UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549___________________FORM 10-QSB_________________________ ýQUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended July 31, 2006 OR   ̈TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  Commission file number 0-50356  EAST COAST
DIVERSIFIED CORPORATION(Exact Name Of Registrant
As Specified In Its Charter) Nevada
    55-0840109(State of Incorporation)
    (I.R.S. Employer
    Identification No.)1475 West
    Cypress Road, Suite 202, Ft. Lauderdale, FL
    33309(Address of Principal Executive Offices)
    (ZIP Code) Registrant's
Telephone Number, Including Area Code: (786) 777-0808 Securities
Registered Pursuant to Section 12(g) of The Act: Common Stock, $0.001 Indicate by check
mark whether the registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. YesxNo ̈ At July 31, 2006,
the Registrant had 8,116,216 shares of common stock, par value $0.001 outstanding. Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes  ̈No x Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated filer. Large accelerated
    filer  ̈
    Accelerated filer  ̈
    Non-accelerated
    filer x




TABLE OF CONTENTS Item
    
    
    
    Description
    
    Page**PART I - FINANCIAL INFORMATION**ITEM 1.
    
    
    
    FINANCIAL STATEMENTS.
    
    
    3ITEM 2.
    
    
    
    MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.
    
    
    3ITEM 3.
    
    
    
    CONTROLS AND
    PROCEDURES.
    
    
    3**PART II - OTHER INFORMATION**ITEM 1.
    
    
    
    LEGAL PROCEEDINGS.
    
    
    4ITEM 2.
    
    
    
    CHANGES IN
    SECURITIES.
    
    
    4ITEM 3.
    
    
    
    DEFAULT
    UPON SENIOR SECURITIES.
    
    
    4ITEM 4.
    
    
    
    SUBMISSION OF MATERS TO A VOTE OF SECURITY HOLDERS.
    
    
    4ITEM 5.
    
    
    
    OTHER
    INFORMATION.
    
    
    4ITEM 6.
    
    
    
    EXHIBITS AND REPORTS ON FORM 8-K.




PART I - FINANCIAL INFORMATION ITEM
1. FINANCIAL STATEMENTSBack
to Table of Contents The Registrant's financial statements for the
three-month periods ended July 31, 2006 are attached to this quarterly report. Financial Statements ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONBack to Table of Contents The following discussion contains
forward-looking statements. Forward-looking statements give our current expectations or
forecasts of future events. You can identify these statements by the fact that they do not
relate strictly to historical or current facts. They use of words such as
"anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," and other words and terms of
similar meaning in connection with any discussion of future operating or financial
performance. From time to time, we also may provide forward-looking statements in other
materials we release to the public. Overview The Company has not generated any revenues from its operations. Its
is expected that the Company will start to generate revenues in early 2007. General and administrative expenses


During the period ended July 31, 2006, the Company had operating
expenses of $109,200. Our operating expenses consist of professional fees, general and
administrative expenses.
Operating Loss


Our operating loss was $109,200 during the period ended July 31, 2006.

Liquidity and Capital Resources While we are dependent upon interim funding provided by management
and/or affiliated parties to pay professional fees and expenses, we have no written
finance agreement with management and/or affiliated parties to provide any continued
funding. However, we
may need to raise additional funds through a the issuance of debt or equity securities if
additional funds are required to execute our business plan. During the three-month period
ended July 31, 2006, we raised $104,000 through the issuance of restricted shares. At July 31, 2006, we had $30,733 in current assets and had $587,603
in current liabilities. We had $417,220 in total assets and $1,453,100 in total
liabilities at July 31, 2006. There are no limitations in the
Company's articles of incorporation on the Company's ability to borrow funds or raise
funds through the issuance of restricted common stock. The Company's limited resources and
lack of having cash-generating business operations may make it difficult to borrow funds
or raise capital. The Company's limitations to borrow funds or raise funds through the
issuance of restricted capital stock may have a material adverse effect on the Company's
financial condition and future prospects, including the ability to execute its business
plan. To the extent that debt financing ultimately proves to be available, any borrowing
will subject us to various risks traditionally associated with indebtedness, including the
risks of interest rate fluctuations and insufficiency of cash flow to pay principal and
interest. ITEM 3.
CONTROLS AND PROCEDURESBack
to Table of Contents Evaluation of disclosure controls and procedures As of July 31, 2006, the Company's chief executive officer
and chief financial officer conducted an evaluation regarding the effectiveness of the
Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e)
under the  Exchange Act. Based upon the evaluation of these controls and procedures,
our chief executive officer and chief financial officer concluded that our disclosure
controls and procedures were effective as of the end of the period covered by this report. Changes in internal controls. During the quarterly period covered by this report, no changes
occurred in our internal control over financial reporting that materially affected, or is
reasonably likely to materially affect, our internal control over financial reporting.  PART II - OTHER INFORMATION ITEM 1. LEGAL
PROCEEDINGSBack to Table of
Contents The Registrant's officers and directors
are not aware of any threatened or pending litigation to which the Registrant is a party
or which any of its property is the subject and which would have any material, adverse
effect on the Registrant. ITEM 2. CHANGES
IN SECURITIESBack to Table of
Contents None. ITEM
3. DEFAULTS UPON SENIOR SECURITIESBack to Table of Contents None. ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSBack to Table of Contents None. ITEM
5. OTHER INFORMATIONBack
to Table of Contents None. ITEM
6. EXHIBITS AND REPORTS ON FORM 8-KBack to Table of Contents (a) The following documents are filed as exhibits to
this report on Form 10-QSB or incorporated by reference herein. Any document incorporated
by reference is identified by a parenthetical reference to the SEC filing that included
such document. Exhibit
    No.
    Description31.1
    Certification of CEO pursuant
    to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.31.2
    Certification of CFO pursuant
    to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.32.1
    Certification of CEO pursuant
    to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
    2002.32.2
    Certification of CFO pursuant
    to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
    2002. (b) Reports on Form 8-K during the quarter covered by this report: The Registrant did not file a Form 8-K during the quarter ended July 31,
2006.




