----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2010 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from              to              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nevada                                                         |   | 20-3305472                                 |
|----------------------------------------------------------------|--------|--------------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.)  |
|                                                           |   |                                       |
|  2519 East Kentucky Ave., Denver, Colorado                |   |  80209                                |
| (Address of Principal Executive Offices)                       |   | (Zip Code)                                 |

|                                                                              | (303) 660-6964                                             |   |
|-----------------------------------------------------------------------------------|------------------------------------------------------------|--------|
|                                                                              | (Registrant’s Telephone Number, Including Area Code) |   |
|                                                                              |
| (Former Name, Former Address and Former Fiscal Year,if Changed Since Last Report) |

| Large accelerated filer o | Accelerated filer  o         |
|---------------------------|----------------------------------------|
| Non-accelerated filer o   | Smaller reporting company  x |

----

|    |                                                                                        | Page      |
|---------|---------------------------------------------------------------------------------------------|-----------|
|    |                                                                                        |      |
| Item 1. | Financial Statements                                                                        |   3  |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   12 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk                                  |   18 |
| Item 4. | Controls and Procedures                                                                     |   18 |

|          |              |      |
|---------------|-------------------|-----------|
|  Item 1. | Legal Proceedings |   19 |
|  Item 6. | Exhibits          |   19 |
|          |              |      |
| Signatures    |   20         |

----

|                                       |   |
|--------------------------------------------|--------|
|                                       | Page   |
|                                       |   |
| CONSOLIDATED FINANCIAL STATEMENTS          |   |
|                                       |   |
| Consolidated balance sheets                | 4      |
| Consolidated statements of operation       | 5      |
| Consolidated statements of cash flows      | 6      |
| Notes to consolidated financial statements | 8      |
|                                       |   |

----

| BY DESIGN, INC.             |   |   |
|-----------------------------|--------|--------|
| CONSOLIDATED BALANCE SHEETS |   |   |

|                                                                                                   |   |          |     |   | June 30, 2010 |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|---------------|--------|
|                                                                                                   |   | Dec. 31, 2009 |     |   | (Unaudited)   |   |
|                                                                                                   |   | (as Restated) |     |   | (as Restated) |   |
|                                                                                                   |   |          |     |   |          |   |
| ASSETS                                                                                                 |   |          |     |   |          |   |
|                                                                                                   |   |          |     |   |          |   |
| Current assets                                                                                         |   |          |     |   |          |   |
|       Cash                                                               |   | $             | 15,960   |   |          | $      | 21,335 |   |
|       Accounts receivable                                                |   |          | -        |   |          |   | 5,748 |   |
|       Inventory                                                          |   |          | 21,315   |   |          |   | 45,324 |   |
|              Total current assets     |   |          | 37,275   |   |          |   | 72,407 |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
|      Fixed assets                                                             |   |          | 88,828   |   |          |   | 88,828 |   |
|      Less accumulated depreciation                                            |   |          | (36,481  | )      |          |   | (41,378 | ) |
|      Other assets                                                             |   |          | 4,100    |   |          |   | 4,100 |   |
|                                                                                                   |   |          | 56,447   |   |          |   | 51,550 |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
| Total Assets                                                                                           |   | $             | 93,722   |   |          | $      | 123,957 |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
| LIABILITIES & STOCKHOLDERS' EQUITY                                                                 |   |          |     |   |          |   |   |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
| Current liabilities                                                                                    |   |          |     |   |          |   |   |   |
|        Related party advances                                       |   | $             | 358,686  |   |          | $      | - |   |
|        Accrued interest payable                                     |   |          | 61,176   |   |          |   | - |   |
|        Other liabilities                                            |   |          | 8,066    |   |          |   | 5,439 |   |
|              Total current liabilties |   |          | 427,928  |   |          |   | 5,439 |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
| Total Liabilities                                                                                      |   |          | 427,928  |   |          |   | 5,439 |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
| Stockholders' Equity (Deficit)                                                                         |   |          |     |   |          |   |   |   |
|    By Design, Inc. stockholders' equity (deficit)                                       |   |          |     |   |          |   |   |   |
|       Preferred stock, $.01 par value;                                   |   |          |     |   |          |   |   |   |
|           1,000,000 shares authorized;               |   |          |     |   |          |   |   |   |
|           No shares issued & outstanding         |   |          | -        |   |          |   | - |   |
|       Common stock, $.001 par value;                                     |   |          |     |   |          |   |   |   |
|           50,000,000 shares authorized;              |   |          |     |   |          |   |   |   |
|           9,197,802 (2009) and 50,000,000 (2010)     |   |          |     |   |          |   |   |   |
|           shares issued and outstanding              |   |          | 9,198    |   |          |   | 50,000 |   |
|       Additional paid in capital                                         |   |          | 9,691    |   |          |   | 432,862 |   |
|       Accumulated deficit                                                |   |          | (219,499 | )      |          |   | (240,801 | ) |
|    Total By Design, Inc. stockholders' equity (deficit)                                 |   |          | (200,610 | )      |          |   | 242,061 |   |
|    Noncontrolling interest                                                              |   |          | (133,596 | )      |          |   | (123,543 | ) |
|                                                                                                   |   |          |     |   |          |   |   |   |
| Total Stockholders' Equity (Deficit)                                                                   |   |          | (334,206 | )      |          |   | 118,518 |   |
|                                                                                                   |   |          |     |   |          |   |   |   |
| Total Liabilities and Stockholders' Equity (Deficit)                                                   |   | $             | 93,722   |   |          | $      | 123,957 |   |

