SECURITIES AND EXCHANGE COMMISSION

| Nevada                       |  20-3305472           |
|------------------------------|----------------------------|
| (State or other jurisdiction | (IRS Employer File Number) |
| of incorporation)            |                       |

|                                     |       |
|------------------------------------------|------------|
| 2519 East Kentucky Ave.                  |       |
| Denver, Colorado                         | 80209      |
| (Address of principal executive offices) | (zip code) |

| Large accelerated filer []                                             | Accelerated filer []                     |
|------------------------------------------------------------------------|------------------------------------------|
| Non-accelerated filer [] (Do not check if a smaller reporting company) | Smaller reporting company  [X] |

 The number of shares outstanding of the Registrant's common stock, as of the latest practicable date, November 1, 2009, was 9,197,802.

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|                                                                                                          |   Page     |   |
|---------------------------------------------------------------------------------------------------------------|----------------------|--------|
| PART I  FINANCIAL INFORMATION                                                                  |                 |   |
| Item 1. Financial Statements                                                                                  |   3             |   |
|           Consolidated Balance Sheets (Unaudited)           |   4             |   |
|           Consolidated Statements of Operations (Unaudited) |   5             |   |
|           Consolidated Statements of Cash Flows (Unaudited) |   6             |   |
|           Notes to Consolidated Financial Statements        |   8             |   |
|                                                                                                          |                 |   |
| Item 2. Management’s Discussion and Analysis and Plan of Operation                                      |    13 |   |
|                                                                                                          |                 |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                            |   18            |   |
|                                                                                                          |                 |   |
| Item 4 Controls and Procedures                                                                                | 18                   |   |
|                                                                                                          |                 |   |
|  Item 4T. Controls and Procedures                                                                        | 18                   |   |
|                                                                                                          |                 |   |
| PART II  OTHER INFORMATION                                                                          |                 |   |
|                                                                                                          |                 |   |
|   Item 1. Legal Proceedings                                                                         | 19                   |   |
|                                                                                                          |                 |   |
|   Item 1A.  Risk Factors                                                                  | 19                   |   |
|                                                                                                          |                 |   |
|   Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                               | 25                   |   |
|                                                                                                          |                 |   |
|   Item 3. Defaults Upon Senior Securities                                                           | 25                   |   |
|                                                                                                          |                 |   |
|   Item 4. Submission of Matters to a Vote of Security Holders                                       | 25                   |   |
|                                                                                                          |                 |   |
|   Item 5. Other Information                                                                         | 25                   |   |
|                                                                                                          |                 |   |
|   Item 6. Exhibits                                                                                  | 26                   |   |
|                                                                                                          |                 |   |
| Signatures                                                                                                    | 26                   |   |
|                                                                                                          |                 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 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 |

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

|                                                                                                   |   |          |     |   | Sept. 30, 2009 |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|----------------|--------|
|                                                                                                   |   | Dec. 31, 2008 |     |   | (Unaudited)    |   |
|                                                                                                   |   | (as Restated) |     |   | (as Restated)  |   |
|                                                                                                   |   |          |     |   |           |   |
| ASSETS                                                                                                 |   |          |     |   |           |   |
|                                                                                                   |   |          |     |   |           |   |
| Current assets                                                                                         |   |          |     |   |           |   |
|       Cash                                                               |   | $             | 39,979   |   |           | $      | 2,217 |   |
|       Accounts receivable                                                |   |          | 49,153   |   |           |   | - |   |
|       Inventory                                                          |   |          | 41,109   |   |           |   | 31,523 |   |
|              Total current assets     |   |          | 130,241  |   |           |   | 33,740 |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
|      Fixed assets                                                             |   |          | 88,828   |   |           |   | 88,828 |   |
|      Less accumulated depreciation                                            |   |          | (26,688  | )      |           |   | (34,033 | ) |
|      Other assets                                                             |   |          | 4,100    |   |           |   | 4,100 |   |
|                                                                                                   |   |          | 66,240   |   |           |   | 58,895 |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
| Total Assets                                                                                           |   | $             | 196,481  |   |           | $      | 92,635 |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
| LIABILITIES & STOCKHOLDERS' EQUITY                                                                 |   |          |     |   |           |   |   |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
| Current liabilities                                                                                    |   |          |     |   |           |   |   |   |
|       Accounts payable                                                   |   | $             | 4,495    |   |           | $      | - |   |
|        Related party payables                                       |   |          | 11,939   |   |           |   | - |   |
|        Related party advances                                       |   |          | 341,747  |   |           |   | 364,686 |   |
|        Accrued interest payable                                     |   |          | 40,481   |   |           |   | 56,249 |   |
|        Other liabilities                                            |   |          | 8,862    |   |           |   | 17,914 |   |
|              Total current liabilties |   |          | 407,524  |   |           |   | 438,849 |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
| Total Liabilities                                                                                      |   |          | 407,524  |   |           |   | 438,849 |   |
|                                                                                                   |   |          |     |   |           |   |   |   |
| 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 shares issued                    |   |          |     |   |           |   |   |   |
|           & outstanding                          |   |          | 9,198    |   |           |   | 9,198 |   |
|       Additional paid in capital                                         |   |          | 90,803   |   |           |   | 9,691 |   |
|       Accumulated deficit                                                |   |          | (205,355 | )      |           |   | (222,853 | ) |
|    Total By Design, Inc. stockholders' equity (deficit)                                 |   |          | (105,354 | )      |           |   | (203,964 | ) |
|    Noncontrolling interest                                                              |   |          | (105,689 | )      |           |   | (142,250 | ) |
|                                                                                                   |   |          |     |   |           |   |   |   |
| Total Stockholders' Equity (Deficit)                                                                   |   |          | (211,043 | )      |           |   | (346,214 | ) |
|                                                                                                   |   |          |     |   |           |   |   |   |
| Total Liabilities and Stockholders' Equity (Deficit)                                                   |   | $             | 196,481  |   |           | $      | 92,635 |   |

