UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C.

                                FORM 10-KSB

[ X ]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

                For the fiscal year ended September 30, 2006

[    ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934


                        Commission File No.  0-5662

                        CARDIFF COMMUNICATIONS, INC.
                       -----------------------------
           (Exact name of Registrant as specified in its charter)

     NEVADA                                                 87-0267292
-------------------------------           ---------------------------------
(State or other jurisdiction of           (IRS Employer Identification No.)
 incorporation or organization)

                   378 North Main, #124; Layton, UT 84041
           (Address and zip code of principal executive offices)

Registrant's telephone number, including area code: (801) 273-9300

Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act: Common Capital
Stock $.001 Par Value

Indicate by check mark whether the issuer is not required to file reports
pursuant to Section 12 or 15(d)D of the Exchange Act. [ ]

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

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.    [ X ]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act ). [ X ]

Revenue for the year ended September 30, 2006:   $0

As of November 15, 2006 it is unclear as to the aggregate market value of
the voting stock held by non-affiliates of the Registrant.  This is due to
the low or almost non-existing trading of the Registrant's Securities.

As of November 15, 2006 the number of shares outstanding of the
Registrant's Common Stock was 10,239,499.



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                                   PART I

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ITEM 1.  DESCRIPTION OF BUSINESS

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

     This periodic report contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995
with respect to the financial condition, results of operations, business
strategies, operating efficiencies or synergies, competitive positions,
growth opportunities for existing products, plans and objectives of
management. Statements in this periodic report that are not historical
facts are hereby identified as "forward-looking statements."  Such
statements include discussion on the opening of a mill, product uses,
completion of EA studies and planned financing.

Corporate History

     Cardiff Communications, Inc.,  ("the Company") was organized in
December 1906 in the State of Utah under the name Cardiff Mining & Milling
Company.  During the 60's the Company changed its name to Cardiff
Industries, Inc. and sold its mining operations.  During the next decade
the Company focused its operations on the television and radio industry.
Consequently in 1980, the Company's name was changed to Cardiff
Communications, Inc.. The Company changed it's domicile to the state of
Nevada which was effective in 1999 and filed with the Secretary of State
Nevada in 2001.  The Company has had no operations in the last 10 years,
but intends to pursue business opportunities in the communications
industry.

     The board of directors feel that the Company does not meet the
criteria of a development stage company (as defined in SFAS 7 "ACCOUNTING
AND REPORTING BY DEVELOPMENT STAGE ENTERPRISES") primarily because it is
not currently producing or marketing a product or service. However, in
September  2004,the Company executed an agreement to acquire all of the
equity of Summit Media, Inc. ("Summit"), a privately-held Utah corporation.
The agreement closed on March 21, 2005.


                                     2

     Upon closing of the acquisition, Summit  became a wholly-owned
subsidiary of the Company.  Pursuant to the transaction, the shareholders
of Summit were issued a convertible note in the amount of $30,000.

     This transaction resulted in a change of control of management.
Following notice and filing pursuant to Rule 14f-1, the sole officer and
director resigned on May 23, 2005.

     Summit Media was formed in March of 2004 to acquire and develop
television broadcast licenses. Summit has already acquired a low power
television ("LPTV") station construction permit ("CP") W28BO "Channel 28",
which is currently licensed to the city of Acton, Tennessee.  The Purchase
Agreement provides for payments to the sellers upon the occurrence of
certain events in the FCC compliance process.  The Company's goal is to
create value to the station prior to the build out of the station.

     The license authorizes up to 1.0 KW broadcast power and is authorized
to broadcast 24 hours a day, 7 days a week.  Acton is a growing bedroom
community in Tennessee. Because of this, the Company believes that, as a
currently non-broadcasting license, the license purchase price is
commercially reasonable. The Company also believes that with proper program
development, the "value" of the station can be greatly enhanced.

     The Company intends to negotiate a lease to install antennae and
transmitter equipment on a television broadcast tower facility located in
Acton. The broadcast signal, referred to in the industry as the
"footprint," will reach most of the surrounding populated area. Through FCC
imposed limitations, most LPTV licenses are limited in the amount of
broadcast power; including W28BO which is limited to 1.0 KW in broadcast
power.


ITEM 2.  DESCRIPTION OF PROPERTY

     The Company currently maintains its corporate presence from the office
of the Company's legal counsel and pays no rent or expenses.


ITEM 3.  LEGAL PROCEEDINGS

     None

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

     None.




                                     3



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                                  PART II

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ITEM 5.  MARKET PRICE FOR REGISTRANT'S COMMON EQUITY AND  RELATED
STOCKHOLDER MATTERS

     The Company's common stock is quoted on the OTC Bulletin Board of the
National Association of Securities Dealers, Inc. (the "NASD") under the
symbol "CDFO.OB".   As of November 15, 2006, the Company had approximately
1,259 shareholders of record.  The Company has been unable to obtain any
historical information.

