SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB

|X|   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

                For the quarterly period ended September 30, 2006

|_|   Transition Report Pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

       For the transition period from _______________ to ________________

                        Commission file number 000-31143

                                  DCI USA, INC.
           (Exact name of small business as specified in its charter)

                     Delaware                                22-3742159
         (State or other jurisdiction of           (IRS Employer Identification
         incorporation or  organization)                      Number)


                    8 Bond Street, Great Neck, New York 11021
                    (Address of principal executive offices)

                                 (212)-994-9594
                (Issuer's telephone number, including area code)


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

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act. Yes |_| No |X|

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 49,292,681 shares of Common
Stock, $.001 per share, as of November 10, 2006.

Transitional Small Business Disclosure Format (check one): Yes |_| No |X|


<PAGE>

                                  DCI USA, INC.

                                      INDEX


                                                                        Page No.

           PART I.  FINANCIAL INFORMATION


Item 1.    Financial Statements................................................1

           Balance Sheets as of September 30, 2006 (unaudited) and
           December 31, 2005 (audited).........................................2


           Statements of Operations for the three month and nine month
           periods ended September 30, 2006 (unaudited) and September 30,
           2005 (unaudited)....................................................3

           Statements of Cash Flows for the nine
           month periods ended September 30, 2006 (unaudited) and
           September 30, 2005 (unaudited)......................................3

           Notes to Financial Statements.......................................4

Item 2.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations..........................................10

Item 4.    Controls and Procedures............................................18


                                         PART II. OTHER INFORMATION

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds........19

Item 5.    Other Information..................................................19

Item 6.     Exhibits..........................................................23

SIGNATURES....................................................................21


                                 10-QSB Page 22
<PAGE>

                          PART I. FINANCIAL INFORMATION
                                  DCI USA, INC.
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
ASSETS
                                                                               September 30, 2006  December 31, 2005
                                                                                  (Unaudited)

<S>                                                                                <C>            <C>
Cash                                                                               $    10,573    $     5,877
Prepaid expense                                                                          7,571         12,502
Interest receivable- related party                                                       4,189          5,857
Notes receivable- related party                                                      1,370,000      1,370,000
Restricted cash                                                                        180,000             --
Deferred loan costs                                                                      9,673         41,548
                                                                                   -----------    -----------

                       Total current assets                                          1,582,006      1,435,784

Noncurrent notes receivable, net of discount                                           209,779        201,750
                                                                                   -----------    -----------

                       Total assets                                                $ 1,791,785    $ 1,637,534
                                                                                   ===========    ===========

LIABILITIES & STOCKHOLDERS' EQUITY

LIABILITIES
Loan payable - Hypothecators                                                       $   400,000    $   400,000
Loan Payable - TSSS                                                                         --        100,000
Loan payable - Ichaki                                                                  200,000             --
Accounts payable                                                                        59,305        109,644
Accrued interest                                                                       111,821         62,548
Dividends payable                                                                        9,167          9,167
Current portion of convertible debentures net of discount of $17,969 and $27,552       468,531        222,448
                                                                                   -----------    -----------

                       Total  current liabilities                                    1,248,824        903,807

Noncurrent portion of convertible debentures net of discount of $33,544                     --        216,456
                                                                                   -----------    -----------

                       Total liabilities                                             1,248,824      1,120,263
                                                                                   -----------    -----------

STOCKHOLDERS' EQUITY
Preferred Stock, par value $.001,
   Authorized 1,000,000 shares
   Series A Preferred, 200,000 shares authorized
   none and 200,000 issued and outstanding, respectively                                    --            200

Common stock, par value $.001,
   100,000,000 shares authorized, 49,292,681
   and 36,125,035 shares outstanding, respectively                                      49,293         36,125

Additional paid-in-capital                                                           2,388,915      1,822,532

Stock subscriptions receivable                                                        (300,000)            --

Retained deficit                                                                    (1,595,247)    (1,341,586)
                                                                                   -----------    -----------
                       Total stockholders' equity                                      542,961        517,271
                                                                                   -----------    -----------
                       Total liabilities and stockholders'
                         equity                                                    $ 1,791,785    $ 1,637,534
                                                                                   ===========    ===========
</TABLE>

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


<PAGE>

                                  DCI USA, INC.
                             STATEMENT OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                               Three Months Ended     Three Months Ended   Nine Months Ended     Nine Months Ended
                                               September 30, 2006     September 30, 2005   September 30, 2006    September 30, 2005
Operating Income

<S>                                               <C>                     <C>                   <C>                 <C>
Revenue                                           $         --            $     10,000          $         --        $     19,500
Interest income                                         45,555                  46,662               135,179             135,098
                                                  ------------            ------------          ------------        ------------
                             Total income               45,555                  56,662               135,179             154,598
                                                  ------------            ------------          ------------        ------------




Expenses:

General & administrative expense                        71,996                  40,373               178,076             195,648
Interest expense                                        42,921                  42,174               157,248             122,285
Professional fees                                       14,173                  51,594                51,031             171,677

Management fees                                             --                  (3,906)                   --              56,250

Income taxes                                                --                   3,202                 2,485               3,657
                                                  ------------            ------------          ------------        ------------
                             Total expenses            129,090                 133,437               388,840             549,517
                                                  ------------            ------------          ------------        ------------
Loss from operations                                   (83,535)                (76,775)             (253,661)           (394,919)
                                                  ------------            ------------          ------------        ------------

Other Income:

Gain on loan assignment                                     --                 (62,596)                   --             (62,596)

Net (gain)/loss on investment                               --                      --                    --              50,253
                                                  ------------            ------------          ------------        ------------
                             Total Other Income        (62,596)                     --               (12,343)
                                                  ------------            ------------          ------------        ------------