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

|                                                          |   | Three Months   |      |   | Three Months   |   |      | Nine Months    |   |   | Nine Months    |   |
|---------------------------------------------------------------|--------|----------------|-----------|--------|----------------|--------|-----------|----------------|--------|--------|----------------|--------|
|                                                          |   | Ended          |      |   | Ended          |   |      | Ended          |   |   | Ended          |   |
|                                                          |   | Sept. 30, 2008 |      |   | Sept. 30, 2009 |   |      | Sept. 30, 2008 |   |   | Sept. 30, 2009 |   |
|                                                          |   | (as Restated)  |      |   | (as Restated)  |   |      | (as Restated)  |   |   | (as Restated)  |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |
| Sales                                                         |   | $              | 36,030    |   |           | $      | 126,096   |           |   | $      | 341,073        |   |   | $ | 262,535 |   |
| Cost of goods sold                                            |   |           | 154,830   |   |           |   | 58,028    |           |   |   | 297,329        |   |   |   | 164,800 |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Gross profit                                                  |   |           | (118,800  | )      |           |   | 68,068    |           |   |   | 43,744         |   |   |   | 97,735 |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Operating expenses:                                           |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|      Amortization & depreciation |   |           | 2,448     |   |           |   | 2,448     |           |   |   | 7,345          |   |   |   | 7,345 |   |
|      General and administrative      |   |           | 13,042    |   |           |   | 5,080     |           |   |   | 86,659         |   |   |   | 80,207 |   |
|                                                          |   |           | 15,490    |   |           |   | 7,528     |           |   |   | 94,004         |   |   |   | 87,552 |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Income (loss) from operations                                 |   |           | (134,290  | )      |           |   | 60,540    |           |   |   | (50,260        | )      |   |   | 10,183 |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Other income (expense):                                       |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|      Interest income                 |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|      Interest expense                |   |           | (5,126    | )      |           |   | (5,516    | )              |   |   | (15,300        | )      |   |   | (15,768 | ) |
|      Rebates                         |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|                                                          |   |           | (5,126    | )      |           |   | (5,516    | )              |   |   | (15,300        | )      |   |   | (15,768 | ) |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Income (loss) before                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|      provision for income taxes      |   |           | (139,416  | )      |           |   | 55,024    |           |   |   | (65,560        | )      |   |   | (5,585 | ) |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Provision for income tax                                      |   |           | -         |   |           |   | -         |           |   |   | -              |   |   |   | - |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Net income (loss)                                             |   | $              | (139,416  | )      |           | $      | 55,024    |           |   | $      | (65,560        | )      |   | $ | (5,585 | ) |
|   Less: Net (income) loss attributable to           |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|   noncontrolling interest                           |   |           | 62,171    |   |           |   | (31,313   | )              |   |   | 14,041         |   |   |   | (11,913 | ) |
| Net income (loss) attributable                                |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|    to common stockholders                      |   | $              | (77,245   | )      |           | $      | 23,711    |           |   | $      | (51,519        | )      |   | $ | (17,498 | ) |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Net income (loss) per share (By Design, Inc.)                 |   |           |      |   |           |   |      |           |   |   |           |   |   |
| (Basic and fully diluted)                                     |   | $              | (0.01     | )      |           | $      | 0.00      |           |   | $      | (0.01          | )      |   | $ | (0.00 | ) |
|                                                          |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| Weighted average number of                                    |   |           |      |   |           |   |      |           |   |   |           |   |   |   |   |   |
| common shares outstanding                                     |   |           | 9,197,802 |   |           |   | 9,197,802 |           |   |   | 9,197,802      |   |   |   | 9,197,802 |   |

