UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB/A (Amendment No. 1)  (Mark One) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2006  [   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ____________ to ________________  Commission file number 000-30239   UNICO, INCORPORATED(Exact name of small business issuer as specified in its charter)  Arizona86-0205130(State or other jurisdiction of incorporation or organization)(I.R.S. Employer
Identification No.)  8880 Rio San Diego Drive, 8th Floor, San Diego, California 92108 (Address of principal executive offices)  (619) 209-6124 (Issuer's telephone number)  N/A (Former Name, former address and former fiscal year, if changed since last report)  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [   ]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [   ] No [X]   APPLICABLE ONLY TO CORPORATE ISSUERS  State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  As of July 17, 2006, the issuer had outstanding 49,340,965 post-reverse split shares of its common stock, $0.001 par value per share.  Transitional Small Business Disclosure Format Yes [  ]  No [ X  ]    Unless otherwise indicated, the information in this quarterly report on Form 10-QSB/A gives effect to the 1-for-100 reverse stock split of Unico, Incorporateds common stock, par value $0.001 per share (the Common Stock) effected on August 11, 2006.  Explanatory Note:This amendment to the Companys Form 10-QSB originally filed on July 24, 2006 for the quarter ended May 31, 2006 corrects clerical errors.  Refer to Note 2 to the consolidated financial statements in Item 1 of this Form 10-QSB/A for a discussion of the nature of the errors and the impact of the errors on the restated consolidated financial statements.     PART I - FINANCIAL INFORMATION   Item 1. Financial Statements.       UNICO, INCORPORATED AND SUBSIDIARIES FINANCIAL STATEMENTS  MAY 31, 2006       2   UNICO, INCORPORATED AND SUBSIDIARIESConsolidatedBalance SheetASSETSMay 31,2006(Unaudited)
(Restated)Current AssetsCash$282,686Total Current Assets
  282,686Equipment, Net
  704,358Mill construction in progress
  287,200Total Equipment
  991,558Other AssetsCash- reclamation bonds
  179,095Deposit
  5,460Total Other Assets
  184,555Total Assets$1,458,799LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current LiabilitiesAccounts Payable$310,477Accrued Expenses
  226,935Accounts Payable - related party
  116Notes Payable - related party
  7,000Reclamation obligations
  49,348Accrued interest payable
  183,934Accrued interest payable - related party
  87,125Derivative Liability
  3,938,471Debentures payable, net of discount
  960,763Debentures payable-related party
  675,774Total Current Liabilities
  6,439,943Total Liabilities
  6,439,943Stockholders' Equity (Deficit)Preferred Stock, authorized 20,000,000 shares, $0.001 Par Value, 9,800,000 shares issued and outstanding
  9,800Common Stock,  authorized 5,000,000,000 shares, $0.001 Par Value, 49,340,965 shares issued and outstanding
  49,341Additional Paid in Capital
  28,188,589Accumulated Deficit
  (33,228,874)Total Stockholders' Equity (Deficit)
  (4,981,144)Total Liabilities and Stockholders' Equity (Deficit)$1,458,799The accompanying notes are an integral part of these consolidated financial statements.  3   UNICO, INCORPORATED AND SUBSIDIARIESConsolidatedStatements of Operations(Unaudited)For the Three Months Ended
May 31,2006
(Restated)2005Sales of precious minerals$-$-Total Revenues--Operating ExpensesSalaries and wages102,790114,663Drilling, exploration and maintenance expense81,837235,468Depreciation and accretion29,90828,742Professional fees59,70619,678General and Administrative expense187,836121,400Total Operating Expenses462,077519,951Net Operating (Loss)(462,077)(519,951)Other Income (Expense)Interest Income (Expense)(688,917)(503,487)Loss on Settlement of debt(5,192,860)-Derivative gain (loss) on debentures(333,525)341,920Other income-19,386Total Other Income (Expense)(6,215,302)(142,181)LOSS FROM CONTINUING OPERATIONS(6,677,379)(662,132)Income Tax Expense--Net (Loss)$(6,677,379)$(662,132)Net (Loss) Per Share$(0.23)$(0.13)Weighted Average Shares Outstanding29,494,3734,984,279The accompanying notes are an integral part of these consolidated financial statements.  4   UNICO,  INCORPORATED AND SUBSIDIARIESStatement of Stockholders' Equity (Deficit)AdditionalRetainedPreferred StockCommon StockPaid-inEarningsSharesAmountSharesAmountCapital(Deficit)Balance, February 28, 20069,800,000
  $       9,800
  6,722,636
  
  $            6,723
  
  21,128,763
  $   (26,551,495)S-8 Stock issued for legal expenses  (unaudited)-
  -
  100,000
  100
  
  17,400
  -Derivative portion of convertible debentures (unaudited)-
  -
  -
  -
  
  927,083
  -Stock issued for conversion of debentures (unaudited)-
  -
  42,518,329
  42,518
  
  6,115,343
  -Net (Loss) for period ended May 31, 2006 (unaudited)-
  -
  -
  -
  
  -
  (6,677,379)Balance, May 31, 2006 (unaudited)(restated)
  9,800,000
  $       9,800
  49,340,965
  $         49,341
  
  $  28,188,589
  $  (33,228,874)The accompanying notes are an integral part of these consolidated financial statements.  5


UNICO, INCORPORATED AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Unaudited)For the Three Months Ending
May 31,2006
  2005(Restated)Cash Flows from Operating Activities:Net Income (Loss)$(6,677,379)$(662,132)Adjustments to Reconcile Net Loss to Net Cash Provided by Operations:Depreciation and accretion expense
  29,908
  28,742Financing cost related to convertible  debentures
  5,192,860
  503,487Derivative expense related to convertible
 
 debentures
  973,037
  (341,920)Common Stock issued for services
  17,500
  (14,284)Common Stock issued for interest
  40,000
  -Changes in Operating Assets and Liabilities:(Increase) Decrease in:Reclamation deposit
  220
  37,177Increase (Decrease) in:Accounts Payable and other liabilities
  (609,454)
  137,515Net Cash Used by Operating   Activities
  (1,033,308)
  (311,414)Cash Flows from Investing Activities:Purchase of Fixed Assets
  (338,514)
  -Net Cash Used by Investing  Activities
  (338,514)
  -Cash Flows from Financing Activities:Increase in bank overdraft
  -
  11,414Proceeds from stock payable
  -
  50,000Proceeds from convertible debentures
  1,625,000
  250,000Net Cash Provided by Financing Activities
  1,625,000
  311,414Increase in Cash
  253,178
  -Cash at Beginning of Period
  29,508
  -Cash at End of Period$
  282,686$
  -Cash Paid For:Interest$-$-Income Taxes$-$-Non-Cash Financing Activities:Common stock issued for services$17,500$-Common Stock issued for debt