                             Net loss             $    (83,535)           $    (14,179)         $   (253,661)       $   (382,576)
                                                  ============            ============          ============        ============

Basic and Diluted
Loss per share                                    ($      0.00)           ($      0.00)         ($      0.01)       ($      0.01)
                                                  ============            ============          ============        ============

Weighted average number of
Common Stock outstanding                            40,062,108              36,125,035            37,696,855          36,125,035
                                                  ============            ============          ============        ============
</TABLE>

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


                                       2
<PAGE>

                                  DCI USA, INC.
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                               NINE MONTHS ENDED
                                                                   SEPTEMBER 30
                                                               2006          2005
             Operating activities:
<S>                                                           <C>          <C>
Net loss                                                      $(253,661)   $(382,576)
  Adjustments to reconcile net loss to net
    cash flows from operating activities
     Amortization of loan costs                                  31,875       29,375
    Stock issuance for services                                      --       56,250
    Gain on loan assignment                                          --      (62,596)
    (Gain)/Loss on investments                                       --       50,253
    Amortization of discounts                                    43,125       37,833
Changes in operating assets and liabilities
                         Prepaid expenses                         4,930       (5,613)
                         Interest receivable                      1,668      (28,619)
                         Restricted cash                       (180,000)
                         Accounts payable & accrued expense      (3,241)     114,373
                                                              ---------    ---------
   Net cash flows from operating activities                    (355,304)    (191,320)
                                                              ---------    ---------
Investing activities:
Proceeds from sale of investments                                    --      131,000
                                                              ---------    ---------
   Net cash flows from Investing activities                          --      131,000
                                                              ---------    ---------

Financing activities:
Proceeds from Convertible debentures                                 --      250,000
Proceeds from Loan                                              360,000      100,000
Payment of loan to related party                                     --      (95,000)
Payment of loan                                                      --     (200,000)
Deferred loan costs                                                  --      (30,000)
                                                              ---------    ---------

   Net cash flows from financing activities                     360,000       25,000
                                                              ---------    ---------

Increase (decrease) in cash and cash equivalents                  4,696      (35,320)
Cash, beginning                                                   5,877       38,190
                                                              ---------    ---------
Cash, ending                                                     10,573    $   2,870
                                                              =========    =========

Supplemental disclosure of cash flow Information:
                         Interest Paid                        $  59,000    $      --
                                                              =========    =========
                         Income Taxes Paid                    $   2,485    $   3,657
                                                              =========    =========

Noncash Financing Activities:
Repayment of loan through reissuance of shares                $      --    $ 100,000
                                                              =========    =========
Repayment of loan through issuance of shares                  $ 160,000    $      --
                                                              =========    =========
Issuance of shares through common stock subscription          $ 300,000    $      --
                                                              =========    =========
Conversion of debt to equity                                  $  13,500    $      --
                                                              =========    =========
</TABLE>

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

                                       3
<PAGE>

                                  DCI USA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 2006

NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION

      DCI USA, Inc. (referred to herein as "we" or the "Company"), formerly
known as Gavella Corp. ("Gavella"), was incorporated on June 21, 2000 in the
State of Delaware. Until November 9, 2004, the Company was engaged in owning and
operating income producing real estate and investing in and providing consulting
services to small, established companies with defined growth plans. On November
9, 2004, the Company executed a Subscription Agreement with Direct Capital
Investments, Ltd. ("Direct Capital") pursuant to which, among other things,
Direct Capital purchased 31,500,000 post-reverse split shares of common stock
(the "Purchased Shares") of the Company. The Purchased Shares represented 90% of
the then outstanding common stock ("Common Stock") of the Company on a
fully-diluted basis. Direct Capital is an Israeli company which is traded on the
Tel Aviv Stock Exchange. Commencing November 9, 2004, the Company changed its
focus and engaged in lending to and investing in real estate related and other
opportunities. On November 19, 2004, the Company changed its name to DCI USA,
Inc. from Gavella Corp.

      On February 14, 2005, the Company filed with the Securities and Exchange
Commission (the "SEC") an election to operate as a regulated business
development company ("BDC") under the Investment Company Act of 1940 (the "1940
Act"). In February 2006, the Company withdrew its election in order to pursue
other interests.

      Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. The Company believes that the disclosures are adequate to make the
financial information presented not misleading. These condensed financial
statements should be read in conjunction with the audited financial statements
and the notes thereto included in the Company's Annual Report on Form 10-KSB for
the year ended December 31, 2005, filed with the Securities and Exchange
Commission on March 31, 2006. All adjustments were of a normal recurring nature
unless otherwise disclosed. In the opinion of management, all adjustments
necessary for a fair statement of the results of operations for the interim
period have been included. The results of operations for such interim periods
are not necessarily indicative of the results for the full year.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

STOCK-BASED COMPENSATION

      In December 2004, the FASB issued SFAS No. 123 (revised 2004), Share-Based
Payment, which is an amendment to SFAS No. 123, Accounting for Stock-Based
Compensation and supersedes APB Opinion No. 25, Accounting for Stock Issued to
Employees. This new standard eliminates the ability to account for share-based
compensation transactions using Accounting Principles Board (APB) No. 25,
Accounting for Stock Issued to Employees (APB 25) and requires such transactions
to be accounted for using a fair-valued-based method, with the


                                       4
<PAGE>

                                  DCI USA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 2006

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

STOCK-BASED COMPENSATION (CONTINUED)

resulting cost recognized in the Company's financial statements. This standard
was effective for periods beginning after December 15, 2005. As of September 30,
2006 no such compensation has been issued.