     The Company has not declared any cash dividends on its Common Stock in
the last thirty years and its Board of Directors has no present intention
of declaring any dividends.  For the foreseeable future, the Company
intends to retain all earnings, if any, for use in the development and
expansion of its business.

     The Company shares are subject to section 15(g) and rule 15g-9 of the
Securities and Exchange Act, commonly referred to as the "penny stock"
rule.  The rule defines penny stock to be any equity security that has a
market price less than $5.00 per share, subject to certain exceptions. The
rule provides that any equity security is considered to be a penny stock
unless that security is; registered and traded on a national securities
exchange meeting specified criteria set by the SEC; authorized for
quotation from the NASDAQ stock market; issued by a registered investment
company; excluded from the definition on the basis of price at least $5.00
per share or the issuer's net tangible assets.  The Company's shares are
deemed to be penny stock, trading in the shares will be subject to
additional sales practice requirements on broker-dealers who sell penny
stocks to persons other than established customers and accredited
investors.  Accredited investors, in general, include individuals with
assets in excess of $1,000,000 or annual income exceeding $200,000 or
$300,000 together with their spouse, and certain institutional investors.

     For transactions covered by these rules, broker-dealers must make a
special suitability determination for the purchase of such security and
must have received the purchaser's written consent to the transaction prior
to the purchase.  Additionally, for the transaction involving a penny
stock, other rules apply.  Consequently, these rules may restrict the
ability of broker-dealers to trade or maintain a market in our common stock
and may affect the ability of shareholders to sell their shares.

     There have been no changes in the outstanding stock during the period
covered by this report.


                                     4

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

FINANCIAL CONDITION

     The Company had no revenue during the year ended September 30, 2006.
The total accumulated deficit for the year ended September 30, 2006 was
$245,554, as compared $188,500 at September 30, 2005. The Company has no
operating capital for future operations.

LIQUIDITY AND CAPITAL RESOURCES

     The Company has  minimal liquid assets and is currently in the process
of looking for business opportunities to merge with or acquire.  At
minimum, the Company will need to raise additional capital through private
funding to meet the financial needs of being a reporting company.
Historically, the Company has been successful in raising operational
capital.  There is no guarantee that the Company will be successful in
obtaining necessary funding to develop any business opportunities.

RESULTS OF OPERATIONS

     The Company reported a net loss of $57,054 for the year ended
September 30, 2006, compared to a net loss of $61,247 for the previous
year.  The Company anticipates very little or no overhead from future
operations except for those expenses related to being a reporting company,
until a successor business can be acquired or merged.

     General and administrative expenses increased by $6,500 from $7,687 in
2005 to $14,237 in 2006. This increase is due largely in part to increased
accounting expenses and licensing fees.

     The interest expense decreased by approximately $600 from  $11,907 in
September 2005 to $11,317 for September 2006.  The decrease is primarily
the result of the Company converting a debt to common stock in 2005.

     During September 2006, approximately $9,100 of accounts payable were
settled in exchange for two convertible notes, due on demand with interest
rates of 10% each and are reflected in that portion of the Company's
financial statements.


                                     5

ITEM 7.  FINANCIAL STATEMENTS

(a)(1)  The following financial statements of the Company and its
        subsidiaries have been filed as part of this report.

        Report of Independent Registered Public Accounting Firm

        Balance Sheets as of September 30, 2006.

        Statements of Operations for the years ended September 30, 2006
        and September 30, 2005.

        Statement of Stockholders' Equity for the period from October 1,
        2002 to September 30, 2006.

        Statement of Cash Flows for the years ended September 30, 2006 and
        September 30, 2005.

        Notes to Financial Statements.

  (2)   Schedules are omitted because of the absence of conditions under
        which they are required or because the required information is
        given in the financial statements or notes thereto.








                                     6


/Letterhead/

          Report of Independent Registered Public Accounting Firm


Stockholders and Directors
Cardiff Communications, Inc.
Salt Lake City, Utah

We have audited the accompanying consolidated balance sheets of Cardiff
Communications, Inc., as of September 30, 2006 and 2005, and the related
consolidated statements of operations, stockholders' equity, and cash flows
for the years then ended.  These consolidated financial statements are the
responsibility of the company's management.  Our responsibility is to
express and opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the PCAOB, (United
States of America).  Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  The company is not required
to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures
that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company's internal
control over financial reporting. Accordingly, we express no such opinion.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for
our opinion.