  extinguishments$925,000$-The accompanying notes are an integral part of these consolidated financial statements.   6   UNICO, INCORPORATED Notes to the Consolidated Financial Statements May 31, 2006 and May 31, 2005  NOTE 1  NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING PRINCIPLES This summary of significant accounting policies of Unico, Incorporated is presented to assist in understanding the Company's consolidated financial statements. The consolidated financial statements and notes are representations of the Company's management who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the consolidated financial statements.  These financial statements should be read in conjunction with the Companys Form 10-KSB for the year ended February 28, 2006. a. Organization and Business Activities  The Company presently has three wholly-owned subsidiaries: Deer Trail Mining Company, LLC, Silver Bell Mining Company, Inc., and Bromide Basin Mining Company, LLC.  While the Company reported under the Investment Company Act as a Business Development Company, the operations of these entities were not consolidated but, rather, were treated as investments and were carried on the Companys books at their fair market value.  As a result of the Companys withdrawal as a BDC, the equity method of accounting is now appropriate.  As a result, the accompanying consolidated financial statements are those of the Company and its wholly owned subsidiaries, Deer Trail Mining Company, LLC, Silver Bell Mining Company, Inc. and Bromide Basin Mining Company, LLC.  b. Fixed Assets  Fixed assets are depreciated on a straight-line basis over five years.  Fixed assets are recorded at cost. Major additions and improvement are capitalized. The cost and related accumulated depreciation of equipment retired or sold are removed from the accounts and any differences between the undepreciated amount and the proceeds from the sale are recorded as gain or loss on sale of assets.  Fixed Asset Schedule2006Fixed Assets:Office/ computers$2,352Equipment1,110,505Land200,000Autos54,923Mill construction in progress287,200Total$1,654,980Less Depreciation(663,422)Total Equipment$991,558  c. Accounting for Derivatives  Convertible debentures, the Companys sole derivative instruments, are accounted for under EITF 00-27 unless liability classification of the derivative is more appropriate.  Where the embedded conversion option appears to qualify for liability classification, derivatives are accounted for under EITF 00-19.  Under EITF 00-27, the Company records a beneficial conversion cost associated with the convertibility feature of the security that equals the value of any discount to market available at the time of conversion.  This beneficial conversion cost is recorded at the time the convertible security is first issued.  If the debenture is subsequently converted into stock, the liability is reduced and common stock is increased.  7   EITF 00-19 is applicable to debentures issued by the Company in instances where the number of shares into which a debenture can be converted is not fixed.  For example, when a debentures converts at a discount to market based on the stock price on the date of conversion.  In such instances, EITF 00-19 requires that the embedded conversion option of the convertible debentures be bifurcated from the host contract and recorded at their fair value.   In accounting for derivatives under EITF 00-19, the Company records a liability representing the estimated present value of the conversion feature considering the historic volatility of the Companys stock, and a discount representing the imputed interest associated with the beneficial conversion feature.  The discount is then amortized over the life of the debentures and the derivative liability is adjusted periodically according to stock price fluctuations.  At the time of conversion, any remaining derivative liability is charged to additional paid-in capital.  For purposes of determining derivative liability, the Company uses Black-Scholes modeling for computing historic volatility.  d. Change In Accounting Practices  Withdrawal as a Business Development Company  On July 12, 2004, Unico filed an election with the U.S. Securities and Exchange Commission to become a business development company pursuant to Section 54 of the Investment Company Act of 1940.  On August 1, 2005, the Board of Directors unanimously approved the proposal to withdraw the Companys election to be treated as a business development company (BDC) as soon as practicable so that it could begin conducting business as an operating company rather than as a business development company subject to the Investment Company Act.  On October 11, 2005, the holders of a majority of the outstanding shares of the Companys common stock approved the proposal to withdraw the Companys election to be treated as a BDC, and on October 12, 2005, a Notification of Withdrawal was filed with the Securities and Exchange Commission.  The change in the Companys status eliminates the Companys ability to utilize the Regulation E exemption for selling stock that is available to BDCs.  Significant change in method of accounting  The election to withdraw the Companys election as a BDC under the Investment Company Act has resulted in a significant change in the Companys required method of accounting. Investment Company financial statement presentation and accounting utilizes the value method of accounting for recording ownership in portfolio or subsidiary companies.  This treatment requires that BDCs value their investments at market value as opposed to historical cost.  With the Companys withdrawal from the Investment Company Act, the required financial statement presentation and accounting for securities held will be either the equity method or historical cost method of accounting, depending on the classification of the investment and the Companys ownership percentage.  Effect  As an operating company, the Company must consolidate its financial statements with subsidiaries, thus eliminating the portfolio company reporting benefits available to BDCs. As a result, in accordance with FAS 154, the accompanying financial statements have been presented on an operating and consolidated basis for all periods presented on a retrospective basis.  The effect to the statement of operations for the prior period based on the consolidated comparison are as follows:  The statement of operations for the quarter ended May 31, 2005 has been adjusted to include the subsidiaries of Deer Trail, Silver Bell and Bromide which were included only as portfolio companies in the May 31, 2005 quarterly report.  As a result, operating expenses increased by $345,423.  This increase was partially offset by a gain on derivatives of $341,920.  In addition, interest expense increased $162,501 and the decline in investments decreased $219,738.  As a result of this consolidation the net loss for the quarter ended May 31, 2005 decreased $53,734 from $687,123 to $633,389.  NOTE 2  RESTATEMENT OF FINANCIAL STATEMENTS  Unico has restated its unaudited May 31, 2006 financial statements to correct clerical errors.  The restatement resulted in an increase in cash of $110,236 from $172,450 to $282,686, a decrease in equipment of $5,999 from $710,357 to $704,358, an increase in accounts payable of $25,801 from $284,676 to $310,477, a decrease in accrued interest payable of $40,001 from $311,060 to $271,059, an increase in common stock of $25,000 from $4,909,098 to $4,934,098, an increase in additional paid in capital of $15,000 from $23,288,831 to $23,303,831, a decrease in total operating expenses of $79,236 from $541,313 to $462,077, an increase in common stock issued for interest of $40,000 from $0 to $40,000. The error also has the effect of decreasing the net loss for the period ending May 31, 2006 from $6,756,615 to $6,677,379.   