TREATMENT OF HOLDINGS IN BARTRAM

      On November 9, 2004, the Company transferred 80 percent of its interest in
Bartram Holdings, Inc. ("Bartram") to one shareholder. As a result, the
Company's ownership in Bartram was reduced to 20%. As of September 30, 2005, the
Company sold its 20% ownership in Bartram back to Bartram in consideration for
being issued by Bartram a $70,000 principal amount promissory note and the
forgiveness by Bartram of the Company's obligation to pay Bartram $30,000 upon
receipt of such amount from Direct Capital.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

      In December 2004, the FASB issued SFAS No. 153, Exchange of Non-monetary
Assets. SFAS No. 153 amends APB Opinion No. 29, Accounting for Non-monetary
Transactions, to eliminate the exception for non-monetary exchanges of similar
productive assets. The Company is required to apply this statement to
non-monetary exchanges after December 31, 2005. The adoption of this standard is
not expected to have a material effect on the Company's financial position or
results of operations.

      In May 2005, the FASB issued SFAS No. 154, Accounting Changes and Errors
Corrections, which is a replacement of APB Opinion No. 20 and SFAS No. 3. This
new Standard applies to all voluntary changes in accounting principles and
certain other changes where transition rules are not prescribed. The Statement
requires retroactive restatement to prior periods for changes in accounting
principles, unless it is impracticable to determine either the period specific
effects or the cumulative effects of the change. The Statement is effective for
all fiscal years beginning after December 15, 2005. The adoption of SFAS No. 154
did not have a significant effect on the Company.


                                       5
<PAGE>

                                  DCI USA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 2006

NOTE 3 CONVERTIBLE NOTES PAYABLE- TO OFFICER AND TO OTHER PARTIES

      As of March 1, 2006, Jonathan Ilan Ofir, our Chairman and Chief Executive
Officer, agreed to lend us up to $300,000 on a revolving credit basis until
March 1, 2008 and we issued to Mr. Ofir as of March 1, 2006 a convertible
promissory note (the "Ofir Note") in the principal amount of up to $300,000. The
maximum amount which may be outstanding under the Ofir Note at any given time is
not permitted to exceed $300,000 and we may prepay all or part of the
outstanding balance under the Ofir Note upon five business days' notice to Mr.
Ofir. The principal and accrued interest outstanding under the Ofir Note are due
and payable on March 1, 2008 and are convertible at any time at the option of
Mr. Ofir into shares of our Common Stock at the conversion price of $0.05 per
share. Interest accrues on the principal balance outstanding under the Ofir Note
at the rate of 8% per annum. As of September 30, 2006, the $60,000 that had been
outstanding under the Ofir Note together with accrued interest had been so
converted into 1,252,997 shares of our common stock at a conversion price of
$.05 per share.

      As of May 4,, 2006, Gad Ichaki loaned the Company $100,000, evidenced by
our promissory note, payable on demand and bearing interest at 8% per annum. As
of September 27, 2006, this note had been converted to 2, 064 000 shares of our
common stock, at the conversion price of $.05 per share.

      On November 1, 2006, four parties acquired the Registrant's Debentures in
the principal amount of $250,000 and $236,500 (the "Debentures") previously held
by Cornell Capital Partners LP. Concurrently with such acquisitions the
Registrant and such individuals entered into a Debenture Modification Agreement
wherein the parties modified certain terms of the Debentures. Specifically, the
parties agreed that the Debentures will no longer be secured by a lien on any of
the Registrant's assets, that the due date of the Debentures shall be June 4,
2007, and that the interest rate on the Debentures shall be eight percent (8%)
per annum until the due date, increasing to fourteen (14%) per annum until such
time as the Debentures are paid in full.

      The parties further agreed to amend the terms under which the Debentures
can be converted into common stock of the Registrant. As amended, the
outstanding principal amount of the Debentures, together with accrued interest,
is convertible into common stock at any time and from time to time, in whole or
in part, at a price of five ($.05) cents per share at any time until December
31, 2006, and at a price of seven ($.07) cents per share at any time after
December 31, 2006, until paid in full. Instead of such registration rights as
were provided in the Debentures, the parties have agreed that the Debenture
holders shall have "piggy-back" rights with respect to the shares issuable upon
conversion of the Debentures. Those provisions contained in the Debentures
limiting the Registrant's ability to issue shares of its common or preferred
stock without the consent of the holders of the Debentures have also been
deleted (see attachment).


                                       6
<PAGE>

                                  DCI USA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 2006

NOTE 4.  ASSIGNMENT OF SHARES OF MAJOR SHAREHOLDER

      As of March 24, 2006, Mr. Ofir acquired 28,350,000 shares of our Common
Stock from Uri Rosin and Gunter Frantz, Ltd. ("Gunter Frantz") pursuant to an
Assignment and Assumption of contract ("Assignment and Assumption of Contract")
whereby Mr. Ofir assumed the obligations of Mr. Rosin and Gunter Frantz under a
Share Sale Agreement dated February 1, 2006 ("the Share Sale Agreement"). The
purchase price of $1,170,004 (or $0.04127 per share) is required to be paid by
Mr. Ofir by December 31, 2007. The right to purchase such 28,350,000 shares from
Direct Capital Investments, Ltd. had been held by Mr. Rosin and Gunter Frantz,
the former controlling shareholders of Direct Capital Investments, Ltd.,
pursuant to the Share Sale Agreement. Mr. Rosin and Gunter Frantz, however,
assigned all of the rights and obligations under the Share Sale Agreement to Mr.
Ofir. Mr. Rosin is Mr. Ofir's father in-law. With respect to the 3,150,000
shares of our Common Stock still held by Direct Capital Investments, Ltd., (i)
the holder has the right, from December 31, 2007 to June 30, 2008, to require
Mr. Ofir to purchase such shares for the aggregate price of $130,000 (or
$0.04127 per share); and (ii) Mr. Ofir has the right, from February 1, 2006 to
June 30, 2008, to require the holder to sell such shares to him for the
aggregate price of $390,000 (or $0.1238 per share).


