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INTRODUCTION

PART      I: Financial Information

Item      1. Financial Statements.

Item      2. Discussion and Analysis or Plan of Operation.

Item      3. Defaults on Senior Securities.

PART      II: Other Information

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

Item      5. Other Information.

Item      6. Exhibits and Reports on Form 8-K.

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**INTRODUCTION**

**PART      I: Financial Information**

Item      1.      Financial Statements.

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**PART      II: Other Information**

Item      4.      Submission of Matters to Vote of Security Holders. As a subsequent event, on      May      16th,      by      majority shareholder action pursuant to the laws of Nevada, J. Dan Sifford      (existing Director) was elected as Sole Officer/Director of this      corporation.      

Item      5.      Other Information. The company has changed its office location back to 668      North      Coast Highway # 261, Laguna Beach CA 92651 

Item      6.      Exhibits and Reports on Form 8-K. No reports on Form 8-K during the period      represented by this Report.

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**SIGNATURES**

|  /s/J.                Dan Sifford                              |
|---------------------------------------------------------------------|
| J.                Dan SiffordSole                Officer / Director |

**Exhibit      31**

**Section      302 Certification**

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**CERTIFICATIONS      PURSUANT TO SECTION 302**

|   |   |  I,                J. Dan Sifford, former Sole Officer/Director certify that:  |
|--------|--------|------------------------------------------------------------------------------------------|

|   |  (a)                Designed such disclosure controls and procedures, or caused such                disclosure controls and procedures to be designed under our supervision,                to ensure that material information relating to the small business                issuer,                including its consolidated subsidiaries, is made known to us by others                within those entities, particularly during the period in which this                quarterly report is being prepared;  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b)                Designed such internal control over financial reporting, or causes                such                internal control over financial reporting to be designed under our                supervision, to provide reasonable assurance regarding the reliability                of                financial reporting and the preparation of financial statements for                external purposes in accordance with generally accepted accounting                principles;  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (c)                Evaluated the effectiveness of the small business issuer's disclosure                controls and procedures and presented in this report our conclusions                about                the effectiveness of the disclosure controls and procedures, as of                the end                of the period covered by this report based on such evaluation, and                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (d)                Disclosed in this report any change in the small business issuer's                internal control over financial reporting that occurred during the                small                business issuer's most recent fiscal quarter (the small business                issuer's                fourth fiscal quarter in the case of an annual report) that has materially                affected or is reasonably likely to materially affect, the small                business                issuer's internal control over financial reporting; and   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (a)                all significant deficiencies in the design or operation of internal                controls over financial reporting which are reasonably likely to                adversely                affect the small business issuer's ability to record, process, summarize                and report financial information; and   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b)                any fraud, whether or not material, that involves management or other                employees who have a significant role in the small business issuer's                internal control over financial reporting.  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Exhibit      32**

**CERTIFICATION      PURSUANT TO 18 USC SECTION 1350**

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**CERTIFICATION      PURSUANT TO 18 U.S.C. SECTION 1350,**

