|   | UNITED STATESSECURITIES AND EXCHANGE COMMISSION |   |
|--------|-------------------------------------------------|--------|

| Washington, D.C. 20549 |
|------------------------|

| Form 10-KSB |
|-------------|

| [X] | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 forthe Fiscal Year Ended December 31, 2006 |
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| [ ] | Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 forthe Transition Period From ________ to ________ |
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| Commission File No. 33-19961 |
|------------------------------|

|   | Diamond I, Inc. |   |
|--------|-----------------|--------|

| (Name of Small Business Issuer in its Charter) |
|------------------------------------------------|

|   | Delaware                                                      |   | 01-0623010                          |   |
|--------|---------------------------------------------------------------|--------|-------------------------------------|--------|
|   | (State or Other Jurisdiction ofIncorporation or Organization) |   | (IRS Employer IdentificationNumber) |   |

|   | 8733 Siegen Lane, Suite 309, Baton Rouge, LA 70810           |   |
|--------|--------------------------------------------------------------|--------|
|   | (Address of Principal Executive Offices, Including Zip Code) |   |

|   | (225) 341-4004                                   |   |
|--------|--------------------------------------------------|--------|
|   | (Issuer's Telephone Number, Including Area Code) |   |

|   | Securities Registered under Section 12(b) of the Exchange Act: None |   |
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| Securities Registered under Section 12(g) of the Exchange Act: None |
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| Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of theExchange Act. [  ] |
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| Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of theExchange Act during the past 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject of such filing requirements for the past 90days. Yes [ X ] No [  ] |
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| Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-Bcontained 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 Form10-KSB or any amendment to this Form 10-KSB. [X] |
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| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act). Yes [  ] No [ X ] |
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| Registrant's revenues for its most recent fiscal year were $-0-. |
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| The aggregate market value of the voting stock held by non-affiliates computed based on theclosing price of such stock as of April 16, 2007, was approximately $4,400,000. |
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| The number of shares outstanding of the issuer's common equity as of April 16, 2007, was297,153,756 shares of common stock, par value $.001. |
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| Documents Incorporated by Reference: Current Report on Form 8-K filed on March 14, 2007. |
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| Transitional Small Business Disclosure Format (check one): Yes [ ] No [ X ] |
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|         |
|--------------|
| <PAGE> |
|         |

| PART I |
|--------|

| Item 1. | Description of Business |
|---------|-------------------------|

| Our Recent Agreement with NewMarket Technology, Inc. |
|------------------------------------------------------|

| In March 2007, we entered into a securities purchase agreement (the “Purchase Agreement”) withDiamond I Technologies, Inc., our subsidiary, NewMarket Technology, Inc. and NewMarketTechnology Acquisition Subsidiary, pursuant to which NewMarket Technology AcquisitionSubsidiary is to purchase 2,000,000 shares of a new series of our preferred stock, to be designated“Series B”.  The closing under the Purchase Agreement is to occur on or before June 7, 2007.  ThePurchase Agreement contains the following material provisions: |
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| - | The Series B preferred stock to be issued to NewMarket Acquisition Subsidiary willpossess voting rights that give such entity voting control of Diamond I. |
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| - | We will receive following in consideration of the 2,000,000 shares of our Series Bpreferred stock: |
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| - | a $2,000,000 promissory note bearing 8% interest per annum, with NewMarketAcquisition Subsidiary as Maker and NewMarket Technology, Inc. as Guarantor;payments continuing for a period of five years, Maker shall, on a quarterly basis, deliverto Holder equal payments of principal, plus all accrued and unpaid interest, until paid.  Thefunds received by us pursuant to this promissory note will be distributed pro rata to ourshareholders of record on the closing date of the Purchase Agreement; |
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| - | 100% of the outstanding common stock of Diamond I Technologies, Inc. is to bedistributed as a dividend, pursuant to an effective registration statement filed with theSEC, to our shareholders of record on the closing date of the Purchase Agreement; |
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| - | a $250,000 credit line, $25,200 of which has already been accessed by us; |
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| - | a commitment for an additional $750,000 in funding (the terms of which fundingcommitment are to be negotiated prior to the closing under the Purchase Agreement) forour gaming subsidiary, Diamond I Technologies, Inc.; |
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| - | a commitment for an additional $1,000,000 in funding (the terms of which fundingcommitment are to be negotiated prior to the closing under the Purchase Agreement) forour revived Wi-Fi division; and |
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| - | NewMarket Technology, Inc. and David Loflin, our president, will enter into anemployment agreement, the terms of which are to be negotiated prior to the closing underthe Purchase Agreement. |
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| Pursuant to the terms of our Series B preferred stock to be issued under the Purchase Agreement,the Series B preferred stock will possess voting rights that are equivalent to the vote of 60% ofthe then-outstanding shares of our common stock on all matters; provided, however, that, at anytime payments are in arrears under the promissory note referred to above, the voting rights grantedto the Series B preferred stock shall be suspended until payments under that promissory note arecurrent. |
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| Our Company After the NewMarket Technology Agreement |
|------------------------------------------------------|

| Assuming the consummation of the Purchase Agreement, our company would have the followingstructure: |
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|   |
|--------|

|   | Shareholders |   |
|--------|--------------|--------|

|   |   |   |
|--------|--------|--------|

| NewMarket Acquisition Subsidiary(60% Voting control of Diamond I, Inc.through ownership of Series “B”Preferred Stock) |   | Holders of Common Stock of Diamond I,Inc.(As of the date of this Annual Report onForm10-KSB, 297,153,756 shares outstanding) |
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|   |   |   |
|--------|--------|--------|

|   | DIAMOND I, INC.A company focused on the developmentof Wifi Internet access services with acommitment for $1,000,000 in funding(the terms of which are to be negotiatedprior to the closing under the PurchaseAgreement) |   |
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|   | 100% Ownedby Diamond I |
|--------|------------------------|

|   | Diamond I Technologies, Inc.A company focused on the commercial exploitation of theWifiCasino GS, including the GS2 wireless hand-heldgaming unit, and owner of all wireless gaming-relatedassets, including patent rights, with a $250,000 credit lineand a commitment for an additional $750,000 in funding(the terms of commitment are to be negotiated prior to theclosing under the Purchase Agreement) |   |
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|   | 100% Ownedby Diamond ITechnologies |
|--------|------------------------------------|

|   | Touchdev LimitedOwner of software for online and mobilegaming |   |
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|   |
|--------|

| Assuming we implement fully the transactions contemplated in the Purchase Agreement, ourcompany would have the following structure: |
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|   |
|--------|

|   | Shareholders |   |   | Shareholders |   |
|--------|--------------|--------|--------|--------------|--------|

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

| NewMarketAcquisitionSubsidiary(60% Votingcontrol of DiamondI, Inc. throughownership of Series“B” PreferredStock) |   | Holders ofCommon Stock ofDiamond I, Inc.(As of the date ofthis Annual Reporton Form 10-KSB,297,153,756 sharesoutstanding) |   |   | Holders of CommonStock of Diamond ITechnologies, Inc.who obtained theirshares as a dividendon their shares ofDiamond I, Inc. |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|

|   | DIAMOND I, INC.A company focused on thedevelopment of Wifi Internetaccess services with acommitment for $1,000,000 infunding (the terms of whichfunding commitment are to benegotiated prior to the closingunder the Purchase Agreement) |   |   |   | DIAMOND ITECHNOLOGIES, INC.A company focused on thecommercial exploitation ofthe WifiCasino GS,including the GS2 wirelesshand-held gaming unit, andowner of all wirelessgaming-related assets,including patent rights,with a $250,000 credit lineand a commitment for anadditional $750,000 infunding (the terms ofwhich are to be negotiatedprior to the closing underthe Purchase Agreement) |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 100%Ownedby DiamondITechnologies |
|--------|--------|----------------------------------|

|   |   | Touchdev Limited(100% owned byDiamond ITechnologies, Inc. andowner of softwarerelated to onlinegaming and mobilegaming) |   |
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|   |
|--------|

| Following the dividend distribution of 100% of the outstanding common stock of Diamond ITechnologies, Inc., our company would no longer be involved in the gaming business.  Rather,with the funds to be paid to us by NewMarket, we would be focused on the revitalization anddevelopment of our Wi-Fi Internet access services, in conjunction with NewMarket and itsaffiliated companies. |
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| Our Company Now |
|-----------------|

| Due to an increasing number of inquiries regarding our company’s previous Wi-Fi (wirelessfidelity) Internet access business, during the fourth quarter of 2006, our management determinedto reinstate this previously dormant segment of our company.  Following this determination, webegan discussions with NewMarket, which eventually led to our entering into the PurchaseAgreement with that company.  Currently, we are following a course of action consistent with theprovisions of the Purchase Agreement.  Primarily, we have, with funds received underNewMarket’s pre-closing obligations, begun the final stages of the development of our GS2(TM)wireless hand-held gaming unit and the WifiCasino(TM) wireless gaming system.  Until theclosing under the Purchase Agreement, we expect that our business activities will be focused onthese activities. |
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| It is expected that our company will not begin its full-scale efforts with respect to our Wi-FiInternet access business, unless and until we consummate the Purchase Agreement and after ourmanagement and NewMarket’s representatives have completed development of what is to becomeour future business plan. |
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| Wireless Gaming |
|-----------------|

| During 2006, the development of our GS2(TM) wireless hand-held gaming unit and theWifiCasino(TM) wireless gaming system was impaired by our lack of capital.  Our agreementwith NewMarket has permitted us to begin the final stages of our product development activities.We expect that our product development will be greatly enhanced by our relationship with QuestEntertainment, a Houston, Texas-based provider of superior-quality, fast-playing, innovativegaming devices.  We recently executed a letter of intent to sign a definitive developmentagreement with Quest, whereby our companies would join forces to bring our WifiCasino (andthe GS2) to the gaming industry.  The definitive agreement is expected to be signed in the nearfuture. |
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| With passage of Nevada Law AB471, which authorizes the use of mobile communication devices,such as our WifiCasino GS wireless gaming system, for gaming in public areas in Nevada casinos,we are currently pursuing the development of our hand-held wireless gaming business.  During2006 and the first quarter of 2007, we lacked adequate capital with which to complete thedevelopment of our wireless gaming products and otherwise to pursue aggressively our businessplan. |
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| What is Wi-Fi?  The term “Wi-Fi” is short for “wireless fidelity” and refers to an industry standardfor wireless equipment that meets published 802.11(x) standards.  Wi-Fi equipment operates inunlicensed spectra, such as 2.4 and 5.8 Ghz. |
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| What is WiFiCasino GS and the GS2?  The WifiCasino GS is a Wi-Fi-based gaming system foron-premises use by casinos/resorts, the user-friendly wireless hand-held unit of which is knownas the GS2. |
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| Our WifiCasino GS is a secure wireless PDA-based gambling and media network designed forLas Vegas-style casinos and resorts, as well as cruise ships and race tracks. The WifiCasino GSis designed to allow patrons to gamble anywhere on a casino’s, ship’s or track’s premises (aspermitted by regulatory bodies), including in their rooms, pool-side and at the bar.  Using unique,proprietary technologies, including patent-pending voice-recognition and finger-print biometricsecurity technologies, the WifiCasino GS offers a highly secure and consumer-friendly gamblingsolution. |
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| In addition, the WifiCasino GS is capable of extending beyond gambling applications, to includeproviding Internet access, obtaining resort information, ordering meals and drinks, accessingconcierge services, etc.  With future applications in mind, the WifiCasino GS’s modular designwill accommodate future plug-in modules that provide additional functionality, thereby permittingthe host resort to provide its patrons with new forms of services and experiences. |
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| Implementation Options.  The WifiCasino GS can be setup solely as a wireless gambling productor can be implemented as a full resort services/gambling/management/media system, dependingon the preferences of the resort.  Our system can be integrated into a resort’s existing ITinfrastructure or can be installed and operated as a stand-alone system. |
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| The WifiCasino GS is made up of five integrated systems that deliver wireless gambling,multimedia applications and Advanced Customer Relationship Management (CRM), as well asStatistical Recording/Analysis (SRA): |
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| - | SecureGamble provides the gambling and security features allowing users to gamble fromwireless hand-held units within the hotel.  It uses biometric identification, locationtracking, and other security implementations to guarantee legitimate gambling. |
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| - | MediaServe is a modular system that handles the non-gambling media, marketing andother amenities and services. At anytime, the resort can choose to implement optionalmodules that deliver customized features to the casino guest, such as Internet access, resortand event information, audio/video features, account information, concierge services,checkout and billing information. |
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| - | AirTrack is the location tracking system. This system is used by every other system andlocation-based service. |
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| - | GSAdmin is the management and administration system for the WifiCasino GS, whichallows a property’s management to monitor any active module or application in real-time. |
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| - | OpenHand CRM/SRA is the full CRM and Statistical Recording/Analysis engine of thesystem.  It works to collect user data, activity information, location information, etc. |
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| Market Development. |
|---------------------|

| State of Nevada.  With the recent passage of Nevada Law AB471, which authorizes the use ofmobile communication devices, such as our WifiCasino GS wireless gaming system, for gamingin public areas in Nevada casinos, we are actively pursuing business relationships with Nevadacasinos, as well as preparing to enter into the process of gaining a license for our WifiCasino GSproduct. |
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| We have signed a non-binding letter of intent with The Palms Resort and Casino, a premier LasVegas property, wherein The Palms has agreed to continue to develop our working relationshiprelating to our WifiCasino GS wireless gaming system.  Under this letter of intent, we willcontinue to assure its prospective casino clients that our WifiCasino GS maintains its“best-in-breed” status relative to its competitors and that we will, once appropriate licensing hasbeen obtained, provide product servicing in line with other gaming machine vendors. On thatassurance, The Palms stated that it intends to pursue an opportunity with us.  We cannot predictwhen a formal arrangement will be reached with The Palms. |
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| Other Venues.  We are also working to secure a cruise ship on which to implement one of ourWifiCasino GS systems.  We have had preliminary discussions with the owners of one or morecruise ships.  We have also had preliminary discussions with the owners of one or more horseracing facilities, with respect to its establishing a WifiCasino GS system on such a facility.  Wecannot assure you that we will be successful in these efforts. |
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| International Activities.  We have taken initial steps towards establishing potential businessopportunities in several countries, including the Republic of the Philippines and Mexico.  Wecannot assure you that we will be successful in establishing business operations in any foreigncountry. |
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| Gaming Industry Background.  For 2006, worldwide gaming revenues have been estimated tohave been in excess of $126 billion.  For 2006, U.S. casino-based gaming revenues are estimatedto have been approximately $86 billion. |
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| According to industry sources, casino-based gaming revenues are expected to increase each yearfor the foreseeable future.  Historically, revenues from slot machines and poker have comprisedapproximately 70% of total gaming revenues.  Due to the long-term high popularity of slotmachines, as well as the current popularity of “Texas Hold’em” poker, our WiFiCasino GS willinitially offer video slots and poker games to users. |
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| Gaming-Related Equipment and Software. All of the equipment used in our WiFiCasino GSsystems will be off-the-shelf or modified-off-the-shelf items.  Inasmuch as there are severalmanufacturers of the types of equipment we require, we expect no problems in obtaining neededequipment at competitive prices. |
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| In configuring the WiFiCasino GS system for use, we use a combination of open-use software andsoftware developed by us.  In addition, we incorporate our patent-pending voice-recognition andfinger-print biometric security technologies into the WifiCasino GS.  Our management believesthat our ‘voice-print’ and ‘finger-print’ security technologies are valuable technologies in the fieldof biometrically-secured wireless casino, pari-mutual and sportsbook gaming, because, with thesetechnologies incorporated into our WifiCasino GS products, we will be in a strong position toassure regulators that our wireless, hand-held gaming system will be used only by authorizedusers. |
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| Gaming Industry Competition.   The gaming industry is extremely competitive.  We competeagainst many large gaming companies who have far greater resources, financial and otherwise,than do we.  We cannot provide any assurance that we will be able to compete effectively, whichwill adversely affect our financial condition. |
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| Gaming Regulation and Licensing. |
|----------------------------------|