                                       7
<PAGE>

                                  DCI USA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 2006

NOTE 5 CONVERTIBLE DEBENTURES WAIVER AGREEMENT

      On July 28, 2006, the Company issued 1,350,000 restricted shares of its
Common Stock ("Common Stock") to Cornell Capital Partners LP ("Cornell") and
150,000 restricted shares of its Common Stock to an individual designee of
Cornell. The certificates representing such shares were dated as of June 20,
2006. The Company believes such issuances were exempt from registration under
Section 4(2) of the Securities Act of 1933, as amended.

      The Company issued these shares pursuant to an agreement (the "Waiver
Agreement"), dated as of June 2, 2006, between the Company and Cornell, which
provided for the waiver by Cornell of certain defaults under the $250,000
principal amount Debentures (each a "Debenture") which the Company had issued to
Cornell in each of December 2004 and February 2005, and under the documents
related to such Debentures. Pursuant to the Waiver Agreement, Cornell became
obligated to cancel the 200,000 shares of the Company's Series A Preferred Stock
("Preferred Stock") which the Company had issued to Cornell in December 2004 as
a commitment fee under the Standby Equity Distribution Agreement, dated December
13, 2004, between the Company and Cornell. In return, the Company became
obligated to issue to Cornell 1,500,000 shares of its Common Stock and grant to
Cornell a put option to sell such 1,500,000 shares back to the Company at the
price of seven and one-half cents ($0.075) per share. The put option has a
duration of three (3) years and may be exercisable by Cornell at any time. Under
the Waiver Agreement, the Company also agreed that the interest rate under the
Debentures would be raised from 8% to 12% per annum, retroactive to the original
dates as of which the Debentures were issued. In addition, subject to the
Company's compliance with the terms of the Waiver Agreement, Cornell agreed
that, until November 2, 2006, it would (i) not convert any additional amount of
the Debentures into shares of our Common Stock, and (ii) forebear from
exercising its rights and remedies under the Debentures and the related
documents.

      As of June 2, 2006, the Company also agreed with Cornell to terminate the
Standby Equity Distribution Agreement.

      As of April 20, 2006, Cornell had elected to convert $13,500 principal
amount of the $250,000 Debenture which the Company issued to Cornell in December
2004. As a result, on or about June 2, 2006, the Company issued to Cornell
350,649 restricted shares of Common Stock. The Company believes such issuance
was exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended.

      On November 1, 2006, four parties acquired the Registrant's Debentures in
the principal amount of $250,000 and $236,500 (the "Debentures") previously held
by Cornell Capital Partners LP. Concurrently with such acquisitions the
Registrant and such individuals entered into a Debenture Modification Agreement
wherein the parties modified certain terms of the Debentures. Specifically, the
parties agreed that the Debentures will no longer be secured by a lien on any of
the Registrant's assets, that the due date of the Debentures shall be June 4,
2007, and that the interest rate on the Debentures shall be eight percent (8%)
per annum until the due date, increasing to fourteen (14%) per annum until such
time as the Debentures are paid in full.

                                       8
<PAGE>

                                  DCI USA, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 2006

NOTE 5. CONVERTIBLE DEBENTURES WAIVER AGREEMENT (CONT.)

      The parties further agreed to amend the terms under which the Debentures
can be converted into common stock of the Registrant. As amended, the
outstanding principal amount of the Debentures, together with accrued interest,
is convertible into common stock at any time and from time to time, in whole or
in part, at a price of five ($.05) cents per share at any time until December
31, 2006, and at a price of seven ($.07) cents per share at any time after
December 31, 2006, until paid in full. Instead of such registration rights as
were provided in the Debentures, the parties have agreed that the Debenture
holders shall have "piggy-back" rights with respect to the shares issuable upon
conversion of the Debentures. Those provisions contained in the Debentures
limiting the Registrant's ability to issue shares of its common or preferred
stock without the consent of the holders of the Debentures have also been
deleted.

NOTE 6.  SUBSEQUENT EVENTS

      On August 1, 2006 the company entered into an agreement to provide Gunther
Wind Energy Ltd with up to $650,000 for its development of and collaboration in
clean energy generation projects in Israel and elsewhere. To date, the company
has advanced $635,000 to Gunther Wind Energy, and continues to seek potential
strategic partners to contribute $5 to $10 million. The strategic investment
will enable the Company to secure its position in this burgeoning field and to
enhance its capabilities to invest in clean energy projects.

Acquisition of Interests in 231 Norman Avenue

      On November 15 , 2006, the Company acquired for nominal consideration 100%
of the membership interests in 231 Norman Avenue LLC ("231 Norman"). 231 Norman
is the holder of a 30% interest in 231 Norman Avenue Property Development, LLC
("Norman Property LLC"). The Company already has the right to acquire such 30%
interest from Norman Avenue in exchange for the cancellation of $1,370,000
aggregate principal amount of note obligations owed to it by 231 Norman Avenue.
In connection with the acquisition of such membership interests in 231 Norman
the Company did not cancel such $1,370,000 notes which remain outstanding. We
previously reported that Norman Property LLC had received the necessary approval
to convert the commercial use building at 231 Norman Avenue, Brooklyn, New York,
into 68 loft units to be sold as condominiums.