In our opinion, the consolidated  financial statements referred to above
present fairly, in all material respects, the financial position of Cardiff
Communications, Inc., at September 30, 2006 and 2005, and the results of
its operations and cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.  As discussed in Note 5, the
Company's recurring operating losses and lack of working capital raise
substantial doubt about its ability to continue as a going concern.
Management's plans in regard to those matters are also described in Note 5.
The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.

/S/ Chisholm, Bierwolf & Nilson, LLC

Chisholm, Bierwolf & Nilson, LLC
Bountiful, Utah
January 5, 2007


                                     7

                        Cardiff Communications, Inc.
                        Consolidated Balance Sheets
<Table>
<Caption>
                                   Assets
                                                        September 30
                                                     2006          2005
                                                 ------------  ------------
<S>                                              <C>           <C>
Current Assets
--------------
  Cash                                           $      372    $       468

Other Assets
------------
  FCC License                                          3,500        35,000
                                                 ------------  ------------
Total  Assets                                    $     3,872   $    35,468
                                                 ============  ============

               Liabilities and Stockholders' Equity (Deficit)

Current Liabilities
-------------------
  Accounts Payable                               $    13,150   $     8,183
  Interest Payable                                    54,542        43,225
  Convertible Notes Payable (Non-Related)            206,464       197,290
                                                 ------------  ------------
Total Current Liabilities                            274,156       248,698

Commitments                                                -             -
-----------                                      ------------  ------------

Stockholders' Equity (Deficit)
------------------------------
  Common Stock, 200,000,000 Shares Authorized
   at $.001 Par Value; 10,239,499 Shares
   Issued and Outstanding, Respectively               10,240        10,240
  Capital in Excess of Par Value                     (34,970)      (34,970)
  Accumulated Deficit                               (245,554)     (188,500)
                                                 ------------  ------------
   Total Stockholders' Equity (Deficit)             (270,284)     (213,230)
                                                 ------------  ------------
Total Liabilities &
Stockholders' Equity (Deficit)                   $     3,872   $    35,468
                                                 ============  ============

</Table>

 The accompanying notes are an integral part of these financial statements.
                                     8

                        Cardiff Communications, Inc.
                   Consolidated Statements of Operations
<Table>
<Caption>
                                          For the Years Ended September 30,
                                                     2006          2005
                                                 ------------  ------------
<S>                                              <C>           <C>
Revenue                                          $         -   $         -
                                                 ------------  ------------
Expenses
--------
  General & Administrative                            14,237         7,687
                                                 ------------  ------------
     Total Operating Expenses                         14,237         7,687
                                                 ------------  ------------
     Loss from Operations                            (14,237)       (7,687)

Other Income (Expenses)
-----------------------
  Impairment of Goodwill                                   -       (41,653)
  Impairment of FCC License                          (31,500)            -
  Interest (Expense)                                 (11,317)      (11,907)
                                                 ------------  ------------
     Total Other Income (Expenses)                   (42,817)      (53,560)
                                                 ------------  ------------
     Net Income (Loss) - Before Taxes                (57,054)      (53,560)

     Taxes                                                 -             -
                                                 ------------  ------------
     Net Loss                                    $   (57,054)  $   (61,247)
                                                 ============  ============
Basic Earnings Per Share:
-------------------------
  Loss per Common Share                          $     (0.01)  $     (0.23)
  Weighted Average Outstanding Shares             10,239,499       266,896
                                                 ============  ============



</Table>

 The accompanying notes are an integral part of these financial statements.
                                     9

                        Cardiff Communications, Inc.
              Consolidated Statements of Stockholders' Equity
<Table>
<Caption>

                                       Common Stock         Capital In
                               --------------------------    Excess of    Accumulated
                                  Shares        Amount       Par Value      Deficit
                               ------------  ------------  ------------  ------------
<S>                            <C>           <C>           <C>           <C>
Balance, October 1, 2004            99,905   $       100   $   (54,830)  $  (127,253)

Fractional Shares Issued Due
  to Rounding of 100:1
  Reverse Stock Split              139,594           140          (140)            -

Shares issued for debt at
  $.003 per Share               10,000,000        10,000        20,000             -

Loss for the Year Ended
  September 30, 2005                     -             -             -       (61,247)
                               ------------  ------------  ------------  ------------
Balance, September 30, 2005     10,239,499        10,240       (34,970)     (188,500)
                               ------------  ------------  ------------  ------------
Loss for the Year Ended
  September 30, 2006                     -             -             -       (57,054)
                               ------------  ------------  ------------  ------------
Balance, September 30, 2006     10,239,499   $    10,240   $   (34,970)  $  (245,554)
                               ============  ============  ============  ============





</Table>


 The accompanying notes are an integral part of these financial statements.
                                     10