| General Regulation of Shareholders of Publicly Traded Companies.  In most jurisdictions, anybeneficial owner of our common stock is subject, on a discretionary basis, to being required to fileapplications with gaming regulatory authorities, to being investigated and found suitable orqualified as such. In addition, shareholders whose holdings of our common stock exceed certaindesignated percentages are subject to certain reporting and qualification requirements imposed bystate and federal gaming regulators and any shareholder, if found to be unsuitable, may be requiredto immediately dispose of its holdings of our common stock. |
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| Further, we must obtain a registration, license, approval or finding of suitability and equipmentapproval in all jurisdictions before we can offer gaming devices for sale to licensed gamingoperations within those jurisdictions. The licensing process usually involves the licensing orapproval of certain officers, directors and shareholders of a corporation, and approval of thespecific product that a company intends to offer for sale. |
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| Nevada Regulatory Matters.  In Nevada, gaming is under the control of the Nevada GamingCommission and the Nevada Gaming Control Board (collectively, the “Nevada GamingAuthorities”).  As a manufacturer and distributor of gaming equipment, we will be required toobtain approval from the Nevada Gaming Authorities to sell our gaming equipment in Nevada.As a “Registered Company”, we will be required to file periodic reports, including detailedfinancial reports, with the Nevada Gaming Authorities, to assure our compliance with applicablelaws.  In addition, substantially all material loans, leases, sales of securities and similar financingtransactions by us will be required to be reported to, or approved by the Nevada GamingAuthorities. |
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| Applicable Nevada law also states that any beneficial holder of a Registered Corporation's votingsecurities, regardless of the number of shares owned, may be required to file an application, beinvestigated and have his suitability determined as a beneficial holder of the RegisteredCorporation's voting securities if the Nevada Gaming Authorities have reason to believe that suchownership would otherwise be inconsistent with the declared policies of the State of Nevada. Theapplicant must pay all costs of investigation incurred by the Nevada Gaming Authorities inconducting any such investigation. |
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| Nevada law requires any person who acquires beneficial ownership of more than 5% of aRegistered Corporation's voting securities to report the acquisition to the Nevada GamingAuthorities. Such law also requires that beneficial owners of more than 10% of a RegisteredCorporation's voting securities apply to the Nevada Gaming Authorities for a finding of suitabilitywithin thirty days after the Chairman of the Nevada Board mails the written notice requiring suchfiling, with certain exceptions for “institutional investors”.  If the beneficial holder of votingsecurities who must be found suitable is a corporation, partnership or trust, it must submit detailedbusiness and financial information including a list of beneficial owners. The applicant is requiredto pay all costs of investigation.   Any person who fails or refuses to apply for a finding ofsuitability or a license within thirty days after being ordered to do so by the Nevada GamingAuthorities or the Chairman of the Nevada Gaming Board, may be found unsuitable. |
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| We will be required to maintain a current stock ledger in Nevada which may be examined by theNevada Gaming Authorities at any time. If any securities are held in trust by an agent or by anominee, the record holder may be required to disclose the identity of the beneficial owner to theNevada Gaming Authorities. Failure to make such disclosure may be grounds for finding therecord holder unsuitable. We will also be required to render maximum assistance in determiningthe identity of the beneficial owner. The Nevada Gaming Authorities have the power to requireour stock certificates to bear a legend indicating that the securities are subject to Nevada law. |
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| As a Registered Corporation, we will not be able to make a public offering of our securities, suchas an IPO or follow-on offering, without the prior approval of the Nevada Gaming Authorities,if the securities or proceeds therefrom are intended to be used to construct, acquire or financegaming facilities in Nevada, or to retire or extend obligations incurred for such purposes.Approval of a public offering, if given, does not constitute a finding, recommendation or approvalby the Nevada Gaming Authorities as to the accuracy or adequacy of the offering disclosuredocuments or the investment merits of the securities offered. Any representation to the contraryis unlawful. |
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| Changes in control of a Registered Corporation through merger, consolidation, stock or assetacquisitions, management or consulting agreements, or any act or conduct by a person wherebyhe obtains control, may not occur without the prior approval of the Nevada Gaming Authorities. |
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| Nevada Law AB471.  In June 2005, Nevada Law AB471, which authorizes the use of mobilecommunication devices, such as our WifiCasino GS wireless gaming system, for gaming in publicareas in Nevada casinos, was signed into law.  In March 2006, the Nevada Gaming Commissionadopted final implementing regulations with respect to Nevada Law AB471.  We are preparingto make an application for a gaming license with respect to our WifiCasino GS products.  Theexact date of our application is not yet determinable, due to our need of additional capital withwhich to pay the costs associated therewith.  To date, no hand-held mobile gaming device hasbeen licensed by the Nevada Gaming Commission. |
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| Federal Regulation.  The Federal Gambling Devices Act of 1962 (the "Federal Act") makes itunlawful, in general, for a person to manufacture, deliver or receive gaming machines, gamingmachine type devices and components across state lines or to operate gaming machines, unlessthat person has first registered with the Attorney General of the United States. We will be requiredto register and to renew our registration annually, which we intend to do. In addition, variousrecord keeping equipment identification requirements are imposed by the Federal Act. Violationof the Federal Act may result in seizure and forfeiture of the equipment, as well as other penalties. |
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| Native American Gaming.  Gaming on Native American lands, including the terms and conditionsunder which gaming equipment can be sold or leased to Native American tribes, is or may besubject to regulation under the laws of the tribes, the laws of the host state, the Indian GamingRegulatory Act of 1988 ("IGRA"), which is administered by the National Indian GamingCommission (the "NIGC") and the Secretary of the U.S. Department of the Interior (the"Secretary"), and also may be subject to the provisions of certain statutes relating to contracts withNative American tribes, which are administered by the Secretary. As a precondition to gaminginvolving gaming machines, IGRA requires that the tribe and the state have entered into a writtenagreement (a "tribal-state compact") that specifically authorizes such gaming, and that has beenapproved by the Secretary, with notice of such approval published in the Federal Registrar.Tribal-state compacts vary from state to state. Many require that equipment suppliers meetongoing registration and licensing requirements of the state and/or the tribe and some imposebackground check requirements on the officers, directors, and shareholders of gaming equipmentsuppliers. Under IGRA, tribes are required to regulate all commercial gaming under ordinancesapproved by the NIGC. Such ordinances may impose standards and technical requirements ongaming hardware and software, and may impose registration, licensing and background checkrequirements to gaming equipment suppliers and their officers, directors, and shareholders. |
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| Application of Future or Additional Regulatory Requirements.  In the future, we intend to seekthe necessary registrations, licenses, approvals and findings of suitability for us, our products andour personnel in other U.S. and foreign jurisdictions in which we identify significant salespotential for our products. However, there can be no assurance that such registrations, licenses,approvals or findings of suitability will be obtained and will not be revoked, suspended orconditioned or that we will be able to obtain the necessary approvals for our future products asthey are developed in a timely manner, or at all. If a registration, license, approval or finding ofsuitability is required by a regulatory authority and we fail to seek or do not receive the necessaryregistration, license, approval or finding of suitability, we may be prohibited from selling ourproducts for use in the respective jurisdiction or may be required to sell our products through otherlicensed entities at a reduced profit to us. |
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| Wi-Fi Internet Access |
|-----------------------|

| Only if we are able to consummate the Purchase Agreement with NewMarket will we be able tore-establish our Wi-Fi Internet access services business.  The following information regardingthese proposed Wi-Fi Internet access activities is summary in nature and we cannot assure you thatthe statements concerning our expectations regarding such Wi-Fi Internet access businessoperations will prove to be accurate.  Should we consummate the Purchase Agreement withNewMarket, our Current Report on Form 8-K relating to such event would contain more specificinformation regarding our future Wi-Fi Internet access services business. |
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| None of the proposed Wi-Fi Internet access activities described below will be undertaken, unlessand until adequate capital is obtained, of which there is no assurance. |
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| Expected Business Plan of NewMarket for Our Company.  In its public announcements regardingthe Purchase Agreement, NewMarket has stated that it intends to consolidate its own Wi-Fi-related assets into our company, as part of its plan to build a comprehensive wireless broadbandoffering with applications in multiple market segments.  Initially, NewMarket has stated that itintends to focus on the municipal government and casino/gaming sectors. |
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| With respect to the municipal government sector, it is expected that we will, in conjunction withcertain of NewMarket’s affiliated companies, offer our Wi-Fi Internet access services over entiretowns or wide large areas of large cities. |
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| Wi-Fi Equipment and Facilities.  We expect that all of the equipment that will be used in ourfuture wireless Internet access systems will be off-the-shelf.  Inasmuch as there are severalmanufacturers of Wi-Fi equipment, we expect no difficulties in obtaining needed equipment atcompetitive prices.  It is unlikely that we will construct towers on which to locate the antennaenecessary to our wireless Internet access systems.  Instead, we expect that we will lease towerspaces, rooftop spaces or spaces on other tall structures.  Based on our management’s experience,securing adequate locations to establish these antennae is not expected to impede the constructionof a wireless Internet access system in any market. |
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| Competition.  We believe that the primary competitive factors determining success as an Internetaccess provider are: a reputation for reliability and high-quality service; effective customersupport; data transmission speed; pricing; effective marketing techniques for customer acquisition;ease of use; and scope of geographic coverage.  We cannot assure you that the business plan ofNewMarket will be successful in addressing adequately all of these factors.  Should we fail to doso, our business would likely never earn a profit. |
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| Any future Wi-Fi Internet access business activities will face severe competition from otherwireless and hard-wire broadband Internet access providers. |
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| Research and Development |
|--------------------------|

| We believe that to compete favorably we must invest in research and development of our gamingproducts. However, due to our lack of capital, it is likely that our research and developmentactivities will be minimal through the remainder of 2007. |
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| Employees |
|-----------|

| We currently have two employees, both of whom are officers.  We also retain the services ofindependent contractors and outside professionals on an as-needed basis. |
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| Risk Factors |
|--------------|

| You should carefully consider the risks described below before you decide to buy our commonstock.  If any of the following risks occur, our business, financial condition or results of operationswould likely suffer.  In such case, the trading price of our common stock could decline, and youcould lose all or part of your investment. |
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|   | Risks Relating to Diamond I. |
|--------|------------------------------|

|   | It is possible that the Purchase Agreement with NewMarket may not be completed. |
|--------|---------------------------------------------------------------------------------|

|   | The Purchase Agreement requires that certain supporting agreements, including two relatingto future funding, be negotiated by us and NewMarket, prior to the closing thereunder.  It ispossible that we could be unable successfully to negotiate these supporting agreement.  In suchcircumstances, the proposed transactions with NewMarket would not occur. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | It is possible that NewMarket may not deliver the funds to our company required by thePurchase Agreement. |
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|   | NewMarket may fail to deliver the funds required of it under the terms of the PurchaseAgreement and its supporting agreements.  Should this circumstance arise, our company couldbe forced to cease operations. |
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|   | Because we have a short operating history, there is a limited amount of information about usupon which you can evaluate our business and potential for future success. |
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|   | We have only a limited operating history upon which you can evaluate our full business andprospects.  You must consider the risks and uncertainties frequently encountered by early-stage companies, especially companies that rely on new and evolving technologies, such asour WiFiCasino GS products. |
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|   | Our independent auditor has expressed substantial doubt about our ability to continue as agoing concern. |
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|   | In its opinion on our financial statements for the year ended December 31, 2006, ourindependent auditor, Malone & Bailey, P.C., expressed substantial doubt about our ability tocontinue as a going concern. This means that, when issuing its opinion relating to ourDecember 31, 2006, financial statements, given our then-current and historical lack of capital,our independent auditor has substantial doubt that we will be able to continue as a goingbusiness concern. Please review the Independent Auditor’s Report and Note 2 to theconsolidated financial statements appearing elsewhere herein. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We may be unable to obtain sufficient capital to sustain our business or pursue our growthstrategy. |
|--------|-----------------------------------------------------------------------------------------------------|

|   | Currently, we do not have sufficient financial resources to implement our complete businessplan. There is no assurance that we will be able to generate revenues that are sufficient tosustain our operations, nor can we assure you that we will be able to obtain additional sourcesof financing in order to satisfy our working capital needs.  In particular, we require additionalcapital with which to pay the expenses associated with our application for a gaming licensewith respect to our WifiCasino GS.  Should needed financing be unavailable or prohibitivelyexpensive when we require it, it is possible that we would be forced to cease operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Our future operating results may vary from period to period, and, as a result, we may fail tomeet the expectations of our investors and analysts, which could cause our stock price tofluctuate or decline and inhibit our ability to obtain funds. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Our revenues and results of operations are expected to fluctuate as we make financialcommitments to facilitate expected growth.  The following factors will influence our operatingresults: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | access to funds for capital expenditures and working capital; |
|---|---------------------------------------------------------------|

| - | our ability to obtain needed licensing from regulatory bodies; |
|---|----------------------------------------------------------------|

| - | market acceptance of our WiFiCasino GS products; and |
|---|------------------------------------------------------|

| - | potential competition from large, well-funded national and international gamingcompanies. |
|---|-------------------------------------------------------------------------------------------|

|   | Our future personnel costs, marketing programs and overhead cannot be adjusted quickly andare, therefore, relatively fixed in the short term.  Our operating expense levels will be based,in part, on our expectations of future revenue.  If actual revenues are below our expectations,our results of operations will suffer and we could be forced to cease operations. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Period-to-period comparisons of our results of operations will likely not provide reliableindications of our future performance. |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | Price fluctuations of our common stock could negatively impact our ability to obtain neededcapital. |
|--------|-----------------------------------------------------------------------------------------------------|

|   | Our WiFiCasino GS products are new and consumer acceptance may not be achieved. |
|--------|---------------------------------------------------------------------------------|

|   | Our WiFiCasino GS products are new and do not enjoy wide-spread name recognition amongthe gaming public, as well as our potential customers, namely, casinos, cruise ships and racetracks.  If we are unable to achieve acceptance of our products, it is unlikely that we would beable to earn a profit. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If the security components of our WiFiCasino GS products are ineffective, breached andunauthorized use occurs, we may not be permitted to continue to enjoy our gaming licensing,if obtained. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | It is imperative that our WiFiCasino GS system’s security components work dependably.  Ifa failure of such security components occurs, we may not be permitted to continue to utilizeour gaming licensing, if obtained.  Any such circumstance would have a material anddetrimental affect on our business. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We face strong competition in our market, which could make it difficult for us to succeed. |
|--------|--------------------------------------------------------------------------------------------|

|   | The gaming industry is extremely competitive.  We compete against many large gamingcompanies who have far greater resources, financial and otherwise, than do we.  We cannotprovide any assurance that we will be able to compete effectively, which can be expected toaffect adversely our financial condition. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If we are unable to manage future expansion effectively, our business may be adverselyimpacted. |
|--------|-------------------------------------------------------------------------------------------------|

|   | In the future, we may experience rapid growth in operations, which could place a significantstrain on our operations, in general, and development of services, our internal controls andother managerial, operating and financial resources, in particular. If we do not manage futureexpansion effectively, our business will be harmed. To manage any future expansioneffectively, we will need to improve our operational and financial systems and managerialcontrols and procedures, which include the following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | managing our research and development efforts for new and evolving technologies; |
|---|----------------------------------------------------------------------------------|

| - | developing our administrative, accounting and management information systems andcontrols; and |
|---|-----------------------------------------------------------------------------------------------|

| - | effectively maintaining coordination among our various departments. |
|---|---------------------------------------------------------------------|

|   | Litigation arising out of intellectual property infringement could be expensive and disrupt ourbusiness. |
|--------|----------------------------------------------------------------------------------------------------------|

|   | We cannot be certain that our products do not, or will not, infringe upon patents, trademarks,copyrights or other intellectual property rights held by third parties, or that other parties willnot assert infringement claims against us. From time to time, we may be involved in disputeswith these third parties. Any claim of infringement of proprietary rights of others, even ifultimately decided in our favor, could result in substantial costs and diversion of our resources.Successful claims against us may result in an injunction or substantial monetary liability,which could, in either case, significantly impact our results of operations or materially disruptthe conduct of our business. If we are enjoined from using a technology, we will need toobtain a license to use the technology, but licenses to third-party technology may not beavailable to us at a reasonable cost, or at all. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We depend on our key personnel; the loss of any key personnel could disrupt our operations,adversely affect our business and result in reduced revenues. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Our future success will depend on the continued services and on the performance of our seniormanagement, particularly our president, David Loflin, and, as we grow, other key employees.We have entered into employment agreements with each of our officers.  The loss of theirservices for any reason could seriously impair our ability to execute our business plan, whichcould reduce our revenues and have a materially adverse effect on our business and results ofoperations.  We have not purchased any key-man life insurance. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Our business plan is not based on independent market studies, so we cannot assure you thatour strategy will be successful. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | We have not commissioned any independent market studies concerning the extent to whichcustomers will utilize our WiFiCasino GS products.  Rather, our plans for implementing ourbusiness strategy and achieving profitability are based on the experience, judgment andassumptions of our key management personnel, and upon other available informationconcerning the communications industry.  If our management’s assumptions prove to beincorrect, we will not be successful in establishing our gaming business. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We may not be able to protect our intellectual property rights, which could dramatically reduceour ability to earn a profit. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | We have pending patent applications with respect to various aspects of our WiFiCasino GSwireless gaming system.  We believe that obtaining these patents, as well as any future patentsrelated to our products, is extremely important and we intend to pursue these patentsvigorously.  However, we can offer no assurance that we will be granted any patents relatingto our WiFiCasino GS wireless gaming system. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We currently rely on common law principles for the protection of our copyrights andtrademarks and trade secret laws to protect our proprietary intellectual property rights.  Wehave not yet filed trademark applications relating to the “Diamond I” and “WiFiCasino GS”brand names. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Without patent or trademark protection, the existing trade secret and copyright laws afford usonly limited protection.  Third parties may attempt to disclose, obtain or use our technologies.Others may independently develop and obtain patents or copyrights for technologies that aresimilar or superior to our technologies.  Should this circumstance arise, we may need tolicense these technologies and we may not be able to obtain licenses on reasonable terms, ifat all, thereby causing great harm to our business. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Risks Relating to the Gaming Industry. |
|--------|----------------------------------------|

|   | Financial, political or economic conditions could adversely affect our revenues. |
|--------|----------------------------------------------------------------------------------|

|   | Our revenues and profitability depend on the overall demand for gaming outlets and relatedactivities. Further acts of terrorism, such as occurred on September 11, 2001, internationalhostilities or other future financial, political, economic and other uncertainties could lead toa reduction in the use of our future gaming products, thereby reducing our future revenues. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Government regulation of the gaming industry is extensive. |
|--------|------------------------------------------------------------|

|   | Government regulation of the gaming industry is extensive and compliance is costly.  Ourfailure to comply with all applicable regulations, local, state or federal, could cause us tobecome unable to continue to operate our business.  In such a circumstance, we would beforced to cease operations. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Risks Relating to Our Common Stock. |
|--------|-------------------------------------|

|   | Upon the closing under the Purchase Agreement with NewMarket, NewMarket will possessvoting control relating to our management and our affairs. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | By acquiring the shares of Series B preferred stock to be issued by us pursuant to the PurchaseAgreement, NewMarket will possess voting control of our company and will be able to controlour management and our affairs.  NewMarket will be able to control requiring the approvalby our shareholders, including the election of directors, any merger, consolidation or sale ofall or substantially all of our assets, and any other significant corporate transaction.  Inaddition, NewMarket’s voting control may also delay or prevent a change of control ofDiamond I, Inc. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Concentration of ownership of our common stock may prevent new investors from influencingsignificant corporate decisions. |
|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | Our directors, entities affiliated with our directors and our executive officers beneficially owna significant percentage of our outstanding common stock.  Assuming the exercise of alloutstanding warrants, these persons and entities will own approximately 15.46% of our then-outstanding common stock. Until NewMarket purchases the shares of Series B preferred stockunder the Purchase Agreement, these shareholders, as a group, may be able to control ourmanagement and our affairs. Acting together, it is likely that they could control most mattersrequiring the approval by our shareholders, including the election of directors, any merger,consolidation or sale of all or substantially all of our assets, and any other significant corporatetransaction. The concentration of ownership may also delay or prevent a change of control ofDiamond I, Inc. at a premium price, if these shareholders oppose it.  See “Item 11. SecurityOwnership of Certain Beneficial Owners and Management” for details regarding our stockownership and how beneficial ownership is calculated. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Anti-takeover provisions in our corporate documents may discourage or prevent a takeover. |
|--------|-------------------------------------------------------------------------------------------|

|   | Provisions in our restated certificate of incorporation and bylaws may have the effect ofdelaying or preventing an acquisition or merger in which we are acquired or a transaction thatchanges our board of directors. Specifically, these provisions: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | authorize the board to issue preferred stock without shareholder approval; |
|---|----------------------------------------------------------------------------|

| - | prohibit cumulative voting in the election of directors; |
|---|----------------------------------------------------------|

| - | limit the persons who may call special meetings of shareholders; and |
|---|----------------------------------------------------------------------|