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| BY DESIGN, INC.                                                                                                           |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                     |   |
| (Unaudited)                                                                                                               |   |
|                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                      |   | Nine Months |   |   | Nine Months |   |
|                                                                                                                      |   | Ended |   |   | Ended |   |
|                                                                                                                      |   | Sept. 30, 2008 |   |   | Sept. 30, 2009 |   |
|                                                                                                                      |   |   |   |   |   |   |
| Cash Flows From Operating Activities:                                                                                     |   |   |   |   |   |   |
|      Net loss                                                                                    |   | $ | (65,560 | ) |   | $ | (5,585 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|      Adjustments to reconcile net loss to                                                        |   |   |   |   |   |   |   |   |
|      net cash provided by                                                                        |   |   |   |   |   |   |   |   |
|      operating activities:                                                                       |   |   |   |   |   |   |   |   |
|           Amortization & depreciation                               |   |   | 7,345 |   |   |   | 7,345 |   |
|           Accounts receivable                                           |   |   | (1,106 | ) |   |   | 49,153 |   |
|           Inventory                                                     |   |   | (11,616 | ) |   |   | 9,586 |   |
|           Accrued payables                                              |   |   | 14,208 |   |   |   | 11,273 |   |
|           Other assets                                                  |   |   | - |   |   |   | - |   |
|           Other liabilities                                             |   |   | 92,050 |   |   |   | 9,052 |   |
|                Net cash provided by            |   |   |   |   |   |   |   |   |
|                operating activities            |   |   | 35,321 |   |   |   | 80,824 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash Flows From Investing Activities:                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   | - |   |   |   | - |   |
|                Net cash provided by (used for) |   |   |   |   |   |   |   |   |
|                investing activities            |   |   | - |   |   |   | - |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| (Continued On Following Page)                                                                                             |   |