SIGNATURES Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on the date
indicated. /s/ Richard
MarguliesRichard MarguliesChief Executive Officer
  Dated: October 11, 2006 /s/ Frank RovitoFrank Rovito
   *Chief Financial Officer*Dated: October 11, 2006




EAST COAST DIVERSIFIED
    CORPORATION AND CONSOLIDATED AFFILIATE(A Development Stage Company)Back to Table of ContentsConsolidated Balance SheetsJuly 31, 2006 and April 30, 2006****
    
    **July 31, 2006**
    
    **April 30, 2006**ASSETSCurrent assets:Cash and
    equivalents
    $
    30,733
    $
    2,451Total current assets
    
    30,733
    
    2,451Leasehold improvements,
    (net of accumulated amortization of $0)
    
    373,987
    
    309,904Other assets:Restricted
    cash
    
    -
    
    126,914Cost of
    liquor license
    
    12,500
    
    3,500Total other assets
    
    12,500
    
    130,414**Total assets**
    $
    417,220
    $
    442,769LIABILITIES
    AND STOCKHOLDERS' DEFICITCurrent liabilities:Accounts and
    accrued expenses payable
    $
    523,160
    $
    491,127Current
    portion, convertible notes payable, officers
    
    26,455
    
    26,455Accrued
    interest
    
    37,988
    
    30,165Total current liabilities
    
    587,603
    
    547,747Non-current liabilities:Convertible
    note payable, related party
    
    327,774
    
    327,774Convertible
    notes payable, officers
    
    481,209
    
    479,084Deferred
    rent expense
    
    56,514
    
    51,629Total non-current
    liabilities
    
    865,497
    
    858,487**Total liabilities**
    
    1,453,100
    
    1,406,234Minority interest
    
    -
    
    125,000Stockholders' deficit:Preferred
    stock, par value 0.001 par value, 1,000,000 shares authorized167,650
    issued and outstanding, respectively
    
    168
    
    168Common stock,
    $0.001 par value, 74,000,000 shares authorized;8,116,216 and 7,271,216 shares issued and "to be issued", respectively
    
    8,116
    
    7,271Additional
    paid-in capital
    
    2,163,877
    
    1,995,722Accumulated
    deficit
    
    (3,187,541)
    
    (3,071,126)Less: stock
    subscription receivable
    
    (20,500)
    
    (20,500)Total stockholders' deficit
    
    (1,035,880)
    
    (1,088,465)**Total liabilities and stockholders' deficit**
    $
    417,220
    $
    442,769See the summary of significant accounting policies and the accompanying notes to
    the financial statements.




EAST COAST DIVERSIFIED CORPORATION AND
    CONSOLIDATED AFFILIATE(A Development Stage Company)Back to Table
    of ContentsConsolidated Statements of Operations
    (During the Development Stage)****
    
    
    
    **For the
    Period**
    
    **Period
    from****Three
    Months**
    
    **From
    Inception**
    
    **Inception****ended**
    
    **(April 26,
    2006) to**
    
    **(April 26,
    2006) to****July 31, 2006**
    
    **April 30, 2006**
    
    **July 31, 2006**Revenues
    $
    -
    $
    -
    $
    -Operating expenses:Selling, general and
    administrative
    
    109,200
    
    -
    
    109,200Total operating expenses
    
    109,200
    
    -
    
    109,200Net loss from
    operations during development stage
    
    (109,200)
    
    -
    
    (109,200)Other income (expenses):Interest income
    
    540
    
    -
    
    540Interest expense
    
    (7,883)
    
    -
    
    (7,883)Total other expenses
    
    (7,343)
    
    -
    
    (7,343)Net loss before minority interest
    
    (116,543)
    
    -
    
    (116,543)Add: 25% minority interest in net
    profit of affiliate
    
    128
    
    -
    
    128Net loss after
    minority interest
    $
    (116,415)
    $
    -
    $
    (116,415)Basic and diluted net lossper weighted-average shares of
    common stock outstanding
    $
    (0.015)
    $
    -
    $
    (0.015)Weighted average
    number of shares of common stock outstanding
    
    7,639,042
    
    -
    
    7,639,042See
    the summary of significant accounting policies and the accompanying notes to the financial
    statements.