| - | establish advance notice requirements for nominations for the election of the board ofdirectors or for proposing matters that can be acted on by shareholders at shareholdermeetings. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In addition, we are governed by the provisions of Section 203 of the Delaware GeneralCorporation Law. These provisions may prohibit large shareholders, in particular thoseowning 15% or more of the outstanding voting stock, from consummating a merger orcombination to which we are a party. These provisions could limit the price that investorsmight be willing to pay in the future for our common stock. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A large number of shares of our common stock may be sold in the market, which may depressthe market price of our common stock. |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | Currently, a large number of our currently outstanding shares of common stock, approximately40,000,000 shares, are eligible for unrestricted sale or sale under the restrictions of Rule 144in the public markets.  It is possible that sales of a substantial number of these shares of ourcommon stock may occur at any time.  These sales, or the perception that these sales mightbe occurring, could cause the market price of our common stock to decline. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | You will suffer substantial dilution in the net tangible book value of the common stock youpurchase. |
|--------|------------------------------------------------------------------------------------------------------|

|   | You will suffer substantial and immediate dilution, due to the lower book value per share ofour common stock compared to the purchase price per share of our common stock.  We cannotpredict your actual dilution. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The market price of our common stock will continue to be extremely volatile, and it may dropunexpectedly. |
|--------|-----------------------------------------------------------------------------------------------------------|

|   | The stock market in general, and the market for technology-related stocks in particular, hasrecently experienced dramatic declines and fluctuations that have often been unrelated to theoperating performance of companies. If market-based or industry-based volatility continues,the trading price of our common stock could decline significantly independent of our actualoperating performance, and you could lose all or a substantial part of your investment. Themarket price of our common stock could fluctuate significantly as a result of several factors,including: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | actual or anticipated variations in our results of operations; |
|---|----------------------------------------------------------------|

| - | announcements of innovations, new services or significant price reductions by us orour competitors; |
|---|-----------------------------------------------------------------------------------------------------|

| - | announcements by us or our competitors of significant contracts or acquisitions; |
|---|----------------------------------------------------------------------------------|

| - | our failure to meet the performance estimates of investment research analysts; |
|---|--------------------------------------------------------------------------------|

| - | changes in financial estimates by investment research analysts; and |
|---|---------------------------------------------------------------------|

| - | general economic and market conditions. |
|---|-----------------------------------------|

|   | Our common stock is a “penny stock”. |
|--------|--------------------------------------------------|

|   | Our common stock is quoted on the NASDAQ’s OTC Bulletin Board and is considered a“penny stock”, as long as it trades below $5.00 per share.  Broker-dealer practices inconnection with transactions in penny stocks are regulated by penny stock rules adopted bythe SEC.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stocknot otherwise exempt from the rules, to deliver a standardized risk disclosure statementprepared by the SEC that provides information about penny stocks and the nature and levelof risks in the penny stock market.  The broker-dealer also must provide the customer withcurrent bid and offer quotations for the penny stock, the compensation of the broker-dealer andits salesperson in the transaction, as well as the monthly account statements showing themarket value of each penny stock held in the customer’s account.  In addition, the penny stockrules require that, prior to a transaction in a penny stock not otherwise exempt from such rules,the broker-dealer must make a special written determination that the penny stock is a suitableinvestment for the purchaser and receive the purchaser’s written agreement to the transaction. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | These disclosure requirements may have the effect of reducing the level of trading activity inthe secondary market for a stock that is subject to the penny stock rules.  In this regard, it canbe expected that investors in our common stock may find it more difficult to profit on theirinvestments in our common stock. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 2. | Description of Property |
|---------|-------------------------|

| Facilities |
|------------|

| Our president, David Loflin, provides the office space needed for our company at no charge.  Atsuch time as we obtain sufficient capital, we will relocate our corporate operations to a largerfacility. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Intellectual Property |
|-----------------------|

| We have pending patent applications with respect to certain aspects of our WiFiCasino GSwireless gaming system.  We believe that obtaining these patents, as well as any future patentsrelated to our products, is extremely important and we intend to pursue these patents vigorously.However, we can offer no assurance that we will be granted any patents relating to ourWiFiCasino GS wireless gaming system. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In addition, we rely on a combination of trademark laws, trade secret laws and disclosurerestrictions to protect our intellectual property rights. We also enter into confidentialityagreements with our employees, consultants and other third parties who have access to sensitiveand proprietary information. Diamond I(TM), as well as its associated mark, and WiFiCasinoGS(TM) are designations that we use and for which we intend to obtain registered trademarks. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If a claim is asserted that we have infringed the intellectual property of a third party, we may berequired to seek licenses to that technology. Licenses from third parties may not continue to beavailable to us at a reasonable cost, or at all. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, the steps we have taken to protect our intellectual property rights may not beadequate. Third parties may infringe or misappropriate our proprietary rights. Competitors mayalso independently develop technologies that are substantially equivalent or superior to thetechnologies we employ in our business.  If we fail to protect our proprietary rights adequately,our competitors could offer similar services, potentially significantly harming our competitiveposition and decreasing our revenues. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 3. | Legal Proceedings |
|---------|-------------------|

| We are not currently involved in any legal proceedings. |
|---------------------------------------------------------|

|   |
|--------|

| Item 4. | Submission of Matters to Vote of Security Holders |
|---------|---------------------------------------------------|

| During 2006, we did not submit any matters to our shareholders. |
|-----------------------------------------------------------------|

|   |
|--------|

| PART II |
|---------|

| Item 5. | Market for Common Equity and Related Stockholder Matters |
|---------|----------------------------------------------------------|

| Market Information |
|--------------------|

| Our common stock is quoted on the OTC Bulletin Board, under the symbol “DMOI”.  Previously,our common stock has been quoted on the OTC Bulletin Board, under the symbols “AQWF”,“AVWF” and “CVNT”.  The table below sets forth, for the periods indicated, the high and lowbid prices for our common stock, as reported by the OTC Bulletin Board. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Quarter Ended |   | High Bid* |   | Low Bid * |   |
|--------|---------------|--------|-----------|--------|-----------|--------|

|   | March 31, 2004 |   | $1.125 |   | $.525 |   |
|--------|----------------|--------|--------|--------|-------|--------|

|   | June 30, 2004 |   | $.85 |   | $.2125 |   |
|--------|---------------|--------|------|--------|--------|--------|

|   | September 30, 2004 |   | $.375 |   | $.06 |   |
|--------|--------------------|--------|-------|--------|------|--------|

|   | December 31, 2004 |   | $.18 |   | $.06 |   |
|--------|-------------------|--------|------|--------|------|--------|

|   | March 31, 2005 |   | $.37 |   | $.08 |   |
|--------|----------------|--------|------|--------|------|--------|

|   | June 30, 2005 |   | $.11 |   | $.04 |   |
|--------|---------------|--------|------|--------|------|--------|

|   | September 30, 2005 |   | $.08 |   | $.02 |   |
|--------|--------------------|--------|------|--------|------|--------|

|   | December 31, 2005 |   | $.05 |   | $.02 |   |
|--------|-------------------|--------|------|--------|------|--------|

|   | March 31, 2006 |   | $.14 |   | $.02 |   |
|--------|----------------|--------|------|--------|------|--------|

|   | June 30, 2006 |   | $.08 |   | $.021 |   |
|--------|---------------|--------|------|--------|-------|--------|

|   | September 30, 2006 |   | $.038 |   | $.017 |   |
|--------|--------------------|--------|-------|--------|-------|--------|

|   | December 31, 2006 |   | $.028 |   | $.007 |   |
|--------|-------------------|--------|-------|--------|-------|--------|

|   | March 31, 2007 |   | $.036 |   | $.009 |   |
|--------|----------------|--------|-------|--------|-------|--------|

|  * | The foregoing prices have been adjusted to reflect a four-for-one forward splitof our common stock occurring in September 2004. |
|---------|---------------------------------------------------------------------------------------------------------------------------------|

| These prices represent quotations between dealers without adjustment for retail mark-ups, mark-downs or commissions, and may not necessarily represent actual transactions. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| You should note that our common stock, like many technology-related stocks, is likely toexperience significant fluctuations in its price and trading volume.  We cannot predict the futuretrading patterns of our common stock. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Holders |
|---------|

| On April 16, 2007, the number of record holders of our common stock, excluding nominees andbrokers, was 187 holding 297,153,756 shares. |
|-----------------------------------------------------------------------------------------------------------------------------------------|

| Dividends |
|-----------|

| We have never paid cash dividends on our common stock. We intend to re-invest any futureearnings into the company for the foreseeable future. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|

| Pursuant to the terms of the Purchase Agreement with NewMarket, shareholders of record as ofthe closing date thereunder, expected to be on our about June 1, 2007, will be entitled to receivea pro rata dividend distribution of 100% of the stock of our subsidiary, Diamond I Technologies,Inc., the subsidiary in which all of our wireless gaming business is located.  This dividenddistribution will not occur until such time as Diamond I Technologies, Inc. has an effectiveregistration statement relating thereto filed with the SEC. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Securities Authorized for Issuance Under Equity Compensation Plans |
|--------------------------------------------------------------------|

| Plan Category |   | Number ofsecurities to beissued uponexercise ofoutstandingoptions, warrantsand rights |   | Weightedaverage exerciseprice ofoutstandingoptions,warrants, andrights |   | Number ofsecuritiesremainingavailable forfuture issuance |
|---------------|--------|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|----------------------------------------------------------|

| Equity compensation plansapproved by securityholders |   | -0- |   | -0- |   | -0- |
|------------------------------------------------------|--------|-----|--------|-----|--------|-----|

| Equity compensation plansnot approved by securityholders |   | (1) |   | (2) |   | 23,360,000(3) |
|----------------------------------------------------------|--------|-----|--------|-----|--------|---------------|

| Individual CompensationArrangements |   | -0- |   | -0- |   | -0- |
|-------------------------------------|--------|-----|--------|-----|--------|-----|

| (1) | The precise number of shares to be issued upon exercise of outstanding options cannot bedetermined, as the exercise price of such options is based on future market prices. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The precise weighted average exercise price of outstanding options cannot be determined,as the exercise price of such options is based on future market prices. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This figure represents the number of shares of our common stock, as of April 16, 2007,remaining available for issuance under our Second Amended and Restated 2004 StockOwnership Plan. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recent Issuances of Unregistered Securities |
|---------------------------------------------|

| During the three months ended December 31, 2006, we issued the following unregisteredsecurities: |
|--------------------------------------------------------------------------------------------------|

| 1.     | (a) | Securities Sold. In July 2006, a total of 6,200,000 shares of our common stock wereissued.                                                                                                                                                                                                                                                                   |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to DavidLoflin (5,000,000 shares), Waddell D. Loflin (1,000,000 shares), Gregory A. Bonner(100,000 shares) and Ira R. Witkin (100,000 shares).                                                                                                                                      |
|   | (c) | Consideration. Such shares of common stock were issued as bonuses and werevalued, in the aggregate, at $186,000.                                                                                                                                                                                                                                             |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.These purchasers were sophisticated investors capable of evaluating an investmentin our company. |

| 2.     | (a) | Securities Sold. In July 2006, 3,500,000 shares of our common stock were issued.                                                                                                                                                                                                                                                                           |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toNewlan & Newlan, Attorneys at Law.                                                                                                                                                                                                                                          |
|   | (c) | Consideration. Such shares of common stock were issued in payment of legal servicesand were valued at $105,000.                                                                                                                                                                                                                                            |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |

| 3.     | (a) | Securities Sold. In August 2006, 2,000,000 shares of our common stock were issued.                                                                                                                                                                                                                                                                         |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to EquitySolutions, Inc.                                                                                                                                                                                                                                                          |
|   | (c) | Consideration. Such shares of common stock were issued in payment of a promissorynote in the amount of $25,000.                                                                                                                                                                                                                                            |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |

| 4.     | (a) | Securities Sold. In September 2006, 1,000,000 shares of our common stock wereissued.                                                                                                                                                                                                                                                                       |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toEquititrend Advisors, LLC.                                                                                                                                                                                                                                                      |
|   | (c) | Consideration. Such shares of common stock were issued in payment of consultingservices and were valued at $17,000.                                                                                                                                                                                                                                        |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |

| 5.     | (a) | Securities Sold. In November 2006, 600,000 shares of our common stock wereissued.                                                                                                                                                                                                                                                                          |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to RogerSchwarz (300,000 shares) and Dean McClain (300,000 shares).                                                                                                                                                                                                               |
|   | (c) | Consideration. Such shares of common stock were issued in payment of a promissorynote in the amount of $7,200.                                                                                                                                                                                                                                             |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |

| 6.     | (a) | Securities Sold. In November 2006, a total of 7,200,000 shares of our common stockwere issued.                                                                                                                                                                                                                                                               |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to DavidLoflin (5,000,000 shares), Waddell D. Loflin (2,000,000 shares), Gregory A. Bonner(100,000 shares) and Ira R. Witkin (100,000 shares).                                                                                                                                      |
|   | (c) | Consideration. Such shares of common stock were issued as bonuses and werevalued, in the aggregate, at $86,400.                                                                                                                                                                                                                                              |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.These purchasers were sophisticated investors capable of evaluating an investmentin our company. |

| 7.     | (a) | Securities Sold. In November 2006, 5,000,000 shares of our common stock wereissued.                                                                                                                                                                                                                                                                        |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toNewlan & Newlan, Attorneys at Law.                                                                                                                                                                                                                                          |
|   | (c) | Consideration. Such shares of common stock were issued in payment of legal servicesand were valued at $60,000.                                                                                                                                                                                                                                             |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.This purchaser was a sophisticated investor capable of evaluating an investment inour company. |

|   |
|--------|

| Item 6. | Management’s Discussion and Analysis of Financial Condition and Results ofOperations |
|---------|--------------------------------------------------------------------------------------------|

| FORWARD-LOOKING STATEMENTS |
|----------------------------|

| This report by Diamond I, Inc. contains forward-looking statements. These are statementsregarding financial and operating performance and results and other statements that are nothistorical facts. The words "expect", "project", "estimate", "believe", "anticipate", "intend", "plan","forecast" and similar expressions are intended to identify forward-looking statements. Certainimportant risks could cause results to differ materially from those anticipated by some of theforward-looking statements. Some, but not all, of the important risks that could cause actualresults to differ materially from those suggested by the forward-looking statements include, amongother things: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Whether NewMarket delivers the funds called for under the Purchase Agreement; |
|---|-------------------------------------------------------------------------------|

| - | Events that deprive us of the services of our president and largest shareholder, DavidLoflin; |
|---|-----------------------------------------------------------------------------------------------|

| - | Whether or not we can successfully establish a market for our wireless gaming products; |
|---|-----------------------------------------------------------------------------------------|

| - | Whether we are able to obtain adequate capital with which to pursue our full businessplan; and |
|---|------------------------------------------------------------------------------------------------|

| - | Other uncertainties, all of which are difficult to predict and many of which are beyond ourcontrol. |
|---|-----------------------------------------------------------------------------------------------------|

| We do not intend to update forward-looking statements. |
|--------------------------------------------------------|

| Business Development |
|----------------------|

| Entering into the Purchase Agreement with NewMarket Technology has the potential to changesignificantly our future business operations.  Until the closing under the Purchase Agreement, wewill continue vigorously to pursue the development and, if opportunities are available, marketingof our WifiCasino wireless gaming system.  As soon as is practicable following the closing underthe Purchase Agreement, we will divest ourselves of the gaming business, by distributing all ofthe common stock of Diamond I Technologies, Inc. (“DiTech”) to our shareholders, as part of ouragreement with NewMarket. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Wireless Gaming. |
|------------------|

| We have not generated any revenues from this line of business since acquiring DiTech. |
|---------------------------------------------------------------------------------------|

| The development of our business has been significantly impaired by our lack of adequate capital.However, our agreement with NewMarket has permitted us to begin the final stages of our productdevelopment activities.  We expect that our product development will be greatly enhanced by ourrelationship with Quest Entertainment, a Houston, Texas-based provider of superior-quality, fast-playing, innovative gaming devices.  We recently executed a letter of intent to sign a definitivedevelopment agreement with Quest, whereby our companies would join forces to bring ourWifiCasino (and the GS2) to the gaming industry.  The definitive agreement is expected to besigned in the near future. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our business prospects in the State of Nevada were greatly enhanced in March 2006, with theadoption of final regulations implementing Nevada Law AB471, which authorizes the use ofmobile communication devices, such as our WifiCasino GS wireless gaming system, for gamingin public areas in Nevada casinos. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In furtherance of our plan to develop the business potential of our WifiCasino GS products, wehave, to the extent permitted by our capital position, taken the following actions: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | completed final design and three-dimensional model of the first generation of ourWifiCasino GS that embodies our finger-print security technology; |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | begun preparation of the application for a license from the Nevada Gaming Commissionwith respect our WifiCasino GS; |
|---|---------------------------------------------------------------------------------------------------------------------|

| - | signed a letter of intent with The Palms Resort and Casino, a premier Las Vegas property,wherein The Palms has agreed to continue to develop our working relationship relating toour WifiCasino GS wireless gaming system; |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | signed a letter of intent with Quest Entertainment (as described above); |
|---|--------------------------------------------------------------------------|

| - | pursued numerous potential opportunities to install and operate one of our WifiCasino GSsystems on a cruise ship; |
|---|-------------------------------------------------------------------------------------------------------------------|

| - | pursued numerous potential opportunities with the owners of certain horse racingfacilities, with respect to our installing and operating one of our WifiCasino GS systemson such a facility; and |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | acquired Touchdev Limited, a developer of an array of internally-derived and copyrightedgaming software products, with wireless PDA and cellular-phone-based capabilities.Touchdev has created 12 different games, including Texas Hold’em Poker. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In March 2006, we acquired the rights to pending patents relating to voice-recognition, or “voice-print” security technology.  Our board of directors, with the recommendation of management,determined to acquire these patent rights, due to its belief that the security provided by our “voice-print” technology, when coupled with our patent-pending finger-print security technology, wouldbe a significant point in our favor, as we solicit venues.  We will be able to assure venues (and thelocal government) that those who cannot game legally will not be able to do so. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We believe our acquisition of Touchdev and its proprietary software products will allow us tofurther enhance our WifiCasino GS products.  We believe that these features will provide acompetitive advantage, when we begin our full-scale WifiCasino GS as we implement ourmarketing strategy. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our marketing plan in Nevada revolves around establishing a greater physical presence of ourpersonnel, who are to conduct our marketing activities on a face-to-face basis with the owners oftarget venues, i.e., casinos.  The success of our WifiCasino GS marketing efforts in Nevada will,like other gaming sales efforts, be largely dependent on our ability to establish positive personalrelationships with appropriate decision-makers.  Our management believes that it has alreadyestablished a positive relationship with a number of such persons. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| To accomplish any of our business plan, we must obtain substantial capital.  Without capital, wewill not be successful in doing so. |
|-------------------------------------------------------------------------------------------------------------------------------------|