      On November 15, 2006, in exchange for $100,000, to be paid no later than
December 31, 2006, the Company acquired from Joseph Gopin the option to purchase
the 20% interest Gopin holds in 231 Norman Property, LLC. Should we exercise
this option, the consideration for the acquisition shall be $900,000 in the form
of restricted common shares at $.05 per share, and the issuance to Gopin of a
five-year promissory note bearing interest at 8% per annum in the amount of
$1,400,000, to be fully paid as of November 15, 2011.


                                       9
<PAGE>

Item 2.  Management's Discussion and Analysis or Plan of Operation

Plan of Operations

        We intend to continue to make investments in real estate, and have
initiated investments in the alternative energy field. In order to raise
necessary funds, we are seeking several potential strategic partners interested
in contributing $5 to $10 million to the capital of the Company for such
projects. To date, we have raised an aggregate of $1,130,000 to devote to our
alternative energy projects. Of this amount $500,000 was raised in the form of
interest bearing notes which subsequent to September 30, 2006, were converted
into shares of our common stock at $.05 per share. Of the balance, $165,000 is
represented by convertible notes issued prior to June 30, 2006, subsequently
converted into common stock at $.05 per share and $465,000 is represented by
convertible notes, issued subsequent to September 30, 2006, due November 27,
2007, bearing interest at a rate of 10% per annum, convertible into common stock
at a minimum of $.05 per share. In addition, four individuals paid $593,764 to
Cornell Securities to acquire our convertible debentures in the aggregate
principal amount of $487,500. We have entered into a Modification Agreement with
these individuals as described below.

Financial Condition and Results of Operations

      Our business and management completely changed as of November 9, 2004. In
addition, we were a business development company from February 2005 until we
withdrew our election to act as a BDC in February 2006. The reader should keep
in mind such changes in our business when considering our results of operations.

      Comparison of the results of operations: quarter ended September 30,
      2006 to quarter ended September 30, 2005

      Our total income for the quarter ended September 30, 2006 was $45,555,
compared with our total income of $56,662 for the quarter ended September 30,
2005. Income for the quarter ended September 30, 2006 consisted solely of
interest income earned from notes receivable from related parties.

        Our general and administrative expenses increased to $71,996 for the
quarter ended September 30, 2006 from $40,373 for the quarter ended September
30, 2005. Interest expense rose to $42,921 for the quarter ended September 30,
2006 from 42,174 for the quarter ended September 30, 2005.

      Professional fees fell from $51,594 for the quarter ended September 30,
2005 to $14,173 for the quarter ended September 30, 2006. We incurred certain
legal and accounting fees during the quarter ended September 30, 2005 because we
had begun to operate as a Business Development Company in February 2005. During
the quarter ended March 31, 2006, we withdrew as a BDC, thereby no longer having
to incur legal and accounting expenses for complying with the rules and
regulations applicable to BDCs.

      Total other income was $62,596 during the quarter ended September 30,
2005, resulting in a net loss of $14,179, and was $0.00 during the quarter ended
September 30, 2006, resulting in a net loss of $83,535.

      Although we had reductions in professional fees, our general and
administrative expenses increased. We had no other income from the third quarter
of 2006 as compared to the third quarter of 2005. Our net loss accordingly
increased from $14,179 to $83,535 during such period.


                                       10
<PAGE>

      Comparison of the results of operations: nine months ended September
      30, 2006 to nine months ended September 30, 2005

      Our total income for the nine months ended September 30, 2006 was
$135,179, compared with our total income of $154,598 for the nine months ended
September 30, 2005. The majority of total income consisted of Interest income.

        Our general and administrative expenses decreased to $178,076 for the
nine months ended September 30, 2006 from $195,648 for the nine months ended
September 30, 2005. The decrease was due our no longer functioning as a BDC.
Interest expense was $157,248 for the nine months ended September 30, 2006
compared with $122,285 for the nine months ended September 30, 2005. The
increase is due primarily from the Company's agreement to raise the interest
rate from 8% to 12% on the Debentures per annum, retroactive to the original
dates as of which the Debentures were issued.

      Professional fees fell from $171,677 for the nine months ended September
30, 2005 to $51,031 for the nine months ended September 30, 2006. We incurred
significant legal and accounting fees during the nine months ended September 30,
2005 because we began to operate as a Business Development Company. During the
quarter ended March 31, 2006, we withdrew as a BDC, thereby no longer having to
incur legal and accounting expenses for complying with the rules and regulations
applicable to BDCs.

      Management fees were $56,250 for the nine months ended September 30, 2005,
paid in shares of Common Stock valued at $0.05 per share. We paid no directors
fees for the nine months ended September 30, 2006.

      We had loss on investments of $50,253 for the nine months ended September
30, 2005, due to the Company operating as a BDC. No such loss was incurred
during the nine months ended September 30, 2006, since the Company no longer
operates as a BDC.

      As a result primarily of the reductions in general and administrative
expenses, professional fees and management fees and the increase in interest
expense from the first nine months of 2005 to the first nine months of 2006, our
total expenses were reduced and our net loss was reduced from $382,576 to
$253,661 during such periods.

Liquidity and Capital Resources

      Our cash as of September 30, 2006 was $10,573.00 We believe that we will
be able to meet our cash requirements during 2006 principally through loans from
our Chairman.

      We will need additional financing to expand our business, to carry out our
business plan and to reduce our debt. There is no assurance that we will be able
to obtain additional financing in sufficient amounts or on acceptable terms when
needed, and our inability to obtain sufficient financing will adversely affect
our operating results and prospects.


