U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                 Quarterly Report Under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934

                     For the Period ended December 31, 2006

                        Commission File Number 333-127703


                              MYSTICA CANDLE CORP.
                 (Name of small business issuer in its charter)


       Nevada                                                   20-3061907
(State of incorporation)                                (IRS Employer ID Number)


                                136 Bradley Road
                     Salt Spring Island, BC, Canada V8K 1J5
                                  (604)638-2283
          (Address and telephone number of principal executive offices)


                            Michael M. Kessler, Esq.,
                       3436 American River Drive, Suite 11
                              Sacramento, CA 95864
                    Phone: (916)239-4000 Fax: (916) 239-4008
            (Name, address and telephone number of agent for service)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Securities Exchange Act during the past 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 [ ]

Check whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [X] No [ ]

There were 2,500,000 shares of common stock issued and outstanding on December
31, 2006.
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                              MYSTICA CANDLE, CORP.
                          (A Development Stage Company)
                                 Balance Sheets
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                    As of              As of
                                                                  December 31,        June 30,
                                                                     2006               2006
                                                                   --------           --------
<S>                                                                <C>                <C>
                                     ASSETS

CURRENT ASSETS
  Cash                                                             $ 19,269           $ 32,179
  Inventory                                                           1,526              1,649
                                                                   --------           --------
TOTAL CURRENT ASSETS                                                 20,795             33,828

NET FIXED ASSETS                                                     17,595              9,694
                                                                   --------           --------

TOTAL ASSETS                                                       $ 38,390           $ 43,522
                                                                   ========           ========

             LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
  Accounts Payable                                                 $     --           $     90
                                                                   --------           --------
TOTAL CURRENT LIABILITIES                                                --                 90
                                                                   --------           --------

TOTAL LIABILITIES                                                        --                 90

STOCKHOLDERS' EQUITY (DEFICIT)
  Common stock, ($0.001 par value, 75,000,000 shares
   authorized; 2,500,000 shares issued and outstanding
   as of December 31, 2006 and June 30, 2006)                         2,500              2,500
  Additional paid-in capital                                         55,000             55,000
  Deficit accumulated during development stage                      (19,110)           (14,068)
                                                                   --------           --------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                 38,390             43,432
                                                                   --------           --------
      TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)           $ 38,390           $ 43,522
                                                                   ========           ========
</TABLE>

                       See Notes to Financial Statements

                                       2
<PAGE>
                              MYSTICA CANDLE, CORP.
                          (A Development Stage Company)
                            Statements of Operations
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                     June 24, 2005
                                   Six Months       Six Months       Three Months    Three Months     (inception)
                                     Ended            Ended            Ended           Ended            through
                                   December 31,     December 31,     December 31,    December 31,     December 31,
                                      2006             2005             2006            2005             2006
                                   -----------      -----------      -----------     -----------      -----------
<S>                                <C>              <C>              <C>             <C>              <C>
REVENUES
  Revenues                         $     1,797      $        --      $       829     $        --      $     2,070
                                   -----------      -----------      -----------     -----------      -----------
TOTAL REVENUES                           1,797               --              829              --            2,070

COST OF GOODS SOLD
  Purchases                                503               --              240              --            1,125
                                   -----------      -----------      -----------     -----------      -----------
TOTAL COSTS GOODS SOLD                     503               --              240              --            1,125
                                   -----------      -----------      -----------     -----------      -----------
GROSS PROFIT                             1,294               --              589              --              945

OPERATING EXPENSES
  Administrative Expenses                4,902            5,097            2,084           3,015           14,121
  Professional fees                      1,434            2,500            1,434           1,500            5,934
                                   -----------      -----------      -----------     -----------      -----------
TOTAL OPERATING EXPENSES                 6,336            7,597            3,518           4,515           20,055
                                   -----------      -----------      -----------     -----------      -----------