EAST COAST DIVERSIFIED CORPORATION AND CONSOLIDATED
    SUBSIDIARIES(A Development Stage Company)Back to Table of ContentsConsolidated Statement of
    Stockholders' Deficit (During Development Stage)Additional
    
    Stock
    
    
    
    TotalPreferred
    
    Common
    
    Paid-in
    
    Subscription
    
    Accumulated
    
    stockholders'Shares
    
    Amount
    
    Shares
    
    Amount
    
    Capital
    
    Receivable
    
    Deficit
    
    deficitBalance April
    30, 2004
    -
    $
    -
    
    2,636,216
    $
    2,636
    $
    1,980,025
    $
    -
    $
    (2,075,474)
    $
    (92,813)Net loss for the year ended
    April 30, 2005
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (60,353)
    
    (60,353)Balance April
    30, 2005
    -
    
    -
    
    2,636,162
    
    2,636
    $
    1,980,025
    
    
    
    (2,135,827)
    
    (153,166)Miami Renaissance Group's shareexchange for ECDV shares
    on April 25, 2006
    167,650
    
    168
    
    4,635,000
    
    4,635
    
    15,697
    
    (20,500)
    
    (913,656)
    
    (913,656)Net loss for the year ended
    April 30, 2006
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (21,643)
    
    (21,643)Balance April
    30, 2006
    167,650
    $
    168
    
    7,271,216
    $
    7,271
    $
    1,995,722
    $
    (20,500)
    $
    (3,071,126)
    $
    (1,088,465)Common stock issued for cash
    -
    
    -
    
    520,000
    
    520
    
    103,480
    
    -
    
    -
    
    104,000Common stock issued for services
    -
    
    -
    
    200,000
    
    200
    
    39,800
    
    -
    
    -
    
    40,000Cash received for common stock
    to be issued
    -
    
    -
    
    125,000
    
    125
    
    24,875
    
    -
    
    -
    
    25,000Net loss for the three months
    ended July 31, 2006
    -
    
    -
    
    -
    
    -
    
    -
    
    -
    
    (116,415)
    
    (116,415)Balance, July
    31, 2006
    167,650
    $
    168
    
    8,116,216
    $
    8,116
    $
    2,163,877
    $
    (20,500)
    $
    3,187,541)
    $
    (1,035,880)Seethe summary of significant accounting policies and the accompanying notes to the
    financial statements.




EAST COAST DIVERSIFIED CORPORATION AND CONSOLIDATED
    AFFILIATE(A Development Stage Company)Back to Table of ContentsConsolidated
    Statement of Cash Flows (During the Development Stage)**For the
    Period**
    
    **Period from****Three
    Months**
    
    **From
    Inception**
    
    **Inception****Ended**
    
    **(April 26,
    2006) to**
    
    **(April 26,
    2006) to****July 31, 2006**
    
    **April 30, 2006**
    
    **July 31, 2006**Net loss before minority interest
    $
    (116,543)
    $
    -
    $
    (116,543)Cash flows from
    operating activities:Adjustments to reconcile net
    loss to cash used in operating activities:Minority interest income 25%
    minority interest in net profit of affiliate
    
    128
    
    -
    
    128Common stock issued for
    services
    
    40,000
    
    -
    
    40,000Changes in:Increase in accounts and
    accrued expenses payable
    
    32,033
    
    -
    
    32,033Increase in deferred rent
    expense
    
    4,885
    
    -
    
    4,885Increase in accrued interest
    
    7,823
    
    -
    
    7,823Net cash used in operating activities
    
    (31,674)
    
    -
    
    (31,674)Cash flows from investing
    activities:Costs paid in
    acquiring pending liquor license
    
    (9,000)
    
    -
    
    (9,000)Net cash acquired
    in acquisition of Miami Renaissance Group, Inc.
    
    
    
    2,451
    
    2,451Acquisition of
    leasehold improvements
    
    (64,083)
    
    -
    
    (64,083)Net cash (used in) provided by investing activities
    
    (73,083)
    
    2,451
    
    (70,632)Cash flows from financing
    activities:Proceeds from
    issuance of convertible notes payable, officers
    
    2,125
    
    -
    
    2,125Common stock issued
    for cash
    
    104,000
    
    -
    
    104,000Cash received for
    common stock to be issued
    
    25,000
    
    -
    
    25,000Return of capital
    contributions to limited partners of 75% owned affiliate
    
    (125,000)
    
    -
    
    (125,000)Decrease in
    restricted cash
    
    126,914
    
    -
    
    126,914Net cash provided by financing activities
    
    133,039
    
    -
    
    133,039Net increase in cash
    
    28,282
    
    2,451
    
    30,733Cash at the beginning of the period
    
    2,451
    
    -
    
    -Cash at end of period
    $
    30,733
    $
    2,451
    $
    30,733 Supplementary disclosure of
    non-cash transactions:Cash paid during the year for:
    
    -
    
    -
    
    -Interest expenses
    
    -
    
    -
    
    -Income taxesNon-cash operating, investing
    and financing activities:Net assets (liabilities)
    acquired as part of acquisition of Miami Renaissance Group, Inc.and its partnership
    subsidiary, Miami Renaissance Partners, Ltd.Assets acquired:Cash
    $
    -
    $
    2,451
    $
    2,451Restricted cash
    
    -
    
    126,914
    
    126,914Subscription
    receivable from Miami Renaissance Group, Inc. shareholder on their stock
    
    -
    
    20,500
    
    20,500Leasehold
    improvements
    
    -
    
    309,904
    
    309,904Legal fees paid for
    pending liquor license
    
    -
    
    3,500
    
    3,500-
    
    463,269
    
    463,269Liabilities acquired:Accounts and
    accrued expenses payable
    
    -
    
    354,556
    
    354,556Convertible notes
    payable
    
    -
    
    -
    
    -Officers
    
    -
    
    479,084
    
    479,084Related parties
    
    -
    
    327,774
    
    327,774Accrued interest
    expense payable
    
    -
    
    18,382
    
    18,382Deferred rent
    expense
    
    -
    
    51,629
    
    51,629Minority interest
    
    -
    
    125,000
    
    125,000-
    
    1,356,425
    
    1,356,425$
    -
    $
    (893,156)
    $
    (893,156)Changes in Companys
    Stockholders EquityPreferred stock issued at par
    value
    $
    