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| BY DESIGN, INC.                                                                                                |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                          |   |
| (Unaudited)                                                                                                    |   |
|                                                                                                           |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |
| (Continued From Previous Page)                                                                                 |   |
|                                                                                                           |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |
|                                                                                                           |   | Nine Months |   |   | Nine Months |   |
|                                                                                                           |   | Ended |   |   | Ended |   |
|                                                                                                           |   | Sept. 30, 2008 |   |   | Sept. 30, 2009 |   |
|                                                                                                           |   |   |   |   |   |   |
| Cash Flows From Financing Activities:                                                                          |   |   |   |   |   |   |
|     Related party advances - borrowings                                                    |   |   | 7,300 |   |   |   | 11,000 |   |
|     Distributions                                                                          |   |   | (40,000 | ) |   |   | (129,586 | ) |
|                Net cash used for    |   |   |   |   |   |   |   |   |
|                financing activities |   |   | (32,700 | ) |   |   | (118,586 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Net Increase (Decrease) In Cash                                                                                |   |   | 2,621 |   |   |   | (37,762 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Cash At The Beginning Of The Period                                                                            |   |   | 28,434 |   |   |   | 39,979 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Cash At The End Of The Period                                                                                  |   | $ | 31,055 |   |   | $ | 2,217 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
|   Schedule Of Non-Cash Investing And Financing Activities                                                 |   |   |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| None                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
|   Supplemental Disclosure                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                                                         |   | $ | - |   |   | $ | - |   |
| Cash paid for income taxes                                                                                     |   | $ | - |   |   | $ | - |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | As Previously |     |   |        |   |     |        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|-------------|--------|----------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Reported      |     |   | Restatement |   |     | As Restated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |
| Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |     |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |
| December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |     |   |        |   |     |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |
| Additional paid in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $             | 48,903   |   |        | $      | 41,900   |        |   | $ | 90,803 |   |
| Accumulated deficit                                                                            |   |          | (269,144 | )      |        |   | 63,789   |        |   |   | (205,355 | ) |
| Noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | -        |   |        |   | (105,689 | )           |   |   | (105,689 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |   |   |   |
| September 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |   |   |   |
| Common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $             | (9,198   | )      |        | $      | 18,396   |        |   | $ | 9,198 |   |
| Additional paid in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | (22,287  | )      |        |   | 31,978   |        |   |   | 9,691 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | (314,729 | )      |        |   | 91,876   |        |   |   | (222,853 | ) |
| Noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | -        |   |        |   | (142,250 | )           |   |   | (142,250 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |   |   |   |
| Statement of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |   |   |   |
| Three Months ended September 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |     |   |        |   |     |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |     |        |   |   |   |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $             | (139,416 | )      |        | $      | -        |        |   | $ | (139,416 | ) |
| Less: Net (income) loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |     |   |        |   |     |        |   |   |   |   |
|    noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | -        |   |        |   | 62,171   |        |   |   | 62,171 |   |
| Net loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |     |   |        |   |     |        |   |   |   |   |
|    common stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | -        |   |        |   | (77,245  | )           |   |   | (77,245 | ) |
| Basic and diluted loss per                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |        |   |     |        |   |   |   |   |
|    common share                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | (0.02    | )      |        |   | 0.01     |        |   |   | (0.01 | ) |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | As Previously |     |   |        |   |    |        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|-------------|--------|---------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Reported      |     |   | Restatement |   |    | As Restated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |
| Statements of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |        |   |    |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |
| Three Months ended September 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |     |   |        |   |    |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |
| Sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $             | 1,200    |   |        | $      | 124,896 |        |   | $ | 126,096 |   |
| Cost of goods sold                                                                                                                                                          |   |          | 72,102   |   |        |   | (14,074 | )           |   |   | 58,028 |   |
| Operating expenses                                                                                                                                                          |   |          | 29,803   |   |        |   | (22,275 | )           |   |   | 7,528 |   |
| Interest expense                                                                                                                                                            |   |          | 5,126    |   |        |   | 390     |        |   |   | 5,516 |   |
| Net income (loss)                                                                                                                                                           |   |          | (105,831 | )      |        |   | 160,855 |        |   |   | 55,024 |   |
| Less: Net (income) loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |     |   |        |   |    |        |   |   |   |   |
|    noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | -        |   |        |   | (31,313 | )           |   |   | (31,313 | ) |
| Net income attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |    |        |   |   |   |   |
|    common stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | -        |   |        |   | 23,711  |        |   |   | 23,711 |   |
| Basic and diluted income (loss) per                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |     |   |        |   |    |        |   |   |   |   |
|    common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | (0.01    | )      |        |   | 0.01    |        |   |   | 0.00 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |   |   |   |
| Nine Months ended September 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |   |   |   |
| Net loss                                                                                                                                                                    |   | $             | (65,560  | )      |        | $      | -       |        |   | $ | (65,560 | ) |
| Less: Net (income) loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |     |   |        |   |    |        |   |   |   |   |
|    noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | -        |   |        |   | 14,041  |        |   |   | 14,041 |   |
| Net loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |        |   |    |        |   |   |   |   |
|    common stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | -        |   |        |   | (51,519 | )           |   |   | (51,519 | ) |
| Basic and diluted loss per                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |    |        |   |   |   |   |
|    common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | (0.01    | )      |        |   | -       |        |   |   | (0.01 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |   |   |   |
| Nine Months ended September 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |        |   |    |        |   |   |   |   |
| Net loss                                                                                                                                                                    |   | $             | (5,585   | )      |        | $      | -       |        |   | $ | (5,585 | ) |
| Less: Net (income) loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |     |   |        |   |    |        |   |   |   |   |
|    noncontrolling interest                                                                            |   |          | -        |   |        |   | (11,913 | )           |   |   | (11,913 | ) |
| Net loss attributable to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |        |   |    |        |   |   |   |   |
|    common stockholders                                                                                |   |          | -        |   |        |   | (17,498 | )           |   |   | (17,498 | ) |
| Basic and diluted loss per                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |   |        |   |    |        |   |   |   |   |
|    common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | (0.00    | )      |        |   | -       |        |   |   | (0.00 | ) |

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This Quarterly Report on Form 10-Q/A and the documents incorporated herein by reference contain forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are based on current expectations, estimates, and projections about our industry, management beliefs, and certain assumptions made by our management.  Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, variations of such words, and similar expressions are intended to identify such forward-looking statements.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements.  Unless required by law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.  However, readers should carefully review the risk factors set forth herein and in other reports and documents that we file from time to time with the Securities and Exchange Commission, particularly the Annual Reports on Form 10-K, Quarterly reports on Form 10-Q and any Current Reports on Form 8-K.