NET INCOME (LOSS)                  $    (5,042)     $    (7,597)     $    (2,929)    $    (4,515)     $   (19,110)
                                   ===========      ===========      ===========     ===========      ===========

BASIC EARNINGS (LOSS) PER SHARE    $     (0.00)     $     (0.01)     $     (0.00)    $     (0.00)
                                   ===========      ===========      ===========     ===========
WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING           2,500,000        1,500,000        2,500,000       1,500,000
                                   ===========      ===========      ===========     ===========
</TABLE>

                       See Notes to Financial Statements

                                       3
<PAGE>
                              MYSTICA CANDLE, CORP.
                          (A Development Stage Company)
                  Statement of Changes in Stockholders' Equity
            From June 24, 2005 (Inception) through December 31, 2006
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                      Deficit
                                                                                    Accumulated
                                                            Common     Additional      During
                                                Common      Stock       Paid-in     Development
                                                Stock       Amount      Capital        Stage          Total
                                                -----       ------      -------        -----          -----
<S>                                           <C>          <C>           <C>         <C>           <C>
BALANCE, JUNE 24, 2005                              --      $   --       $    --       $     --      $     --

Stock issued for cash on June 24, 2005
@ $0.005 per share                             750,000         750         3,000                        3,750

Stock issued for cash on June 24, 2005
@ $0.005 per share                             750,000         750         3,000                        3,750

Net loss, June 30, 2005                                                                      --            --
                                             ---------      ------       -------       --------      --------
BALANCE, JUNE 30, 2005                       1,500,000      $1,500       $ 6,000       $     --      $  7,500
                                             ---------      ------       -------       --------      --------
Stock issued for cash on March 14, 2006
@ $0.05 per share                            1,000,000       1,000        49,000                       50,000

Net loss, June 30, 2006                                                                 (14,068)      (14,068)
                                             ---------      ------       -------       --------      --------

BALANCE, JUNE 30, 2006                       2,500,000      $2,500       $55,000       $(14,068)     $ 43,432
                                             ---------      ------       -------       --------      --------
Net loss, December 31, 2006                                                              (5,042)       (5,042)
                                             ---------      ------       -------       --------      --------
BALANCE, DECEMBER 31, 2006                   2,500,000      $2,500       $55,000       $(19,110)     $ 38,390
                                             =========      ======       =======       ========      ========
</TABLE>

                       See Notes to Financial Statements

                                       4
<PAGE>
                              MYSTICA CANDLE, CORP.
                          (A Development Stage Company)
                             Statement of Cash Flows
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                               June 24, 2005
                                                    Six Months     Six Months     Three Months   Three Months   (inception)
                                                      Ended          Ended          Ended          Ended          through
                                                    December 31,   December 31,   December 31,   December 31,   December 31,
                                                       2006           2005           2006           2005           2006
                                                     --------       --------       --------       --------       --------
<S>                                              <C>              <C>              <C>             <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                  $ (5,042)      $ (7,597)      $ (2,929)      $ (4,515)      $(19,110)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
     Depreciation                                       1,599             --            901             --          1,905
  Changes in operating assets and liabilities:
     Decrease (increase) in inventory                     123             --            (95)            --         (1,526)
     Increase in (decrease) in accounts payable           (90)           853           (555)           853             --
                                                     --------       --------       --------       --------       --------
        NET CASH PROVIDED BY (USED IN)
         OPERATING ACTIVITIES                          (3,410)        (6,744)        (2,678)        (3,662)       (18,731)

CASH FLOWS FROM INVESTING ACTIVITIES
  Increase in leasehold improvement                     9,500             --          3,000             --         19,500
                                                     --------       --------       --------       --------       --------
        NET CASH PROVIDED BY (USED IN)
         INVESTING ACTIVITIES                          (9,500)            --         (3,000)            --        (19,500)

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of common stock                   --             --             --             --         57,500
                                                     --------       --------       --------       --------       --------
        NET CASH PROVIDED BY (USED IN)
         FINANCING ACTIVITIES                              --             --             --             --         57,500
                                                     --------       --------       --------       --------       --------