    $
    168
    $
    168Common stock issued at par value
    
    
    
    4,635
    
    4,635Increase in additional paid-in
    capital resulting from difference in value of shares at par exchanged by Company
    
    
    
    15,697
    
    15,697Accumulated deficit of Miami
    Renaissance Group at April 25, 2006
    
    -
    
    (913,656)
    
    (913,656)$
    -
    $
    (893,156)
    $
    (893,156)Restricted common stock issued
    in exchange for architectural services capitalized as leasehold improvements:Cost added to leasehold
    improvements as an asset
    $
    40,000
    $
    -
    $
    40,000Credited to stockholders
    deficit:Common stock
    
    200
    
    
    
    200Additional paid in capital
    
    39,800
    
    -
    
    39,800$
    40,000
    $
    -
    $
    40,000




**EAST COAST DIVERSIFIED CORPORATION AND CONSOLIDATED AFFILIATE**(A DEVELOPMENT STAGE COMPANY)**Notes to the Consolidated Financial Statements**

NOTE A - ADJUSTMENTS

In the opinion of management, all adjustments consisting only of normal
recurring adjustments necessary for a fair statement of (a) results of operations for the
three month periods ended July 31, 2006 and for the period from inception (April 26, 2006)
to July 31, 2006, (b) the financial position at July 31, 2006, (c) the statements of cash
flows for the three month period ended July 31, 2006 and for the period from inception
(April 26, 2006) to July 31, 2006, and (d) the changes in stockholders' deficit for the
three month period ended July 31, 2006 and for the period from inception (April 26, 2006)
to July 31, 2006, have been made. The results of operations for the three months ended
July 31, 2006 are not necessarily indicative of the results to be expected for the full
year.

NOTE B  UNAUDITED INTERIM FINANCIAL INFORMATION

The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim financial
information. Accordingly, they do not include all the information and footnotes required
by generally accepted accounting principles for financial statements. For further
information, refer to the audited consolidated financial statements and notes thereto for
the year ended April 30, 2006 included in the Company's Form 10-KSB filed with the
Securities and Exchange Commission on August 15, 2006.

The Company's consolidated financial statements have been presented on
a going concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The liquidity of the Company has been
adversely affected in recent years by significant losses from operations. As further
discussed in Note 9, the Company incurred losses of $116,543 for the three months ended
July 31, 2006 and losses during the development stage of Miami Renaissance Group, Inc.
("MRG,") the acquirer/survivor entity in the merger described in Note 1 for the
period from the inception of their development stage (February 25, 2004) to April 30, 2006
of $914,049.

At July 31, 2006, the current consolidated Company has limited cash
reserves, with its current liabilities exceeding its cash by $556,870. In addition, the
Company has substantial non-current liabilities, including convertible notes payables, of
$865,497, as well as Total Stockholders Deficit at that date of $1,035,880.

The aforementioned financial condition indicates that the Company will
have substantial difficulty meeting its financial obligations for the balance of this
fiscal year. These factors raise substantial doubt as to the Company's ability to continue
as a going concern. Recently, operations have been funded by loans in the form of
convertible debts issued to officers and other related parties and occasional private
placements of common stock.

As further discussed below in Note 1, management is in the process of
getting the facility in which it will operate a night club ready for use and will need to
seek additional financing in one form or another. The Company is hopeful it will continue
to be able to find sufficient financing to complete construction of the night club and
begin its operations and continue as a going concern in its present form. Accordingly, the
consolidated financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or the amount and
classification of liabilities or any other adjustments that might be necessary should the
Company be unable to continue as a going concern in its present form.
EAST COAST DIVERSIFIED CORPORATION AND CONSOLIDATED AFFILIATE(A DEVELOPMENT STAGE COMPANY)

Note 1 - Nature of Business / Organization

Business Description

East Coast Diversified Corporation (the "Company" "East
Coast") was organized on May 24, 1994, under the laws of the State of Florida under
the name Plantastic Corp. and changed its name to Viva Golf, USA Corp. in April 1997. The
Company acquired 100% of the issued and outstanding shares of common stock of Lifekeepers
International, Inc. in exchange for 1,000,000 of its newly issued shares under an
Agreement and Plan of Reorganization on October 22, 1998. In connection with this
acquisition, the Company changed its name to Lifekeepers International, Inc.

The Company previously held an exclusive licensing agreement to market
and distribute golf clubs and related accessories in the continental United States. After
the reorganization, the Company changed its business plan to providing mobile
non-intrusive medical testing such as ultra-sound screening and blood analysis diagnostic
testing.

On May 29, 2003, the Company changed its name to East Coast Diversified
Corporation. During the year 2001, the Company discontinued its operations, and remained
inoperative until April 26, 2006.
Acquisition of Miami Renaissance Group, Inc. subsidiary and its partnership subsidiary,
Miami Renaissance Group, Limited

Miami Renaissance Group, Inc. ("MRG") was incorporated in
February 2004 as a Florida corporation. Upon incorporation, 50,000,000 shares of $.001 par
value common stock were authorized. On June 4, 2004, MRG issued 18,860,000 shares of stock
to its founders in exchange for a stock subscriptions receivable. On March 1, 2005, MRG
issued 1,640,000 shares of stock to its founders in exchange for a stock subscriptions
receivable. The stock subscriptions receivable are discussed in detail in Note 10.