----

| BY DESIGN, INC.                       |   |
|---------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS |   |
| (Unaudited)                           |   |

|                                                          |   | Three Months  |      |   | Three Months  |   |       | Six Months    |   |   | Six Months    |   |
|---------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|------------|---------------|--------|--------|---------------|--------|
|                                                          |   | Ended         |      |   | Ended         |   |       | Ended         |   |   | Ended         |   |
|                                                          |   | June 30, 2009 |      |   | June 30, 2010 |   |       | June 30, 2009 |   |   | June 30, 2010 |   |
|                                                          |   | (as Restated) |      |   | (as Restated) |   |       | (as Restated) |   |   | (as Restated) |   |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |
| Sales                                                         |   | $             | 1,200     |   |          | $      | 34,016     |          |   | $      | 136,439       |   |   | $ | 182,065 |   |
| Cost of goods sold                                            |   |          | 72,102    |   |          |   | 17,252     |          |   |   | 106,772       |   |   |   | 81,698 |   |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Gross profit                                                  |   |          | (70,902   | )      |          |   | 16,764     |          |   |   | 29,667        |   |   |   | 100,367 |   |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Operating expenses:                                           |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
|      Amortization & depreciation |   |          | 2,449     |   |          |   | 2,449      |          |   |   | 4,897         |   |   |   | 4,897 |   |
|      General and administrative      |   |          | 27,354    |   |          |   | 73,918     |          |   |   | 75,127        |   |   |   | 97,352 |   |
|                                                          |   |          | 29,803    |   |          |   | 76,367     |          |   |   | 80,024        |   |   |   | 102,249 |   |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Loss from operations                                          |   |          | (100,705  | )      |          |   | (59,603    | )             |   |   | (50,357       | )      |   |   | (1,882 | ) |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Other income (expense):                                       |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
|      Interest expense                |   |          | (5,126    | )      |          |   | (4,076     | )             |   |   | (10,252       | )      |   |   | (9,367 | ) |
|                                                          |   |          | (5,126    | )      |          |   | (4,076     | )             |   |   | (10,252       | )      |   |   | (9,367 | ) |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Loss before                                                   |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
|      provision for income taxes      |   |          | (105,831  | )      |          |   | (63,679    | )             |   |   | (60,609       | )      |   |   | (11,249 | ) |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Provision for income tax                                      |   |          | -         |   |          |   | -          |          |   |   | -             |   |   |   | - |   |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Net loss                                                      |   |          | (105,831  | )      |          |   | (63,679    | )             |   |   | (60,609       | )      |   |   | (11,249 | ) |
|   Less: Net (income) loss attributable to           |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
|   noncontrolling interest                           |   |          | 47,384    |   |          |   | 20,426     |          |   |   | 19,400        |   |   |   | (10,053 | ) |
| Net loss attributable                                         |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
|    to common stockholders                      |   | $             | (58,447   | )      |          | $      | (43,253    | )             |   | $      | (41,209       | )      |   | $ | (21,302 | ) |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Net loss per share (By Design, Inc.)                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| (Basic and fully diluted)                                     |   | $             | (0.01     | )      |          | $      | (0.00      | )             |   | $      | (0.00         | )      |   | $ | (0.00 | ) |
|                                                          |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| Weighted average number of                                    |   |          |      |   |          |   |       |          |   |   |          |   |   |   |   |   |
| common shares outstanding                                     |   |          | 9,197,802 |   |          |   | 15,998,168 |          |   |   | 9,197,802     |   |   |   | 12,597,985 |   |

