statements
            F-7







*F
          -
          1*




**REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**











To
      the
      Board of Directors and Shareholders:


Pinel
      Bay
      Corporation








We
      have
      audited the balance sheet of Pinel Bay Corporation (a development stage company)
      as of July 31, 2007, and the related statements of operations, changes in
      shareholders’ equity and cash flows for the year ended July 31, 2007, the period
      from July 6, 2006 (inception) through July 31, 2006, and the period from July
      6,
      2006 (inception) through July 31, 2007.  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).  Those standards require
      that we plan and perform the audits to obtain reasonable assurance about whether
      the financial statements are free of material misstatement.  An audit
      includes examining, on a test basis, evidence supporting the amounts and
      disclosures in the financial statements.  An audit also includes
      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 Pinel Bay Corporation as of July
      31, 2007, and the results of its operations and its cash flows for the year
      ended July 31, 2007, the period from July 6, 2006 (inception) through July
      31,
      2006, and the period from July 6, 2006 (inception) through July 31, 2007 in
      conformity with accounting principles generally accepted in the United States
      of
      America.





The
      accompanying financial statements have been prepared assuming the Company will
      continue as a going concern.  As discussed in Note 1 to the financial
      statements, the Company has suffered operating losses since inception and has
      a
      limited operating history, which raises a substantial doubt about its ability
      to
      continue as a going concern.  Management’s plans in regard to these
      matters are also described in Note 1.  The financial statements do not
      include any adjustments that might result from the outcome of this
      uncertainty.








/s/ Cordovano and Honeck LLP


Cordovano
      and Honeck LLP


Englewood,
      Colorado


October
      2, 2007


*F
          -
          2*


**PINEL
      BAY CORPORATION**


**(A
      Development Stage Company)**


**Balance
      Sheet**











**July
                31, 2007****Assets**Cash
            
            $
            1,379**Liabilities
                and Shareholders’ Deficit**Liabilities:Accrued
                liabilities
            
            $
            3,000Total
                liabilities
            
            
            3,000Shareholders’
                deficit (Notes 2 and 3):Preferred
                stock, no par value; 5,000,000 shares authorized,-0-
                shares issued and outstanding
            
            
            —Common
                stock, no par value; 50,000,000 shares authorized,1,020,000
                shares issued and outstanding
            
            
            9,600Additional
                paid-in capital
            
            
            1,300Deficit
                accumulated during development stage
            
            
            (12,521
            )Total
                shareholders' deficit
            
            
            (1,621
            )Total
                liabilities and shareholders' deficit
            
            $
            1,379








See
      accompanying notes to financial statements


*F
          -
          3*


**PINEL
      BAY CORPORATION**


**(A
      Development Stage Company)**


**Statements
      of Operations**







**July
                6,**
            
            
            **July
                6,****2006**
            
            
            **2006****For
                The**
            
            
            **(Inception)**
            
            
            **(Inception)****Year
                Ended**
            
            
            **Through**
            
            
            **Through****July
                31,**
            
            
            **July
                31,**
            
            
            **July
                31,****2007**
            
            
            **2006**
            
            
            **2007**Operating
                expenses:Professional
                fees
            
            $
            7,309
            
            
            $
            3,000
            
            
            $
            10,309Contributed
                rent, related party (Note 2)
            
            
            1,200
            
            
            
            100
            
            
            
            1,300Other
            
            
            37
            
            
            
            75
            
            
            
            112Total
                operating expenses
            
            
            8,546
            
            
            
            3,175
            
            
            
            11,721Loss
                before income taxes
            
            
            (8,546
            )
            
            
            (3,175
            )
            
            
            (11,721
            )Income
                tax provision (Note 4)
            
            
            —
            
            
            
            —
            
            
            
            —Net
                loss
            
            $
            (8,546
            )
            
            $
            (3,175
            )
            
            $
            (11,721
            )Basic
                and diluted loss per share
            
            $
            (0.01
            )
            
            $
            (0.00
            )Basic
                and diluted weighted averagecommon
                shares outstanding
            