8   NOTE 3   CONVERTIBLE DEBENTURES  During the quarter ended May 31, 2006, the Company issued $1,625,000 of convertible debentures that were used primarily to support subsidiary operations.  The debentures were issued with terms of 180 days, accrued interest at 8% per annum, and converted at a discount of 50% of the closing bid for the Companys common stock on the date of conversion.  At February 28, 2006, the Company previously had $2,205,774 in debentures issued and outstanding.  During the quarter ended May 31, 2006, the Company converted $925,000 of convertible debentures and issued 42,518,329 post-reverse split shares of free-trading common stock.  As a result of these transactions, the Company recorded a loss on settlement of debt of $5,192,680 for the quarter ended May 31, 2006 and recorded a loss of $333,525 on the derivative portion of the debentures.   As of May 31, 2006, the Company had $2,905,774 in convertible debentures issued and outstanding.  NOTE 4  RELATED PARTY TRANSACTIONS  During 2004, the Company executed convertible debentures with Ray C. Brown, Director and former Chief Executive Officer, and Wayne Hartle, Secretary, for $675,774.  These debentures bear interest at the rate of 10% per annum, convert at a discount of 80% of closing bid price on the date of conversion, and are now due and payable though demand for payment has not been made.  The Company has recorded the debentures as current liabilities and has accrued interest on those debentures of $71,108 as of May 31, 2006.  During the quarter ended May 31, 2006, the Company issued 150,000 post-reverse split shares of restricted common stock to Ray Brown for payment of $47,680 of interest due on convertible debentures. Accrued interest-related party was decreased as a result.  NOTE 5  COMMON STOCK As of May 31, 2006, the Company had 49,340,965 post-reverse split shares of common stock issued and outstanding with 4,950,659,035  shares authorized but unissued. During the quarter ended May 31, 2006 the Company issued 42,518,329 post-reverse split shares of free trading common stock under a court ordered settlement agreement as consideration for the conversion of $925,000 in debentures that had become due.  These shares were issued pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended, after a hearing with notice to, and an opportunity to be heard form, interested parties, as to the fairness of each transaction, by a state court in Florida who specifically determined, prior to declaring that the transactions were exempt under Section 3(a)(10), that the transactions were fair to the interested parties.  During the quarter ended May 31, 2006, the Company issued 150,000 post-reverse split shares of restricted common stock to Ray Brown for payment of $47,680 of interest due on convertible debentures. Accrued interest-related party was decreased as a result.  On March 2, 2006, the Company issued 100,000 post-reverse split shares to an attorney as payment for services.  The shares were issued under an S-8 registration statement.  Stock Options  A summary of the Companys outstanding stock options as of May 31, 2006, including all changes during the current fiscal quarter is presented below:  SharesWeighted Average Exercise PriceBalance at February 28, 200620,000*$                     0.10Granted--Canceled--Exercised--Expired20,000*0.10Outstanding, May 31, 2006-$                    -Exercisable, May 31, 2006-$                    - *post-reverse split  9   NOTE 6  LEGAL MATTERS  On December 13, 2005, the Company executed a Release and Settlement Agreement with Connors Drilling LLC in regards to a civil suit filed by Connors for payment of prior services performed.  Under the terms of the settlement, the Company agreed to pay Connors a total of $91,727, which included interest and legal fees.  During the quarter ended May 31, 2006, the Company paid the remaining balance of $45,939.60.  From September 30, 2004 through March 31, 2005 Unico issued convertible debentures (Debentures) aggregating $625,000 to Reef Holding, Ltd. and $467,500 to Kentan Limited Corp. that were unpaid, and in default, as of February 9, 2006.  The holders of the convertible debentures had assigned portions of the Debentures to Blue Marble Investments, Outboard Investments, Umbrella Holdings and Yanzu, Inc.  Because Unico, Incorporated failed to pay the Debentures when due, a total of ten (10) lawsuits were filed by these Debenture holders against Unico, Incorporated in the Twelfth Circuit (State) Court in Florida (Case Nos. 2006-CA-003385-NC, 2006-CA-001230-NC, 2006-CA-001825-NC, 2006-CA-003067-NC, 2006-CA-001229-NC, 2006-CA-002111-NC, 2006-CA-002597-NC, 2006-CA-003068-NC, 2006-CA-004264-NC and 2006-CA-003851-NC).   The Debentures provided that the principal amount and accrued interest were convertible, at the option of the holders of the Debentures, into Unicos common stock at a price per share equal to 50% of the closing bid price of Unicos common stock as quoted on the OTC Bulletin Board on the immediately preceding trading day prior to the notice of conversion.  Unico agreed to settle each action by issuing shares of its common stock to the plaintiffs using a valuation of approximately 14% to 20% of the then existing bid price of Unico, Incorporated common stock.  These shares were issued pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended, after a hearing with notice to, and an opportunity to be heard from, interested parties, as to the fairness of each transaction, by a state court in Florida which specifically determined, prior to declaring that the transactions were exempt under Section 3(a)(10), that the transactions were fair to the interested parties. During the quarter ended May 31, 2006, in connection with the exercise of conversion rights by the holders of the Debentures and pursuant to the litigation settlements, Unico issued an aggregate of 42,518,329 post-reverse split shares of its common stock in settlement of debentures totaling $925,000.  NOTE 7  GOING CONCERN  The Companys financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has incurred losses of $33,228,873 from its inception through May 31, 2006.   It has not established any revenues with which to cover its operating costs and to allow it to continue as a going concern.  During the next 12 months, the Companys plan of operation is to raise approximately $5,000,000 for investment into its subsidiary companies: Deer Trail Mining Company, Bromide Basin Mining Company and Silver Bell Mining Company.  