| Also, we cannot make any assurance  that we will be able to achieve a level of revenues adequateto generate sufficient cash flow from operations or obtain additional financing through privateplacements, public offerings and/or bank financing necessary to support our working capitalrequirements. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Wi-Fi Internet Access. |
|------------------------|

| Only if we are able to consummate the Purchase Agreement with NewMarket will we be able tore-establish our Wi-Fi Internet access services business.  The following information regardingthese proposed Wi-Fi Internet access activities is summary in nature and we cannot assure you thatthe statements concerning our expectations regarding such Wi-Fi Internet access businessoperations will prove to be accurate.  Should we consummate the Purchase Agreement withNewMarket, our Current Report on Form 8-K relating to such event would contain more specificinformation regarding our future Wi-Fi Internet access services business. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In its public announcements regarding the Purchase Agreement, NewMarket has stated that itintends to consolidate its own Wi-Fi-related assets into our company, as part of its plan to builda comprehensive wireless broadband offering with applications in multiple market segments.NewMarket has stated that it intends, initially, to focus on the municipal government andcasino/gaming sectors. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| With respect to the municipal government sector, it is expected that we will, in conjunction withcertain of NewMarket’s affiliated companies, offer our Wi-Fi Internet access services over entiretowns or wide large areas of large cities.  To provide this type of broad coverage, it will benecessary to deploy a large number of integrated antennae that effectively “blankets” the targetedcoverage area with radio frequencies.  We will be dependent on the funding expected to beobtained from NewMarket pursuant to the Purchase Agreement.  Without such funding, it is likelythat we will be unable to implement these plans. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| While we believe that the factors considered provide a meaningful basis for the accountingpolicies applied in the preparation of the consolidated financial statements, we cannot guaranteethat our estimates and assumptions will be accurate. If such estimates and assumptions prove tobe inaccurate, we may be required to make adjustments to these estimates in future periods. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Revenue Recognition.  We charged our customers  service fees for Internet access and recognizedthe revenue in the month the services are provided. |
|----------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation and Tax Assessments.  Should we become involved in lawsuits, we intend to assess thelikelihood of any adverse judgments or outcomes of any of these matters as well as the potentialrange of probable losses. A determination of the amount of accrual required, if any, for thesecontingencies will be made after careful analysis of each matter. The required accrual may changefrom time to time, due to new developments in any matter or changes in approach (such as achange in settlement strategy) in dealing with these matters. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax audits by federal and stategovernmental authorities incidental to our business activities. We anticipate that we will recordreserves for any estimated probable losses for any such proceeding. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock-Based Compensation.  We account for stock-based compensation based on the provisionsof Statement of Financial Accounting Standards No. 123.  In December 2004, the FinancialAccounting Standards Board issued Statement of Financial Accounting Standards No. 123(Revised 2004), Share-Based Payment, (FAS-123R).  This statement replaces FAS-123,Accounting for Stock-Based Compensation, supersedes APB Opinion No. 25, Accounting forStock Issued to Employees, and amends FAS-95, Statement of Cash Flows.  FAS-123R requirescompanies to apply a fair-value-based measurement method in accounting for share-basedpayment transactions with employees and to record compensation cost for all stock awards grantedafter the required effective date and for awards modified, repurchased or cancelled after that date.The scope of FAS-123R encompasses a wide range of share-based compensation arrangements,including share options, restricted share plans, performance-based awards, share appreciationrights and employee share purchase plans.  FAS-123R was effective for us on January 1, 2006. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations |
|-----------------------|

| During 2006, we had no revenues from operations and we do not expect to generate any revenuesfrom our operations for the remainder of 2007, unless the Wi-Fi Internet access marketing planof NewMarket is successful.  We cannot assure you that NewMarket’s business plan will besuccessful. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Liquidity and Capital Resources |
|---------------------------------|

| We have incurred losses from inception of $29,066,327 and we have lacked adequate capital withwhich to accomplish our business objectives.  At December 31, 2006, we had a working capitaldeficit of $462,191. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our agreement with NewMarket requires NewMarket to provide the following sources of funding,provided closing occurs: |
|----------------------------------------------------------------------------------------------------------------------|

| - | a $250,000 credit line, $25,200 of which has been accessed and $25,200 of which is to beavailable in each of April and May, 2007; |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

| - | a commitment for an additional $750,000 in funding (the terms of which fundingcommitment are to be negotiated prior to the closing under the Purchase Agreement) forDiTech; and |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | a commitment for an additional $1,000,000 in funding (the terms of which fundingcommitment are to be negotiated prior to the closing under the Purchase Agreement) forour revived Wi-Fi division. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In addition, the funds received by us pursuant to a $2,000,000 promissory note will be distributedpro rata to our shareholders of record on the closing date of the Purchase Agreement.  Thispromissory note is to bear 8% interest per annum, with payments of principal and interestcontinuing for a period of five years on a quarterly basis, until paid. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| With these funds, assuming their receipt, there are no assurances that we will be able to achievea level of revenues adequate to generate sufficient cash flow from operations or obtain additionalfinancing to sustain our business.  Further, we cannot assure you that additional financing will beavailable or, if available, that any such financing will be on terms acceptable to us.  If we do notobtain adequate financing, we may not be able to continue our operations or execute our businessplan. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2006, we obtained a total of $96,400 from the exercise of certain warrants, which fundshave been used to pay costs associated with our wireless gaming business and for operatingexpenses.  We are actively seeking capital for use in our business.  We can make no assurance thatwe will obtain enough to continue our business operations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our Capital Needs.  Our current level of operations can be maintained for the next twelve months.We anticipate our capital needs will be met through the exercise of options and issuance of sharesfor services.  However, to begin the aggressive  pursuit of our wireless gaming businessobjectives, we will require approximately $2 million. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| We purchased $861,133 in patents, equipment and software, during the year ended December 31,2006, by issuing shares of our common stock and warrants to purchase our common stock.  Wecurrently have limited capital with which to make any significant capital expenditures.  Shouldwe obtain significant funding, of which there is no assurance, we would be able to makesignificant expenditures for equipment.  The amounts of these patent, equipment and softwarepurchases cannot be predicted due to the uncertainty of funding levels and timing.  However,without additional capital, we intend to make no capital expenditures. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 7. | Financial Statements |
|---------|----------------------|

| The financial statements required to be furnished under this Item 7 are attached at the end of thisAnnual Report on Form 10-KSB. An index to our financial statements is also included below inItem 13(a). |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 8. | Changes In and Disagreements With Accountants on Accounting and FinancialDisclosure |
|---------|-------------------------------------------------------------------------------------|

| During 2006, we did not change our independent auditor.  On April 29, 2005, we dismissedLopez, Blevins, Bork & Associates, LLP as our independent auditor. At the time of the dismissal,there was no disagreement with respect to any matter of accounting principles or practices,financial statement disclosure or auditing scope or procedure. On April 29, 2005, we engagedMalone & Bailey, P.C. as our new independent auditor, to audit our financial statements for theyear ended December 31, 2005, and succeeding years.  The decision to change auditors wasapproved by the audit committee of our board of directors, as well as our board of directors. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 8A. | Controls and Procedures |
|----------|-------------------------|

| As of December 31, 2006, an evaluation was performed by our President and Acting ChiefFinancial Officer of the effectiveness of the design and operation of our disclosure controls andprocedures. Based on that evaluation, our management, including our President and Acting ChiefFinancial Officer, concluded that our disclosure controls and procedures were not effective as ofDecember 31, 2006.  Our evaluation identified deficiencies related to the accuracy andcompleteness of our accounting records and disclosures resulting in substantial adjustmentsidentified by our independent auditors.  These deficiencies are due to the limited resourcescurrently available to the Company.  Management is making efforts to utilize its resources moreeffectively to eliminate these deficiencies until the Company is able to obtain sufficient funds forbusiness development, including improvements in internal controls and procedures.  There havebeen no significant changes in our internal controls or in other factors that could significantlyaffect internal controls subsequent to December 31, 2006. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| PART III |
|----------|

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

| Directors and Officers |
|------------------------|

| The following table sets forth the officers and directors of Diamond I, Inc. |
|------------------------------------------------------------------------------|

|   | Name |   | Age |   | Position(s) |
|--------|------|--------|-----|--------|-------------|

|   | David Loflin |   | 49 |   | President, Acting Chief Financial Officer andDirector |
|--------|--------------|--------|----|--------|-------------------------------------------------------|

|   | Waddell D. Loflin |   | 56 |   | Executive Vice President, Secretary and Director |
|--------|-------------------|--------|----|--------|--------------------------------------------------|

|   | Gregory A. Bonner |   | 49 |   | Director |
|--------|-------------------|--------|----|--------|----------|

|   | Ira R. Witkin |   | 47 |   | Director |
|--------|---------------|--------|----|--------|----------|

|   | David Loflin and Waddell D. Loflin are brothers. |
|--------|--------------------------------------------------|

| Our current officers and directors serve until the next annual meeting of our board of directors oruntil their respective successors are elected and qualified.  All officers serve at the discretion ofour board of directors.  Family relationships between our officers and directors are noted above.Certain information regarding the backgrounds of each of the officers and directors is set forthbelow. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| DAVID LOFLIN is our founder.  He resigned as an executive officer and director of USURFAmerica, Inc. (now Cardinal Communications, Inc. (OTCBB Symbol: CDNC) in October 2003,after serving in those capacities for seven years. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WADDELL D. LOFLIN is one of our original officers and directors.  For more than the five yearsprior to April 2003, Mr. Loflin served as vice president, secretary and director of USURFAmerica, Inc. (now Cardinal Communications, Inc.).  From April to June 2003, Mr. Loflinworked as a private consultant. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| GREGORY A. BONNER has, since 2004, been engaged in private entrepreneurial endeavors.For over 20 years prior to that time, Mr. Bonner served Albemarle Corporation, a large chemicalscompany, in several capacities, including business development manager, product/marketingmanager and customer service specialist.  Mr. Bonner is a graduate of Georgia Institute ofTechnology in Atlanta, with a BS degree in Chemistry. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| IRA R. WITKIN is currently a program director at IBM. In that capacity, Mr. Witkin hasresponsibility for over 200 developers and marketing professionals worldwide. During his 25 yearcareer, Mr. Witkin has held numerous positions with a focus on information technology as itrelates to the travel and transportation, computer servicing, financial, manufacturing andcommunications industries. Mr. Witkin is a graduate of Rensselaer Polytechnic Institute in Troy,New York, with a BS degree in Computer Science and minors in management and marketing. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Board of Directors |
|--------------------|

| Our full board did not meet during 2006; however, it took action by unanimous written consentin lieu of a meeting on three occasions. |
|---------------------------------------------------------------------------------------------------------------------------------------|

| Executive Committee |
|---------------------|

| Our board of directors created an executive committee to facilitate management between meetingsof the full board of directors. The executive committee is composed of David Loflin (chairman),Waddell D. Loflin and Gregory A. Bonner. Pursuant to our bylaws, between meetings of the fullboard, the executive committee has the full power and authority of the board in the managementof our business and affairs, except to the extent limited by Delaware law. Pursuant to the bylawsof the executive committee, as adopted by the full board, the executive committee has theauthority to exercise all powers of the board, except the power: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | to declare dividends; |
|---|-----------------------|

| - | to sell or otherwise dispose of all or substantially all of our assets; |
|---|-------------------------------------------------------------------------|

| - | to recommend to our shareholders any action requiring their approval; and |
|---|---------------------------------------------------------------------------|

| - | to change the membership of any committee, fill the vacancies thereon or discharge anycommittee. |
|---|--------------------------------------------------------------------------------------------------|

| During 2006, the Executive Committee did not meet; however, it took action by unanimouswritten consent in lieu of a meeting on 12 occasions. |
|----------------------------------------------------------------------------------------------------------------------------------------------|

| Audit Committee |
|-----------------|

| The audit committee of our board of directors is composed of Ira R. Witkin (chairman), GregoryA. Bonner and David Loflin. Our board has appointed Messrs. Witkin, Bonner and Loflin to theaudit committee. The purposes of the audit committee are: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | to oversee the quality and integrity of the financial statements and other financial informationwe provide to any governmental body or the public; |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | to oversee the independent auditors’ qualifications and independence; |
|---|-----------------------------------------------------------------------------|

| - | to oversee the performance of our independent auditors; |
|---|---------------------------------------------------------|

| - | to oversee our systems of internal controls regarding finance, accounting, legal complianceand ethics that management and the board have established or will establish in the future; |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | to establish procedures for the receipt, retention and treatment of complaints regardingaccounting, internal controls, and other auditing matters and for the confidential, anonymoussubmission by our employees of concerns regarding questionable accounting or auditingmatters; |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | to provide an open avenue of communication among the independent auditors, financial andsenior management, the internal auditing department, and the board, always emphasizing thatthe independent auditors are accountable to the audit committee; and |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | to perform such other duties as are directed by the board. |
|---|------------------------------------------------------------|

| During 2006, the Audit Committee did not meet. |
|------------------------------------------------|

| Compensation of Directors |
|---------------------------|

| We do not pay any of our directors for their services as directors.  It is possible that ourmanagement could begin to pay our directors for meetings attended, grant a small number of stockoptions or issue shares of our common stock for their services.  However, no specificdetermination in this regard has been made. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In November 2003, two of our directors, Gregory A. Bonner and Ira R. Witkin, were each issued10,000 shares of our common stock each, in payment of future services as directors.  There shareswere valued, for financial reporting purposes, at $3.85 per share, or $77,000, in the aggregate. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In June 2004, each of Messrs. Bonner and Witkin, were issued 200,000 shares of our commonstock, in payment of their services as directors.  There shares were valued, for financial reportingpurposes, at $.4375 per share, or $150,000, in the aggregate.  In October 2004, each of Messrs.Bonner and Witkin, were issued 100,000 shares our common stock, in payment of their servicesas directors.  There shares were valued, for financial reporting purposes, at $.08 per share, or$32,000, in the aggregate. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In March 2005, each of Messrs. Bonner and Witkin, were issued 100,000 shares our commonstock, in payment of their services as directors.  There shares were valued, for financial reportingpurposes, at $.08 per share, or $32,000, in the aggregate.  In July 2005, each of Messrs. Bonnerand Witkin, were issued 100,000 shares our common stock, in payment of their services asdirectors.  There shares were valued, for financial reporting purposes, at $.048 per share, or$4,800, in the aggregate.  In October 2005, each of Messrs. Bonner and Witkin, were issued100,000 shares our common stock, in payment of their services as directors.  There shares werevalued, for financial reporting purposes, at $035 per share, or $3,500, in the aggregate. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In January 2006, each of Messrs. Bonner and Witkin, were issued 100,000 shares our commonstock, in payment of their services as directors.  There shares were valued, for financial reportingpurposes, at $.03 per share, or $6,000, in the aggregate.  In July 2006, each of Messrs. Bonner andWitkin, were issued 100,000 shares our common stock, in payment of their services as directors.There shares were valued, for financial reporting purposes, at $.03 per share, or $6,000, in theaggregate.  In November 2006, each of Messrs. Bonner and Witkin, were issued 100,000 sharesour common stock, in payment of their services as directors.  There shares were valued, forfinancial reporting purposes, at $.012 per share, or $2,400, in the aggregate. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Limitation of Liability and Indemnification |
|---------------------------------------------|

| Our restated certificate of incorporation contains provisions limiting the liability of directors. Ourrestated certificate of incorporation provides that a director will not be personally liable to us orto our shareholders for monetary damages for any breach of fiduciary duty as a director, but willcontinue to be subject to liability for the following: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | any breach of the director’s duty of loyalty to us or to our shareholders; |
|---|----------------------------------------------------------------------------------|

| - | acts or omissions not in good faith or that involve intentional misconduct or a knowingviolation of law; |
|---|----------------------------------------------------------------------------------------------------------|

| - | unlawful payment of dividends or unlawful stock repurchases or redemptions; and |
|---|---------------------------------------------------------------------------------|

| - | any transaction from which the director derived an improper personal benefit. |
|---|-------------------------------------------------------------------------------|

| If Delaware law is amended to authorize corporate action further eliminating or limiting thepersonal liability of a director, then the liability of our directors will be eliminated or limited tothe fullest extent permitted by Delaware law, as so amended. Our restated certificate ofincorporation does not eliminate a director’s duty of care and, in appropriate circumstances,equitable remedies such as injunctive or other forms of non-monetary relief remain availableunder Delaware law. Our restated certificate of incorporation does not affect a director’sresponsibilities under any other laws, such as state or federal securities laws or state or federalenvironmental laws. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In addition, we have entered into agreements to indemnify our directors and executive officers tothe fullest extent permitted under Delaware law, including the non-exclusivity provisions ofDelaware law, and under our bylaws, subject to limited exceptions. These agreements, amongother things, provide for indemnification of our directors and executive officers for fees, expenses,judgments, fines, and settlement amounts incurred by any of these persons in any action orproceeding to which any of those persons is, or is threatened to be, made a party by reason of theperson’s service as a director or officer, including any action by us, arising out of that person’sservices as our director or officer or that person’s services provided to any other company orenterprise at our request. We believe that these bylaw provisions and agreements are necessaryto attract and retain qualified persons as directors and officers. We also intend to maintain liabilityinsurance for our officers and directors. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The limitation of liability and indemnification provisions in our restated certificate ofincorporation and bylaws may discourage shareholders from bringing a lawsuit against directorsfor breach of their fiduciary duties. They may also reduce the likelihood of derivative litigationagainst directors and officers, even though an action, if successful, might benefit us and ourshareholders. A shareholder’s investment may be adversely affected to the extent we pay the costsof settlement and damage awards against directors and officers pursuant to these indemnificationprovisions. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 10. | Executive Compensation |
|----------|------------------------|

| The following table sets forth in summary form the compensation received during each of the lastthree completed fiscal years by our chief executive officer and each executive officer who receivedtotal salary and bonus exceeding $100,000 during any of the last three fiscal years. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Annual Compensation |   | Long-TermCompensation |
|--------|---------------------|--------|-----------------------|

| Name, Principal Position |   | FiscalYear |   | Salary $ |   | Bonus $ |   | Other$ |   | Securities UnderlyingOptions |   | AllOtherCompen-sation |
|--------------------------|--------|------------|--------|----------|--------|---------|--------|--------|--------|------------------------------|--------|-----------------------|

| David Loflin |   | 2006 |   | $180,000(1) |   | $300,000(2) |   | -0- |   | -0- |   | -0- |
|--------------|--------|------|--------|-------------|--------|-------------|--------|-----|--------|-----|--------|-----|