NET INCREASE (DECREASE) IN CASH                       (12,910)        (6,744)        (5,678)        (3,662)        19,269

CASH AT BEGINNING OF PERIOD                            32,179          7,500         24,947          4,418             --
                                                     --------       --------       --------       --------       --------
CASH AT END OF PERIOD                                $ 19,269       $    756       $ 19,269       $    756       $ 19,269
                                                     ========       ========       ========       ========       ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during year for:
  Interest                                           $     --       $     --       $     --       $     --       $     --
                                                     ========       ========       ========       ========       ========
  Income Taxes                                       $     --       $     --       $     --       $     --       $     --
                                                     ========       ========       ========       ========       ========
</TABLE>

                       See Notes to Financial Statements

                                       5
<PAGE>
                              MYSTICA CANDLE CORP.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                December 31, 2006


NOTE 1.   ORGANIZATION AND DESCRIPTION OF BUSINESS

Mystica Candle Corp. (the Company) was incorporated  under the laws of the State
of Nevada on June 24, 2005. The Company's  principal  products are the soy-blend
wax candles. The Company plans to manufacture,  market,  distribute and sell the
soy-blend wax candles.

The  Company  is in the  development  stage.  Its  activities  to date have been
limited to capital formation, organization, and development of its business plan
and a target customer market.

NOTE 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF ACCOUNTING

The Company's  financial  statements  are prepared  using the accrual  method of
accounting. The Company has elected a June 30, year-end.

B. CASH EQUIVALENTS

The Company considers all highly liquid  investments  purchased with an original
maturity of three months or less to be cash equivalents.

C. INVENTORY

Inventories are stated at the lower of cost or market with cost determined using
the total weighted average.

D. PROPERTY AND EQUIPMENT

Property  and  equipment  are stated at cost.  Equipment  and fixtures are being
depreciated  using the  straight-line  method  over the  estimated  asset  lives
ranging from 3 to 7 years.

E. REVENUE RECOGNITION

The Company recognizes revenue in accordance with SEC Staff Accounting  Bulletin
No. 104, "Revenue  Recognition"  ("SAB 104"). The Company generates revenue from
the sale of  candles.  SAB 104  requires  that four basic  criteria  must be met
before  revenue can be  recognized:  (1)  persuasive  evidence of an arrangement
exists; (2) delivery has occurred or services  rendered;  (3) the seller's price
to the buyer is fixed and  determinable;  and (4)  collectibility  is reasonably
assured. Amounts billed or received from customers in advance of performance are
recorded as deferred revenue.

                                       6
<PAGE>
                              MYSTICA CANDLE CORP.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                December 31, 2006


NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

F. INCOME TAXES

Income taxes are provided in accordance  with Statement of Financial  Accounting
Standards No. 109 (SFAS 109),  Accounting for Income Taxes. A deferred tax asset
or liability is recorded for all temporary differences between financial and tax
reporting and net operating loss  carryforwards.  Deferred tax expense (benefit)
results  from  the net  change  during  the  year of  deferred  tax  assets  and
liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion of all of the deferred
tax assets will be realized.  Deferred tax assets and  liabilities  are adjusted
for the effects of changes in tax laws and rates on the date of enactment.

G. BASIC EARNINGS PER SHARE

In February  1997,  the FASB issued SFAS No. 128,  "Earnings  Per Share",  which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities  with  publicly  held common  stock.  SFAS No. 128
supersedes the provisions of APB No. 15, and requires the  presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective June 24, 2005 (inception).

Basic net loss per share  amounts is computed  by  dividing  the net loss by the
weighted average number of common shares outstanding. Diluted earnings per share
are the same as basic  earnings  per share due to the lack of dilutive  items in
the Company.

H. USE OF ESTIMATES AND ASSUMPTIONS

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates. In accordance with FASB 16 all
adjustments are normal and recurring.