The funds are intended for the following purposes:  § Ship core samples taken from the completed 2nd phase of exploratory drilling at the Deer Trail Mine and have them analyzed/certified by an independent lab; § Continue sampling and testing ore from the Deer Trail Mine to evaluate the most efficient means to conduct future mining and milling activities; § Increase mining and milling activities at the Deer Trail Mine; § Upgrade the mine infrastructure at the Deer Trail Mine; § Continue to upgrade and complete the re-construction project on the existing mill at the Deer Trail Mine; § Acquire a pilot mill to accommodate temporary production of concentrates to PGM Company while upgrades are made to the existing mill at the Deer Trail Mine; § Upgrade the screening plant and crushing facilities at the upper Deer Trail Mine and resume processing the ore dumps; § Acquire new mining equipment and vehicles to improve operations at the Deer Trail Mine; § Conduct an extensive preproduction feasibility study at the Bromide Basin Mine prior to any additional mining production and analyze the potential of the claims before exercising its purchase option from Kaibab Industries; § Exercise the purchase option or extend the Bromide Basin Mine lease; § Commence an exploration and resource definition program at the Silver Bell Mine beginning in Spring/Summer, 2006; and § Exercise or extend an option to purchase the Deer Trail Mine for $3,000,000.  10   Accomplishing the 12-month plan of operations is dependent on the Company raising approximately $5,000,000 in equity and/or debt financing during the next 12 months.  The Companys cash as of July 17, 2006 will sustain operations for approximately 60 days.  NOTE 8  SUBSEQUENT EVENTS  Subsequent to May 31, 2006, Deer Trail Mining Company entered into an agreement with Joel Johnson to acquire options on the Clyde, Clyde Intermediate and Crown Point claims.  The options are for two years, with options to extend the claims, and allow Deer Trail to mine the claims and prove mineral reserves.  Under the terms of the Agreement, Deer Trail paid an initial down payment of $31,000 with $4,000 due in the second year of the option.  Additionally, Deer Trail will pay 3% of the gross sale proceeds from the sale of any ore or mineral resources extracted from the claims.  Subsequent to May 31, 2006, the Companys subsidiary, Deer Trail Mining Company, entered into an agreement to acquire 70 additional claims covering 1,500 acres in Piute County Utah for the purpose of exploration, and mining activities.  In consideration for the rights under the agreement, the Deer Trail Mining Company agreed to pay the lease holder an amount equal to three percent of the gross sales proceeds from all ore, concentrates, and all other productions of mineral resources extracted from the claims.  Subsequent to May 31, 2006, the Company executed two new convertible debentures of $250,000 each with a third party.  The debentures can be converted at a 50% discount to the closing bid price on the date of conversion and are due and payable six months from the date of issuance, September 7, 2006 and October 2, 2006, respectively.  Effective August 11, 2006, the Companys common stock underwent a 1 for 100 reverse stock split.  As a result, the number of outstanding shares of the Companys common stock as of August 11, 2006 decreased from approximately 4,954,096,450 pre-reverse split shares to 49,540,965 post-reverse split shares.  Share figures appearing in this report are generally expressed in numbers of post-reverse split shares, unless otherwise noted.   11   Item 2. Management's Discussion and Analysis or Plan of Operation.  Forward-Looking Statements.  When used in this Form 10-QSB/A, the words "expects", "anticipates", "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These forward-looking statements speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.  ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB/A REFLECT MANAGEMENT'S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY MATERIALLY.  General Information Regarding Unico and its Operations.  Unico, Incorporated (the Company, Unico or UNCN) an Arizona corporation, was formed as an Arizona corporation on May 27, 1966. It was incorporated under the name of Red Rock Mining Co., Incorporated. It was later known as Industries International, Incorporated and I.I. Incorporated before the name was eventually changed to Unico, Incorporated in 1979. On July 12, 2004, Unico filed an election with the U.S. Securities and Exchange Commission to become a business development company (BDC) pursuant to Section 54 of the Investment Company Act of 1940.   On August 1, 2005, the Board of Directors unanimously approved a proposal to withdraw the Companys election to be treated as a business development company as soon as practicable so that Unico could begin conducting business as an operating company rather than as a business development company subject to the Investment Company Act.  On October 11, 2005, a Special Meeting of the Unico shareholders was held to consider and vote upon a proposal to authorize the Companys Board of Directors to withdraw the Companys election to be treated as a BDC and the proposal was approved.  On October 12, 2005 a Notification of Withdrawal was filed with the Securities and Exchange Commission so that Unico could begin conducting business as an operating company rather than as a BDC subject to the Investment Company Act. The mining operations at the Deer Trail Mine have been conducted through Unico's subsidiary, Deer Trail Mining Company, LLC (Deer Trail Mining Company or DTMC) since soon after DTMC was formed in late June, 2004. The mining operations at the Bromide Basin Mines have been conducted through Unico's subsidiary, Bromide Basin Mining Company, LLC (Bromide Basin Mining Company or "BBMC") since soon after BBMC was formed in late June, 2004. Future mining operations at the Silver Bell Mine will be conducted through Unico's subsidiary, Silver Bell Mining Company, Inc. ("SBMC"). Deer Trail Mining Company, LLC  On March 30, 1992, Unico, Incorporated entered into a Mining Lease and Option to Purchase agreement with Deer Trail Development Corporation, with headquarters in Dallas, Texas. Deer Trail Development Corporation is now known as Crown Mines, L.L.C. The lease was to run for a period of 10 years, and cover 28 patented claims, 5 patented mill sites and 171 unpatented claims located approximately 5 miles South of Marysvale, Utah. It includes mine workings known as the Deer Trail Mine, the PTH Tunnel and the Carisa and Lucky Boy mines. There are no known, proven or probable reserves on the property.  Effective December 1, 2001, a new lease agreement was entered into between the parties covering the same property for a period of thirty (30) months. It was subsequently extended through August 31, 2005 through a Modification of Mining Lease and Option to Purchase dated May 31, 2004. A Second Modification of Mining Lease and Option to Purchase (the Deer Trail Lease) was executed by the parties on April 21, 2006, and Unico paid $237,787 at that time to Crown Mines, L.L.C.  The Deer Trail Lease provides for monthly rental payments of $10,000 beginning July 1, 2006, and it also obligates Unico to pay BLM fees and property taxes for the assessment year September 1, 2006 through August 31, 2007.  