|   | President & CEO,Acting ChiefFinancial Officer |   |   | 2005 |   | $180,000(3) |   | $513,500(4) |   | -0- |   | -0- |   | -0- |
|--------|---------------------------------------------------|--------|--------|------|--------|-------------|--------|-------------|--------|-----|--------|-----|--------|-----|

|   |   |   |   | 2004 |   | $180,000(5) |   | $228,572(6) |   | -0- |   | -0- |   | -0- |
|--------|--------|--------|--------|------|--------|-------------|--------|-------------|--------|-----|--------|-----|--------|-----|

| Waddell D. Loflin |   | 2006 |   | $120,000(7) |   | $99,000(8) |   | -0- |   | -0- |   | -0- |
|-------------------|--------|------|--------|-------------|--------|------------|--------|-----|--------|-----|--------|-----|

|   | Executive VicePresident, Secretary |   |   | 2005 |   | $120,000(9) |   | $181,000(10) |   | -0- |   | -0- |   | -0- |
|--------|------------------------------------|--------|--------|------|--------|-------------|--------|--------------|--------|-----|--------|-----|--------|-----|

|   |   |   |   | 2004 |   | $120,000(11) |   | $142,857(12) |   | -0- |   | -0- |   | -0- |
|--------|--------|--------|--------|------|--------|--------------|--------|--------------|--------|-----|--------|-----|--------|-----|

| (1) | Mr. David Loflin was paid $20,546 in salary.  $159,454 of his salary was not paid.  Thisamount has been accrued. |
|-----|------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. David Loflin's bonus amount was paid by the issuance of a total of 13,000,000 sharesof our common stock. 8,000,000 of such shares were valued at $.03 per share; and5,000,000 of such shares were valued at $.012 per share.  Each valuation reflects theclosing price of our common stock, as reported by the OTC Bulletin Board, on therespective dates of issuance. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. David Loflin was paid $65,385 in salary.  $114,615 of his salary was not paid and Mr.Loflin has waived payment of the unpaid salary.  The unpaid salary amount was accountedfor as contributed capital. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. David Loflin's bonus amount was paid by the issuance of a total of 7,500,000 sharesof our common stock.  3,000,000 of such shares were valued at $.11 per share; 2,000,000of such shares were valued at $.048 per share; and 2,500,000 of such shares were valuedat $.035 per share.  Each valuation reflects the closing price of our common stock, asreported by the OTC Bulletin Board, on the respective dates of issuance. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. David Loflin was paid $120,000 in salary.  $60,000 of his salary was not paid and Mr.Loflin has waived payment of the unpaid salary.  The unpaid salary amount was accountedfor as contributed capital. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mr. David Loflin's bonus amount was paid by the issuance of 2,857,152 shares of ourcommon stock, which shares were valued at $.08 per share, the closing price of ourcommon stock, as reported by the OTC Bulletin Board, on the date of issuance. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Mr. Waddell Loflin was paid $14,032 in salary.  $105,968 of his salary was not paid.  Thisamount has been accrued. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (8) | Mr. Waddell Loflin's bonus amount was paid by the issuance of a total of 4,500,000 sharesof our common stock. 2,500,000 of such shares were valued at $.03 per share; and2,000,000 of such shares were valued at $.012 per share.  Each valuation reflects theclosing price of our common stock, as reported by the OTC Bulletin Board, on therespective dates of issuance. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Mr. Waddell Loflin was paid $55,576 in salary.  $64,424 of his salary was not paid andMr. Loflin has waived payment of the unpaid salary.  The unpaid salary amount wasaccounted for as contributed capital. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Mr. Waddell Loflin's bonus amount was paid by the issuance of a total of 2,750,000 sharesof our common stock.  1,000,000 of such shares were valued at $.11 per share; 750,000of such shares were valued at $.048 per share; and 1,000,000 of such shares were valuedat $.035 per share.  Each valuation reflects the closing price of our common stock, asreported by the OTC Bulletin Board, on the respective dates of issuance. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Mr. Waddell Loflin was paid $79,231 in salary.  $40,769 of his salary was not paid andMr. Loflin has waived payment of the unpaid salary.  The unpaid salary amount wasaccounted for as contributed capital. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Mr. Waddell Loflin's bonus amount was paid by the issuance of 1,785,714 shares of ourcommon stock, which shares were valued at $.08 per share, the closing price of ourcommon stock, as reported by the OTC Bulletin Board, on the date of issuance. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Employment Contracts and Termination of Employment and Change-in-Control Agreements |
|-------------------------------------------------------------------------------------|

| David Loflin Employment Agreement.  David Loflin has entered into an employment agreementto serve as our president for three years, ending in September 2009.  Mr. Loflin’s annual salaryis $180,000.  In 2006, Mr. Loflin received $20,546 of his salary.  In 2005, Mr. Loflin received$65,385 of his salary.  In connection with his employment agreement, Mr. Loflin executed anindemnity agreement, a confidentiality agreement and an agreement not to compete. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Waddell D. Loflin Employment Agreement.  Waddell D. Loflin has entered into an employmentagreement to serve as our executive president for three years, ending in September 2009.  Mr.Loflin’s annual salary is $120,000.  In 2006, Mr. Loflin received $14,032 of his salary.  In 2005,Mr. Loflin received $55,756 of his salary.  In connection with his employment agreement, Mr.Loflin executed an indemnity agreement, a confidentiality agreement and an agreement not tocompete. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We have no compensatory plan or arrangement that results or will result from the resignation,retirement or any other termination of an executive officer’s employment or from a change incontrol or a change in an executive officer’s responsibilities following a change in control. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Option/SAR Grants |
|-------------------|

| We have never granted any stock options to any person, though we may do so in the future. Wehave never granted any stock appreciation rights (SARs), nor do we expect to grant any SARs inthe foreseeable future. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 11. | Security Ownership of Certain Beneficial Owners and Management |
|----------|----------------------------------------------------------------|

| The following table sets forth, as of the date hereof, information regarding beneficial ownershipof our capital stock by the following: |
|-----------------------------------------------------------------------------------------------------------------------------------------|

| - | each person, or group of affiliated persons, known by us to be the beneficial owner of morethan five percent of any class of our voting securities; |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | each of our directors; |
|---|------------------------|

| - | each of the named executive officers; and |
|---|-------------------------------------------|

| - | all directors and executive officers as a group. |
|---|--------------------------------------------------|

| Beneficial ownership is determined in accordance with the rules of the SEC, based on voting orinvestment power with respect to the securities. In computing the number of shares beneficiallyowned by a person and the percentage ownership of that person, shares of common stockunderlying warrants held by that person are deemed to be outstanding if the warrants areexercisable within 60 days of the date hereof. All percentages in this table are based on a total of316,653,756 shares of common stock outstanding as of the date hereof, which amount includesa total of 19,500,000 shares underlying currently outstanding and exercisable warrants.  Exceptas indicated in the footnotes below, we believe, based on information furnished to us, that thepersons and entities named in the table below have sole voting and investment power with respectto all shares of common stock shown as beneficially owned by them. Unless otherwise indicated,the address for each of the shareholders in the table below is c/o Diamond I, Inc., 8733 SiegenLane, Suite 309, Baton Rouge, Louisiana 70810. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Beneficially Owned |   |
|--------|--------------------|--------|

| Name and Address of Beneficial Owner |   | Shares |   | Percent(1) |   |
|--------------------------------------|--------|--------|--------|------------|--------|

| David Loflin |   | 37,027,142 |   | 11.69% |   |
|--------------|--------|------------|--------|--------|--------|

| Waddell D. Loflin |   | 9,735,714 |   | 3.07% |   |
|-------------------|--------|-----------|--------|-------|--------|

| Gregory A. Bonner(2) |   | 1,090,000 |   | * |   |
|----------------------|--------|-----------|--------|---|--------|

| Ira R. Witkin(3) |   | 1,090,000 |   | * |   |
|------------------|--------|-----------|--------|---|--------|

| All executive officers and directors    as a group (4 persons) |   | 48,942,856 |   | 15.46% |   |
|------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|

| Jason Davis |   | 17,922,757 |   | 5.66% |   |
|-------------|--------|------------|--------|-------|--------|

| Newlan & Newlan(4) |   | 23,561,472 |   | 7.44% |   |
|------------------------|--------|------------|--------|-------|--------|

| Heyer Capital Fund(5)(15) |   | 6,000,000(6) |   | 1.89% |   |
|---------------------------|--------|--------------|--------|-------|--------|

| 1008212 Alberta Ltd.(7)(15) |   | 6,000,000(8) |   | 1.89% |   |
|-----------------------------|--------|--------------|--------|-------|--------|

| Douglasdale Capital Ltd.(9)(15) |   | 6,000,000(10) |   | 1.89% |   |
|---------------------------------|--------|---------------|--------|-------|--------|

| Douglasbank Capital Ltd.(11)(15) |   | 6,000,000(12) |   | 1.89% |   |
|----------------------------------|--------|---------------|--------|-------|--------|

| Shelter Capital Ltd.(13) |   | 4,000,000(14) |   | 1.25% |   |
|--------------------------|--------|---------------|--------|-------|--------|

| * | Less than 1% |
|---|--------------|

| (1) | Based on 316,653,756 shares outstanding, including a total of 19,500,00 shares underlyingcurrently outstanding and exercisable warrants. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. Bonner’s address is 5223 Hagerstown Avenue, Baton Rouge, Louisiana 70817. |
|-----|-------------------------------------------------------------------------------------|

| (3) | Mr. Witkin’s address is 980 Crepe Myrtle Lane, Copper Canyon, Texas 76226. |
|-----|----------------------------------------------------------------------------------|

| (4) | Newlan & Newlan’s address is 2652 F.M. 407, Suite 230, Bartonville, Texas 76226.  L.A. Newlan, Jr. and Eric Newlan are the partners in the law firm of Newlan & Newlan, ourlegal counsel, and own, directly and directly, a total number of shares shown. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Heyer Capital’s address is 418 Douglas Park View S.E., Calgary, Alberta, Canada T2Z2R1. Peter Rochow is the owner of this entity and possesses voting and investment controlof the shares owned by it. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | 5,000,000 of these shares have been issued; 1,000,000 of these shares have not beenissued, but underlie currently exercisable warrants. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (7) | 1008212 Alberta’s address is 418 Douglas Park View S.E., Calgary, Alberta, Canada T2Z2R1.  Joanne Rochow is the owner of this entity and possesses voting and investmentcontrol of the shares owned by it. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | 5,000,000 of these shares have been issued; 1,000,000 of these shares have not beenissued, but underlie currently exercisable warrants. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Douglasdale Capital’s address is 418 Douglas Park View S.E., Calgary, Alberta, CanadaT2Z 2R1. Peter Rochow possesses voting and investment control of the shares owned bythis entity.  Mr. Rochow disclaims any beneficial ownership of the shares owned by thisentity. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | 5,000,000 of these shares have been issued; 1,000,000 of these shares have not beenissued, but underlie currently exercisable warrants. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Douglasbank Capital’s address is 418 Douglas Park View S.E., Calgary, Alberta, CanadaT2Z 2R1. Peter Rochow possesses voting and investment control of the shares owned bythis entity.  Mr. Rochow disclaims any beneficial ownership of the shares owned by thisentity. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | 5,000,000 of these shares have been issued; 1,000,000 of these shares have not beenissued, but underlie currently exercisable warrants. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Shelter Capital’s address is P.O. Box 64, Providenciales, Turks and Caicos Islands.  PeterRochow possesses voting and investment control of the shares owned by this entity.  Mr.Rochow disclaims any beneficial ownership of the securities owned by this entity. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | None of these shares has been issued, but underlie currently exercisable warrants. |
|------|------------------------------------------------------------------------------------|

| (15) | Heyer Capital Fund, Douglasdale Capital Ltd. and Douglasbank Capital Ltd. havecommon management, Mr. Peter Rochow, who possesses the power of disposition overthe securities owned by these entities; the beneficial ownership of each of these entitiesis different. Mr. Rochow disclaims any beneficial ownership of the shares owned by theseentities, except for those owned by Heyer Capital Fund, of which he is the beneficialowner. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 12. | Certain Relationships and Related Transactions |
|----------|------------------------------------------------|

| Purchase Agreement with NewMarket Technologies, Inc. - Change in Control |
|--------------------------------------------------------------------------|

| Upon the closing under the Purchase Agreement, our company will experience a change incontrol.  At such time, the principals of NewMarket Technologies, Inc. will be able to control ourmanagement and our affairs. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Acquisition of Diamond I Technologies, Inc. |
|---------------------------------------------|

| On January 18, 2005, pursuant to an agreement and plan of reorganization, we acquired all of theoutstanding capital stock of Diamond I Technologies, Inc., a Nevada corporation (DITech), byissuing a total of 70,591,026 shares of our common stock to the shareholders of DITech.  Thereorganization agreement provides for further issuances of shares of our common stock, uponDITech’s satisfying certain performance standards, as follows:  (a) we are obligated to issue anadditional 35,295,513 shares to the shareholders of DITech, if, on or before the date which is twoyears from the consummation of the reorganization agreement, DITech shall have completed thedesign and installation of a hand-held Wi-Fi-based gaming system in a first-class hotel/casino withno fewer than 400 guest rooms located in the State of Nevada (the “Target System”), to the effectthat the Target System is 100% operational and ready for use by guests of the host hotel/casino,which readiness shall include the approval of the Nevada Gaming Commission; and (b)  we areobligated to issue an additional 35,295,513 shares to the shareholders of DITech, if, on or beforethe date which is five years from the consummation of the reorganization agreement, the TargetSystem shall have operated at a profit, as determined by generally accepted accounting principles,for a period of three consecutive months.  In 2005, we issued a total of 1,000,000 shares of ourcommon stock to the former owners of DITech, in consideration of their waiving certain fundingobligations contained in the original acquisition agreement.  These shares were valued, forfinancial reporting purposes, at $.038 per share, or $38,000, in the aggregate. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In determining the number of shares of our common stock to be issued to the shareholders ofDITech, our board of directors did not employ any standard valuation formula or any otherstandard measure of value.  Rather, the number of shares issued to the shareholders of DITech wasdetermined through arm’s-length negotiations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2006 Stock Bonuses |
|--------------------|

| During 2006, Mr. David Loflin was issued a total of 13,000,000 shares our common stock, forretention bonuses for his serving as our president for 2006.  Mr. Waddell Loflin was issued a totalof 4,500,000 shares our common stock, for retention bonuses for his serving as our executive vicepresident for 2006.  Also, two of our directors, Gregory A. Bonner and Ira R. Witkin, were eachissued 300,000 shares our common stock, in payment of their services for 2006 as directors.10,900,000 of these shares were valued, for financial reporting purposes, at $.03 per share, or$327,000, in the aggregate.  7,200,000 of these shares were valued, for financial reportingpurposes, at $.012 per share, or $86,400, in the aggregate. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2005 Stock Bonuses |
|--------------------|

| During 2005, Mr. David Loflin was issued a total of 7,500,000 shares of our common stock, asbonus for his serving as our president.  3,000,000 of such shares were valued at $.11 per share;2,000,000 of such shares were valued at $.048 per share; and 2,500,000 of such shares werevalued at $.035 per share.  These shares were valued, in the aggregate for financial reportingpurposes, at $513,500. Each valuation reflects the closing price of our common stock, as reportedby the OTC Bulletin Board, on the respective dates of issuance. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2005, Mr. Waddell Loflin was issued a total of 2,750,000 shares of our common stock.1,000,000 of such shares were valued at $.11 per share; 750,000 of such shares were valued at$.048 per share; and 1,000,000 of such shares were valued at $.035 per share.  These shares werevalued, in the aggregate for financial reporting purposes, at $181,000.  Each valuation reflects theclosing price of our common stock, as reported by the OTC Bulletin Board, on the respective datesof issuance. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In March 2005, each of Messrs. Bonner and Witkin, were issued 100,000 shares our commonstock, in payment of their services as directors.  These shares were valued, for financial reportingpurposes, at $.08 per share, or $32,000, in the aggregate.  In July 2005, each of Messrs. Bonnerand Witkin, were issued 100,000 shares our common stock, in payment of their services asdirectors.  These shares were valued, for financial reporting purposes, at $.048 per share, or$4,800, in the aggregate.  In October 2005, each of Messrs. Bonner and Witkin, were issued100,000 shares our common stock, in payment of their services as directors.  These shares werevalued, for financial reporting purposes, at $035 per share, or $3,500, in the aggregate. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2004 Stock Bonuses |
|--------------------|

| During 2004, Mr. David Loflin was issued 2,857,152 shares of our common stock, as bonus forhis serving as our president.  These shares were valued, for financial reporting purposes, at $.08per share, or $228,572, in the aggregate. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2004, Mr. Waddell Loflin was issued 1,785,714 shares of our common stock, as bonusfor his serving as our president.  These shares were valued, for financial reporting purposes, at$.08 per share, or $142,857, in the aggregate. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During 2004, each of Messrs. Bonner and Witkin was issued 100,000 shares our common stock,in payment of their services as directors.  These shares were valued, for financial reportingpurposes, at $.08 per share, or $16,000, in the aggregate. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2003 Stock Bonuses |
|--------------------|

| In August 2003, one of our directors, Waddell D. Loflin, was issued 500,000 shares of ourcommon stock as a bonus for his service as a director.  As a result of our four-for-one forwardstock split, these shares now total 2,000,000.  These shares were valued at $50,000 for financialreporting purposes. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In November 2003, two of our directors, Gregory A. Bonner and Ira R. Witkin, were issued10,000 shares our common stock each, in payment of future services as directors.  As a result ofour four-for-one forward stock split, these shares now total 80,000.  There shares were valued, forfinancial reporting purposes, at $77,000, in the aggregate. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2003 Change in Control Transaction |
|------------------------------------|

| In June 2003, we experienced a change in control.  Pursuant to a stock purchase agreement, FMFInvestments, Ltd., a Texas limited partnership, purchased 611,000 shares, or 54.59%, of ouroutstanding common stock from Eric Anderson.  FMF Investments paid Mr. Anderson a total of$70,000 in cash, which funds were obtained by FMF Investments through its other businessactivities and not as a loan. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Following FMF Investments’ acquiring control, our then-directors resigned and FMF Investments,acting by written consent in lieu of a meeting of a majority of shareholders, elected David Loflinand Waddell D. Loflin as our directors. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2003 Stock Purchase Agreement |
|-------------------------------|