                                       11
<PAGE>

      As of September 30, 2006, our notes payable consisted of the following:

                                                    September 30, 2006
                                                    -------------------
          Note Payable to Hypothecators, interest             $400,000
          accrues at 15% per annum payable on the
          first of each month, due October 15,
          2006 -extension granted to December 31,
          2006


          Loan Payable to Gad Ichaki (since repaid;
          see comment below)                                  $200,000

          Convertible Debentures, net of discount
          of $32,544; $236,500 due June 4, 2007,
          and $250,000 due June 4, 2007                        $486,500


                                                    -------------------
                                                             $1,086,500


      In exchange for the cancellation of $1,370,000 aggregate principal amount
of note obligations owed to us, we have acquired an aggregate of 30% of the
outstanding membership interests in 231 Norman Avenue Property Development, LLC
("Norman Property LLC"). We previously reported that Norman Property LLC had
received the necessary approval to convert the commercial use building at 231
Norman Avenue, Brooklyn, New York, into 68 loft units to be sold as
condominiums. We anticipate that the conversion will be completed this fall at
which time Norman Property LLC will begin to close on the sale of units,
approximately 11 of which are under contract as of the date hereof.

      To enable us to satisfy certain of our obligations pending the receipt of
the proceeds of our current assets, our Chairman has agreed to lend us up to
$300,000 on a revolving basis at the interest rate of 8% per year. We believe
that such amount will enable us to meet our cash needs for 2006. To date, our
Chairman has loaned us $60,000 which, together with interest accrued thereon,
was converted into 1,252,997 shares of our common stock at a rate of 5 cents per
share.

      On July 28, 2006, the Company issued 1,350,000 restricted shares of its
Common Stock("Common Stock") to Cornell Capital Partners LP ("Cornell") and
150,000 restricted shares of its Common Stock to an individual designee of
Cornell. The certificates representing such shares were dated as of June 20,
2006. The Company believes such issuances were exempt from registration under
Section 4(2) of the Securities Act of 1933, as amended.

                                       12
<PAGE>

         The Company issued these shares pursuant to an agreement (the "Waiver
Agreement"), dated as of June 2, 2006, between the Company and Cornell, which
provided for the waiver by Cornell of certain defaults under the $250,000
principal amount Debenture (each a "Debenture") which the Company had issued to
Cornell in each of December 2004 and February 2005, and under the documents
related to such Debentures. Pursuant to the Waiver Agreement, Cornell became
obligated to cancel the 200,000 shares of the Company's Series A Preferred Stock
("Preferred Stock") which the Company had issued to Cornell in December 2004 as
a commitment fee under the Standby Equity Distribution Agreement, dated December
13, 2004, between the Company and Cornell. In return, the Company became
obligated to issue to Cornell 1,500,000 shares of its Common Stock and grant to
Cornell a put option to sell such 1,500,000 shares back to the Company at the
price of seven and one-half cents ($0.075) per share. The put option has a
duration of three (3) years and may be exercisable by Cornell at any time. Under
the Waiver Agreement, the Company also agreed that the interest rate under the
Debentures would be raised from 8% to 12% per annum, retroactive to the original
dates as of which the Debentures were issued. In addition, subject to the
Company's compliance with the terms of the Waiver Agreement, Cornell agreed
that, until November 2, 2006, it would (i) not convert any additional amount of
the Debentures into shares of our Common Stock, and (ii) forebear from
exercising its rights and remedies under the Debentures and the related
documents.

         As of June 2, 2006, the Company also agreed with Cornell to terminate
the Standby Equity Distribution Agreement.

         As of April 20, 2006, Cornell had elected to convert $13,500 principal
amount of the $250,000 Debenture which the Company issued to Cornell in December
2004. As a result, on or about June 2, 2006, the Company issued to Cornell
350,649 restricted shares of Common Stock. The Company believes such issuance
was exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended

      On November 1, 2006, four parties acquired the registrant's Debentures in
the principal amount of $250,000 and $236,500 (the "Debentures") previously held
by Cornell Capital Partners LP. Concurrently with such acquisitions the
Registrant and such individuals entered into a Debenture Modification Agreement
wherein the parties modified certain terms of the Debentures. Specifically, the
parties agreed that the Debentures will no longer be secured by a lien on any of
the Registrant's assets, that the due date of the Debentures shall be June 4,
2007, and that the interest rate on the Debentures shall be eight percent (8%)
per annum until the due date, increasing to fourteen (14%) per annum until such
time as the Debentures are paid in full.

      The parties further agreed to amend the terms under which the Debentures
can be converted into common stock of the Registrant. As amended, the
outstanding principal amount of the Debentures, together with accrued interest,
is convertible into common stock at any time and from time to time, in whole or
in part, at a price of five ($.05) cents per share at any time until December
31, 2006, and at a price of seven ($.07) cents per share at any time after
December 31, 2006, until paid in full. Instead of such registration rights as
were provided in the Debentures, the parties have agreed that the Debenture
holders shall have "piggy-back" rights with respect to the shares issuable upon
conversion of the Debentures. Those provisions contained in the Debentures
limiting the Registrant's ability to issue shares of its common or preferred
stock without the consent of the holders of the Debentures have also been
deleted.


                                       13
<PAGE>

      In connection with its efforts to raise funds for working capital and to
support its investments in the alternative energy field, the Company is seeking
several potential strategic partners interested in contributing $5 to $10
million to the capital of the Company for such projects. To date, the Company
has raised an aggregate of $1,130,000 to devote to our alternative energy
projects. Of this amount $500,000 was raised in the form of interest bearing
notes which subsequent to September 30, 2006, were converted into shares of our
common stock at $.05 per share. Of the balance, $165,000 is represented by
convertible notes issued prior to June 30, 2006, subsequently converted into
common stock at $.05 per share and $465,000 is represented by convertible notes,
issued subsequent to September 30, 2006, due November 27, 2007, bearing interest
at a rate of 10% per annum, convertible into common stock at a minimum of $.05
per share. In addition, four individuals paid $593,764 to Cornell Securities to
acquire our convertible debentures in the aggregate principal amount of
$487,500. We have entered into a Modification Agreement with these individuals
as described above. Further, subsequent to September 30, 2006, the loan by Gad
Ichaki to the Company in the amount of $200,000, was repaid in full to Ichaki,
and the Company received a loan of $200,000 from Paget Worldwide Holdings. This
note was converted into our common stock at a rate of $.05 per share, for a
total of 4,000,000 shares.