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|     1. | Cease operations and go out of business; |
|----------------------------|------------------------------------------|

|     2. | Continue to seek alternative and acceptable sources of capital; |
|----------------------------|-----------------------------------------------------------------|

|     3. | Bring in additional capital that may result in a change of control; or |
|----------------------------|------------------------------------------------------------------------|

|     4. | Identify a candidate for acquisition that seeks access to the public marketplace and its financing sources |
|----------------------------|------------------------------------------------------------------------------------------------------------|

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| ●    | our ability to locate clients who will purchase our products and use our  services; and |
|---------------------------|----------------------------------------------------------------------------------------------|

| ●    | our ability to generate sufficient revenues. |
|---------------------------|----------------------------------------------|

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|   | • | agreements may be difficult to enforce and receivables owed to us difficult to collect;                                                                                                                                        |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                           |
|   | • | foreign customers may have longer payment cycles;                                                                                                                                                                              |
|   |    |                                                                                                                                                                                                                           |
|   | • | foreign countries may impose additional withholding taxes or otherwise tax our foreign income, or adopt other restrictions on foreign trade or investment, including currency exchange controls;                               |
|   |    |                                                                                                                                                                                                                           |
|   | • | foreign operations may experience staffing difficulties and labor disputes;                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                           |
|   | • | transportation and other shipping costs may increase;                                                                                                                                                                          |
|   |    |                                                                                                                                                                                                                           |
|   | • | foreign governments may nationalize private enterprises;                                                                                                                                                                       |
|   |    |                                                                                                                                                                                                                           |
|   | • | unexpected adverse changes in export duties, quotas and tariffs and difficulties in obtaining export licenses;                                                                                                                 |
|   |    |                                                                                                                                                                                                                           |
|   | • | intellectual property rights may be more difficult to enforce;                                                                                                                                                                 |
|   |    |                                                                                                                                                                                                                           |
|   | • | fluctuations in exchange rates may affect product demand and may adversely affect the profitability in U.S. dollars of products we import where payment for our products is made in the local currency;                   |
|   |    |                                                                                                                                                                                                                           |
|   | • | general economic conditions in the countries in which we operate could have an adverse effect on operations in those countries;                                                                                                |
|   |    |                                                                                                                                                                                                                           |
|   | • | our business and profitability in a particular country could be affected by political or economic repercussions on a domestic, country specific or global level from terrorist activities and the response to such activities; |
|   |    |                                                                                                                                                                                                                           |
|   | • | unexpected adverse changes in foreign laws or regulatory requirements may occur; and                                                                                                                                           |
|   |    |                                                                                                                                                                                                                           |
|   | • | compliance with a variety of foreign laws and regulations may be burdensome.                                                                                                                                                   |

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| *      | actual or anticipated fluctuations in our operating results;                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                            |
| *      | changes in financial estimates by securities analysts or our failure to perform in line with such estimates;                                    |
|   |                                                                                                                                            |
| *      | changes in market valuations of other interior design oriented companies, particularly those that market services such as ours;                 |
|   |                                                                                                                                            |
| *      | announcements by us or our competitors of significant innovations, acquisitions, strategic partnerships, joint ventures or capital commitments; |
|   |                                                                                                                                            |
| *      |  introduction of product enhancements that reduce the need for our products or services;                                                   |
|   |                                                                                                                                            |
| *      |  the loss of one or more key clients; and                                                                                                  |
|   |                                                                                                                                            |
| *      | departures of key personnel.                                                                                                                    |

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| Exhibit No. |                            Description |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                     |
|   3.1  | Articles of Incorporation of By Design, Inc.*                                                                                                                            |
|   3.2  | Bylaws of By Design, Inc.*                                                                                                                                               |
|  4.1   | Stock Specimen *                                                                                                                                                    |
| 21.1        | List of Subsidiaries*                                                                                                                                                    |
| 31.1        | Certification of CEO/CFO pursuant to Sec. 302                                                                                                                            |
| 32.1        | Certification of CEO/CFO pursuant to Sec. 906                                                                                                                            |
|        |                                                                                                                                                                     |

|   | 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) |                |

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