NOTE 3. GOING CONCERN

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going  concern.  The Company  generated net losses of
$19,110 during the period from June 24, 2005  (inception)  through  December 31,
2006. This condition  raises  substantial  doubt about the Company's  ability to

                                       7
<PAGE>
                              MYSTICA CANDLE CORP.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                December 31, 2006


NOTE 3. GOING CONCERN (continued)

continue as a going concern.  The Company's  continuation  as a going concern is
dependent on its ability to meet its obligations, to obtain additional financing
as may be required and ultimately to attain profitability. There is no guarantee
that  the  Company  will  be able to  raise  any  capital  through  any  type of
offerings.  The financial  statements do not include any adjustments  that might
result from the outcome of this uncertainty.

NOTE 4. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of
common.

NOTE 5. PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

                                            December 31, 2006    June 30, 2006
                                            -----------------    -------------

     Equipment                                  $ 19,500           $ 10,000
                                                --------           --------
           Total Fixed Assets                     19,500             10,000

     Less: Accumulated Depreciation               (1,905)              (306)
                                                --------           --------

           Net Fixed Assets                       17,595              9,694
                                                ========           ========

Depreciation  expenses  for the six months  ended  December 31, 2006 and for the
year ended June 30, 2006 were $1,599 and $306, respectively.

NOTE 6. RELATED PARTY TRANSACTION

The Company  neither  owns nor leases any real or personal  property.  Beginning
August 1, 2005 the Company has paid Jon Suk, a director,  $100 per month for use
of office space and  services.  The  officers  and  directors of the Company are
involved in other business activities and may, in the future, become involved in
other business  opportunities as they become available,  such persons may face a
conflict in selecting  between the Company and their other  business  interests.
The Company has not formulated a policy for the resolution of such conflicts.

                                       8
<PAGE>
                              MYSTICA CANDLE CORP.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                December 31, 2006


NOTE 7. NET OPERATING LOSSES

As of December 31, 2006, the Company has a net operating loss  carryforwards  of
approximately  $19,110.  Net operating loss  carryforward,  expires twenty years
from the date the loss was incurred.

NOTE 8. INCOME TAXES

                                                As of                As of
                                           December 31, 2006     June 30, 2006
                                           -----------------     -------------
     Deferred tax assets:
     Net operating tax carryforwards            $ 2,867            $ 2,110
     Other                                            0                  0
                                                -------            -------
     Gross deferred tax assets                    2,867              2,110
     Valuation allowance                         (2,867)            (2,110)
                                                -------            -------

     Net deferred tax assets                    $     0            $     0
                                                =======            =======

Realization of deferred tax assets is dependent upon  sufficient  future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce  taxable  income.  As the  achievement of
required  future taxable income is uncertain,  the Company  recorded a valuation
allowance.

NOTE 9. STOCK TRANSACTIONS

Transactions,  other than  employees'  stock  issuance,  are in accordance  with
paragraph 8 of SFAS 123. Thus issuances shall be accounted for based on the fair
value of the consideration received. Transactions with employees' stock issuance
are in accordance with paragraphs  (16-44) of SFAS 123. These issuances shall be
accounted for based on the fair value of the consideration  received or the fair
value  of  the  equity   instruments   issued,  or  whichever  is  more  readily
determinable.

On June 24, 2005 the Company issued 750,000 shares of common stock to a director
for cash valued at $0.005 per share.

On June 24, 2005 the Company issued 750,000 shares of common stock to a director
for cash valued at $0.005 per share.

On March 14, 2006 the Company issued  1,000,000  shares of common stock for cash
for cash valued at $0.05 per share.

As of December 31, 2006 the Company had 2,500,000  shares of common stock issued
and outstanding.

