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**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**FORM      10-QSB**

**QUARTERLY      REPORT UNDER SECTION 13 or 15 (d) **

**OF      THE SECURITIES EXCHANGE ACT OF 1934 **

*Commission      file number 333-63432*

**Atlantic      Wine Agencies Inc. **

| Florida                                          |   | 65-110237                            |
|--------------------------------------------------|--------|--------------------------------------|
| (State                  or other jurisdiction of |   | (I.R.S.                  Employer    |
| incorporation                  or organization)  |   | Identification                  No.) |

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**ITEM      1 FINANCIAL STATEMENTS**

| Description                                                                                                                                                                                                                           | Page                No. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                                                                                                                                                                                                                  |                    |
| FINANCIAL                INFORMATION:                                                                                                                                                                                                 |                    |
|                                                                                                                                                                                                                                  |                    |
| Financial                Statements                                                                                                                                                                                                   |                    |
|                                                                                                                                                                                                                                  |                    |
| Consolidated                Balance Sheets at December 31, 2006(Unaudited)                                                                                                                                                            |  3                 |
|                                                                                                                                                                                                                                  |                    |
| Consolidated                Statement of Operations for the Three Months Ended December 31, 2006                and                2005, and the Nine Months Ended December 31, 2006 and 2005,respectively                (Unaudited) | 4                       |
|                                                                                                                                                                                                                                  |                    |
| Consolidated                Statements of Cash Flows for the Nine Months Ended December 31, 2006                and                2005, respectively (Unaudited)                                                                     | 5                       |
|                                                                                                                                                                                                                                  |                    |
| Notes                to Consolidated Financial Statements (Unaudited)                                                                                                                                                                 | 6                       |

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| CURRENT                  ASSETS                                                                                                                                                                                                                                                                                         |   |   |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|
|    Cash                                                                                                                                                                                                                                                                                                  |   | $      | 13,942     |   |
|    Accounts                  receivable                                                                                                                                                                                                                                                                  |   |   | 194,451    |   |
|    Inventory                                                                                                                                                                                                                                                                                             |   |   | 8,536      |   |
|    Prepaid                  expenses and other                                                                                                                                                                                                                                                           |   |   | 599,115    |   |
|          Total                  Current Assets                                                                                                                                                                                                                             |   |   | 816,044    |   |
| OTHER                  ASSETS                                                                                                                                                                                                                                                                                           |   |   |       |   |
| Property,                  plant and equipment, net                                                                                                                                                                                                                                                                     |   |   | 2,678,722  |   |
| Trademarks,                  net                                                                                                                                                                                                                                                                                        |   |   | 1,426      |   |
|                                                                                                                                                                                                                                                                                                                    |   | $      | 3,496,192  |   |
|                                            LIABILITIES                  AND STOCKHOLDERS' EQUITY |   |   |       |   |
| CURRENT                  LIABILITIES                                                                                                                                                                                                                                                                                    |   |   |       |   |
|    Loans                  from principal shareholders                                                                                                                                                                                                                                                    |   |   | 1,257,663  |   |
|    Accounts                  payable                                                                                                                                                                                                                                                                     |   |   | 297,285    |   |
|    Accrued                  expenses                                                                                                                                                                                                                                                                     |   |   | 321,837    |   |
|    Accrued                  payroll taxes                                                                                                                                                                                                                                                                |   |   | 719        |   |
|          Total                  Current Liabilities                                                                                                                                                                                                                        |   |   | 1,877,504  |   |
| STOCKHOLDERS'                  EQUITY                                                                                                                                                                                                                                                                                   |   |   |       |   |
|    Common                  stock authorized 150,000,000                                                                                                                                                                                                                                                  |   |   |       |   |
|      shares;                  $0.00001 par value; issued                                                                                                                                                                                                                                       |   |   |       |   |
|      and                  outstanding 86,323,880 shares                                                                                                                                                                                                                                        |   |   | 868        |   |
|    Additional                  contributed capital                                                                                                                                                                                                                                                       |   |   | 7,829,536  |   |
|    Accumulated                  other comprehensive income                                                                                                                                                                                                                                               |   |   | 321,530    |   |
|    Accumulated                  deficit                                                                                                                                                                                                                                                                  |   |   | (6,533,246 | ) |
|          Total                  Stockholders' Equity                                                                                                                                                                                                                       |   |   | 1,618,688  |   |
|                                                                                                                                                                                                                                                                                                                    |   | $      | 3,496,192  |   |