| In June 2003, pursuant to a stock purchase agreement, we acquired all of the outstanding capitalstock of Air-Q Corp., a Nevada corporation (Air-Q NV), by issuing a total of 11,000,000 sharesof our common stock to the shareholders of Air-Q Corp.  In connection with our acquiring Air-QNV, our president, David Loflin, was issued 9,000,000 shares of our common stock and FMFInvestments, Ltd. was issued 2,000,000 shares of our common stock.  In determining the numberof shares of our common stock to be issued to the shareholders of Air-Q NV, our board ofdirectors did not employ any standard valuation formula or any other standard measure of value. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Air-Q NV is now known as Diamond I Technologies, Inc. |
|-------------------------------------------------------|

| 2003 Securities Sales |
|-----------------------|

| In June 2003, we entered into four securities purchase agreements.  We entered into agreementswith Douglasdale Capital Ltd., Douglasbank Capital Ltd., Heyer Capital Fund and 1008212Alberta Ltd.  Under each of these agreements, we issued securities for cash in the amount of$125,000 for a total of $500,000 under these agreements.  We sold each of these entities (1)1,250,000 shares of our common stock, (2) 1,250,000 common stock purchase warrants topurchase a like number of shares at an exercise price of $.20 per share, (3) 1,250,000 commonstock purchase warrants to purchase a like number of shares at an exercise price of $.30 per share,(4) 1,250,000 common stock purchase warrants to purchase a like number of shares at an exerciseprice of $.40 per share and (5) 1,250,000 common stock purchase warrants to purchase a likenumber of shares at an exercise price of $.50 per share.  In April 2004, each of these entitiesagreed to cancel all of their respective common stock purchase warrants, in exchange for1,250,000 common stock purchase warrants to purchase a like number of shares at an exerciseprice of $1.00 per share.  As a result of our four-for-one forward stock split, each of these entitiesnow holds 5,000,000 common stock purchase warrants to purchase a like number of shares at anexercise price of $0.25 per share.  All of the warrants are exercisable for five years. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| At the time of these transactions, the entities that purchased securities from us were under thecommon management of Peter Rochow.  The beneficial ownership of these entities is differentand Mr. Rochow disclaims any beneficial ownership of these entities, except for Heyer CapitalFund. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2003 Finder’s Fee |
|-------------------------|

| In connection with the sales of securities described under “2003 Securities Purchases” above, wepaid Shelter Capital, Ltd. a finder’s fee.  For its efforts as a finder, Shelter Capital received 10%of the cash proceeds derived by us and common stock purchase warrants, as follows:  (1)1,000,000 warrants to purchase a like number of shares at an exercise price of $.20 per share; (2)1,000,000 warrants to purchase a like number of shares at an exercise price of $.30 per share; (3)1,000,000 warrants to purchase a like number of shares at an exercise price of $.40 per share; and(4) 1,000,000 warrants to purchase a like number of shares at an exercise price of $.50 per share.As a result of our four-for-one forward stock split, Shelter Capital now holds (A) 4,000,000warrants to purchase a like number of shares at an exercise price of $.05 per share; (B) 4,000,000warrants to purchase a like number of shares at an exercise price of $.075 per share; (C) 4,000,000warrants to purchase a like number of shares at an exercise price of $.10 per share; and (D)4,000,000 warrants to purchase a like number of shares at an exercise price of $.125 per share.All of these warrants are exercisable for five years.  Shelter Capital is managed by Peter Rochow,a principal in each of the entities who purchased securities from us, who disclaims any beneficialownership of Shelter Capital. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Employment Agreements |
|-----------------------|

| David Loflin Employment Agreement.  David Loflin has entered into an employment agreementto serve as our president for three years, ending in September 2009.  Mr. Loflin’s annual salaryis $180,000.  In 2006, Mr. Loflin received $20,546 of his salary.  In 2005, Mr. Loflin received$65,385 of his salary.  In connection with his employment agreement, Mr. Loflin executed anindemnity agreement, a confidentiality agreement and an agreement not to compete. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Waddell D. Loflin Employment Agreement.  Waddell D. Loflin has entered into an employmentagreement to serve as our executive president for three years, ending in September 2009.  Mr.Loflin’s annual salary is $120,000.  In 2006, Mr. Loflin received $14,032 of his salary.  In 2005,Mr. Loflin received $55,756 of his salary.  In connection with his employment agreement, Mr.Loflin executed an indemnity agreement, a confidentiality agreement and an agreement not tocompete. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Director and Officer Indemnification |
|--------------------------------------|

| Our restated certificate of incorporation contains provisions limiting liability of directors.  Inaddition, we have entered into agreements to indemnify our directors and officers to the fullestextent permitted under Delaware law.  Please see “Item 9. Directors, Executive Officers,Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act”. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 13. | Exhibits and Reports on Form 8-K |
|----------|----------------------------------|

| (a)(1) Financial Statements |
|-----------------------------|

|   | Index to Financial Statements of Diamond I, Inc. |
|--------|--------------------------------------------------|

| - | Report of Independent Registered Public Accounting Firm |
|---|---------------------------------------------------------|

| - | Consolidated Balance Sheet as of December 31, 2006 |
|---|----------------------------------------------------|

| - | Consolidated Statements of Revenues and Expenses for the Years Ended December 31,2006 and 2005, and the Period from June 17, 2003 (Inception), Through December 31,2006 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Consolidated Statements of Stockholders' Equity for the Period from June 17, 2003(Inception), Through December 31, 2006 |
|---|-------------------------------------------------------------------------------------------------------------------------|

| - | Consolidated Statements of Cash Flows for the Years Ended December 31, 2006 and2005, and the Period from June 17, 2003 (Inception) Through December 31, 2006 |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Notes to Consolidated Financial Statements |
|---|--------------------------------------------|

| (a)(2) Exhibits |
|-----------------|

| ExhibitNo. |   | Description |
|------------|--------|-------------|

| 21.1 * |   | Subsidiaries of Registrant. |
|--------|--------|-----------------------------|

| 31.1 * |   | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule15d-14(b). |
|--------|--------|---------------------------------------------------------------------------------------|

| 31.2 * |   | Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule15d-14(b). |
|--------|--------|---------------------------------------------------------------------------------------|

| 32.1 * |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350enacted by Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 * |   | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350enacted by Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| * Filed herewith. |   |
|-------------------|--------|

| (b) Reports on Form 8-K |
|-------------------------|

| During the three months ended December 31, 2006, we did not file a Current Report on Form8-K. |
|-----------------------------------------------------------------------------------------------|

| Since December 31, 2006, we have filed one Current Report on Form 8-K, as follows: |
|------------------------------------------------------------------------------------|

| - | Date of event: March 9, 2006, wherein we reported our entry into a material agreement. |
|---|----------------------------------------------------------------------------------------|

|   |
|--------|

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

| The following table sets forth fees billed to us by our auditors during the fiscal years endedDecember 31, 2006 and 2005, for: (i) services rendered for the audit of our annual financialstatements and the review of our quarterly financial statements, (ii) services by our auditors thatare reasonably related to the performance of the audit or review of our financial statements andthat are not reported as Audit Fees, (iii) services rendered in connection with tax compliance, taxadvice and tax planning and (iv) all other fees for services rendered. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | Year EndedDecember 31, 2006 |   | Year EndedDecember 31, 2005 |   |
|--------|--------|--------|-----------------------------|--------|-----------------------------|--------|

|   | Audit fees |   | $31,891 |   | $30,000 |   |
|--------|------------|--------|---------|--------|---------|--------|

|   | Audit related fees |   | $0 |   | $0 |   |
|--------|--------------------|--------|----|--------|----|--------|

|   | Tax |   | $0 |   | $0 |   |
|--------|-----|--------|----|--------|----|--------|

|   | All other fees |   | $0 |   | $5,970 |   |
|--------|----------------|--------|----|--------|--------|--------|

|   |
|--------|

| SIGNATURES |
|------------|

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

|   | DIAMOND I, INC. |
|--------|-----------------|

|   |
|--------|

|   | By: | /s/ DAVID LOFLIN |   |
|--------|-----|------------------|--------|

|   | David LoflinPresident |   |
|--------|-----------------------|--------|

| Pursuant to the requirements of the Securities Act of 1933, as amended, this Annual Report onForm 10-KSB has been signed by the following persons in the capacities and on the datesincluded: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   |                                                                                                             |   |           |
|------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|----------------|
| /s/ DAVID LOFLIN |   |                                                                                                             |   | April 17, 2007 |
| David Loflin     |   | President (principal executiveofficer), Acting ChiefAccounting Officer (principalfinancial officer) and Director |   |           |

|   |
|--------|

| /s/ WADDELL D. LOFLIN |   |                                  |   | April 17, 2007 |
|-----------------------|--------|---------------------------------------|--------|----------------|
| Waddell D. Loflin     |   | Vice President, Secretary andDirector |   |           |

|   |
|--------|

| /s/ GREGORY A. BONNER |   |     |   | April 17, 2007 |
|-----------------------|--------|----------|--------|----------------|
| Gregory A. Bonner     |   | Director |   |           |

|   |
|--------|

|                |   |     |   | April __, 2007 |
|---------------------|--------|----------|--------|----------------|
|  Ira R. Witkin |   | Director |   |           |

|   |
|--------|

| Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of theExchange Act by Non-reporting Issuers. |
|------------------------------------------------------------------------------------------------------------------------------------|

| As of the date of this Annual Report on Form 10-KSB, no annual report or proxy material hasbeen sent to security holders of Diamond I, Inc.  It is anticipated that an annual report and proxymaterial will be furnished to security holders subsequent to the filing of this Annual Report onForm 10-KSB. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
|---------------------------------------------------------|

|   |
|--------|

| To the Board of Directors |
|---------------------------|

| Diamond I, Inc. |
|-----------------|

| (A Development Stage Company) |
|-------------------------------|

| Baton Rouge, LA |
|-----------------|

|   |
|--------|

| We have audited the accompanying consolidated balance sheet of Diamond I, Inc. as of December31, 2006 and the related consolidated statements of revenues and expenses, shareholders’ equity,and cash flows for the two years then ended and for the period from June 17, 2003 (Inception)through December 31, 2006. These consolidated financial statements are the responsibility of theCompany's management.  Our responsibility is to express an opinion on these consolidatedfinancial statements based on our audits. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We conducted our audits in accordance with the standards of the Public Company AccountingOversight Board (United States).  Those standards require that we plan and perform an audit toobtain reasonable assurance about whether the consolidated financial statements are free ofmaterial misstatement.  An audit also includes examining, on a test basis, evidence supporting theamounts and disclosures in the consolidated financial statements, assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation.  We believe that our audits provide a reasonable basis for ouropinion. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the financial position of Diamond I, Inc. and the results of its operations andcash flows for the periods described in conformity with accounting principles generally acceptedin the United States of America. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The accompanying consolidated financial statements have been prepared assuming that DiamondI, Inc. will continue as a going concern.  As discussed in Note 2 to the consolidated financialstatements, Diamond I, Inc. suffered losses from operations and has a working capital deficiency,which raises substantial doubt about its ability to continue as a going concern.  Management’splans regarding those matters also are described in Note 2.  The consolidated financial statementsdo not include any adjustments that might result from the outcome of this uncertainty. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| /s/ MALONE & BAILEY, P.C. |
|-------------------------------|

| Malone & Bailey, P.C. |
|---------------------------|

| www.malone-bailey.com |
|-----------------------|

| Houston, Texas |
|----------------|

| April 16, 2007 |
|----------------|

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   |
|--------|

|   | CONSOLIDATED BALANCE SHEET |   |
|--------|----------------------------|--------|

|   | December 31, 2006 |   |
|--------|-------------------|--------|

|   |
|--------|

| ASSETS |
|--------|

| Current assets: |   |   |
|-----------------|--------|--------|

|   | Cash | $ 35 |   |
|--------|------|------|--------|

|   | Total Current Assets | 35 |   |
|--------|----------------------|----|--------|

| Equipment, net of accumulated depreciation of $92,870 | 49,245 |   |
|-------------------------------------------------------|--------|--------|

| Intangible assets, net of accumulated amortization of$94,479 | 766,654 |   |
|--------------------------------------------------------------|---------|--------|

|   | Total Assets | $775,934 |   |
|--------|--------------|----------|--------|

| LIABILITIES AND STOCKHOLDERS' EQUITY |
|--------------------------------------|

| Current Liabilities: |   |   |
|----------------------|--------|--------|

|   | Accounts payable | $1,500 |   |
|--------|------------------|--------|--------|

|   | Accrued expenses | 336,586 |   |
|--------|------------------|---------|--------|

|   | Short-term note payable - related party | 41,640 |   |
|--------|-----------------------------------------|--------|--------|

|   | Dividend payable on preferred stock | 82,500 |   |
|--------|-------------------------------------|--------|--------|

|   | Total current liabilities | 462,226 |   |
|--------|---------------------------|---------|--------|

|   | Commitments |   |   |
|--------|-------------|--------|--------|

| Stockholders’ equity: |   |   |
|-----------------------------|--------|--------|

|   | Series A Convertible Preferred Stock, $.001 parvalue, 50,000,000 shares authorized, 500,000 SeriesA shares issued and outstanding | 500 |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|-----|--------|

|   | Common stock, $.001 par value; 700,000,000 sharesauthorized, 288,513,756 shares issued andoutstanding | 288,514 |   |
|--------|-------------------------------------------------------------------------------------------------------|---------|--------|

|   | Subscription receivable | (128,000) |   |
|--------|-------------------------|-----------|--------|

|   | Additional paid-in capital | 29,219,021 |   |
|--------|----------------------------|------------|--------|

|   | Deficit accumulated during the development stage | (29,066,327) |   |
|--------|--------------------------------------------------|--------------|--------|

|   | Total Stockholders' Equity | 313,708 |   |
|--------|----------------------------|---------|--------|

|   | Total Liabilities and Stockholders’ Equity | $775,934 |   |
|--------|--------------------------------------------------|----------|--------|

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

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   |
|--------|

|   | STATEMENTS OF REVENUES ANDEXPENSES |   |
|--------|------------------------------------|--------|

|   | For the Years Ended December 31, 2006 and 2005, andthe Period from June 17, 2003 (Inception), Through December 31, 2006 |   |
|--------|-------------------------------------------------------------------------------------------------------------------------|--------|

|   | Year Ended December 31, |   |   |
|--------|-------------------------|--------|--------|

|   | 2006 |   | 2005 |   | Inceptionthrough12/31/2006 |
|--------|------|--------|------|--------|----------------------------|

| Revenues | $ - |   | $2,690 |   | $10,784 |
|----------|-----|--------|--------|--------|---------|

| Internet access costs | - |   | (6,786) |   | (32,850) |
|-----------------------|---|--------|---------|--------|----------|

| Gross profit (loss) | - |   | (4,096) |   | (22,066) |
|---------------------|---|--------|---------|--------|----------|

| OPERATING EXPENSES |   |   |   |   |   |
|--------------------|--------|--------|--------|--------|--------|

|   | Professional and consulting fees | 476,620 |   | 1,677,980 |   | 3,762,088 |
|--------|----------------------------------|---------|--------|-----------|--------|-----------|

|   | Compensation expense | 1,050,186 |   | 3,439,428 |   | 4,875,576 |
|--------|----------------------|-----------|--------|-----------|--------|-----------|

|   | Depreciation | 111,910 |   | 22,932 |   | 187,350 |
|--------|--------------|---------|--------|--------|--------|---------|

|   | Impairment loss | - |   | 16,306,527 |   | 16,808,527 |
|--------|-----------------|---|--------|------------|--------|------------|

|   | General and administrative | 36,105 |   | 121,656 |   | 3,384,628 |
|--------|----------------------------|--------|--------|---------|--------|-----------|

|   | Total Operating Expenses | 1,674,821 |   | 21,568,523 |   | 29,018,169 |
|--------|--------------------------|-----------|--------|------------|--------|------------|

| LOSS FROM OPERATIONS | (1,674,821) |   | (21,572,619) |   | (29,040,235) |
|----------------------|-------------|--------|--------------|--------|--------------|

| OTHER INCOME (EXPENSE) | (27,234) |   | 45 |   | (26,092) |
|------------------------|----------|--------|----|--------|----------|

| NET LOSS | $(1,702,555) |   | $(21,572,574) |   | $(29,066,327) |
|----------|--------------|--------|---------------|--------|---------------|

| Deemed Dividend on Preferred Stock | - |   | - |   | (165,442) |
|------------------------------------|---|--------|---|--------|-----------|

| Cumulative Preferred Dividends | (30,000) |   | (52,500) |   | (82,500) |
|--------------------------------|----------|--------|----------|--------|----------|

| Net Loss Charged to Common Shareholders | $(1,732,055) |   | $(21,625,074) |   | $(29,314,269) |
|-----------------------------------------|--------------|--------|---------------|--------|---------------|

| Net loss applicable to common shareholders |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|

|   | Basic and diluted | $(0.01) |   | $(0.10) |   |   |
|--------|-------------------|---------|--------|---------|--------|--------|

| Weighted average number of shares outstanding |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|

|   | Basic and diluted | 254,459,362 |   | 218,970,514 |   |   |
|--------|-------------------|-------------|--------|-------------|--------|--------|

|   |
|--------|

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

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   |
|--------|

|   | CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) |   |
|--------|----------------------------------------------------------------|--------|

|   |  For the Period from June 17, 2003 (Inception), Through December31, 2006 |   |
|--------|-------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulated DuringtheDevelopment Stage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|------------------------|--------|-----------------------------------------------|--------|-------|

| Issuance ofcommon stock tofounders | - |   | $ - |   | 44,000,000 |   | $44,000 |   | $(43,000) |   | $ - |   | $ - |   | $1,000 |
|------------------------------------|---|--------|-----|--------|------------|--------|---------|--------|-----------|--------|-----|--------|-----|--------|--------|

| Stock issued inreverse acquisition | - |   | - |   | 4,476,816 |   | 4,477 |   | (3,358) |   | - |   | - |   | 1,119 |
|------------------------------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|-------|

| Stock issued forservices | - |   | - |   | 12,610,000 |   | 12,610 |   | 2,012,216 |   | - |   | - |   | 2,024,826 |
|--------------------------|---|--------|---|--------|------------|--------|--------|--------|-----------|--------|---|--------|---|--------|-----------|

| Stock issued forcash and warrants,net of cost | - |   | - |   | 20,000,000 |   | 20,000 |   | 430,000 |   | - |   | - |   | 450,000 |
|-----------------------------------------------|---|--------|---|--------|------------|--------|--------|--------|---------|--------|---|--------|---|--------|---------|

| Net loss | - |   | - |   | - |   | - |   | - |   | - |   | (2,409,433) |   | (2,409,433) |
|----------|---|--------|---|--------|---|--------|---|--------|---|--------|---|--------|-------------|--------|-------------|