            
            1,020,000
            
            
            
            1,000,000







See
      accompanying notes to financial statements


*F
          -
          4*


**PINEL
      BAY CORPORATION**


**(A
      Development Stage Company)**


**Statement
      of Changes in Shareholders' Deficit**








**Deficit****Accumulated****Additional**
            
            
            **During****Preferred
                Stock**
            
            
            **Common
                Stock**
            
            
            **Paid-in**
            
            
            **Development****Shares**
            
            
            **Amount**
            
            
            **Shares**
            
            
            **Amount**
            
            
            **Capital**
            
            
            **Stage**
            
            
            **Total**Balance
                at July 6, 2006 (inception) (Note 1)
            
            
            —
            
            
            $
            —
            
            
            
            800,000
            
            
            $
            800
            
            
            $
            —
            
            
            $
            (800
            )
            
            $
            —July
                2006, common shares sold in privateplacement
                offering ($.04 per share) (Note 3)
            
            
            —
            
            
            
            —
            
            
            
            200,000
            
            
            
            8,000
            
            
            
            —
            
            
            
            —
            
            
            
            8,000Office
                space contributed by an officer (Note 2)
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            100
            
            
            
            —
            
            
            
            100Net
                loss, period ended July 31, 2006
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            (3,175
            )
            
            
            (3,175
            )Balance
                at July 31, 2006
            
            
            —
            
            
            
            —
            
            
            
            1,000,000
            
            
            
            8,800
            
            
            
            100
            
            
            
            (3,975
            )
            
            
            4,925August
                2006, common shares sold in privateplacement
                offering ($.04 per share) (Note 3)
            
            
            —
            
            
            
            —
            
            
            
            20,000
            
            
            
            800
            
            
            
            —
            
            
            
            —
            
            
            
            800Office
                space contributed by an officer (Note 2)
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            1,200
            
            
            
            —
            
            
            
            1,200Net
                loss, year ended July 31, 2007
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            —
            
            
            
            (8,546
            )
            
            
            (8,546
            )Balance
                at July 31, 2007
            
            
            —
            
            
            $
            —
            
            
            
            1,020,000
            
            
            $
            9,600
            
            
            $
            1,300
            
            
            $
            (12,521
            )
            
            $
            (1,621
            )








See
      accompanying notes to financial statements


*F
          -
          5*


**PINEL
      BAY CORPORATION**


**(A
      Development Stage Company)**


**Statements
      of Cash Flows**





**July
                6,**
            
            
            **July
                6,****2006**
            
            
            **2006****For
                The**
            
            
            **(Inception)**
            
            
            **(Inception)****Year
                Ended**
            
            
            **Through**
            
            
            **Through****July
                31,**
            
            
            **July
                31,**
            
            
            **July
                31,****2007**
            
            
            **2006**
            
            
            **2007**Cash
                flows from operating activities:Net
                loss
            
            $
            (8,546
            )
            
            $
            (3,175
            )
            
            $
            (12,521
            )Adjustments
                to reconcile net loss to net cashused
                in operating activities:Contributed
                rent (Note 2)
            
            
            1,200
            
            
            
            100
            
            
            
            1,300Changes
                in operating assets and liabilities:Accrued
                liabilities
            
            
            (75
            )
            
            
            3,075
            
            
            
            3,000Net
                cash used inoperating
                activities
            
            
            (7,421
            )
            
            
            —
            
            
            
            (8,221
            )Cash
                flows from financing activities:Proceeds
                from common stock sales (Note 3)
            
            
            800
            
            
            
            8,000
            
            
            
            9,600Net
                cash provided byfinancing
                activities
            
            
            800
            
            
            
            8,000
            
            
            
            9,600Net
                change in cash
            
            
            (6,621
            )
            
            
            8,000
            
            
            
            1,379Cash,
                beginning of period
            
            
            8,000
            
            
            
            —
            
            
            
            —Cash,
                end of period
            
            $
            1,379
            
            
            $
            8,000
            
            
            $
            1,379Supplemental
                disclosure of cash flow information:Cash
                paid during the period for:Income
                taxes
            