                        Cardiff Communications, Inc.
                   Consolidated Statements of Cash Flows

<Table>
<Caption>
                                          For the Years Ended September 30,
                                                     2006          2005
                                                 ------------  ------------
<S>                                              <C>           <C>
Cash Flows from Operating Activities
------------------------------------
  Net Income (Loss)                           $      (57,054)  $   (61,247)
  Adjustments to Reconcile Net Earnings
   (Loss) to Net Cash Used in Operating
   Activities
     Impairment of Goodwill                                -        41,653
     Impairment of FCC License                        31,500             -
  Changes in Operating Assets & Liabilities;
  (Net of Acquisition)
   Increase (Decrease) in Accounts Payable             4,968           747
   Increase (Decrease) in Interest Payable            11,317        11,907
                                                 ------------  ------------
Net Cash (Used) by Operating Activities               (9,269)       (6,940)

Cash Flows from Investing Activities
------------------------------------
  Cash Acquired in Acquisition                             -           668
                                                 ------------  ------------
Net Cash Provided by Investing Activities                  -           668

Cash Flows from Financing Activities
------------------------------------
  Proceeds from Notes Payable                          9,173         6,540
                                                 ------------  ------------
     Net Cash Provided by Financing Activities         9,173         6,540
                                                 ------------  ------------
     Increase (Decrease) in Cash                         (96)          268

     Cash, Beginning of Year                             468           200
                                                 ------------  ------------
     Cash, End of Year                           $       372   $       468
                                                 ============  ============

Supplemental Cash Disclosure
----------------------------
  Interest                                       $         -   $         -
  Taxes                                                    -             -

Non-Cash Activities:
--------------------
  Common Stock Issued for Notes Payable          $         -   $    30,000
                                                 ============  ============


</Table>

 The accompanying notes are an integral part of these financial statements.
                                     11

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 1 - CORPORATE HISTORY


The Company was organized on December 8, 1906 in the State of Utah under
the name of "Cardiff Industries."  Subsequently, the name was changed to
"Cardiff Communications, Inc.".   During 2001, the Company changed its
domicile to the State of Nevada.

On March 22, 2005, the Company entered into an acquisition agreement with
Summit Media, Inc. ("Summit"), a privately-held Utah corporation.  Pursuant
to the agreement, the Company exchanged a $30,000 convertible note for all
of the outstanding common stock of Summit.  In September 2005, the
convertible note was converted into 10,000,000 shares of the Company's
common stock.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

A. The Company uses the accrual method of accounting.

B. Revenues and directly related expenses are recognized in the period
   when the goods are shipped to the customer.

C. The Company considers all short term, highly liquid investments that
   are readily convertible, within three months, to known amounts as cash
   equivalents.  The Company currently has no cash equivalents.

D. Basic Earnings Per Shares are computed by dividing income available to
   common stockholders by the weighted average number of common shares
   outstanding during the period.  Diluted Earnings Per Share shall be
   computed by including contingently issuable shares with the weighted
   average shares outstanding during the period.  When inclusion of the
   contingently issuable shares would have an antidilutive effect upon
   earnings per share no diluted earnings per share shall be presented.

E. Estimates:   The preparation of the financial statements in conformity
   with generally accepted accounting principles requires management to
   make estimates and assumptions that affect the amounts reported in the
   financial statements and accompanying notes.  Actual results could
   differ from those estimates.

F. Goodwill and Other Intangible Assets.  In accordance with SFAS No. 142,
   Goodwill and Other Intangible Assets, intangible assets with an
   indefinite useful life are not amortized.  Intangible assets with a
   finite useful life are amortized on the straight-line method over the
   estimated useful lives.  All intangible assets are tested for
   impairment on an annual basis. During the years ended September 30,
   2006 and 2005, the Company recognized an impairment loss on goodwill of
   $0 and $41,653 respectively.


                                     12

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

G. Basis of Consolidation.  The consolidated financial statements for the
   year ended September 30, 2006 include the accounts of Summit Media,
   Inc.  All significant inter-company accounts and transactions have been
   eliminated in the consolidation.

H. Financial Instruments. The recorded amounts of financial instruments,
   including cash equivalents, accounts payable, accrued expenses and
   notes payable approximate their market values as of September 30, 2006
   and 2005. The Company has no investments in derivative financial
   instruments.

I. Convertible Notes Payable.  The Company has adopted Emerging Issues
   Task Force ("EITF") Issue No. 98-5, "Accounting for Convertible
   Securities with Beneficial Conversion Features or Contingently
   Adjustable Conversion Rations", and EITF Issue No. 00-27, "Application
   of EITF Issue No. 98-5 to Certain Convertible Instruments".  The
   Company incurred debt whereby the convertible feature of the debt
   provides for a rate of conversion that is greater than the market
   value.  Therefore, at September 30, 2006 and 2005 there were no
   beneficial conversion features recorded on the Company's convertible
   notes.