It provides for a minimum royalty percentage rate for gold produced from the claims which varies from 3% for gold priced at $500 or less per troy ounce, 4% for gold priced at greater than $500 but less than or equal to $600 per troy ounce, and 5% for gold priced at greater than $600 per troy ounce.  It obligates Unico to file a registration statement with the Securities and Exchange Commission for the purpose of raising money from the sale of Unico stock to be used to exercise the purchase option to purchase the Deer Trail Mine.  It extends the purchase option until the earlier of:  November 1, 2006 or the tenth business day after the registration statement is declared effective.  The Deer Trail Lease now terminates when the purchase option expires.  12    In August 2006, Deer Trail Mining Company entered into an agreement with Joel Johnson to acquire options on the Clyde, Clyde Intermediate and Crown Point claims.  The options are for two years, with options to extend the claims, and allow Deer Trail to mine the claims and prove mineral reserves.  Under the terms of the Agreement, Deer Trail paid an initial down payment of $31,000 with $4,000 due in the second year of the option.  Additionally, Deer Trail will pay 3% of the gross sale proceeds from the sale of any ore or mineral resources extracted from the claims.  Following the formation of the Deer Trail Mining Company in June 2004, Unico assigned all of the various assets, liabilities and operations associated with the Deer Trail Mine to Deer Trail Mining Company which has assumed responsibility for making payments under the Deer Trail Lease.  Since June 2004 Deer Trail Mining Company has assumed operations, ownership and management control of the Deer Trail Mine.  Deer Trail Mining Company presently has seven full time employees, one part time employee and consultants.  The necessary permits to commence mining activities at the Deer Trail Mine have been acquired, provided that the surface disturbance from the mining activities does not exceed 10 acres for both mine and mill. In early 2005, Unico and Deer Trail Mining Company, received approval of the company's Large-Scale Mining Permit for the Deer Trail Mine in Marysvale, Utah. The State of Utah's Division of Oil, Gas and Mining granted approval of the company's application to expand its existing small mining project to a large mining operation, which is expected to significantly increase the area of mining activity and the capacity of the company's mill at the Deer Trail Mine. This Large-Scale permit takes the place of the previous two Small-Scale permits described above.  In 2004, Unico filed to obtain a construction permit with the State of Utah Department of Environmental Quality (both the Utah Division of Air Quality and the Utah Division of Water Quality) for the Deer Trail Mine tailings impoundment pond no. 2.  Unico worked for more than two years to reopen the Deer Trail Mine.  Unico commenced mining activities in late March or early April 2001 on the Deer Trail Mine.  To date, the mining activities have been fairly limited.  There have been between 2 and 5 miners at various times working full time in the Deer Trail Mine both on mine development work and production work until approximately October 2003.  Their efforts were concentrated in the 3400 Area of the mine, from which they removed approximately 1,000 tons of ore per month.  The ore has been stock-piled and some of it has been crushed.  Some of the employees have worked on mine maintenance.  Unico completed a mill on site at the Deer Trail Mine. In November 2001, Unico began milling activities. Unico started screening and crushing ore dumps on the upper Deer Trail Mine and moved the materials to the ball mill.  Currently the Deer Trail Mining Company is reconstructing the mill to enhance productivity and efficiency.  The Deer Trail Mining Company has temporarily suspended screening and crushing ore at the Deer Trail Mine to accommodate a construction project to upgrade the screening plant and crushing facility.  We believe that there are a variety of mining companies and other mineral companies that are potential purchasers for the lead concentrates, zinc concentrates and other concentrates which we intend to sell as the end product from our Deer Trail Mine mining and milling operations. The concentrates can be transported by either rail or truck, and there are a variety of trucking companies that are willing and able to transport concentrates to smelters or other places designated by purchasers.  In September 2004, Deer Trail Mining Company completed its first phase of exploratory drilling at the Deer Trail Mine.  The Deer Trail Mining Company contracted Lang Exploratory Drilling to complete the phase of drilling.  Lang completed a total of 3,653 feet of reverse circulation drilling and finished 28 drill holes at specified targets located on the Upper Deer Trail Mine.  741 samples were safeguarded by Lang Exploratory Drilling during this phase and shipped to ALS Chemex at its Elko, Nevada facility for independent lab verification and analysis.  13   The first phase of exploration drilling was designed to identify near surface deposits, determine potential resources and define limits of mineralization south of the main ore channel mined at the Upper Deer Trail Mine. Historical data of the workings was sufficient to delineate the grade of mineralization remaining in the stopes, but no data was available to delineate the grade of mineralization outside the workings or how far that mineralization flowed into the surrounding formations. The initial phase of reverse circulation drilling serves as an adequate means to define the limits of mineralization south of the main ore channel, which is situated in the lower Toroweap formation, along the crest and down the northeast limb of the Deer Trail anticline. This phase of drilling was accomplished with lower cost reverse circulation drill holes in order to establish the presence of mineralization at the Upper Deer Trail area. Once the limits of mineralization are established, work can begin to further define those zones by diamond core drilling. This initial phase of drilling is considered merely a starting point in generating data for pre-feasibility and feasibility studies for the Deer Trail Mine operations. The most upper holes RC-1 through RC-7 were placed well above the elevation of the known workings of the No. 2 Tunnel and slightly south of the northwesterly trending ore channel. Significant mineralization was intercepted in holes RC-1 and RC-2, which were drilled in the area closest to the main ore channel. Drill holes RC-5, 6, 8, 9, 13 and 14 were all drilled well south of the historically delineated mineralization, and on the southern most up-side of a post mineral fault. It can be concluded that mineralization intercepted in these holes is not directly related to the mineralization of the main Upper Deer Trail ore channel. HoleIntervalGoldSilverLeadZincfrom - to     (ft)(grams/troy oz.)(grams/