            $
            —
            
            
            $
            —
            
            
            $
            —Interest
            
            $
            —
            
            
            $
            —
            
            
            $
            —





See
      accompanying notes to financial statements


*F
          -
          6*


**(1)**
            **Organization, Basis of Presentation, and Summary of Significant Accounting
                Policies**





***Organization
                and Basis of
                Presentation***





Pinel
      Bay
      Corporation (the “Company”) was initially incorporated on October 28, 1996 in
      the State of Colorado.  During January 1997, the Company issued its
      president and sole director 800,000 shares of its no par value common stock
      in
      exchange for organization costs.  Following the stock issuance, the
      Company remained inactive through July 6, 2006.  Although the Company
      was incorporated on October 28, 1996, the accompanying financial statements
      report July 6, 2006 as the date of inception for accounting purposes, which
      was
      the date the Company commenced its operating activities.





The
      Company is a development stage enterprise in accordance with Statement of
      Financial Accounting Standards (“SFAS”) No. 7 and is considered a “shell” or
“blank check” company.  The Company has been in the development stage
      since inception and has no revenue-producing operations to date.  The
      Company’s business plan is to evaluate, structure and complete a merger with, or
      acquisition of, a privately owned corporation.





***Development
                Stage***





The
      Company is in the development stage in accordance with SFAS No. 7 “Accounting
      and Reporting by Development Stage Enterprises”.  As of July 31, 2007,
      the Company has devoted substantially all of its efforts to financial planning
      and a private placement offering of its common stock.





***Going
                Concern***





The
      accompanying financial statements have been prepared on a going concern basis,
      which contemplates the realization of assets and the satisfaction of liabilities
      in the normal course of business.  As shown in the accompanying
      financial statements, the Company is a development stage enterprise with losses
      since inception and a limited operating history.  These factors, among
      others, may indicate that the Company will be unable to continue as a going
      concern for reasonable period of time.





The
      financial statements do not include any adjustments relating to the
      recoverability and classification of assets and liabilities that might be
      necessary should the Company be unable to continue as a going
      concern.  The Company’s continuation as a going concern is dependent
      upon its ability to generate sufficient cash flow to meet its obligations on
      a
      timely basis and ultimately to attain profitability.  The Company
      intends to seek additional funding through equity offerings to fund its business
      plan.  There is no assurance that the Company will be successful in
      raising additional funds.





***Use
                of Estimates***





The
      preparation of financial statements in accordance with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities and the disclosure of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts of revenues and expenses during the reporting
      period.  Actual results could differ from those
      estimates.





***Cash
                and Cash Equivalents***





The
      Company considers all highly liquid debt instruments with original maturities
      of
      three months or less when acquired to be cash equivalents.  The
      Company had no cash equivalents at July 31, 2007.






*F
          -
          7*





***Income
                Taxes***





Income
                taxes are provided for the tax effects of transactions reported in
                the
                financial statements and consist of taxes currently due plus deferred
                taxes related primarily to differences between the recorded book
                basis and
                the tax basis of assets and liabilities for financial and income
                tax
                reporting.  Deferred tax assets and liabilities represent the
                future tax return consequences of those differences, which will either
                be
                taxable or deductible when the assets and liabilities are recovered
                or
                settled.  Deferred taxes are also recognized for operating
                losses that are available to offset future taxable income and tax
                credits
                that are available to offset future federal income
                taxes.





***Organization
      Costs***





Costs
      related to the organization of the Company have been expensed as
      incurred.





***Loss
      per Common Share***





The
      Company reports net loss per share using a dual presentation of basic and
      diluted loss per share. Basic net loss per share excludes the impact of common
      stock equivalents.  Diluted net loss per share utilizes the average
      market price per share when applying the treasury stock method in determining
      common stock equivalents.  At July 31, 2007, there were no variances
      between the basic and diluted loss per share as there were no potentially
      dilutive securities outstanding.