RECENT PRONOUNCEMENTS

SFAS NO. 154, "ACCOUNTING CHANGES AND ERROR CORRECTIONS, A REPLACEMENT OF
APB OPINION NO. 20 AND FASB STATEMENT NO. 3"

In May 2005, the FASB issued SFAS 154 which replaces APB 20 and SFAS 3.
This statement provides guidance on the accounting for and reporting of
accounting changes and error corrections. It establishes, unless
impracticable, retrospective application as the required method for
reporting a change in accounting principle in the absence of explicit
transition requirements specific to the newly adopted accounting principle.
This statement also provides guidance for determining whether retrospective
application of a change in accounting principle is impracticable and for
reporting a change when retrospective application is impracticable. SFAS
154 is effective for accounting changes and correction of errors made in
fiscal years beginning after December 15, 2005. The adoption of this
standard will not have a material impact on the Company"s consolidated
financial statements.





                                     13

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Pronouncements (continued)

SFAS NO. 155, "ACCOUNTING FOR CERTAIN HYBRID FINANCIAL INSTRUMENTS"
In February 2006, the FASB issued SFAS NO. 155, "ACCOUNTING FOR CERTAIN
HYBRID FINANCIAL INSTRUMENTS", which amends SFAS No. 133, "ACCOUNTING FOR
DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES" and SFAS No. 140,
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities".  SFAS No. 155 amends SFAS No. 133 to narrow
the scope exception for interest-only and principal-only strips on debt
instruments to include only such strips representing rights to receive a
specified portion of the contractual interest or principle cash flows.
SFAS No. 155 also amends SFAS No.140 to allow qualifying special-purpose
entities to hold a passive derivative financial instrument pertaining to
beneficial interests that itself is a derivative instrument. We do not
anticipate that the adoption of this standard will have a material impact
on our financial statements

SFAS NO. 156, "ACCOUNTING FOR SERVICING OF FINANCIAL ASSETS"

In March 2006, the FASB issued SFAS No. 156, "ACCOUNTING FOR SERVICING OF
FINANCIAL ASSETS", which provides an approach to simplify efforts to obtain
hedge-like (offset) accounting. This Statement amends FASB Statement No.
140, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities", with respect to the accounting for
separately recognized servicing assets and servicing liabilities. The
Statement (1) requires an entity to recognize a servicing asset or
servicing liability each time it undertakes an obligation to service a
financial asset by entering into a servicing contract in certain
situations; (2) requires that a separately recognized servicing asset or
servicing liability be initially measured at fair value, if practicable;
(3) permits an entity to choose either the amortization method or the fair
value method for subsequent measurement for each class of separately
recognized servicing assets or servicing liabilities; (4) permits at
initial adoption a one-time reclassification of available-for-sale
securities to trading securities by an entity with recognized servicing
rights, provided the securities reclassified offset the entity's exposure
to changes in the fair value of the servicing assets or liabilities; and
(5) requires separate presentation of servicing assets and servicing
liabilities subsequently measured at fair value in the balance sheet and
additional disclosures for all separately recognized servicing assets and
servicing liabilities. SFAS No. 156 is effective for all separately
recognized servicing assets and liabilities as of the beginning of an
entity's fiscal year that begins after September 15, 2006, with earlier
adoption permitted in certain circumstances. The Statement also describes
the manner in which it should be initially applied. The Company does not
believe that SFAS No. 156 will have a material impact on its consolidated
financial statements.





                                     14

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Pronouncements (continued)


SFAS NO. 157, "FAIR VALUE MEASUREMENTS"

In September 2006, the FASB issued SFAS No. 157, which defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles, and expands disclosures about fair value
measurements. This Statement applies to other accounting pronouncements
that require or permit fair value measurements. This Statement is effective
for financial statements issued for fiscal years beginning after November
15, 2007, and interim periods within those fiscal years. The Company does
not anticipate any material impact on its consolidated financial statements
upon the adoption of this standard.

SFAS NO. 158, "EMPLOYERS' ACCOUNTING FOR DEFINED BENEFIT PENSION AND OTHER
POSTRETIREMENT PLANS"

In September 2006, the FASB issued SFAS No. 158, "Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans, an amendment of
FASB Statements No. 87, 88, 106 and 132-R".  SFAS No. 158 requires an
entity to recognize in its statement of financial condition the funded
status of its defined benefit postretirement plans, measured as the
difference between the fair value of the plan assets, and the benefit
obligation. SFAS No. 158 also requires an entity to recognize changes in
the funded status of a defined benefit postretirement plan within
accumulated other comprehensive income, net of tax, to the extent such
changes are not recognized in earnings as components of periodic net
benefit cost. SFAS No. 158 is effective as of the end of the fiscal year.
ending after December 15, 2006. The Company does not expect that the
adoption of SFAS No. 158 will have a material effect on the Company's
financial condition, results of operations, or cash flows.