On April 26, 2006 the Company acquired 100% of the issued and
outstanding shares of common stock of Miami Renaissance Group, Inc. ("MRG,") a
development stage company. As a result, effective April 26, 2006, MRG became a
wholly-owned subsidiary of the Company. The majority shareholders of MRG exchanged all of
their shares in MRG for 4,635,000 newly issued shares of the Companys $.001 par
value common stock, and 167,650 new issued shares of the Companys $.001 par value
Series A Convertible Preferred Stock. Each share of Series A Preferred Stock is
convertible into 100 shares of the Companys common stock. As a result, MRG became a
wholly-owned subsidiary of the Company.

The majority shareholders of MRG, namely the key officers in MRG and
its partnership subsidiary (and who will be discussed two paragraphs below), have also
become key officers in East Coast since their appointment and replacement of the previous
management team in April 25, 2005. In addition, prior to this acquisition, the
Companys publicly traded securities have often been thinly traded in the stock
market and can therefore be characterized as a stock subject to penny stock rules.
Consequently, the shares exchanged between the Company and MRG were valued based on the
par value of the respective shares exchanged, with the difference in aggregate value of
$15,697 reflected in additional paid-in capital in a recapitalization in which MRG is
identified as the "accounting acquirer."

MRG was incorporated in Florida in February 2004. MRG has been renting
a facility in Miami, Florida to be renovated for the purpose of operating a combined
restaurant, nightclub, and parking lot on the premises. MRG began the process of making
renovations in 2004, soon after entering into a lease on the premises as described in Note
12. As of July 31, 2006, the renovations on the property were still in progress and the
facility had not yet opened to the public. Management expects the completed facility to be
open to the public some time in 2007.

Pursuant to the terms of a private placement offering described in Note
3, on April 1, 2005, MRG formed a Florida limited partnership, Miami Renaissance Partners,
Ltd, ("the Partnership" or "MRP"), in which MRG was the general
partner and manager, to raise working capital for the entertainment facility renovation
and creation project. MRG was to enter into a sublease agreement with MRP for the
completed Florida facility. MRG was to retain a 75% interest in the partnership, with the
remainder interest divided amongst limited partners. These financial statements will
include the accounts of East Coast, MRG, and MRP, and include the 25% minority interest
representing the remainder third party limited partner interests. Since the acquisition
took place on April 26, 2006, operations during the development stage were negligible
during the year ended April 30, 2006.

Effective April 26, 2006, the Company is considered to be a development stage company.

**Note 2 - Summary of Significant Accounting Policies**

Principles of consolidation:

The financial statements include the accounts of East Coast, MRG, and
MRP, and include a 25% minority interest representing the remainder limited partner
interest in MRP. All significant inter-company balances and transactions have been
eliminated in consolidation.

Income taxes:

The Company follows SFAS No. 109, "Accounting for Income
Taxes." Under the asset and liability method of SFAS No. 109, deferred tax
assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets and
liabilities and their respective tax bases. A valuation allowance has been provided for
the Company's net deferred tax asset, due to uncertainty of realization.

Straight-line lease:

For financial statement purposes, rent expense is recorded on a
straight-line basis over the lease term. The difference between the rent expense incurred
and the amount paid is recorded as deferred rent and is being amortized over the lease
term.

Segment information:

The Company will operate in one segment.

Fair value of financial instruments:

Carrying amounts of certain of the Companys financial
instruments, including cash, cash equivalents, restricted cash, short-term investments,
accounts receivable, notes receivable, accrued payroll, and other accrued liabilities,
approximate fair value due to their short maturities. The fair values of investments are
determined using quoted market prices for those securities or similar financial
instruments.

Leasehold improvements:

Leasehold improvements are stated at cost and include architect and
design fees to renovate and create the entertainment facility. Leasehold improvements will
be amortized using the straight-line method (half-year convention) over the shorter of the
estimated useful life or lease term. Amortization will commence once the business
operations begins.

Impairment of long-lived assets:

Statement of Financial Accounting Standards ("SFAS")
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets,"
provides for an impairment loss to be recognized if the carrying amount of a long-lived
asset is not recoverable and exceeds its fair value.

The Company has adopted SFAS No. 144. SFAS No. 144 superseded
SFAS No. 121; however, it retained its fundamental provisions for recognition and
measurement of the impairment of long-lived assets to be held and used. Such provisions
require recognition of impairment of long-lived assets (property and equipment and website
development costs) in the event that the net book value of these assets exceeds the
estimated future undiscounted cash flows attributable to these assets. The Company
assesses potential impairment to its long-lived assets when there is evidence that events
or changes in circumstances have made recovery of the assets' carrying values unlikely.
Should an impairment exist, the impairment loss is measured based on the excess of the
carrying value of the asset over the asset's fair value or discounted estimated future
cash flows.

Use of estimates:

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

Accounting basis:

The Company uses the accrual basis of accounting for financial
statement reporting. Accordingly, expenses are realized when the obligation is incurred.
The Company is in the development stage and has not generated any revenues to date.