                                       9
<PAGE>
                              MYSTICA CANDLE CORP.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                December 31, 2006


NOTE 10. STOCKHOLDERS' EQUITY

The  stockholders'  equity section of the Company contains the following classes
of capital stock as of December 31, 2006:

Common stock, $ 0.001 par value: 75,000,000 shares authorized;  2,500,000 shares
issued and outstanding.

                                       10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS

We are still in our development stage and have not generated any significant
revenues from operations to date. We do not expect to satisfy our cash
requirements for business operations for the next 12 months with our current
cash in the bank and unless our revenues increase, additional financing to
maintain our ongoing business operations may be required. We currently have no
plans to expend funds to develop any other candle offerings but we will simply
focus on the current offerings. We may decide that we can not continue with our
business operations as outlined in our original business plan because of a lack
of financial results and resources; therefore we may look for other potential
business opportunities that might be available to us. However, we can not assure
that there will be any other business opportunities available nor the nature of
the business opportunity, nor indication of the financial resources required of
any possible business opportunity.

We incurred operating expenses of $3,518 and $4,515 for the three month periods
ended December 31, 2006 and 2005, respectively. These expenses consisted of
general operating expenses incurred in connection with the day to day operation
of our business and the preparation and filing of our periodic reports.

We generated revenues of $829 and $0 for the three month periods ended December
31, 2006 and 2005, respectively. Our net loss for the three months ended
December 31, 2006 and 2005 was $2,929 and $4,515, respectively.

Cash provided by financing activities from inception through December 31, 2006
was $7,500 resulting from the sale of common stock to our directors, Mr. Suk and
Ms. Sikorski, who each purchased 750,000 shares of our Common Stock at $0.005
per share on June 24, 2005 and $50,000 resulting from the sale of common stock
to 26 un-affiliated shareholders who purchased 1,000,000 shares of our Common
Stock at $0.05 per share pursuant to our initial public offering which was
completed on March 14, 2006.

Our auditors have expressed their doubt about our ability to continue as a going
concern unless we are able to generate profitable operations.

LIQUIDITY AND CAPITAL RESOURCES

We expect that our current cash balance of $19,269 will allow us to complete the
next 3 months without additional funds. Our continued operations are dependent
upon our ability to generate revenues from operations or we may need to seek
further financing through bank loans or equity funding. There is no assurance
that sufficient revenues can be generated or that additional financing will be
available, if required, or on terms favorable to us. If we are unable to
generate sufficient revenues or obtain financing, our current business plan
could fail. We currently have no plans to hire additional employees in the next
twelve months unless sales are sufficient to cover the cost.

                                       11
<PAGE>
OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

COMPLETED MILESTONES TO IMPLEMENT BUSINESS OPERATIONS

OCTOBER 2006:

Facility renovations are completed. Ms. Sikorski operated a booth at the local
artist/craft market, Saturday Market in the Park on Salt Spring. We conducted
marketing to prospective retailers at the Alberta Gift Show in Edmonton.

NOVEMBER 2006

The local Saturday Market in the Park on Salt Spring concluded for the season.
Sales levels at this venue in the past two quarters have not yielded significant
sales levels and management plans to apply increased efforts to local retail
sales outlet expansion. To support internet store sales, keyword advertising
campaigns were conducted by Mr. Suk via Google and other online outlets. Our
products were represented at the Alberta Gift Show in Edmonton for the Christmas
shopping season.

DECEMBER 2006

Our best sales channel have been the local retail market where we were able to
provide personal sales support to the operators and explain our products'
qualities to the retailer who is then able to relay the message to the consumer.
Marketing efforts were directed to increasing the number of local outlets
carrying our products during the critical holiday shopping season. Seasonal
point-of-sale displays were provided to the current local retailers, Waterfront
Gallery and Artcraft, in order to support the product sales for the Christmas
shopping season. We also operated direct to consumer sales booths at local
Christmas craft shows.

JANUARY 2007

During the winter season, direct to consumer sales venues are limited in volume.
Sales results from the Christmas gift season were reviewed.