| Balance, December31, 2003 | - |   | - |   | 81,086,816 |   | 81,087 |   | 2,395,858 |   | - |   | (2,409,433) |   | 67,512 |
|---------------------------|---|--------|---|--------|------------|--------|--------|--------|-----------|--------|---|--------|-------------|--------|--------|

| Preferred stockissued for cash andwarrants | 500,000 |   | 500 |   | - |   | - |   | 499,500 |   | - |   | - |   | 500,000 |
|--------------------------------------------|---------|--------|-----|--------|---|--------|---|--------|---------|--------|---|--------|---|--------|---------|

| Stock issued inacquisition | - |   | - |   | 824,000 |   | 824 |   | 380,276 |   | - |   | - |   | 381,100 |
|----------------------------|---|--------|---|--------|---------|--------|-----|--------|---------|--------|---|--------|---|--------|---------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulated DuringtheDevelopment Stage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|------------------------|--------|-----------------------------------------------|--------|-------|

| Stock issued forwi-fi hotspots | - |   | - |   | 208,000 |   | 208 |   | 120,692 |   | - |   | - |   | 120,900 |
|--------------------------------|---|--------|---|--------|---------|--------|-----|--------|---------|--------|---|--------|---|--------|---------|

| Stock issued forcash on optionexercise | - |   | - |   | 1,640,435 |   | 1,640 |   | 148,360 |   | - |   | - |   | 150,000 |
|----------------------------------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| Stock issued forsalary | - |   | - |   | 338,826 |   | 339 |   | 41,661 |   | - |   | - |   | 42,000 |
|------------------------|---|--------|---|--------|---------|--------|-----|--------|--------|--------|---|--------|---|--------|--------|

| Stock issued forservices | - |   | - |   | 6,480,465 |   | 6,481 |   | 1,494,637 |   | - |   | - |   | 1,506,118 |
|--------------------------|---|--------|---|--------|-----------|--------|-------|--------|-----------|--------|---|--------|---|--------|-----------|

| Stock issued asbonuses | - |   | - |   | 5,522,856 |   | 5,523 |   | 577,905 |   | - |   | - |   | 583,428 |
|------------------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| Beneficialconversion featureembedded inpreferred stock andwarrants | - |   | - |   | - |   | - |   | 165,442 |   | - |   | - |   | 165,442 |
|--------------------------------------------------------------------|---|--------|---|--------|---|--------|---|--------|---------|--------|---|--------|---|--------|---------|

| Deemed dividendon preferred stock | - |   | - |   | - |   | - |   | (165,442) |   | - |   | - |   | (165,442) |
|-----------------------------------|---|--------|---|--------|---|--------|---|--------|-----------|--------|---|--------|---|--------|-----------|

| Net loss | - |   | - |   | - |   | - |   | - |   | - |   | (3,382,265) |   | (3,382,265) |
|----------|---|--------|---|--------|---|--------|---|--------|---|--------|---|--------|-------------|--------|-------------|

| Balance, December31, 2004 | 500,000 |   | 500 |   | 96,101,398 |   | 96,102 |   | 5,663,889 |   | - |   | (5,791,698) |   | (31,207) |
|---------------------------|---------|--------|-----|--------|------------|--------|--------|--------|-----------|--------|---|--------|-------------|--------|----------|

| Stock issued inacquisition | - |   | - |   | 77,650,129 |   | 77,650 |   | 16,228,877 |   | - |   | - |   | 16,306,527 |
|----------------------------|---|--------|---|--------|------------|--------|--------|--------|------------|--------|---|--------|---|--------|------------|

| Stock issued forcash on warrantexercise | - |   | - |   | 11,079,984 |   | 11,080 |   | 509,320 |   | (24,400) |   | - |   | 496,000 |
|-----------------------------------------|---|--------|---|--------|------------|--------|--------|--------|---------|--------|----------|--------|---|--------|---------|

| Stock issued forsalary | - |   | - |   | 3,153,107 |   | 3,153 |   | 256,260 |   | - |   | - |   | 259,413 |
|------------------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| Shareholderreceivable | - |   | - |   | 2,560,956 |   | 2,561 |   | 48,839 |   | - |   | - |   | 51,400 |
|-----------------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| Stock issued forservices | - |   | - |   | 20,085,870 |   | 20,086 |   | 1,167,911 |   | - |   | - |   | 1,187,997 |
|--------------------------|---|--------|---|--------|------------|--------|--------|--------|-----------|--------|---|--------|---|--------|-----------|

| Stock issued forpurchase option | - |   | - |   | 1,300,000 |   | 1,300 |   | 49,200 |   | - |   | - |   | 50,500 |
|---------------------------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulated DuringtheDevelopment Stage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|------------------------|--------|-----------------------------------------------|--------|-------|

| Stock issued asbonuses | - |   | - |   | 15,350,000 |   | 15,350 |   | 866,100 |   | - |   | - |   | 881,450 |
|------------------------|---|--------|---|--------|------------|--------|--------|--------|---------|--------|---|--------|---|--------|---------|

| Warrant expense | - |   | - |   | - |   | - |   | 2,072,603 |   | - |   | - |   | 2,072,603 |
|-----------------|---|--------|---|--------|---|--------|---|--------|-----------|--------|---|--------|---|--------|-----------|

| Stock issued forwaiver | - |   | - |   | 1,000,000 |   | 1,000 |   | 37,000 |   | - |   | - |   | 38,000 |
|------------------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| Donated capital,officers’ salaries | - |   | - |   | - |   |   |   | 279,808 |   | - |   | - |   | 279,808 |
|------------------------------------------|---|--------|---|--------|---|--------|--------|--------|---------|--------|---|--------|---|--------|---------|

| Cumulativedividend onpreferred stock | - |   | - |   | - |   | - |   | (52,500) |   | - |   | - |   | (52,500) |
|--------------------------------------|---|--------|---|--------|---|--------|---|--------|----------|--------|---|--------|---|--------|----------|

| Net loss | - |   | - |   | - |   | - |   | - |   | - |   | (21,572,574) |   | (21,572,574) |
|----------|---|--------|---|--------|---|--------|---|--------|---|--------|---|--------|--------------|--------|--------------|

| Balance, December31, 2005 | 500,000 |   | 500 |   | 225,720,488 |   | 225,721 |   | 27,078,468 |   | (24,400) |   | (27,364,272) |   | (83,983) |
|---------------------------|---------|--------|-----|--------|-------------|--------|---------|--------|------------|--------|----------|--------|--------------|--------|----------|

| Stock issued asbonuses: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| January 2006 | - |   | - |   | 4,700,000 |   | 4,700 |   | 136,300 |   | - |   | - |   | 141,000 |
|--------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| July 2006 | - |   | - |   | 6,200,000 |   | 6,200 |   | 179,800 |   | - |   | - |   | 186,000 |
|-----------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| November 2006 | - |   | - |   | 7,200,000 |   | 7,200 |   | 79,200 |   | - |   | - |   | 86,400 |
|---------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| Stock issued forservices: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| January 2006 | - |   | - |   | 3,000,000 |   | 3,000 |   | 87,000 |   | - |   | - |   | 90,000 |
|--------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| February 2006 | - |   | - |   | 1,107,142 |   | 1,107 |   | 26,712 |   | - |   | - |   | 27,819 |
|---------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| March 2006 | - |   | - |   | 400,000 |   | 400 |   | 9,240 |   | - |   | - |   | 9,640 |
|------------|---|--------|---|--------|---------|--------|-----|--------|-------|--------|---|--------|---|--------|-------|

| April 2006 | - |   | - |   | 739,982 |   | 740 |   | 31,686 |   | - |   | - |   | 32,426 |
|------------|---|--------|---|--------|---------|--------|-----|--------|--------|--------|---|--------|---|--------|--------|

| May 2006 | - |   | - |   | 166,600 |   | 167 |   | 4,231 |   | - |   | - |   | 4,398 |
|----------|---|--------|---|--------|---------|--------|-----|--------|-------|--------|---|--------|---|--------|-------|

| June 2006 | - |   | - |   | 200,000 |   | 200 |   | 9,560 |   | - |   | - |   | 9,760 |
|-----------|---|--------|---|--------|---------|--------|-----|--------|-------|--------|---|--------|---|--------|-------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulated DuringtheDevelopment Stage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|------------------------|--------|-----------------------------------------------|--------|-------|

| July 2006 | - |   | - |   | 400,000 |   | 400 |   | 10,800 |   | - |   | - |   | 11,200 |
|-----------|---|--------|---|--------|---------|--------|-----|--------|--------|--------|---|--------|---|--------|--------|

| August 2006 | - |   | - |   | 6,976,190 |   | 6,976 |   | 185,786 |   | - |   | - |   | 192,762 |
|-------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| September 2006 | - |   | - |   | 5,100,000 |   | 5,100 |   | 86,800 |   | - |   | - |   | 91,900 |
|----------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| October 2006 | - |   | - |   | 500,000 |   | 500 |   | 8,120 |   | - |   | - |   | 8,620 |
|--------------|---|--------|---|--------|---------|--------|-----|--------|-------|--------|---|--------|---|--------|-------|

| November 2006 | - |   | - |   | 7,410,000 |   | 7,410 |   | 79,092 |   | - |   | - |   | 86,502 |
|---------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| Stock issued forexercise ofwarrants | - |   | - |   | 7,493,354 |   | 7,493 |   | 192,507 |   | (200,000) |   | - |   | - |
|-------------------------------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|-----------|--------|---|--------|---|

| Cash received forsubscriptionreceivable | - |   | - |   | - |   | - |   | - |   | 96,400 |   | - |   | 96,400 |
|-----------------------------------------|---|--------|---|--------|---|--------|---|--------|---|--------|--------|--------|---|--------|--------|

| Issuance ofwarrants for patents | - |   | - |   | - |   | - |   | 485,133 |   | - |   | - |   | 485,133 |
|---------------------------------|---|--------|---|--------|---|--------|---|--------|---------|--------|---|--------|---|--------|---------|

| Warrants issued forservices | - |   | - |   | - |   | - |   | 127,786 |   | - |   | - |   | 127,786 |
|-----------------------------|---|--------|---|--------|---|--------|---|--------|---------|--------|---|--------|---|--------|---------|

| Stock issued forcash | - |   | - |   | 1,200,000 |   | 1,200 |   | 16,800 |   | - |   | - |   | 18,000 |
|----------------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| Stock issued forsoftware | - |   | - |   | 8,000,000 |   | 8,000 |   | 368,000 |   | - |   | - |   | 376,000 |
|--------------------------|---|--------|---|--------|-----------|--------|-------|--------|---------|--------|---|--------|---|--------|---------|

| Stock issued forloan payment | - |   | - |   | 2,000,000 |   | 2,000 |   | 46,000 |   | - |   | - |   | 48,000 |
|------------------------------|---|--------|---|--------|-----------|--------|-------|--------|--------|--------|---|--------|---|--------|--------|

| Dividend payableon preferred stock | - |   | - |   | - |   | - |   | (30,000) |   | - |   | - |   | (30,000) |
|------------------------------------|---|--------|---|--------|---|--------|---|--------|----------|--------|---|--------|---|--------|----------|

| Net loss | - |   | - |   | - |   | - |   | - |   | - |   | (1,702,055) |   | (1,702,055) |
|----------|---|--------|---|--------|---|--------|---|--------|---|--------|---|--------|-------------|--------|-------------|

| Balance, December31, 2006 | 500,000 |   | $500 |   | 288,513,756 |   | $288,514 |   | $29,219,021 |   | $(128,000) |   | $(29,066,327) |   | $313,708 |
|---------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|----------|

|   |
|--------|

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

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   |
|--------|

|   | STATEMENTS OF CASH FLOWS |   |
|--------|--------------------------|--------|

|   | For the Years Ended December 31, 2006 and 2005, and the Period from June 17, 2003 (Inception), Through December 31, 2006 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Year Ended December 31, |   |   |
|--------|-------------------------|--------|--------|

|   | 2006 |   | 2005 |   | Inceptionthrough12/31/2006 |
|--------|------|--------|------|--------|----------------------------|

| CASH FLOWS FROM OPERATINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(1,702,055) |   | $(21,572,574) |   | $(29,066,327) |
|----------|--------------|--------|---------------|--------|---------------|

|   | Adjustments to reconcile net loss tocash used in operating activities: |   |   |   |   |   |
|--------|------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation | 111,910 |   | 22,932 |   | 187,350 |
|--------|--------------|---------|--------|--------|--------|---------|

|   | Stock issued for services andbonuses | 978,426 |   | 2,417,360 |   | 7,554,278 |
|--------|--------------------------------------|---------|--------|-----------|--------|-----------|

|   | Impairment loss and write-down ofassets | - |   | 16,306,527 |   | 16,808,527 |
|--------|-----------------------------------------|---|--------|------------|--------|------------|

|   | Warrant expense | 127,786 |   | 2,072,603 |   | 2,200,389 |
|--------|-----------------|---------|--------|-----------|--------|-----------|

|   | Donated capital, officers’ salaries | - |   | 279,808 |   | 279,808 |
|--------|-------------------------------------------|---|--------|---------|--------|---------|

|   | Loss on debt extinguishment | 23,000 |   | - |   | 23,000 |
|--------|-----------------------------|--------|--------|---|--------|--------|

|   | Changes in assets and liabilities: |   |   |   |   |   |
|--------|------------------------------------|--------|--------|--------|--------|--------|

|   | Accrued expenses | 326,381 |   | (885) |   | 336,586 |
|--------|------------------|---------|--------|-------|--------|---------|

|   | Accounts payable | (10,954) |   | (7,611) |   | (1,500) |
|--------|------------------|----------|--------|---------|--------|---------|

| CASH FLOWS USED IN OPERATINGACTIVITIES | (145,505) |   | (481,840) |   | (1,674,889) |
|----------------------------------------|-----------|--------|-----------|--------|-------------|

|   |
|--------|

| CASH FLOWS FROM INVESTINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of equipment | - |   | (5,352) |   | (102,116) |
|--------|-----------------------|---|--------|---------|--------|-----------|

|   |
|--------|

| CASH FLOWS FROM FINANCINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

|   | Repayment of related partyadvances | (4,000) |   | (55,000) |   | (59,000) |
|--------|------------------------------------|---------|--------|----------|--------|----------|

|   | Proceeds from related partyadvances | 10,140 |   | 35,000 |   | 100,640 |
|--------|-------------------------------------|--------|--------|--------|--------|---------|

|   | Sale of preferred stock withwarrants | - |   | - |   | 500,000 |
|--------|--------------------------------------|---|--------|---|--------|---------|

|   | Proceeds from exercise of warrants | 96,400 |   | 496,000 |   | 742,400 |
|--------|------------------------------------|--------|--------|---------|--------|---------|

|   | Proceeds from short term debt | 25,000 |   | - |   | 25,000 |
|--------|-------------------------------|--------|--------|---|--------|--------|

|   | Sale of common stock, net | 18,000 |   | - |   | 468,000 |
|--------|---------------------------|--------|--------|---|--------|---------|

| CASH FLOWS PROVIDED BYFINANCING ACTIVITIES | 145,540 |   | 476,000 |   | $1,777,040 |
|--------------------------------------------|---------|--------|---------|--------|------------|

|   |
|--------|

| NET INCREASE (DECREASE) IN CASH | 35 |   | (11,192) |   | 35 |
|---------------------------------|----|--------|----------|--------|----|

| Cash, beginning of period | - |   | 11,192 |   | - |
|---------------------------|---|--------|--------|--------|---|

| Cash, end of period | $35 |   | $ - |   | $35 |
|---------------------|-----|--------|-----|--------|-----|

|   |
|--------|

| Supplemental information: |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|

|   | Income taxes paid | $- |   | $- |   | $- |
|--------|-------------------|----|--------|----|--------|----|

|   | Interest paid | $- |   | $- |   | $- |
|--------|---------------|----|--------|----|--------|----|

|   |
|--------|

| Non-cash Investing and FinancingActivities: |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|

|   | Cumulative dividends on preferredstock | $30,000 |   | $52,500 |   | $82,500 |
|--------|----------------------------------------|---------|--------|---------|--------|---------|

|   | Stock issued in acquisition | $- |   | $16,306,527 |   | $16,687,627 |
|--------|-----------------------------|----|--------|-------------|--------|-------------|

|   | Stock issued for wi-fi hotspots | $- |   | $- |   | $120,900 |
|--------|---------------------------------|----|--------|----|--------|----------|

|   | Warrants issued for patent | $485,133 |   | $- |   | $485,133 |
|--------|----------------------------|----------|--------|----|--------|----------|

|   | Stock issued for software | $376,000 |   | $- |   | $376,000 |
|--------|---------------------------|----------|--------|----|--------|----------|

|   | Stock issued for payment of notepayable | $25,000 |   | $- |   | $25,000 |
|--------|-----------------------------------------|---------|--------|----|--------|---------|

|   |
|--------|

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

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   |
|--------|

|   | NOTES TO CONSOLIDATED FINANCIALSTATEMENTS |   |
|--------|-------------------------------------------|--------|

|   |
|--------|

| Note 1 | Basis of Presentation |
|--------|-----------------------|

| Nature of Company |
|-------------------|

| On June 20, 2003, Diamond I, Inc. (“Diamond I”), formerly AirRover Wi-Fi Corp., formerlyAir-Q Wi-Fi Corporation, formerly Covenant Financial Corporation ("Covenant"), a U.S. publiccompany, issued 11,000,000 shares of common stock for 100% of the outstanding common stockof Air-Q Corp, a privately held corporation (“Air-Q”). After the merger, the stockholders of Air-Qowned approximately 95% of the outstanding common stock of Covenant and Covenant changedits corporate name. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On June 17, 2003, Air-Q was incorporated in Nevada.  At the time of the merger, Air-Q was adevelopment-stage company with a plan to establish wireless internet access systems in variouscities.  Following the merger, Diamond I pursued the business plan of Air-Q and now operatesWi-Fi hotspots in five states and the District of Columbia.  The term Wi-Fi refers to an industrystandard for wireless equipment that meets published 802.11(x) standards. Wi-Fi equipmentoperates in unlicensed spectra, such as 2.4 and 5.8 Ghz. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On May 24, 2004, Diamond I acquired all of the outstanding common stock of AirRoverNetworks, Inc., a privately-held Maryland corporation (“AirRover Networks”).  At the time ofacquisition, AirRover Networks was operating Wi-Fi hotspots in three states. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On January 18, 2005, Diamond I acquired all of the outstanding capital stock of Diamond ITechnologies, Inc., a privately-held Nevada corporation (“DITech”).  At the time of acquisition,DiTech was a development-stage company that had developed a hand-held Wi-Fi-based gamingsystem designed for use in casinos. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Hereinafter, all references to Diamond I include the operations and financial condition of Air-Qfor the period from inception, June 17, 2003, through December 31, 2003, and for the year endedDecember 31, 2004, the operations of AirRover Networks from the date of acquisition throughDecember 31, 2006, and the operations of DiTech from the date of acquisition through December31, 2006. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Consolidation |
|---------------|