**AS      ADOPTED PURSUANT TO SECTION 906 OF THE**

**SARBANES-OXLEY      ACT OF 2002**

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**Diatom      Corporation**

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**Diatom      Corporation**

| **ASSETS**                                                                                    |   |   |                           |   |   |                        |   |
|-----------------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------|--------|
|                                                                                          |   |   | March                31,  |   |   | December                31, |   |
|                                                                                          |   |   | 2006                           |   |   | 2005                        |   |
|                                                                                          |   |   | (Unaudited)               |   |   |                        |   |
| Current                Assets                                                                 |   |   |                           |   |   |                        |   |
| Cash                                                                                          |   |   | 22,377                    |   |   | 34,768                 |   |
| Investment                in Planktos                                                         |   |   | 250,000                        |   |   | 250,000                     |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| Total                Assets                                                                   |   | $      | 272,377                        |   | $      | 284,768                     |   |
|                                                                                          |   |   |                           |   |   |                        |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                       |   |   |                           |   |   |                        |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| Current                Liabilities                                                            |   |   |                           |   |   |                        |   |
| Accounts                Payable                                                               |   | $      | 669                            |   | $      | 245                         |   |
| Accounts                Payable - related party                                               |   |   | 99,541                         |   |   | 99,541                      |   |
| Notes                Payable - Related Party                                                  |   |   |                           |   |   |                        |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| Total                Current Liabilities                                                      |   |   | 100,210                        |   |   | 99,786                      |   |
|                                                                                          |   |   |                           |   |   |                        |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| Total                Liabilities                                                              |   |   | 100,210                        |   |   | 99,786                      |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| Stockholders'                Equity                                                           |   |   |                           |   |   |                        |   |
| Common                Stock, Authorized 100,000,000 Shares of $.001 Par Value,                |   |   |                           |   |   |                        |   |
| 51,226,686 and 51,226,686                shares issued and outstanding respectively |   |   | 51,626                         |   |   | 51,626                      |   |
| Additional                Paid in Capital                                                     |   |   | 3,418,961                      |   |   | 3,418,961                   |   |
| Accumulated                Deficit                                                            |   |   | (3,298,420                     | )      |   | (3,285,605                  | )      |
|                                                                                          |   |   |                           |   |   |                        |   |
| Total                Stockholders' Equity                                                     |   |   | 172,167                        |   |   | 184,982                     |   |
|                                                                                          |   |   |                           |   |   |                        |   |
| Total                Liabilities and Stockholders' Equity                                     |   | $      | 272,377                        |   | $      | 284,768                     |   |

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**Diatom      Corporation**

|                                               |   |   | For                the three |   |   | For                the three |   |   | From                Inception       |    |
|----------------------------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------------|---------|
|                                               |   |   | months                ended  |   |   | months                ended  |   |   | on                December 10, 1998 |    |
|                                               |   |   | March                31,     |   |   | March                31,     |   |   | through                March 31,    |    |
|                                               |   |   | 2006                         |   |   | 2005                         |   |   | 2006                                |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Revenues                                           |   | $      | -                            |   | $      | -                            |   | $      | -                                   |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Operating                Expenses                  |   |   |                         |   |   |                         |   |   |                                |    |
| General                & Administrative        |   |   | 12,815                       |   |   | 7,369                        |   |   | 3,295,561                           |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Total                Operating Expenses            |   |   | 12,815                       |   |   | 7,369                        |   |   | 3,295,561                           |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Operating                Income (Loss)             |   |   | (12,815                      | )      |   | (7,369                       | )      |   | (3,295,561                          | )       |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| (Loss)                from Investment              |   |   | -                            |   |   | -                            |   |   | (12,108                             | )       |
| Gain                on Settlement of debt          |   |   | -                            |   |   | -                            |   |   | 9,249                               |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Net                (loss) from operations          |   |   |                         |   |   |                         |   |   |                                |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Other                Income (Expense)              |   |   |                         |   |   |                         |   |   |                                |    |
| Miscellaneous                Income                |   |   | -                            |   |   | -                            |   |   | -                                   |    |
| Interest                Expense                    |   |   | -                            |   |   | -                            |   |   | -                                   |    |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Total                Other Income (Expense)        |   |   | -                            |   |   | -                            |   |   | (2,859                              | )  |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Net                Income (Loss)                   |   | $      | (12,815                      | )      | $      | (7,369                       | )      | $      | (3,298,420                          | )       |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Net                Income (Loss) Per Share         |   | $      | (0.00                        | )      | $      | (0.00                        | )      | $      | (0.16                               | )       |
|                                               |   |   |                         |   |   |                         |   |   |                                |    |
| Weighted                Average Shares Outstanding |   |   | 51,226,686                   |   |   | 44,751,150                   |   |   | 20,970,028                          |    |