**(2)** **Related
      Party Transactions**





***Common
      Stock***





On
      January 30, 1997, the Company issued its president and sole director 800,000
      shares of its no par common stock as payment for $800 in fees and expenses
      incurred as part of organizing the Company.





***Office
      Space***





The
      Company’s president and sole director contributed office space to the Company
      for the period presented in the accompanying financial
      statements.  The office space was valued at $100 per month based on
      the market rate in the local area and is included in the accompanying financial
      statements as “Contributed rent, related party” with a corresponding credit to
“Additional paid-in capital”.





**(3)         Shareholders’
      Equity**





During
      July and August 2006, the Company offered for sale 500,000 shares at of its
      common stock at a price of $0.04 per share.  The Company sold 220,000
      shares for proceeds of $8,800.  The offering was made in reliance on
      an exemption from registration of a trade in the United States under Section
      4(2) of Regulation D of the United States Securities Act of 1933, as
      amended.  The Company relied upon exemptions from registration
      believed by it to be available under federal and state securities laws in
      connection with the offering.  All sales were conducted through the
      Company’s officer and director.





**(4)         Income
      Taxes**





A
      reconciliation of U.S. statutory federal income tax rate to the effective rate
      follows:


*F
          -
          8*





For
                The
            
            
            July
                6, 2006Year
            
            
            (Inception)Ended
            
            
            ThroughJuly
                31, 2007
            
            
            July
                31, 2006U.S.
                statutory federal rate, graduated
            
            
            15.00
            %
            
            
            15.00
            %State
                income tax rate, net of federal
            
            
            3.94
            %
            
            
            3.94
            %Contributed
                rent
            
            
            -2.66
            %
            
            
            -0.60
            %Net
                operating loss (NOL) for whichno
                tax benefit is currently available
            
            
            -16.28
            %
            
            
            -18.34
            %0.00
            %
            
            
            0.00
            %








At
      July
      31, 2007, deferred tax assets consisted of a net tax asset of $1,973, due to
      operating loss carryforwards of $10,421, which was fully allowed for, in the
      valuation allowance of $1,973.  The valuation allowance offsets the
      net deferred tax asset for which it is more likely than not that the deferred
      tax assets will not be realized.  The change in the valuation
      allowance for the periods ended July 31, 2007 and 2006 totaled $1,391 and $582,
      respectively.  The current tax benefit also totaled $1,391 for the
      year ended July 31, 2007.  The net operating loss carryforward expires
      through the year 2027.





The
      valuation allowance will be evaluated at the end of each year, considering
      positive and negative evidence about whether the deferred tax asset will be
      realized.  At that time, the allowance will either be increased or
      reduced; reduction could result in the complete elimination of the allowance
      if
      positive evidence indicates that the value of the deferred tax assets is no
      longer impaired and the allowance is no longer required.





Should
      the Company undergo an ownership change as defined in Section 382 of the
      Internal Revenue Code, the Company’s tax net operating loss carryforwards
      generated prior to the ownership change will be subject to an annual limitation,
      which could reduce or defer the utilization of these losses.




*F
          -
          9*





**Item
      8A. CONTROLS AND PROCEDURES**





(a)  Evaluation  of  disclosure  controls
      and  procedures.  Our Chief  Executive Officer and
      Principal Accounting Officer has evaluated the effectiveness of
      our  disclosure  controls and  procedures (as such
      term is defined in Rules 13a-15 and 15d-15 under
      the  Securities  Exchange  Act of
      1934,  as amended (the  "Exchange  Act")) as of
      the end of the period  covered by this annual report (the "Evaluation
      Date"). Based upon such evaluation, the officer has concluded  that,
      as of the
      Evaluation  Date,  our  disclosure  controls
      and procedures  are  effective  in
      alerting  him on a timely  basis to material information
      relating to our Company (including our consolidated subsidiary)
      required  to be  included  in
      our  reports  filed
      or  submitted  under  the Exchange
      Act.