----

|                                  |   |   |   |   |   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
| BY DESIGN, INC.                       |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |   |
| (Unaudited)                           |   |
|                                  |   |   |   |   |   |   |

|                                                                                                                      |   |          |    |   | Six Months    |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                                                                                                      |   | Six Months    |    |   | Ended         |   |
|                                                                                                                      |   | Ended         |    |   | June 30, 2010 |   |
|                                                                                                                      |   | June 30, 2009 |    |   | (as Restated) |   |
|                                                                                                                      |   |          |    |   |          |   |
| Cash Flows From Operating Activities:                                                                                     |   |          |    |   |          |   |
|      Net loss                                                                                    |   | $             | (60,609 | )      |          | $      | (11,249 | ) |
|                                                                                                                      |   |          |    |   |          |   |   |   |
|      Adjustments to reconcile net loss to                                                        |   |          |    |   |          |   |   |   |
|      net cash used for                                                                           |   |          |    |   |          |   |   |   |
|      operating activities:                                                                       |   |          |    |   |          |   |   |   |
|           Amortization & depreciation                               |   |          | 4,897   |   |          |   | 4,897 |   |
|           Accounts receivable                                           |   |          | 49,153  |   |          |   | (5,748 | ) |
|           Accounts payables                                             |   |          | -       |   |          |   | 854 |   |
|           Accrued payables                                              |   |          | 5,757   |   |          |   | 9,367 |   |
|           Inventory                                                     |   |          | -       |   |          |   | (24,009 | ) |
|           Other liabilities                                             |   |          | 98,666  |   |          |   | - |   |
|                Net cash provided by (used for) |   |          |    |   |          |   |   |   |
|                operating activities            |   |          | 97,864  |   |          |   | (25,888 | ) |
|                                                                                                                      |   |          |    |   |          |   |   |   |
|                                                                                                                      |   |          |    |   |          |   |   |   |
| Cash Flows From Investing Activities:                                                                                     |   |          |    |   |          |   |   |   |
|                                                                                                                      |   |          | -       |   |          |   | - |   |
|                Net cash provided by (used for) |   |          |    |   |          |   |   |   |
|                investing activities            |   |          | -       |   |          |   | - |   |