Troy oz.)(%)(%)RC-1190  230      400.20710.980.3550.205RC-240 - 45          50.36495.363.610.390Includes175 - 180      50.36945.712.871.41RC-1065 - 95        300.36316.480.0860.022RC-1160 - 70       101.3652.250.7580.191Includes65 - 70         52.2632.690.9610.289RC-1285 - 90         50.460137.143.941.00RC-1755 - 65        100.79913.020.0330.012RC-1845 - 50        51.5440.770.1540.018RC-190  140      1400.52714.650.1160.107Includes35 - 45       102.6414.110.8401.26Includes35 - 40       54.6621.151.302.14 Includes
  75 - 120    45
  0.930
  34.86
  0.135
  0.021Includes
  95 - 105   10
  3.17
  88.63
  0.303
  0.019Includes
  100 - 105       5
  4.78
  151.02
  0.682
  0.008RC-20
  95  100        5
  1.92
  62.02
  0.218
  0.030RC-21
  95 - 110      15
  0.899
  74.29
  0.145
  0.014RC-22
  110 - 120     10
  1.77
  18.14
  0.074
  0.024Includes
  115 - 120     5
  3.25
  27.52
  0.079
  0.014  14   In early 2005, Deer Trail Mining Company contracted with Connors Drilling to commence an underground diamond core drill program.  This 2nd phase of exploratory drilling inside the PTH Tunnel of the Deer Trail Mine has been completed. The Phase II underground diamond core drilling program was primarily designed to target known horizons of mineralization and identify new mineralized horizons throughout the main ore channel of the Deer Trail Mine. The Company completed 7,235 feet of diamond core drilling and finished 13 underground drill holes.  According to preliminary reports by the Companys geologist, all of the holes drilled were reported to intersect mineralization within their designated targets. That report states that a total of approximately 514 feet of mineralization was intersected and consisted mostly of sulfide minerals (e.g. tetrahedrite, galena, pyrite, chalcopyrite and sphalerite). Other intercepts were encountered through oxidized mineral not reported in this total, as well as zones of subtly altered rock that may contain high mineral values and offer significant potential. The company is now working on final independent core logging and splitting verification. Once complete, it plans to ship its core samples to an independent lab for analysis.  On August 31, 2005, Deer Trail Mining Company entered into a five-year purchase contract with PGM, LLC of Los Angeles under which PGM
will purchase precious metal bearing concentrates from the Deer Trail processing
center.  Most sales will not occur until the mill processing center is complete
at the Deer Trail Mine. PGM has advanced Deer Trail Mining Company $25,000 for an initial shipment of concentrates that will be produced on a pilot plant basis.  Silver Bell Mining Company, Inc.  Silver Bell Mining Company, Inc. was incorporated in the State of Utah on April 26, 1993. It has acquired 26 patented mining claims located in American Fork Canyon, Utah County, Utah, which is organized into three separate parcels. The claims contain mining properties that have not been mined for production since 1983. The properties were mined primarily for silver, lead and zinc. There are no known, proven or probable reserves on the property.  Silver Bell Mining Company conducted some exploration work on the Silver Bell Mine through 2004. Silver Bell Mining Company plans to commence an exploration and resource definition program at the Silver Bell Mine beginning in Summer, 2006.  Silver Bell Mining Company may also seek a joint venture mining partner to jointly develop the Silver Bell Mine.  Silver Bell Mining Company anticipates that any ore mined from the Silver Bell Mine will be transported to the Deer Trail Mine site where it will be crushed and milled.  Bromide Basin Mining Company, LLC  On July 20, 2001, Unico entered into a Mining Lease and Option to Purchase with Kaibab Industries, Inc., an Arizona corporation. The parties then entered into a Revised Mining Lease and Option to Purchase in April 2003 (the "Revised Kaibab Mining Lease").  Following the formation of the Bromide Basin Mining Company in June 2004, Unico assigned all of its assets, liabilities and operations associated with the Bromide Basin Mines to Bromide Basin Mining Company. A Second Revised Mining Lease and Option to Purchase was entered into with Bromide Basin Mining Company in May 2005 which expired November 1, 2005.   Effective May 1, 2006, the parties entered into a Third Revised Mining Lease and Option to Purchase (the Third Revised Mining Lease).  At that time Unico paid approximately $63,592 to Kaibab Indutries, Inc. for past due lease payments, taxes and BLM fees.  Under the Third Revised Mining Lease, Kaibab Industries, Inc. has leased to Bromide Basin Mining Company certain mining claims located in the Henry Mountain Mining District in Garfield County, Utah containing approximately 400 acres, which includes the Bromide Basin Mines. The Third Revised Mining Lease grants to Bromide Basin Mining Company the option to purchase six (6) fully permitted patented mining claims and twenty-one (21) located mining claims comprising in all over 400 acres of Bromide Basin in the Henry Mountain Mining District located in Garfield County, Utah. The option exercise price is $835,000 for all specified mining claims, mill sites and dumps being leased.  It expires November 1, 2006, but Bromide Basin Mining Company has the right to extend the lease for one additional year.  As consideration for the Third Revised Mining Lease, Bromide Basin Mining Company has agreed to pay Kaibab Industries in advance the sum of $5,000 per month and pay a five percent (5%) net smelter return upon all ore taken from the leased premises each month, to the extent that the amount for any month exceeds the $5,000 monthly base rent.  15   The primary purpose of the agreement was to allow Bromide Basin Mining Company access to the claims to conduct an extensive preproduction feasibility study prior to any additional mining production and to analyze the potential of the claims before exercising the purchase option from Kaibab Industries.  The Company has started its pre-production feasibility study, and is currently analyzing the potential of the claims at the Bromide Basin Mines.  Plan of Operation  During the next 12 months, the Companys plan of operation is to raise approximately $5,000,000 for investment into its subsidiary companies: Deer Trail Mining Company, Bromide Basin Mining Company and Silver Bell Mining Company.  