(b)  Changes
      in
      internal  controls  over  Financial  Reporting.  During
      the most recent  fiscal  year,  there have not
      been any  significant  changes in our
      internal  controls over financial  reporting or in other
      factors that could have materially  affected,  or are
      reasonably likely to materially  affect, our internal controls over
      financial reporting.








**Item
      8B. OTHER INFORMATION**





None.





**PART
      III**





**Item
      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
      PERSONS;  COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
      ACT**





(a)  Directors  and  Executive  Officers.  The
      Company has one director and officer as follows:





Name
            Age
            Position
            SinceJames
                B. Wiegand
            60
            Director
                and President
            July
                1996





Mr.  Wiegand  is
      president of Amery Coast Corporation,  a financial consulting company.
      From 1975 until 1996 Mr.  Wiegand
      was  president  and  director of
      Solar  Energy  Research Corp., a publicly  traded
      company which he founded and took public.  Mr. Wiegand
      obtained  his  Bachelor  of  Science  Mechanical  Engineering  degree  from  the
      University of Denver in 1969.








**Item
      10. EXECUTIVE COMPENSATION**





Mr.  Wiegand
      has
      not  directly  received  compensation  from
      the Company for his services.






*-
          11
          -*





**Item
      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT**





The
      following  table sets forth,  as of July 31, 2007, each
      person known by the Company to be the  beneficial  owner of
      five  percent or more of the  Company's Common
      Stock,  all directors  individually and all directors and
      officers of the Company as a group.  Except as noted, each person has
      sole voting and investment power with respect to the shares shown.





Amount
                and NatureName and Address
            of
                Beneficial
            Percentageof Beneficial Owner
            Ownership
            of
                ClassJames
                B. Wiegand
            800,000
            78.4%16200
                WCR 18ELoveland,
                CO 80537All
                Executive Officersand
                Directors as aGroup
                (1 Person)
            800,000
            78.4%








**Item
      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**





James
      Wiegand provided free office space to the Company, on an as needed
      basis, from inception through June
      2006.  Commencing in July 2006, James Wiegand began contributing
      office space to the Company.  The Company's Board of Directors
      has valued this contributed office
      space at approximately $100 per month, based on
      prevailing local market rates.








**Item
      13. EXHIBITS AND REPORTS ON FORM 8-K**





(a)
      Exhibits





EX-31
            Certification
                of CEO and CFO Pursuant to 18 U.S.C, Section 7241, as adopted and
                Section
                302 of the Sarbanes-Oxley Act of 2002.EX-32
            Certification
                of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant
                to
                Section 906 of the Sarbanes-Oxley Act of
                2002.





(b)
      Form 8-K





There
      were no reports filed on Form 8-K.








**Item
      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**





Audit
      and
      audit-Related Fees





During
      the year ended July 31, 2007, the Company's principal  accountant
      billed $5,945 in fees that
      were  directly  associated  with
      the  preparation of annual audit reports and quarterly review
      reports.





Tax
      Fees





The
      Company's  principal  accountant  did not bill any
      tax fees during the years ended July 21, 2007.


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          -*


All
      Other
      Fees





The
      Company's principal  accountant did not bill any other fees during the
      year ended July 31, 2007.





The
      officers and directors of  Pinel Bay Corporation have determined that
      the services provided by our Company's principal accountant, as referred to
      in
      the above paragraphs,  are compatible with maintaining the principal
      accountant's independence.





Audit
      Committee's Pre-Approval Policies and Procedures





Due
      to
      the fact that Pinel Bay Corporation has only one active officer and
      director,  the Company does not have an audit committee at this
      time.





Percentage
      of Hours Expended





All  hours  expended  on
      the  principal  accountant's  engagement  to
      audit  the
      registrant's   financial  statements  for  the  most  recent  fiscal  year  were
      attributable  to work  performed by persons that are the
      principal  accountant's full-time, permanent employees.











**SIGNATURES**





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







**Pinel
                Bay Corporation**
              (Registrant)Date:
                October 17, 2007
            By:
            /s/ James
              B. WiegandJames
                B.
                Wiegand
              President








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          13
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