Loss per Share:

The Company complies with the requirements of the Financial Accounting
Standards Board issued Statement of Financial Accounting Standards No. 128, "Earning
per share" ("SFAS No. 128"). SFAS No. 128 specifies the compilation,
presentation and disclosure requirements for earnings per share for entities with publicly
held common stock or potentially common stock. Net loss per common share, basic and
diluted, is determined by dividing the net loss by the weighted average number of common
shares outstanding. As of July 31, 2006, the effect of issuing convertible preferred stock
in connection with the Companys acquisition of MRG on April 26, 2006 have had a
negligible dilutive impact on the calculation of earnings per share.

Consideration of Other Comprehensive Income Items:

SFAS No. 130, "Reporting Comprehensive Income," requires
companies to present comprehensive income (consisting primarily of net income plus other
direct equity changes and credits) and its components as part of the basic financial
statements. The Company's consolidated financial statements do not contain any changes in
equity that are required to be reported separately in comprehensive income.

Recent Accounting Pronouncements:

In November 2004, the FASB issued SFAS No. 151, "Inventory Costs,
an amendment of APB No. 43, Chapter 4." SFAS No. 151 retains the general principle of
APB No. 43, Chapter 4, "Inventory Pricing (AC Section I78)," that inventories
are presumed to be stated at cost; however, it amends APB No. 43 to clarify that abnormal
amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage)
should be recognized as current-period charges and requires the allocation of fixed
production overheads to inventories based on the normal capacity of the production
facilities. The guidance is effective for inventory costs incurred during fiscal years
beginning after June 15, 2005. Earlier application is permitted for inventory costs
incurred during fiscal years beginning after November 23, 2004. We have evaluated SFAS No.
151 and do not anticipate that the adoption of SFAS No. 151 will have a significant impact
on our overall results of operations or financial position.

In December 2004, the FASB issued SFAS No. 123(R), "Share-Based
Payment," which establishes standards for transactions in which an entity exchanges
its equity instruments for goods or services. This standard requires a public entity to
measure the cost of employee services received in exchange for an award of equity
instruments based on the grant date fair value of the award. This eliminates the exception
to account for such awards using the intrinsic method previously allowable under APB
Opinion No. 25. SFAS No. 123 (R) became effective for the interim period beginning July 1,
2005. The Company does not anticipate that the adoption of SFAS No. 123(R) will have a
significant impact on the Companys overall results of operations or financial
position.

In December 2004, the FASB issued SFAS No. 153, "Exchanges of
Nonmonetary Assets, an amendment of APB Opinion No. 20, Accounting for Nonmonetary
Transactions." The amendments made by SFAS No. 153 are based on the principle that
exchanges of nonmonetary assets should be measured based on the fair value of the assets
exchanged. Further, the amendments eliminate the narrow exception for nonmonetary
exchanges of similar productive assets and replace it with a broader exception for
exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary
exchange has commercial substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange. This statement shall be applied
prospectively and is effective for nonmonetary asset exchanges occurring in fiscal periods
beginning after June 15, 2005.

Earlier application is permitted for nonmonetary asset exchanges
occurring in fiscal periods beginning after the date of issuance. The Company does not
anticipate that the adoption of SFAS No. 153 will have a significant impact on the
Companys overall results of operations or financial position.

In May 2005, the FASB issued SFAS 154, "Accounting Changes and
Error Corrections," that applies to all voluntary changes in accounting principle.
This Statement requires retrospective application to prior periods financial
statements of changes in accounting principle, unless it is impracticable to determine
either the period-specific effects or the cumulative effect of the change. When it is
impracticable to determine the period-specific effects of an accounting change on one or
more individual prior periods presented, this Statement requires that the new accounting
principle be applied to the balances of assets and liabilities as of the beginning of the
earliest period for which retrospective application is practicable and that a
corresponding adjustment be made to the opening balance of retained earnings (or other
appropriate components of equity or net assets in the statement of financial position) for
that period rather than being reported in an income statement. When it is impracticable to
determine the cumulative effect of applying a change in accounting principle to all prior
periods, this Statement requires that the new accounting principle be applied as if it
were adopted prospectively from the earliest date practicable. SFAS 154 will be effective
for the Company for fiscal year ended December 31, 2007. The Company does not anticipate
that the adoption of SFAS No. 154 will have an impact on the Companys overall
results of operations or financial position.
**Note 3 - MRG Pre-Merger Private Placement Offering and Related Restricted Cash**

On May 13, 2005, MRG made a private placement offering for up to 120
investment units in the Partnership, Miami Renaissance Partners, Ltd, at a subscription
price of $25,000 each. Each unit in this non-public offering was to initially represent a
0.002% to 0.007% partnership interest depending on the number of units sold. The offering
was made to accredited investors as defined in Rule 501 (a) under the Securities Act of
1933, as amended. The offering was made for a minimum of 30 units, for total proceeds of
$750,000, and a maximum of 120 units, for total proceeds of $3,000,000, with the offering
to terminate at December 31, 2005 if the minimum units had not been sold. In accordance
with the Partnership formation documents, limited partner capital contributions do not
bear interest.

Miami Renaissance Partners, Ltd, ("MRP") had received cash
contributions from the sale of partnership units to limited partners of $125,000 prior to
the MRG merger with East Coast. Accordingly, at April 30, 2006, the Company had recorded
$126,914, including interest income earned previously from restricted cash on its balance
sheets. Under the terms of the private placement agreement, MRP had not reached the
minimum threshold of 30 units sold to access the capital.

During June and July of 2006, MRP returned the $125,000 of cash contributions received
from the limited partners.