EITF NO. 03-13, APPLYING THE CONDITIONS IN PARAGRAPH 42 OF SFAS NO. 144,
ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS, IN
DETERMINING WHETHER TO REPORT DISCONTINUED OPERATIONS

In November 2004, the EITF reached a consensus on EITF No. 01-13, "Applying
the Conditions In Paragraph 42 of SFAS No. 144, Accounting for the
Impairment of Disposal of Long-Lived Assets, in Determining Whether to
Report Discontinued Operations".  In this consensus, the EITF provided
guidance on how an ongoing entity should evaluate whether the operations
and cash flow of a disposed component have been or will be eliminated form
the ongoing operations of the entity. The adoption of EITF 03-13 in 2004 did
not have a material impact on the Company's consolidated financial
statements.




                                     15

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Pronouncements (continued)

EITF NO. 05-02, THE MEANING OF CONVENTIONAL CONVERTIBLE DEBT INSTRUMENT IN
EITF ISSUE NO. 00-19, ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS
INDEXED TO, AND POTENTIALLY SETTLED IN, A COMPANY'S OWN STOCK

In June 2005, the EITF reached a consensus on EITF No. 05-02, "The Meaning
of Conventional Convertible Debt Instrument in EITF Issue No. 00-19,
Accounting for Derivative Financial Instruments Indexed to, and Potentially
Settled in, A Company's Own Stock" that (1)the exception to the
requirements of paragraphs 12-33 of Issue 00-19 for "conventional
convertible debt instruments" should be retained; (2) that instruments that
provide the holder with an option to convert into a fixed number of shares
(or equivalent amount of cash at the discretion of the issuer) for which
the ability to exercise the option is based on the passage of time or a
contingent event should be considered  "conventional" for purposes of
applying issue 00-19; and (3) that convertible preferred stock with a
mandatory redemption date may qualify for the exception included in
paragraph 4 of Issue 00-19 if the economic characteristics indicate that
the instrument is more akin to debt than equity. We do not expect the
adoption of EITF 05-02 to have a material impact on the Company's
consolidated financial statements.


NOTE 3 - INCOME TAXES

The Company adopted Statement of Financial Standards No. 109 "Accounting
for Income taxes" in the fiscal year ended September 30, 1999.  Statement
of Financial Accounting Standards No. 109 "Accounting for Income Taxes"
requires an asset and liability approach for financial accounting and
reporting for income tax purposes.  This statement recognizes (a) the
amount of taxes payable or refundable for the current year and (b) deferred
tax liabilities and assets for future tax consequences of events that have
been recognized in the financial statements or tax returns.



                                     16

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 3 - INCOME TAXES (CONTINUED)

The Company currently has no issues that create timing differences that
would mandate deferred tax expense.  Net operating losses would create
possible tax assets in future years.  Due to the uncertainty as to the
utilization of net operating loss carry forwards an evaluation allowance
has been made to the extent of any tax benefit that ned operating losses
may generate.  No provision for incomes taxes has been recorded due to the
net operating loss carryforward of $245,554 at September 30, 2006 that will
be offset against further taxable income.  No tax benefit has been reported
in the financial statements.

Deferred tax assets and the valuation account as of September 30, 2006 and
2005 are as follows:

<Table>
<Caption>
                                                        September 30
                                                     2006          2005
                                                 ------------  ------------
<S>                                              <C>           <C>
Deferred Tax Assets:
  Net Operating Loss Carryforwards               $    36,837   $    28,000
  Less: Valuation Allowance for                      (36,837)      (28,000)
                                                 ------------  ------------
Total Deferred Tax Assets                        $         -   $         -
                                                 ============  ============
</Table>

The components of income tax expense are as follows:
<Table>
<Caption>
                                                        September 30
                                                     2006          2005
                                                 ------------  ------------
<S>                                              <C>           <C>
  Current Federal Tax                            $         -   $         -
  Current State Tax                                        -             -
  Change in NOL benefit                               (8,837)       (9,000)
  Change in Allowance                                  8,837         9,000
                                                 ------------  ------------
                                                 $         -   $         -
                                                 ============  ============

</Table>

                                     17

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 4 - NOTES PAYABLE

In order to meet it's operating needs, the Company has issued several
convertible promissory notes totaling $206,464.  The notes bear interest
between the rates of 5% and 10% per annum, which are secured by the
Company's common stock and are due on demand.  The notes are convertible to
the Company's common shares, provided, however, such conversion may be made
in amounts that do not result in the creation of new affiliate status or in
the issuance of control to one person, or a group of persons who are
affiliates of each other.  At September 30, 2006, the total accrued
interest totaled $54,542.