The funds are intended for the following purposes:  § Ship core samples taken from the completed 2nd phase of exploratory drilling at the Deer Trail Mine and have them analyzed/certified by an independent lab; § Continue sampling and testing ore from the Deer Trail Mine to evaluate the most efficient means to conduct future mining and milling activities; § Increase mining and milling activities at the Deer Trail Mine; § Upgrade the mine infrastructure at the Deer Trail Mine; § Continue to upgrade and complete the re-construction project on the existing mill at the Deer Trail Mine; § Acquire a pilot mill to accommodate temporary production of concentrates to PGM Company while upgrades are made to the existing mill at the Deer Trail Mine; § Upgrade the screening plant and crushing facilities at the upper Deer Trail Mine and resume processing the ore dumps; § Acquire new mining equipment and vehicles to improve operations at the Deer Trail Mine; § Conduct an extensive preproduction feasibility study at the Bromide Basin Mine prior to any additional mining production and analyze the potential of the claims before exercising its purchase option from Kaibab Industries; § Exercise the purchase option or extend the Bromide Basin Mine lease; § Commence an exploration and resource definition program at the Silver Bell Mine beginning in Spring/Summer, 2006; and § Exercise or extend an option to purchase the Deer Trail Mine for $3,000,000.  Accomplishing the 12-month plan of operations is dependent on the Company raising approximately $5,000,000 in equity and/or debt financing during the next 12 months.  The Companys cash as of July 17, 2006 will sustain operations for approximately 60 days.  16   Reverse Stock Split  Effective August 11, 2006, the Companys common stock underwent a 1 for 100 reverse stock split.  As a result, the number of outstanding shares of the Companys common stock as of August 11, 2006 decreased from approximately 4,954,096,450 pre-reverse split shares to 49,540,965 post-reverse split shares.  Share figures appearing in this report are generally expressed in numbers of post-reverse split shares, unless otherwise noted.  Results of Operations.  During the three months ended May 31, 2006, Unico experienced a net loss in the amount of $6,677,379 or approximately ($0.23) per share compared to a net loss of $662,132 or approximately ($0.13) per share for the same period in 2005.  For the three months ended May 31, 2006 and May 31, 2005, Unico reported no revenues.  Unico attributes the $6,015,247 increase in net loss for the three month period ended May 31, 2006 compared to the same period ended May 31, 2005 primarily to a $5,192,860 increase in loss on settlement of debt due to derivative aspect of financing through a court ordered settlement on convertible debentures.  The $66,436 increase in general and administrative expenses primarily resulted from increases in consulting and professional fees.  Unico interest expense increased $185,430.  In the three months ended May 31, 2006, Unico incurred a derivative loss on debentures in the amount of $333,525, as compared to a derivative gain on debentures of $341,920 in the three months ended May 31, 2005.  The substantial increase in loss on settlement of debt for the three month period ended May 31, 2006 is largely attributed to the Company converting $925,000 of convertible debentures into 42,518,329 post-reverse shares of free-trading common stock issued by the Company.  As a result of these transactions, the Company recorded a loss on settlement of debt of $5,192,860 related to the court ordered settlement of the conversion of the debt during the quarter ended May 31, 2006.  Liquidity and Capital Resources  The Companys financial statements present an impairment in terms of liquidity. As of May 31, 2006 the Company had a deficit in working capital of $6,157,257.  The Company has accumulated $33,228,874 of net operating losses through May 31, 2006, which may be used to reduce taxes in future years through 2026. The use of these losses to reduce future income taxes will depend on the generation of sufficient taxable income prior to the expiration of the net operating loss carry-forwards.  The potential tax benefit of the net operating loss carry-forwards have been offset by a valuation allowance of the same amount. Under continuing operations the Company has not yet established revenues to cover its operating costs.  Management believes that the Company will soon be able to generate revenues sufficient to cover its operating costs through the operations of its subsidiaries.  In the event the Company is unable to do so, and if suitable financing is unavailable, there is substantial doubt about the Companys ability to continue as a going concern.  We are dependent on raising approximately $5,000,000 to successfully implement our 12 month business plan described above.  The Companys termination of its election to be regulated as a business development company has allowed the Company to move forward.  We believe $5,000,000 can be raised with a combination of debt and equity.  Our auditors have issued a "going concern" opinion in note 6 of our February 28, 2006 financial statements, indicating we do not have established revenues sufficient to cover our operating costs and to allow us to continue as a going concern. If we are successful in raising an additional $5,000,000 in equity, debt or through other financing transactions in the next 12 months, we believe that Unico will have sufficient funds to meet operating expenses until income from mining operations should be sufficient to cover operating expenses.  17    Item 3. Controls and Procedures.  Under the supervision and with the participation of management, acting as our principal executive officer and principal financial officer, Mark A. Lopez evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (Exchange Act), as of May 31, 2006.  Based on this evaluation, our principal executive officer and our principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communication to our chief executive officer and chief financial officer, in a manner that allowed for timely decisions regarding required disclosure. During the last fiscal quarter ended May 31, 2006, there has been no change in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.  PART II - OTHER INFORMATION   Item 1. Legal Proceedings.  During the quarter ended May 31, 2005, the Company was notified by a staff attorney at the Securities and Exchange Commission (Commission) that certain debentures and convertible preferred stock issued by the Company were considered senior securities as defined by the Investment Company Act of 1940 (Investment Act). Unico believed at the time that the debentures and Series A Preferred shares that were issued were not senior securities.   The Company may not have been in compliance with Section 18 of the Investment Act which required that the Company maintain net asset to senior security coverage of at least 200% while the Company was a business development company (BDC).  The Companys efforts to restructure the obligations and preferred stock into a format acceptable with the Commission were unsuccessful. As a result, the Company may have been out of compliance with Sections 18, 27 and 61 of the Investment Act while the Company was a BDC.  On October 11, 2005, the Companys shareholders approved a proposal to authorize the Companys Board of Directors to withdraw the Companys election to be treated as a BDC.  