      Even after giving effect to such sales, we require additional funding to
fulfill our business plan. There can be no assurance that we will obtain these
funds.

      We believe all of the issuances of securities described in this report
were exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended

Impact of Inflation

      Inflation has not had a material effect on our results of operations.

Forward Looking Statements

      This report contains a number of forward-looking statements that reflect
management's current views and expectations with respect to our business,
strategies, future results and events and financial performance. All statements
made in this Report other than statements of historical fact, including
statements that address operating performance, events or developments that
management expects or anticipates will or may occur in the future, including
statements related to distributor channels, volume growth, revenues,
profitability, adequacy of funds from operations, statements expressing general
optimism about future operating results and non-historical information, are
forward looking statements. In particular, the words "believe," "expect,"
"intend," " anticipate," "estimate," "may," "will," variations of such words,
and similar expressions identify forward-looking statements, but are not the
exclusive means of identifying such statements and their absence does not mean
that the statement is not forward-looking. These forward-looking statements are
subject to certain risks and uncertainties, including those discussed below. Our
actual results, performance or achievements could differ materially from
historical results as well as those expressed in, anticipated or implied by
these forward-looking statements. We do not undertake any obligation to revise
these forward-looking statements to reflect any future events or circumstances.


                                       14
<PAGE>

        Readers should not place undue reliance on these forward-looking
statements, which are based on management's current expectations and projections
about future events, are not guarantees of future performance, are subject to
risks, uncertainties and assumptions (including those described below) and apply
only as of the date of this report. Our actual results, performance or
achievements could differ materially from the results expressed in, or implied
by, these forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to, those discussed below in "Risk
Factors" as well as those discussed elsewhere in this report, and the risks
discussed in our press releases and other communications to shareholders issued
by us from time to time which attempt to advise interested parties of the risks
and factors that may affect our business. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.


Risk Factors

      The reader should carefully consider each of the risks described below. If
any of the following risks develop into actual events, our business, financial
condition or results of operations could be materially adversely affected and
the trading price of the Common Stock could decline significantly.

We Are No Longer A BDC

      We are no longer a business development company and our plan of operations
is not clearly defined. We intend to invest in real estate opportunities but
whether we actually do so will depend upon opportunities that become available
to us and the availability of adequate financing. We cannot be sure that
attractive investment opportunities will become available to us or that we will
have the funds to make such investments if they do become available.


                                       15
<PAGE>

Our Common Stock May Be Affected By Limited Trading Volume and May Fluctuate
Significantly

      There has been a limited public market for our Common Stock and there can
be no assurance that an active trading market for our Common Stock will develop.
As a result, this could adversely affect our stockholders' ability to sell our
Common Stock in short time periods, or possibly at all. Our Common Stock has
experienced, and is likely to experience in the future, significant price and
volume fluctuations that could adversely affect the market price of our Common
Stock without regard to our operating performance. In addition, we believe that
factors such as quarterly fluctuations in our financial results and changes in
the overall economy or the condition of the financial markets could cause the
price of our Common Stock to fluctuate substantially. Substantial fluctuations
in our stock price could significantly reduce the price of our stock.

Our Common Stock is Quoted on the Over-the-Counter Bulletin Board, Which May
Make it More Difficult For Investors to Resell Their Shares Due to
Suitability Requirements

      Our Common Stock is currently quoted on the OTC Bulletin Board where we
expect it to remain for the foreseeable future. Broker-dealers often decline to
trade in OTCBB stocks given that the market for such securities is often
limited, the stocks are more volatile and the risks to investors are greater.
These factors may reduce the potential market for our Common Stock by reducing
the number of potential investors. This may make it more difficult for investors
to sell their shares of Common Stock to third parties or to otherwise dispose of
them. This could cause our stock price to decline.

Delaware Law and Certain Provisions of Our Charter May Inhibit a Takeover of
Our Company That Stockholders May Consider Favorable

      Provisions of Delaware law, such as its business combination statute, may
have the effect of delaying, deferring or preventing a change in control of our
Company. As a result, these provisions could limit the price some investors
might be willing to pay in the future for shares of our Common Stock.

Our Largest Stockholder Has the Ability to Exercise Significant Influence
Over Matters Submitted for Stockholder Approval and His Interests May Differ
From Other Stockholders

      Jonathan Ilan Ofir, our Chairman and CEO, beneficially owns 28,350,000
shares of our Common Stock and has the option to purchase an additional
3,150,000 shares from Direct Capital. He has beneficial ownership of
approximately 75% of our outstanding Common Stock as of September 30, 2006. Mr.
Ofir, therefore, has the ability to appoint our Board of Directors. Accordingly,
Mr. Ofir has significant influence in determining the outcome of any corporate
transaction or other matter submitted to our Board for approval, including
issuing common and preferred stock and appointing officers, which influence
could have a material impact on mergers, acquisitions, consolidations and the
sale of all or substantially all of our assets, and also the power to prevent or
cause a change in control. The interests of Mr. Ofir may differ from the
interests of the other stockholders.