                                       12
<PAGE>
PROPOSED MILESTONES TO IMPLEMENT BUSINESS OPERATIONS

FEBRUARY 2007

We plan to update and produce point-of-sale marketing materials to provide to
our retailers. We plan to review and refine our essential oil and wax
formulations.

MARCH 2007

We plan to design and produce point-of-sale display equipment in preparation for
the upcoming direct retail market season. We plan to develop our marketing plan
for the spring season. We plan to continue marketing to wholesale customers and
have our products restocked at retail outlets.

APRIL 2007

We plan to conduct direct retail sales at the resumption of the seasonal
Saturday Market-in-the-Park, lasting from April until October. We plan to have
our products represented at spring gift shows in order to continue our efforts
at expanding our retail sales channel.

CRITICAL ACCOUNTING POLICIES

The un-audited financial statements as of December 31, 2006 included herein have
been prepared without audit pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with general
accepted accounting procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. It is suggested that these financial statements be read in
conjunction with our June 30, 2006 audited financial statements and notes
thereto, which can be found in our Form 10K-SB on the SEC website at www.sec.gov
under our SEC File Number 333-127703.

Management's discussion and analysis of our financial condition and results of
operations are based on the financial statements which are prepared in
accordance with accounting principles generally accepted in the United States of
America (GAAP). The preparation of such financial statements requires Management
to make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses and related disclosure of contingent assets
and liabilities. On an ongoing basis, Management will evaluate its estimates and
will base its estimates on historical experience, as well as on various other
assumptions in light of the circumstances surrounding the estimate, and the
results will form the basis in making judgments about the carrying values of our
assets and liabilities that are not readily apparent from other sources. It
should be noted, however, that actual results could materially differ from the
amount derived from Management's estimates under different assumptions or
conditions.

                                       13
<PAGE>
Loss per share is computed using the weighted average number of common stock
outstanding during the period. Diluted loss per share is computed using the
weighted average number of common and potentially dilutive common stock
outstanding during the period reported.

Revenues are recognized as the orders are finalized and shipped, in accordance
with the terms of our agreements. We will also determine a reasonable allowance
for refunds based on the experience we generate and should a high likelihood or
occurrence of refund requests take place. We do not believe that there are
realistic alternatives to our revenue recognition policy given the short period
of service delivery and the requirement to deliver completed products to our
customers. We do not believe there is significant risk of recognizing revenue
prematurely since our sales process is standardized, the earnings process is
short and no single order is expected to account for a significant portion of
our revenue.

Inventories are stated at the lower of cost or market, cost being determined on
the first in, first out (FIFO) basis.

Our Management does not believe that any recently issued, but not yet effective
accounting standards if currently adopted, would have a material effect on the
our current financial statements.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have no identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

                                       14
<PAGE>
                          PART II - OTHER INFORMATION

ITEM 6. EXHIBITS

The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in their entirety in our original Form SB-2
Registration Statement, filed under SEC File Number 333-127703, at the SEC
website at www.sec.gov:

     Exhibit No.                      Description
     -----------                      -----------
        3.1          Articles of Incorporation*
        3.2          Bylaws*
       31.1          Sec. 302 Certification of Principal Executive Officer
       31.2          Sec. 302 Certification of Principal Financial Officer
       32.1          Sec. 906 Certification of Principal Executive Officer
       32.2          Sec. 906 Certification of Principal Financial Officer

                                   SIGNATURES

Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


February 12, 2007                   By: /s/ Jon Suk
                                       -----------------------------------------
                                       Jon Suk, Director, President and
                                       Principal Executive Officer

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.


February 12, 2007                   By: /s/ Jon Suk
                                       -----------------------------------------
                                       Jon Suk, Director, President and
                                       Principal Executive Officer


February 12, 2007                   By: /s/ Candace Sikorski
                                       -----------------------------------------
                                       Candace Sikorski, Director, Treasurer,
                                       Chief Financial Officer and Principal
                                       Accounting Officer

                                       15