----

|                                  |
|---------------------------------------|
| BY DESIGN, INC.                       |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited)                           |
|                                  |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   |   |   |   |   |   |   |   |
| (Continued From Previous Page)        |
|                                  |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                      |   |          |     |   | Six Months    |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|---------------|--------|
|                                                                                                                      |   | Six Months    |     |   | Ended         |   |
|                                                                                                                      |   | Ended         |     |   | June 30, 2010 |   |
|                                                                                                                      |   | June 30, 2009 |     |   | (as Restated) |   |
|                                                                                                                      |   |          |     |   |          |   |
| Cash Flows From Financing Activities:                                                                                     |   |          |     |   |          |   |
|          Note payable - borrowings                                           |   |          | -        |   |          |   | 12,000 |   |
|          Note payable - payments                                             |   |          | -        |   |          |   | (225,947 | ) |
|          Distributions                                                       |   |          | (120,000 | )      |          |   | - |   |
|          Sale of common stock                                                |   |          | -        |   |          |   | 245,210 |   |
|                Net cash provided by (used for) |   |          |     |   |          |   |   |   |
|                financing activities            |   |          | (120,000 | )      |          |   | 31,263 |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| Net Increase (Decrease) In Cash                                                                                           |   |          | (22,136  | )      |          |   | 5,375 |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| Cash At The Beginning Of The Period                                                                                       |   |          | 39,979   |   |          |   | 15,960 |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| Cash At The End Of The Period                                                                                             |   | $             | 17,843   |   |          | $      | 21,335 |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| Schedule Of Non-Cash Investing And Financing Activities                                                                   |   |          |     |   |          |   |   |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| In June 2010 the Company recorded a debt relief capital contribution from a Director for notes payable                    |   |
| of $138,800, interest of $70,543 and accounts payable of $9,420.                                                          |   |          |     |   |          |   |   |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| Supplemental Disclosure                                                                                                   |   |          |     |   |          |   |   |   |
|                                                                                                                      |   |          |     |   |          |   |   |   |
| Cash paid for interest                                                                                                    |   | $             | -        |   |          | $      | - |   |
| Cash paid for income taxes                                                                                                |   | $             | -        |   |          | $      | - |   |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                |   | As Previously |     |   |        |   |     |        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|-------------|--------|----------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                |   | Reported      |     |   | Restatement |   |     | As Restated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |
| Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |     |   |        |   |     |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |
| December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |     |   |        |   |     |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |
| Additional paid in capital                                                                                                                                                                                                                                                                                                                                                                                          |   | $             | (80,683  | )      |        | $      | 90,374   |        |   | $ | 9,691 |   |
| Accumulated deficit                                                                 |   |          | (262,721 | )      |        |   | 43,222   |        |   |   | (219,499 | ) |
| Noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                             |   |          | -        |   |        |   | (133,596 | )           |   |   | (133,596 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| June 30, 2010                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| Additional paid in capital                                                                                                                                                                                                                                                                                                                                                                                          |   | $             | 359,957  |   |        | $      | 72,905   |        |   | $ | 432,862 |   |
| Accumulated deficit                                                                 |   |          | (291,439 | )      |        |   | 50,638   |        |   |   | (240,801 | ) |
| Noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                             |   |          | -        |   |        |   | (123,543 | )           |   |   | (123,543 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| Statements of Operations                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| Three Months ended June 30, 2009                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                            |   | $             | (105,831 | )      |        | $      | -        |        |   | $ | (105,831 | ) |
| Less: Net (income) loss attributable to                                                                                                                                                                                                                                                                                                                                                                             |   |          |     |   |        |   |     |        |   |   |   |   |
|    noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                           |   |          | -        |   |        |   | 47,384   |        |   |   | 47,384 |   |
| Net loss attributable to                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |        |   |     |        |   |   |   |   |
|    common stockholders                                                                                                                                                                                                                                                                                                                                                                               |   |          | -        |   |        |   | (58,447  | )           |   |   | (58,447 | ) |
| Basic and diluted loss per                                                                                                                                                                                                                                                                                                                                                                                          |   |          |     |   |        |   |     |        |   |   |   |   |
|    common share                                                                                                                                                                                                                                                                                                                                                                                      |   |          | (0.01    | )      |        |   | -        |        |   |   | (0.01 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| Three Months ended June 30, 2010                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |        |   |     |        |   |   |   |   |
| Net loss                                                                                                                              |   | $             | (81,148  | )      |        | $      | 17,469   |        |   | $ | (63,679 | ) |
| Less: Net (income) loss attributable to                                                                                                                                                                                                                                                                                                                                                                             |   |          |     |   |        |   |     |        |   |   |   |   |
|    noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                           |   |          | -        |   |        |   | 20,426   |        |   |   | 20,426 |   |
| Net loss attributable to                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |        |   |     |        |   |   |   |   |
|    common stockholders                                                                                                                                                                                                                                                                                                                                                                               |   |          | -        |   |        |   | (43,253  | )           |   |   | (43,253 | ) |
| Basic and diluted loss per                                                                                                                                                                                                                                                                                                                                                                                          |   |          |     |   |        |   |     |        |   |   |   |   |
|    common share                                                                                                                                                                                                                                                                                                                                                                                      |   |          | (0.01    | )      |        |   | 0.01     |        |   |   | (0.00 | ) |

----

----

----

----

----

----

----

----

| Exhibit Number |   |  Description                                                                                                                                                                                                                       |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                    |
| 3.1            |   | Articles of Incorporation of By Design, Inc.  Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form SB-2 (file no. 333-145760) filed with the Securities and Exchange Commission on August 29, 2007. |
|           |   |                                                                                                                                                                                                                                    |
| 3.2            |   | Bylaws of By Design, Inc.  Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form SB-2 (file no. 333-145760) filed with the Securities and Exchange Commission on August 29, 2007.                    |
|           |   |                                                                                                                                                                                                                                    |
| 31.1           |   | Section 302 Certification of Chief Executive Officer and Chief Financial Officer.                                                                                                                                                       |
|           |   |                                                                                                                                                                                                                                    |
| 32.1           |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Executive Officer and Chief Financial Officer.                                                     |

----

| Date: January 21, 2011 | By Design, Inc. |
|------------------------|-----------------|
|                   |            |   |
|                   | By:             |  /s/ Gary S. Ohlbaum  |
|                   |            | Gary S. Ohlbaum |
|                   |            | President, Chief Executive Officer and |
|                   |            | Chief Financial Officer |
|                   |            | (principal executive officer and principal |
|                   |            | financial and accounting officer) |

----

----