                                       16
<PAGE>

Our Investments May Not Generate Sufficient Income to Cover Our Operations

      Currently, our only assets are certain promissory notes owed to us with
the aggregate fair value as of September 30, 2006 of approximately $1,577,000.
We also have the right to acquire a 30% interest in 231 Norman Avenue Property
Development, LLC by surrendering our rights with respect to $1,370,000 principal
amount of notes owed to us. Although we anticipate receiving net proceeds from
these assets sufficient to satisfy our obligations, there is no assurance as to
when or whether these proceeds will be received. Even if we receive proceeds
sufficient to satisfy our obligations, upon the sale or the liquidation of
Norman Property LLC we will have no ongoing business operations. We intend to
use the net proceeds derived from our current holdings and such additional funds
as we may raise through the issuance of debt or equity securities to acquire
real estate or other businesses. There can be no assurance that we will be
successful in our efforts to acquire any real estate or operating business or,
if acquired, that any such business or project will prove to be profitable.

The Sale or Availability for Future Sale of Substantial Amounts of our Common
Stock could Adversely Affect our Stock Price

      As of September 30, 2006, we had 49,292,681 shares of Common Stock
outstanding and no preferred shares outstanding. We are authorized to issue up
to a total of 100,000,000 shares of Common Stock and 1,000,000 shares of blank
check preferred stock. Additional issuances, including the rights and
preferences of the preferred shares, do not require stockholder approval. The
sale or availability for sale of substantial amounts of our Common Stock, in the
public market could adversely affect the market price of our Common Stock.

Item 3.  Controls and Procedures

      As of the end of the period covered by this report, our management,
including our principal executive officer and our principal financial officer,
have conducted an evaluation of the effectiveness of our disclosure controls and
procedures (as defined in Rule 13a-15 under the Securities Exchange Act of
1934). Based upon that evaluation, our principal executive officer and our chief
financial officer have concluded that our disclosure controls and procedures are
effective in timely alerting them of material information relating to us that is
required to be disclosed by us in the reports we file or submit under the
Exchange Act. There have been no changes in our internal control over financial
reporting that occurred during the period covered by this report that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.


                                       17
<PAGE>

                                     PART II

OTHER INFORMATION


Item 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS

      During the third quarter, we sold to Jonathan Rigbi 6,000,000 shares of
our Common Stock, at a price of $.05 per share, for an aggregate purchase price
of $300,000. Mr. Ofir converted his $60,000 note together with accrued interest
into 1,252,997 shares and Mr. Ichaki converted his $100,000 note together with
accrued interest into 2,064,000 shares.


Item 5.   OTHER INFORMATION

New direction

        Management of the Company has decided to seek to move the Company into
the field of alternative energy. In connection with such decision, on August 1,
2006 the company entered into an agreement to provide Gunther Wind Energy Ltd
with up to $650,000 for its development of and collaboration in clean energy
generation projects in Israel and elsewhere. To date, the company has advanced
$635,000 to Gunther Wind Energy, and continues to seek potential strategic
partners to contribute $5 to $10 million. The strategic investment will enable
the Company to secure its position in this burgeoning field and to enhance its
capabilities to invest in clean energy projects.

Acquisition of Interests in 231 Norman Avenue

        On November 15 , 2006, the Company acquired for nominal consideration
100% of the membership interests in 231 Norman Avenue LLC ("231
Norman"). 231 Norman is the holder of a 30% interest in 231 Norman Avenue
Property Development, LLC ("Norman Property LLC"). The Company already has the
right to acquire such 30% interest from Norman Avenue in exchange for the
cancellation of $1,370,000 aggregate principal amount of note obligations owed
to it by 231 Norman Avenue. In connection with the acquisition of such
membership interests in 231 Norman the Company did not cancel such $1,370,000
notes which remain outstanding. We previously reported that Norman Property LLC
had received the necessary approval to convert the commercial use building at
231 Norman Avenue, Brooklyn, New York, into 68 loft units to be sold as
condominiums (see attachment).

        On November 15, 2006, in exchange for $100,000, to be paid no later than
December 31, 2006, the Company acquired from Joseph Gopin the option to purchase
the 20% interest Gopin holds in 231 Norman Property, LLC. Should we exercise
this option, the consideration for the acquisition shall be $900,000 in the form
of restricted common shares at $.05 per share, and the issuance to Gopin of a
five-year promissory note bearing interest at 8% per annum in the amount of
$1,400,000, to be fully paid as of November 15, 2011 (see attachment).


                                       18
<PAGE>

Item 7. Exhibits

The following exhibits are filed as part of this report:



Exhibit No.           Description of Exhibit

31.1       --    Certification of Chief Executive Officer pursuant to Rule
                 13a-14(a) under the Securities Exchange Act of 1934.
\
31.2             -- Certification of Chief Financial Officer pursuant to Rule
                 13a-14(a) under the Securities Exchange Act of 1934.

32.1       --    Certification of Chief Executive Officer pursuant to Section
                 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

32.2       --    Certification of Chief Financial Officer pursuant to Section
                 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).


                                       19
<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Dated:      November 20, 2006
                                    DCI USA, INC.

                                    By:  /s/ Jonathan Ilan Ofir
                                         ----------------------
                                            Jonathan Ilan Ofir,
                                            Chief Executive Officer




                                        /s/ Michael Gibbs,
                                        ------------------
                                            Michael Gibbs,
                                            Chief Financial Officer
                                           (Principal Financial and Accounting
                                            Officer)


                                       20
<PAGE>

                                         EXHIBIT INDEX


Exhibit No.      Description of Exhibit
31.1       --    Certification of Chief Executive Officer pursuant to Rule
                 13a-14(a) under the Securities Exchange Act of 1934.
31.2             -- Certification of Chief Financial Officer pursuant to Rule
                 13a-14(a) under the Securities Exchange Act of 1934.
32.1       --    Certification of Chief Executive Officer pursuant to Section
                 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.2       --    Certification of Chief Financial Officer pursuant to Section
                 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).