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|                                                                                            |   |   | Three                  Months Ended |   |   | Nine                  Months Ended |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|------------------------------------|--------|
|                                                                                            |   |   | December                  31,       |   |   | December                  31,      |   |
|                                                                                            |   |   | 2006                                |   |   | 2005                               |   |   | 2006  |   |   | 2005 |   |
|                                                                                            |   |   |                                |   |   |                               |   |   |   |   |   |   |   |
| NET                  SALES                                                                      |   | $      | 20,577                              |   | $      | 468,723                            |   | $ | 121,176 |   | $ | 1,071,152 |   |
| COSTS                  AND EXPENSES                                                             |   |   |                                |   |   |                               |   |   |   |   |   |   |   |
|    Cost                  of goods sold                                           |   |   | 27,816                              |   |   | 531,866                            |   |   | 79,321 |   |   | 1,060,006 |   |
|    Selling,                  general and administrative                          |   |   | 148,980                             |   |   | 603,924                            |   |   | 318,792 |   |   | 1,513,569 |   |
|    Depreciation                  and amortization                                |   |   | 24,779                              |   |   | 58,581                             |   |   | 75,644 |   |   | 93,969 |   |
|          Total                  Costs and Expenses |   |   | 201,575                             |   |   | 1,194,371                          |   |   | 473,757 |   |   | 2,667,544 |   |
| OTHER                  EXPENSES                                                                 |   |   |                                |   |   |                               |   |   |   |   |   |   |   |
|    Insurance                  claims                                             |   |   |                                |   |   |                               |   |   | (9,505 | ) |   |   |   |
|    Interest                  expense                                             |   |   | 5,539                               |   |   | 256                                |   |   | 6,156 |   |   | 5,391 |   |
|          Total                  Other Expenses     |   |   | 5,539                               |   |   | 256                                |   |   | (3,349 | ) |   | 5,391 |   |
| NET                  LOSS                                                                       |   | $      | (186,537                            | )      | $      | (725,904                           | )      | $ | (349,232 | ) | $ | (1,601,783 | ) |
| NET                  LOSS PER SHARE, basic and diluted                                          |   |   | (0.01                               | )      |   | (0.01                              | )      |   | (0.01 | ) |   | (0.02 | ) |
| Weighted                  average number of common shares outstanding                           |   |   | 86,323,880                          |   |   | 84,838,077                         |   |   | 86,323,880 |   |   | 84,838,077 |   |

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|                                                                                                                       |   | For                  the Nine Months Ended |     |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|
|                                                                                                                       |   | December                  31,              |     |
|                                                                                                                       |   | 2006                                       |     | 2005 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES                                                                      |   |                                       |     |   |   |
|    Net                  loss for period                                                                     |   | $                                          | (349,232 | ) | $ | (1,601,783 | ) |
|    Non-cash                  item included in net loss:                                                     |   |                                       |     |   |   |   |   |
|      Depreciation                  and amortization                                               |   |                                       | 75,644   |   |   | 93,969 |   |
|      Provision                  for doubtful accounts                                             |   |                                       | 75,600   |   |   |   |   |
|   Changes                  in operating assets and liabilities:                                                  |   |                                       |     |   |   |   |   |
|      Accounts                  receivable                                                         |   |                                       | 237,014  |   |   | (570,623 | ) |
|      Inventory                                                                                    |   |                                       | (274,623 | ) |   | 1,142,800 |   |
|      Receivable                  from officer                                                     |   |                                       | 48,761   |   |   |   |   |
|      Prepaid                  and other                                                           |   |                                       | 606      |   |   | 43,960 |   |
|      Accounts                  payable                                                            |   |                                       | 23,060   |   |   | 110,071 |   |
|      Accrued                  expenses                                                            |   |                                       | 76,091   |   |   | (113,752 | ) |
|      Accrued                  payroll taxes                                                       |   |                                       | (25,207  | ) |   | (65,181 | ) |
|            Net                  Cash Used In Operating Activities   |   |                                       | (161,047 | ) |   | (911,778 | ) |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                                                                      |   |                                       |     |   |   |   |   |
|    Purchase                  of property, plant and equipment                                               |   |                                       |     |   |   | 87,831 |   |
|          Net                  Cash Provided by (Used in) Investing Activities |   |                                       |     |   |   | 87,831 |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                                                                      |   |                                       |     |   |   |   |   |
|    Disposal                  of fixed assets                                                                |   |                                       | 191,316  |   |   |   |   |
|    Due                  from factoring agent                                                                |   |                                       | (99,595  | ) |   | 267,221 |   |
|    Loans                  from shareholders                                                                 |   |                                       | (2,200   | ) |   |   |   |
|    Net                  capital contribution                                                                |   |                                       |     |   |   | 505,228 |   |
|    Due                  from Dominion                                                                       |   |                                       |     |   |   | (344,381 | ) |
|          Net                  Cash Provided by Financing Activities           |   |                                       | 89,521   |   |   | 428,068 |   |
| EFFECT                  OF RATE CHANGE ON CASH                                                                             |   |                                       | 7,323    |   |   | 324,214 |   |
| NET                  DECREASE IN CASH                                                                                      |   |                                       | (64,203  | ) |   | (71,665 | ) |
| CASH                  AND CASH EQUIVALENTS AT                                                                              |   |                                       |     |   |   |   |   |
|     BEGINNING                  OF PERIOD                                                               |   |                                       | 78,145   |   |   | 97,487 |   |
| CASH                  AT END OF PERIOD                                                                                     |   | $                                          | 13,942   |   | $ | 25,822 |   |

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**Item      2. **
**Management’s      Discussion and Analysis of Financial Condition and Results of      Operation**

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**RESULTS      OF OPERATIONS **

**LIQUIDITY      AND CAPITAL RESOURCES **

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES **

**RECENTLY      ISSUED ACCOUNTING PRONOUNCEMENTS **

*"Accounting      for Certain Instruments with Characteristics of Both Liabilities and      Equity."*

*"Accounting      for Stock-Based Compensation - Transition and Disclosure - an Amendment to      FASB      Statement No. 123."*
*"Accounting      for Stock-Based Compensation,"*

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES **

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**Item      3. Controls and Procedures.**

**PART      II**

**Item      1. Legal Proceedings**

**Item      2. Changes in Securities**

**Item      3. Defaults Upon Senior Securities **

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

**Item      5. Other Information **

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

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**SIGNATURES**

**ATLANTIC      WINE AGENCIES INC.**

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