**Note 4  Income Taxes**

The significant components of the Company's deferred tax assets are as
follows:
**2006**
    
    **2005**Net operating
    loss carryforward
    $
    1,083,807
    $
    726,182Less valuation
    allowance
    
    (1,083,807)
    
    (726,182)Net deferred tax
    assets
    $
    0
    $
    0

The Company has provided for a valuation allowance against the full
amount of the deferred tax asset due to management's uncertainty about its realization.
The difference between the federal statutory tax rate of 34% and the effective rate of 0%
reflected in the accompanying financial statements is attributable to no tax benefit being
recorded for the future utilization of the net operating loss carryforwards.

The Company incurred no federal or state income tax expense for the
three months ended July 31, 2006 and for the period from inception (April 26, 2006) to
July 31, 2006, and utilized no tax carryforward losses.

As of July 31, 2006, the Company has available net operating loss
carryforwards of $3,187,669 that expire through 2026. The Company has provided a valuation
allowance against the full amount of the deferred tax asset due to managements
uncertainty about its realization.

**Note 5  Convertible Note Payable, Related Party**

On August 30, 2005, MRG issued a convertible note payable to Brickell
North Investments, Inc. ("Brickell"), in settlement of outstanding sums owed for
2004 and 2005 rent and 2004 real estate taxes in the aggregate amount of approximately
$327,774. The note will be adjusted upward for any additional 2005 real estates taxes once
that amount has been determined. $110,500 of rent due for the period from inception
(February 25, 2004) to December 31, 2005 was forgiven by Brickell (see Note 7).

The note is non-interest bearing, and is convertible to shares of the
Companys common stock at a rate of $.327.

Brickell is a related party, as described in Note 7.

**Note 6  Convertible Notes Payable to Officers and
Shareholders**

Convertible notes payable to officers and shareholders are as follows:

**Holder**
    
    **Terms**
    
    **July 31, 2006**
    
    **April 30, 2006**Richard Margulies,
    President/CEO and Chairman of the Board of Directors
    
    $54,104 note which accrues
    interest at 6% per annum and is due December 31, 2007. The note is convertible into shares
    of common stock of the Company at a conversion price of $.50.
    $
    54,104
    $
    -Richard Margulies,
    President/CEO and Chairman of the Board of Directors
    
    $4,140 note which accrues
    interest at 6% per annum and is due April 25, 2008. The note is convertible into shares of
    common stock of the Company at a conversion price of $.50.
    
    4,140
    
    -Shareholder
    
    $5,515 note which accrues
    interest at 10% per annum and was due April 30, 2004. The note was convertible into shares
    of common stock of the Company at the conversion price of $.002. The shareholder has
    agreed to extend the maturity date of the obligation to December 31, 2006.
    
    5,515
    
    5,515Shareholder
    
    $4,750 note which accrues
    interest at 10% per annum and was due April 30, 2004. The note was convertible into shares
    of common stock of the Company at the conversion price equal to the closing bid price of
    the shares on the date of conversion, but not less than the par value of $.001. The
    shareholder has agreed to extend the maturity date of the obligation to December 31, 2006.
    
    4,750
    
    4,750Shareholder
    
    $4,185 note which accrues
    interest at 10% per annum and was due February 3, 2006. The note is convertible into
    shares of common stock of the Company at the conversion price of $.002. The shareholder
    has agreed to extend the maturity date of the obligation to December 31, 2006.
    
    4,185
    
    4,185Richard Margulies,
    President/CEO and Chairman of the Board of Directors
    
    $2,005 note which accrues
    interest at 6% per annum and is due December 31, 2006. The note is convertible into shares
    of common stock of the Company at a conversion price of $.002.
    
    2,005
    
    -Frank Rovito, CFO, and a Director
    (Treasurer)
    
    $29,980 note which accrues interest at 6% per
    annum and is due December 31, 2007. The note is convertible into shares of common stock of
    the Company at a conversion price of $.50.
    
    29,980
    
    -Frank Rovito, CFO, and a Director
    (Treasurer)
    
    $1,600 note which accrues interest at 6% per
    annum and is due April 25, 2008. The note is convertible into shares of common stock of
    the Company at a conversion price of $.50.
    
    1,600
    
    -Aaron Goldstein, a Director (Secretary)
    
    $134,737 note which accrues interest at 6% per
    annum and is due April 25, 2008. The note is convertible into shares of common stock of
    the Company at a conversion price of $.50.
    
    134,737
    
    -Aaron Goldstein, a Director (Secretary)
    
    $10,000 note which accrues interest at 6% per
    annum and is due December 31, 2006. The note is convertible into shares of common stock of
    the Company at a conversion price of $.002.
    
    10,000
    
    -Aaron Goldstein, a Director (Secretary)
    
    $75,000 note which accrues interest at 6% per
    annum and is due December 31, 2007. The note is convertible into shares of common stock of
    the Company at a conversion price of $.50.
    
    75,000
    
    -Aaron Goldstein, a Director (Secretary)
    
    $10,000 note which accrues interest at 6% per
    annum and is due July 31, 2008. The note is convertible into shares of common stock of the
    Company at a conversion price of $.002.
    
    2,000
    
    -Aaron Goldstein, a Director (Secretary)
    
    $179,523 note which accrues interest at 6% per
    annum and is due December 31, 2007. The note is convertible into shares of common stock of
    the Company at a conversion price of $.50.
    