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**DIATOM      CORPORATION**

|                                                                       |   |   | For                the Three Months Ended  |    |   | From                Inception on |   |
|----------------------------------------------------------------------------|--------|--------|-------------------------------------------------|---------|--------|----------------------------------|--------|
|                                                                       |   |   | March                31,                   |    |   | December                10, 1998 |   |
|                                                                       |   |   | 2006                                            |    |   |                             | 2005   |   |   | Through                March 31, 2006 |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                       |   |   |                                            |    |   |                             |   |   |   |   |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| Net                loss                                                    |   | $      | (12,815                                         | )       |   | $                                | (7,369 | ) | $ | (3,298,420 | ) |
| Adjustments                to reconcile net loss to net cash               |   |   |                                            |    |   |                             |   |   |   |   |   |
| (used)                in operating activities:                             |   |   |                                            |    |   |                             |   |   |   |   |   |
| Stock                issued for services                              |   |   | -                                               |    |   |                             | -      |   |   | 1,481,000 |   |
| Warrant                expense                                        |   |   | -                                               |    |   |                             | -      |   |   | 500,347 |   |
| Loss                on sale of securities                             |   |   | -                                               |    |   |                             | -      |   |   | 12,108 |   |
| Gain                on settlement of notes receivable                 |   |   | -                                               |    |   |                             | -      |   |   | (9,249 | ) |
| Increase                (decrease) in accounts payable                |   |   | 424                                             |    |   |                             | -      |   |   | 519 |   |
| Increase                (decrease) in accounts payable related party  |   |   | -                                               |    |   |                             | -      |   |   | 179,936 |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
|  Net                Cash (Used in) Operating Activities               |   |   | (12,391                                         | )       |   |                             | (7,369 | )  |   | (1,134,183 | ) |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                       |   |   |                                            |    |   |                             |   |   |   |   |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| Proceeds                from sale of securities                       |   |   | -                                               |    |   |                             | -      |   |   | 492 |   |
| Purchase                of marketing rights                           |   |   | -                                               |    |   |                             | -      |   |   | (250,000 | ) |
| Payment                on notes receivable                            |   |   | -                                               |    |   |                             | -      |   |   | (3,351 | ) |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
|  Net                Cash (Used in) Investing Activities               |   |   |                                            |    |   |                             | -      |   |   | (252,859 | ) |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                       |   |   |                                            |    |   |                             |   |   |   |   |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| Capital                contributions                                  |   |   | -                                               |    |   |                             | -      |   |   | 1,500 |   |
| Issued                common stock for cash                           |   |   | -                                               |    |   |                             | -      |   |   | 367,800 |   |
| Proceeds                from officer                                  |   |   | -                                               |    |   |                             | -      |   |   | 201,839 |   |
| Proceeds                from notes payable - related party            |   |   | -                                               |    |   |                             |   |   |   | 836,856 |   |
| Proceeds                from subscription receivable                  |   |   | -                                               |    |   |                             | -      |   |   | 1,000 |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
|  Net                Cash Provided by Financing Activities             |   |   | -                                               |    |   |                             | -      |   |   | 1,408,995 |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| NET                INCREASE (DECREASE) IN CASH AND                         |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                EQUIVALENTS                                            |   |   | (12,391                                         | )  |   |                             | -      |   |   | 22,377 |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT BEG OF QUARTER                 |   |   | 34,768                                          |    |   |                             | -      |   |   | - |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT END OF QUARTER                 |   | $      | 22,377                                          |    |   | $                                | -      |   | $ | 22,377 |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| SUPPLIMENTAL                CASH FLOW INFORMATION                          |   |   |                                            |    |   |                             |   |   |   |   |   |
|                                                                       |   |   |                                            |    |   |                             |   |   |   |   |   |
| CASH                PAID FOR:                                         |   |   |                                            |    |   |                             |   |   |   |   |   |
|  Interest                                                             |   | $      | -                                               |    |   | $                                | -      |   | $ | - |   |
|  Income                taxes                                          |   | $      | -                                               |    |   | $                                | -      |   | $ | - |   |

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**DIATOM      CORPORATION**

**Statements      of Cash Flows**

**NON-CASH      FINANCING AND INVESTING TRANSACTIONS:**

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**Diatom      Corporation**

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