<Table>
<Caption>
                                                                  September 30
                                                               2006          2005
                                                           ------------  ------------
<S>                                                        <C>           <C>
The Company has the following notes payable obligations:

Note payable to an individual is due on demand,
  plus accrued rate of 0% per annum.                       $    35,000   $    35,000

Convertible note payable to an entity is due on demand
  plus accrued interest at a rate of 5% per annum,
  convertible into 600,000 common shares at $.001
  per share.                                                    60,000        60,000

Convertible notes payable to two entities are due on
  demand plus accrued interest at a rate of 8% per annum,
  convertible into 720,740 common shares at $.001
  per share.                                                    72,074        72,074

Convertible notes payable to three entities are due on
  demand plus accrued interest at a rate of 10% per
  annum, convertible into 302,160 common shares at $.001
  per share.                                                    39,390        30,216
                                                           ------------  ------------
     Totals                                                $   206,464   $   197,290
     Less Current Maturities                                  (206,464)     (197,290)
                                                           ------------  ------------
     Total Long-Term Notes Payable                         $         -   $         -
                                                           ============  ============
</Table>

                                     18

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 4 - Notes Payable (continued)

Following are maturities of long-term debt for each of the next five years:

<Table>
<Caption>
                                            Year                  Amount
                                        ------------           ------------
                                        <S>                    <C>
                                            2006               $   206,464
                                            2007                         -
                                            2008                         -
                                            2009                         -
                                            2010                         -
                                                               ------------
                                               Total           $   206,464
                                                               ============
</Table>

NOTE 5 - GOING CONCERN

The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal course
of business.  Currently, the Company does not have significant cash or
other material assets, nor does it have an established source of revenues
sufficient to cover its operating costs and to allow it to continue as a
going concern.  The Company does not currently possess a financial
institution source of financing and the Company cannot be certain that it's
existing sources of cash will be adequate to meet its liquidity
requirements.  However, the Company is undertaking the following approach
to meet its liquidity requirements.

  (a)     Seek additional equity funding through private placements to
          raise sufficient funds to continue operations and fund its
          ongoing development, merger and acquisition activities.
  (b)     The Company will seek to continue converting certain outstanding
          loans and payables into common stock in order to reduce future
          cash obligations;
  (c)     Management is identifying prospective acquisition targets with
          sufficient cash flow to fund operations, as well as potentially
          generating operating cash flow that may sustain corporate
          administrative expenses;

The Company's future capital requirements will depend on its ability to
successfully implement these initiatives.



                                     19

                        Cardiff Communications, Inc.
               Consolidated Notes to the Financial Statements
                        September 30, 2006 and 2005

NOTE 6 - NET EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per common share (BEPS) is based on the weighted-
average number of common shares outstanding during each period.  Diluted
earnings (loss) per common share is based on shares outstanding (computed
as under BEPS) and dilutive potential common shares.  Shares from the
potential exercise of the convertible notes payable were not included in
the computation of diluted loss per share, because their inclusion would
have been antidilutive for the year ended September 30, 2006 and 2005.

The following data shows the shares used in computing the loss per common
share.


<Table>
<Caption>

                                                Net Loss      Shares       Per Share
                                              (Numerator) (Denominator)     Amount
                                             ------------  ------------  ------------
<S>                                          <C>           <C>           <C>
For the year ended September 30, 2006:

Basic EPS
  Net loss to common shareholders            $   (57,054)   10,239,499   $     (0.01)
                                             ============  ============  ============
For the year ended September 30, 2006:

Basic EPS
  Net loss to common shareholders            $   (57,054)   10,239,499   $     (0.01)
                                             ============  ============  ============



</Table>



                                     20

ITEM 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
          FINANCIAL DISCLOSURE

     None.


ITEM 8A.  CONTROLS AND PROCEDURES

     (a) Evaluation of disclosure controls and procedures. The Company
maintains disclosure controls and procedures designed to ensure that
information required to be disclosed in the reports that the Company files
or submits under the Securities Exchange Act of 1934, is recorded,
processed, summarized and reported within the time period specified int eh
rules and forms of the Securities and Exchange Commission.  The Company's
management including its principal executive officer and its principal
financial officer, based on their evaluation of the Company's disclosure
controls over financial reporting and procedures (as defined in Exchange
Act Rules 13a-14 (c)) in connection with the Annual Report on Form 10-KSB
as of September 30, 2006, have concluded that the Company's disclosure
controls over financial reporting and procedures are adequate and effective
as of September 30, 2006 for the purposes set forth in the definition in
Exchange Act rules.