    179,523
    
    -507,664
    
    14,450Less: current portion
    
    26,455
    
    14,450$
    481,209
    $
    -As of July 31, 2006 future maturities of debt for the next two years
are as follows:

Years ending July 31:

2007
    $
    26,4552008
    
    481,209As of July 31, 2006 and April 30, 2006, the Company had recorded
$37,988 and $30,165 of accrued interest on the convertible notes payable to officers,
respectively. Interest expense on these notes was $7,883 for both the three months ended
July 31, 2006 and for the period from inception (April 26, 2006) to July 31, 2006,
respectively.

**Note 7  Related Party Transactions**

James Goldstein, the father of Aaron Goldstein, who is an officer and
director of the Company, is one of the principal owners of Brickell North Investments,
Inc. ("Brickell,"), the landlord for the Florida entertainment facility lease
and is the holder of the related convertible note payable for $327,774 discussed in Note
5. The note was issued to pay accrued rent for 2005 and 2004 of $207,570 and $8,500,
respectively, and real estate taxes of $111,704 during the development stage of MRG
(February 25, 2004) to December 31, 2004. $110,500 of rent due for the period from
February 25, 2004 to December 31, 2004 was forgiven by Brickell in 2005.

For the period during the development stage of MRG (February 25, 2004)
through April 30, 2006, MRG incurred $700,974 of rent and real estate taxes under the
lease, of which basis rent incurred to Brickell totaled $454,731. The Companys
Consolidated Statements of Operations for both the three months ended July 31, 2006 and
for the period from inception (April 26, 2006) to July 31, 2006, respectively, include
$58,467 of rent and $27,926 of real estate taxes incurred by MRG under the lease.

The sub-landlord for the office lease, Comp Tech Technologies, is a
company principally owned by Frank Rovito, who is an officer and director of the Company.
For the period from February 25, 2004 to April 30, 2006, MRG incurred $31,200 of rent
expense under the sublease. The Companys Consolidated Statements of Operations for
both the three months ended July 31, 2006 and for the period from inception (April 26,
2006) to July 31, 2006, respectively, include $3,600 of rent expense incurred by MRG under
the sublease.

On March 1, 2005, MRG issued 1,025,000 shares of its common stock to
Robert Margulies, the brother of the officer and director Richard Margulies.

**Note 8  Equity Transactions**

During the three
months ended July 31, 2006, the Company issued 520,000 shares of common stock pursuant to
a private offering to accredited investors that was to expire June 30, 2006 at $.20 per
share (with gross proceeds of $104,000), in accordance with Regulation D of the Securities
Act of 1933, as amended, and Rule 501 promulgated thereunder. The Company's officers and
directors directed the sale and received no commissions or other remuneration. In
addition, the Company received $25,000 for 125,000 shares of common stock to be issued in
the future under this offering. The 125,000 shares were issued on August 10, 2006.
Proceeds of the private placement includes $10,000 for 50,000 shares issued to Michelle
Goldstein, the mother of Aaron Goldstein, a Director in the Company. On May 24, 2006, the Company issued 200,000 shares of
common stock to Les Beilinson, subject to Rule 144 restrictions, in consideration of
architectural services. The Company has capitalized $40,000 in the cost of leasehold
improvements related to this stock issuance, based on the $.20 share price received by the
Company in the Private Placement described in the preceding paragraph. **Note 9  Going Concern** These consolidated financial statements are presented on the basis that
the Company is a going concern. Going concern contemplates the realization of assets and
the satisfaction of liabilities in the normal course of business over a reasonable period
of time. As shown in the accompanying consolidated financial statements, the
Company had incurred cumulative losses of $3,187,541 from inception. The Company's
existence in the current period has been dependent upon advances from related parties and
other individuals, and the sale of convertible notes payable. The consolidated financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern. **Note 10 - Stock Subscription Receivable** MRG issued 18,860,000 and 1,640,000 shares of common stock respectively
in 2005 and 2004 to various individuals and directors of MRG in exchange for stock
subscription agreements. The amounts due on the stock subscription agreements were $20,500
at July 31, 2006. The amounts are non-interest bearing and due on demand. The stock
subscription receivable amounts have been offset against stockholders' deficit. **Note 11- Commitments and Other Matters** [1] The Company has no current pending litigation. [2] On June 15, 2004, MRG entered into a lease with Brickell North
Investments, Inc., a related party, for the parcels of land and buildings for use in the
entertainment facility. The lease term is ten years, with annual increases based on the
consumer price index of approximately 3% per year. [3] In February 2004, MRG entered into a sublease with a related party
for office space in Edison, NJ for $1,200 per month. Since the lease expiration in October
2004, the Company has continued to lease the space under a month-to-month arrangement.
Management does not consider use of this office space essential to business operations. [4] 5 Year Table of obligations under leases: The minimum future obligations for rent under agreements outlined in
[2] are as follows: **Years Ending July
    31,**
    
    **Amounts**2007
    $
    217,5022008
    
    224,0282009
    
    230,7562010
    
    237,6782011
    
    244,806Thereafter
    
    773,672$
    1,888,442
 Rent expense incurred by MRG was $541,124 for the period from February
25, 2004 to July 31, 2006, including $58,467 of rent and $27,926 of real estate taxes
incurred by MRG under the lease during the three months ended July 31, 2006. **Note 12- Subsequent Event** Acquisition of Liquor License On August 24, 2006, the Company acquired a Florida liquor license for a
purchase price of $89,000, plus a prorated portion of an annual license fee of $1,365, for
total cash consideration paid by the Company at the closing of $80,823. At July 31, 2006,
the cost of liquor license includes a $9,000 deposit towards the purchase price of
$89,000.