| As of December 31, 2006, Diamond I had two wholly owned subsidiaries, Diamond ITechnologies, Inc. (formerly Air-Q Corp.), AirRover Networks, Inc.  All material inter-companybalances and inter-company transactions have been eliminated for the purpose of presenting theaccompanying consolidated financial statements. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Use of Estimates |
|------------------|

| The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities at the date of the balance sheet.  Actualresults could differ from those estimates. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Cash and Cash Equivalents |
|---------------------------|

| Cash and cash equivalents include cash and all highly liquid financial instruments with purchasedmaturities of three months or less. |
|--------------------------------------------------------------------------------------------------------------------------------------|

| Fair Value of Financial Instruments |
|-------------------------------------|

| Diamond I’s financial instruments consist of cash and debt. The carrying amount of these financialinstruments approximates fair value due either to length of maturity or interest rates thatapproximate prevailing market rates unless otherwise disclosed in these consolidated financialstatements. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Equipment |
|-----------|

| Equipment consists of computer equipment stated at cost.  Depreciation is computed using thestraight-line method over the estimated economic lives of three years.  Impairment losses arerecorded on long-lived assets used in operations when indicators of impairment are present andthe undiscounted cash flows estimated to be generated by those assets are less than the assets'carrying amount.  Impairment losses of $16,808,527 have been recognized since inception. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Income Taxes |
|--------------|

| Income taxes are computed using the asset and liability method.  Under the asset and liabilitymethod, deferred income tax assets and liabilities are determined based on the differences betweenthe financial reporting and tax bases of assets and liabilities and are measured using the currentlyenacted tax rates and laws.  A valuation allowance is provided for the amount of deferred taxassets that, based on available evidence, are not expected to be realized. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Loss Per Share |
|----------------|

| Diamond I is required to provide basic and dilutive earnings (loss) per common share information.The basic net loss per common share is computed by dividing the net loss applicable to commonstockholders by the weighted average number of common shares outstanding. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Diluted net loss per common share is computed by dividing the net loss applicable to commonstockholders, adjusted on an "as if converted" basis, by the weighted average number of commonshares outstanding plus potential dilutive securities.  For 2005 and 2006, potential dilutivesecurities had an anti-dilutive effect and were not included in the calculation of diluted net lossper common share.  The number of securities that were excluded because the effect was anti-dilutive were 19,500,000. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Basic loss per share has been calculated based on the weighted average number of shares ofcommon stock outstanding during the period. |
|---------------------------------------------------------------------------------------------------------------------------------------|

| Stock Based Compensation |
|--------------------------|

| Prior to December 31, 2005, Diamond I accounted for stock based compensation under Statementof Financial Accounting Standards No. 123 Accounting for Stock-Based Compensation (123). Aspermitted under this standard, compensation cost was recognized using the intrinsic value methoddescribed in Accounting Principles Board Opinion No. 25, Accounting for Stock Issued toEmployees (APB 25). Effective December 15, 2005, the Company adopted Statement of FinancialAccounting Standards No. 123 (Revised 2004), Share-Based Payment (FAS 123R) and appliedthe provisions of the Securities and Exchange Commission Staff Accounting Bulletin No. 107using the modified-prospective transition method. The Company had not issued any options toemployees in the prior periods thus; there was no impact of adopting the new standard. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recent Accounting Pronouncements |
|----------------------------------|

| In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty inIncome Taxes, an interpretation of FASB Statement 109” (“FIN 48”), which clarifies theaccounting for uncertainty in income tax positions. This interpretation prescribes that theCompany recognize in its financial statements the impact of a tax position that is more likely thannot to be sustained upon examination based upon the technical merits of the position, includingresolution of any appeals. The interpretation provides guidance on derecognition, classification,interest and penalties, accounting in interim periods, disclosure and transition. The provisions ofFIN 48 are effective for fiscal years beginning after December 15, 2006. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In September 2006, the FASB issued FASB Statement 157 “Fair Value Measurements” (“SFASNo. 157”) which defines and measures fair value and expands disclosures about fair valuemeasurements. The statement emphasizes that fair value is a market-based measurement and notan entity-specific measurement. The provisions of SFAS No. 157 are effective for fiscal yearsbeginning after November 15, 2007. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assetsand Financial Liabilities, which permits entities to choose to measure many financial instrumentsand certain other items at fair value.  The objective is to improve financial reporting by providingentities with the opportunity to mitigate volatility in reported earnings caused by measuring relatedassets and liabilities differently without having to apply complex hedge accounting provisions. SFAS No. 159 applies to all entities and is effective for fiscal years beginning after November15, 2007. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The Company does not expect the adoption of any other recently issued accountingpronouncements to have a significant impact on its consolidated financial position. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2 | Going Concern |
|--------|---------------|

| Diamond I has incurred losses totaling $29,066,327 through December 31, 2006, and has aworking capital deficit of $462,191.  Because of these conditions, Diamond I will requireadditional working capital to continue operations and develop the business.  Diamond I intendsto raise additional working capital either through private placements, public offerings and/or bankfinancing. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There are no assurances that Diamond I will be able to achieve a level of revenues adequate togenerate sufficient cash flow from operations or obtain additional financing through privateplacements, public offerings and/or bank financing necessary to support Diamond I’s workingcapital requirements.  To the extent that funds generated from any private placements, publicofferings and/or bank financing are insufficient, Diamond I will have to raise additional workingcapital.  No assurance can be given that additional financing will be available, or if available, willbe on terms acceptable to Diamond I.  If adequate working capital is not available Diamond I maynot continue its operations or execute its business plan. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These conditions raise substantial doubt about Diamond I's ability to continue as a going concern.The financial statements do not include any adjustments relating to the recoverability andclassification of asset carrying amounts or the amount and classification of liabilities that mightbe necessary should Diamond I be unable to continue as a going concern. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3 | Acquisitions |
|--------|--------------|

| Diamond I Technologies, Inc. |
|------------------------------|

| In January 2005, Diamond I issued 77,650,129 shares of its common stock in connection with theacquisition of Diamond I Technologies, Inc., a privately-held Nevada corporation (DiTech). |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The following represents the allocation of the purchase price over the historical net book valuesof DiTech on the date of the acquisition.  The allocation made is as follows: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Tangible assets acquired at fair value | $0 |   |
|--------|----------------------------------------|----|--------|

|   | Cost in excess of net tangible assets | 16,306,527 |   |
|--------|---------------------------------------|------------|--------|

|   | Total purchase price | $16,306,527 |   |
|--------|----------------------|-------------|--------|

| At March 31, 2005, the entire value of associated with the acquisition of DiTech was written-down in the amount of $16,306,527, after Diamond I’s determination that there existed no tangiblevalue underlying the acquisition of DiTech.  This write-down is reflected in Diamond I’sstatements of revenues and expenses. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Touchdev Limited |
|------------------|

| In May 2006, Diamond I acquired all of the capital stock of Touchdev Limited for 8,000,000shares of Diamond I common stock.  Diamond I analyzed the accounting treatment of thistransaction under SFAS 141, “Business Combinations and EITF 98-3, “Determining WhetherNonmonetary Transaction Involves Receipt of Productive Assets or of a Business”.  Thistransaction was accounted for as an asset purchase and not a business combination based onTouchdev Limited’s never having engaged in active business operations.  The only material assetheld by Touchdev Limited at the date of the agreement was proprietary software and thecopyrights, documentation and internet domains related to this software. The software wasrecorded at $376,000, which was estimated to be equal to the fair value of the stock issued to theoriginal shareholders of Touchdev Limited based on the market price at the date of the agreementand will be amortized over 3 years. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 4 | Intangible Assets and Software |
|--------|--------------------------------|

| In March 2006, Diamond I purchased pending patent rights from Larson Tech Ventures, LLC andLarry Shultz related to: |
|---------------------------------------------------------------------------------------------------------------------|

| 1. | Methods and apparatus for pari-mutuel, sports book and electronic casino gaming usingspeech recognition and concomitant video. |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| 2. | Biometrically-secured portable wireless entertainment, shopping and gaming system. |
|----|------------------------------------------------------------------------------------|

| As consideration, Diamond I issued 6,500,000 warrants to purchase common stock exercisableat $0.35 per share and expiring March 31, 2011.  The fair value of these warrants was calculatedusing the Black-Scholes Model and used as the value of the patent at $485,133.  The model wasbased on a term of five years, a volatility rate of 236.74% and a discount rate of 4.83% andexpected dividends of zero. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 5 | Notes Payable |
|--------|---------------|

| During the third quarter of 2006, Diamond I was loaned $25,000 from a third party bearinginterest at 10% per annum, due on February 4, 2007, and unsecured.  Diamond I issued 2,000,000shares of common stock valued at $48,000 for repayment of this loan in August 2006 andrecognized a loss of $23,000 on debt extinguishment. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Diamond I was advanced various amounts throughout the year from its CEO, David Loflinbearing interest at 8% and due on demand.  The amount due as of December 31, 2006 was$41,640.  Interest of $4,234 was accrued related to these advances. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 6 | Income Taxes |
|--------|--------------|

| Diamond I follows Statement of Financial Accounting Standards Number 109 (SFAS 109),“Accounting for Income Taxes.” Deferred income taxes reflect the net effect of (a) temporarydifference between carrying amounts of assets and liabilities for financial purposes and theamounts used for income tax reporting purposes, and (b) cumulative net operating losscarryforwards of approximately $3,600,000. No net provision for refundable Federal income taxhas been made in the accompanying statement of loss because no recoverable taxes were paidpreviously. Similarly, no deferred tax asset attributable to the net operating loss carryforward hasbeen recognized, as it is not deemed likely to be realized.  The deferred tax asset related to the netloss carryforward in the amount of $1,208,900 has been fully reserved.  The net loss carryforwardsexpire between 2023 and 2026. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 7 | Capital Stock |
|--------|---------------|

| Amended and Restated Certificate of Incorporation |
|---------------------------------------------------|

| In January 2005, Diamond I amended its Amended and Restated Certificate of Incorporation toincrease the authorized number of shares of common stock to 700,000,000. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Series A Preferred Stock |
|--------------------------|

| In March 2004, Diamond I issued 500,000 shares of a newly created Series A convertiblepreferred stock and warrants for cash proceeds of $500,000.  The shares of Series A preferredstock are convertible at any time into 100,000 shares of Diamond I common stock. The shares ofcommon stock underlying the Series A preferred stock and the warrants possesses certain demandregistration rights.  In addition, the Series A preferred stock bears a cash dividend at the rate of6% per annum, with cumulative rights.  At December 31, 2005 and 2006, Diamond I recorded adividend payable of $30,000 and $52,500, respectively, in connection with its shares of Series Apreferred stock. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Each holder of outstanding shares of Series A preferred stock is entitled to the number of votesequal to the number of whole shares of common stock into which the shares of Series A preferredstock held by such holder are then convertible at each meeting of shareholders with respect to anyand all matters presented to the shareholders for their action or consideration. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock for Cash |
|----------------|

| During 2006, Diamond I issued 1,200,000 shares for $18,000. |
|-------------------------------------------------------------|

| Stock for Services and Bonuses |
|--------------------------------|

| During 2005, Diamond I issued 23,238,977 shares of common stock to third-party consultants forservices valued at $1,447,410. |
|------------------------------------------------------------------------------------------------------------------------------|

| During 2006, Diamond I issued 25,999,914 shares of common stock to third-party consultants forservices valued at $564,827. |
|----------------------------------------------------------------------------------------------------------------------------|

| During 2005, Diamond I issued 15,350,000 shares of common stock as bonuses to its officers anddirectors  valued at $881,450. |
|------------------------------------------------------------------------------------------------------------------------------|

| During 2006, Diamond I issued  18,100,000 shares of common stock as bonuses to its officers anddirectors  valued at $413,400. |
|-------------------------------------------------------------------------------------------------------------------------------|

| Other Issuances |
|-----------------|

| During 2005, Diamond I issued 1,300,000 shares valued at $50,500 for an option to purchase theassets of Touchdev Limited. |
|---------------------------------------------------------------------------------------------------------------------------|

| During 2005, Diamond I issued 1,000,000 shares valued at $38,000 for a waiver of the deadlineto purchase the assets of Touchdev Limited. |
|------------------------------------------------------------------------------------------------------------------------------------------|

| Note 8 | Warrants |
|--------|----------|

| During 2006, Diamond I granted 6,500,000 warrants at an exercise price of $.035 per share inexchange for a patent. $485,133 is recorded for this intangible asset. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The following sets forth the warrants outstanding as of December 31, 2006. |
|----------------------------------------------------------------------------|

|   | ExercisePrice |   | Number ofShares |   | Remaining Life |   | ExercisableNumber ofShares |   |
|--------|---------------|--------|-----------------|--------|----------------|--------|----------------------------|--------|

|   | $3.50 |   | 250,000 |   | March 2007 |   | 250,000 |   |
|--------|-------|--------|---------|--------|------------|--------|---------|--------|

|   | 4.50 |   | 250,000 |   | March 2007 |   | 250,000 |   |
|--------|------|--------|---------|--------|------------|--------|---------|--------|

|   | 1.00 |   | 5,000,000 |   | April 2009 |   | 50,000,000 |   |
|--------|------|--------|-----------|--------|------------|--------|------------|--------|

|   | 0.20 |   | 1,000,000 |   | September2008 |   | 1,000,000 |   |
|--------|------|--------|-----------|--------|---------------|--------|-----------|--------|

|   | 0.30 |   | 1,000,000 |   | September2008 |   | 1,000,000 |   |
|--------|------|--------|-----------|--------|---------------|--------|-----------|--------|

|   | 0.40 |   | 1,000,000 |   | September2008 |   | 1,000,000 |   |
|--------|------|--------|-----------|--------|---------------|--------|-----------|--------|

|   | 0.50 |   | 1,000,000 |   | September2008 |   | 1,000,000 |   |
|--------|------|--------|-----------|--------|---------------|--------|-----------|--------|

|   | 0.04 |   | 3,500,000 |   | November 2010 |   | 3,500,000 |   |
|--------|------|--------|-----------|--------|---------------|--------|-----------|--------|

|   | .035 |   | 6,500,000 |   | March 2011 |   | 6,500,000 |   |
|--------|------|--------|-----------|--------|------------|--------|-----------|--------|

|   | At 12/31/06 |   | 19,500,000 |   |   |   | 19,500,000 |   |
|--------|-------------|--------|------------|--------|--------|--------|------------|--------|

| During 2006 and 2005, Diamond I entered into various consulting agreements whereby thirdparties were granted warrants to purchase common stock.  The value of these warrants wasestimated using the Black-Scholes method of approximating fair value using an exercise price of$0.034, term of one year, volatility of 196%, discount rate of 3.89% and no expected dividends.Warrant expense of $127,786 and $2,072,603 is recorded in 2006 and 2005, respectively.  During2006, 7,493,354 warrants were exercised for cash of $200,000. During 2005, 11,079,984 warrantswere exercised for cash of $496,000.  A subscription receivable of $128,000 and $24,400 as ofDecember 31, 2006 and 2005, related to these warrants. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 9 | Commitments |
|--------|-------------|

| Employment Agreements |
|-----------------------|

| Diamond I has entered into employment agreements with each of its officers, with terms of threeyears and salaries ranging from $100,000 to $180,000 per year. As of December 31, 2006,Diamond I had accrued $265,422 of unpaid officer salaries. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 10 | Subsequent Events |
|---------|-------------------|

| Agreement With NewMarket Technology, Inc. |
|-------------------------------------------|

| In March 2007, Diamond I entered into a securities purchase agreement (the “PurchaseAgreement”) with DiTech, NewMarket Technology, Inc. and NewMarket Technology AcquisitionSubsidiary, pursuant to which NewMarket Technology Acquisition Subsidiary is to purchase2,000,000 shares of a new series of Diamond I’s preferred stock, to be designated “Series B”.  Theclosing under the Purchase Agreement is to occur on or before June 7, 2007.  The closing issubject to the final agreement of terms and conditions of the transaction and the ability of eachparty to perform its respective obligations.  Any, or all, parties to the Purchase Agreement canelect not to close without penalty.  The Purchase Agreement contains the following materialprovisions: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | The Series B preferred stock to be issued to NewMarket Acquisition Subsidiary will possessvoting rights that give such entity voting control of Diamond I. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Diamond I will receive following in consideration of the 2,000,000 shares of its Series Bpreferred stock: |
|---|-----------------------------------------------------------------------------------------------------------|

| - | A $2,000,000 promissory note (the “Dividend Note”) bearing 8% interest per annum withpayments continuing for a period of five years, on a quarterly basis.  The funds receivedby Diamond I pursuant to the Dividend Note will be distributed pro rata to Diamond Ishareholders of record on the closing date of the Purchase Agreement. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | 100% of the outstanding common stock of Diamond I Technologies, Inc. is to bedistributed, as a dividend pursuant to an effective registration statement filed with theSEC, to Diamond I’s shareholders of record on the closing date of the PurchaseAgreement. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | A $250,000 credit line. |
|---|-------------------------|

| - | A commitment for an additional $750,000 in funding (the terms of which fundingcommitment are to be negotiated prior to the closing under the Purchase Agreement) forDiTech. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | A commitment for an additional $1,000,000 in funding (the terms of which fundingcommitment are to be negotiated prior to the closing under the Purchase Agreement) forDiamond I, to be applied to the revival of its WiFi division. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | NewMarket Technology, Inc. and David Loflin, Diamond I’s president, will enter into anemployment agreement, the terms of which are to be negotiated prior to the closing underthe Purchase Agreement. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Pursuant to the terms of Diamond I’s Series B preferred stock to be issued under the PurchaseAgreement, the Series B preferred stock will possess voting rights that are equivalent to the voteof 60% of the then-outstanding shares of Diamond I’s common stock on all matters; provided,however, that, at any time payments are in arrears under the Dividend Note referred to above, thevoting rights granted to the Series B preferred stock shall be suspended until payments under theDividend Note are current. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock Issuances |
|-----------------|

| During the first quarter of 2007, Diamond I issued a total of 7,000,000 shares of common stockto consultants.  3,000,000 were issued pursuant to a new consulting agreement and were valuedat $69,000.  4,000,000 were issued as a buy-out of the remaining term (twelve months) of aconsulting agreement and were valued at $92,000. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|