     (b) Changes in internal controls over financial reporting.  There were
not been any significant changes in the Company's internal controls over
financial reporting  or in other factors that could materially affect or is
reasonably likely to materially affect, significantly affect the Company's
internal controls subsequent to the date of their evaluation.


ITEM 8B.  OTHER INFORMATION

     Reports on Form 8-K filed during the period covered by this report.

     None.



---------------------------------------------------------------------------

                                  PART III

---------------------------------------------------------------------------

ITEM 9.   DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The following information is furnished with respect to the Company's
Board of Directors and executive officers.  There are no family
relationship between or among any of the Company's directors or executive
officers.



                                     21

DIRECTORS AND EXECUTIVE OFFICERS

<Table>
<Caption>
                       Age      Director     Position with
Name                   (2006)   Since        Company
---------------------  -------  ----------   ----------------------------
<S>                    <C>      <C>          <C>
Rubin Rodriguez        46       2005         President, CEO and Director
378 North Main, #124
Layton, Utah 84061

</Table>

     Mr. Rodriguez has been in the broadcast media industry for the past 20
years.  During this period of time he has served as general manager for
several radio and television stations.  As co-owner of R&D Media Group,
Inc. he negotiated the acquisition of, and oversaw the development of five
television stations.  He is currently the founder and owner of Ninth Island
Broadcasting, Inc., a company engaged in the development of broadcast
properties.


ITEM 10.  EXECUTIVE COMPENSATION

COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS

     None.

EMPLOYMENT AGREEMENTS AND OTHER COMPENSATION ARRANGEMENTS

     None.

COMPENSATION OF NON-EMPLOYEE DIRECTORS

     None.


ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

<Table>
<Caption>

Name and Address                        Number of shares of   Percent and
of Beneficial Owner                     Beneficial Ownership  Class
--------------------------------------  --------------------  -----------
<S>                                     <C>                   <C>
Rubin Rodriquez
378 North Main, #124
Layton, UT 84061                             10,000,000            97%

Officers and Directors as a Group
--------------------------------------  --------------------  -----------
Rubin Rodriquez
378 North Main, #124
Layton, UT 84061                             10,000,000            97%

</Table>



                                     22

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     During the reported year the Registrant did not enter into any
transactions with management which are to be reported under this Item.


ITEM 13.  EXHIBITS.

     Exhibits.  The following exhibits were filed with this report.

     31. Written statement of Chief Executive Officer and Chief Financial
Officer with respect  to the compliance with Section 302 of the Sarbanes-
Oxley Act of 2002.

     32. Written statement of Chief Executive Officer and Chief Financial
Officer with respect to the compliance with Section 13 (a) and 15(d) of the
Securities Exchange Act of 1934 and pursuant to the 19 U.S.C. 1350, as
adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002.



ITEM 14.  PRINCIPLE ACCOUNTANT FEES AND SERVICES.

Audit Fees

     The aggregate fees billed for professional services rendered by the
Company's principal accountant for the audit of the annual financial
statements included in the quarterly reports and other fees that are
normally provided by the accountant in connection with statutory and
regulatory filings or engagements for the fiscal years ended September 30,
2006 and 2005 were $8,905 and $5,000, respectfully.

Audit-Related Fees

     The aggregate fees billed for assurance and related services by the
Company's principal accountant that are reasonably related to the
performance of the audit or review of the financial statements, other than
those previously reported in this Item 14, for the fiscal years ended
September 30, 2006 and 2005 were $0 and $0, respectfully.

Tax Fees

     The aggregate fees billed for assurance and related services by the
principal accountant for tax compliance, tax advice and tax planning for
the fiscal years ended September 30, 2006 and 2005 were $0 and $0,
respectfully.  Services described above in this Item 14 were approved in
advance by the Board of Directors.

All Other Fees

     The Company's Board of Directors functions as its audit committee.
The total all other fees for the fiscal years ended September 30, 2006 and
2005 were $0 and $0, respectively.  All of the services described above in
this Item 14 were approved in advance by the Board of Directors.



                                     23

                                 SIGNATURES

     Pursuant to the requirements of Section 13 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.

                                   Cardiff Communications, Inc.

                                   /s/ Rubin Rodriquez
                                   --------------------------------------
Dated: January 5, 2007


     Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons of behalf of the
Registrant and in the capacities and on the dates indicated.


SIGNATURE                TITLE                         DATE

/s/ Rubin Rodriquez      President, Director,          January 5, 2007
-------------------      Principal Executive and
                         Financial Officer






                                     24