On October 12, 2005 the Company filed a Notification of Withdrawal of Election to be Subject to Sections 55 through 65 of the Investment Company Act of 1940 pursuant to Section 54(c) of the Act with the Commission in order to withdraw the Companys election to be treated as a BDC. On or about March 17, 2005, Eben C. Loewenthal filed a Complaint against Unico, Incorporated in the Third Judicial District Court in and for Salt Lake County, State of Utah (Civil No. 050905311), alleging that the Company owed him $33,000 which he loaned the Company in 2002 plus prejudgment statutory interest from and after June 24, 2002 until judgment and post-judgment interest thereafter.  The parties subsequently settled the matter with the Company agreeing to repay the principal and accrued interest at 10% per annum.  The Company has since paid this obligation in full and the lawsuit has been dismissed. On or about September 29, 2005, Connors Drilling, LLC filed a Complaint against Unico, Inc., Deer Trail Mining Company, LLC and Crown Mines, LLC in the Sixth Judicial District Court in and for Piute County, State of Utah (Civil No. 050600016) alleging that the defendants owed $67,889.25 plus pre-judgment and post-judgment interest, attorneys fees and costs.  Connors Drilling, LLC alleged that it agreed to perform core drilling in and for the Deer Trail Mine in exchange for the payment of services, and that there was a balance due of $67,889.25 for the work performed by Connors Drilling.  The Complaint alleges breach of contract and unjust enrichment, and Connors Drilling, LLC also sought to foreclose on a mining lien which it had filed against the Deer Trail Mine and the 680 acres of real property owned by the Company located nearby.  The parties entered into a settlement agreement pursuant to which Unico agreed to pay the amounts sought in the Complaint.  Unico has since paid this obligation in full, the lawsuit has been dismissed and the mining lien has been released.   18   On or about December 5, 2005, Atlas Sales, Inc. filed a Complaint against Unico, Incorporated in Pima County Justice Court, Arizona (Civil No. 05027200) alleging that Unico owed $3,986.84 for the rental of certain equipment during 2002 and related charges, interest of $838.56 through December 1, 2003, additional accrued interest at the rate of 18.0% per annum since December 1, 2003, and attorneys fees and related court costs.  The parties entered into a settlement pursuant to which Unico agreed to pay the amount owing in six consecutive monthly payments.   This obligation has since been paid in full. Kaibab Industries, Inc., the lessor of the Bromide Basin Mine property, demanded that Unico pay the entire balance due on a promissory note dated April 1, 2003 which was secured with certain equipment owned by Unico.  Kaibab Industries, Inc. also demanded that Bromide Basin Mining Company, LLC pay all unpaid rent owed under the Second Revised Mining Lease and Option to Purchase (the Lease) plus all taxes and mining claim renewal fees to be reimbursed pursuant to the Lease.  The Lease expired on October 31, 2005.  Kaibab Industries, Inc. threatened to file suit to collect the amounts owing.  On or about May 1, 2006, Unico paid all $125,785.20 owed under the promissory note, and $63,591.62 for past rent, taxes and mining claim renewal fees owed under the Lease.  Also effective May 1, 2006, Unico and Kaibab Industries, Inc. entered into a Third Revised Mining Lease and Option to Purchase. From September 30, 2004 through March 31, 2005 Unico issued convertible debentures (Debentures) aggregating approximately $625,000 to Reef Holding, Ltd. and approximately $467,500 to Kentan Limited Corp. that were unpaid, and in default, as of February 9, 2006.  The holders of the convertible debentures had assigned portions of the Debentures to Blue Marble Investments, Outboard Investments, Umbrella Holdings and Yanzu, Inc.  Because Unico, Incorporated failed to pay the Debentures when due, a total of ten (10) lawsuits were filed by these Debenture holders against Unico, Incorporated in the Twelfth Circuit (State) Court in Florida (Case Nos. 2006-CA-003385-NC, 2006-CA-001230-NC, 2006-CA-001825-NC, 2006-CA-003067-NC, 2006-CA-001229-NC, 2006-CA-002111-NC, 2006-CA-002597-NC, 2006-CA-003068-NC, 2006-CA-004264-NC and 2006-CA-003851-NC).   The Debentures provided that the principal amount and accrued interest were convertible, at the option of the holders of the Debentures, into Unicos common stock at a price per share equal to 50% of the closing bid price of Unicos common stock as quoted on the OTC Bulletin Board on the immediately preceding trading day prior to the notice of conversion.  Unico agreed to settle each action by issuing shares of its common stock to the plaintiffs using a valuation of approximately 14% to 20% of the then existing bid price of Unico, Incorporated common stock.  These shares were issued pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended, after a hearing with notice to, and an opportunity to be heard from, interested parties, as to the fairness of each transaction, by a state court in Florida which specifically determined, prior to declaring that the transactions were exempt under Section 3(a)(10), that the transactions were fair to the interested parties.  From February 9, 2006 until May 12, 2006, in connection with the exercise of conversion rights by the holders of the Debentures and pursuant to the litigation settlements, Unico issued an aggregate of 44,006,686 post-reverse split shares of its common stock.   Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  As of May 31, 2006, the Company had 49,340,965 post-reverse split shares of common stock issued and outstanding with 4,950,659,035 shares authorized but unissued. During the quarter ended May 31, 2006 the Company issued 42,518,329 post-reverse split shares of free trading common stock under a court ordered settlement agreement as consideration for the conversion of $925,000 in debentures that had become due.  These shares were issued pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended, after a hearing with notice to, and an opportunity to be heard form, interested parties, as to the fairness of each transaction, by a state court in Florida who specifically determined, prior to declaring that the transactions were exempt under Section 3(a)(10), that the transactions were fair to the interested parties. For additional information concerning these stock issuances, see the last paragraph in Item 1. Legal Proceedings above.  19    Item 3. Defaults Upon Senior Securities.  From September 30, 2004 through March 31, 2005 Unico issued convertible debentures (Debentures) aggregating approximately $625,000 to Reef Holding, Ltd. and approximately $467,500 to Kentan Limited Corp. that were unpaid, and in default, as of February 9, 2006.  The holders of the convertible debentures had assigned portions of the Debentures to Blue Marble Investments, Outboard Investments, Umbrella Holdings and Yanzu, Inc.  Because Unico, Incorporated failed to pay the Debentures when due, a total of ten (10) lawsuits were filed by these Debenture holders against Unico, Incorporated in the Twelfth Circuit (State) Court in Florida (Case Nos. 2006-CA-003385-NC, 2006-CA-001230-NC, 2006-CA-001825-NC, 2006-CA-003067-NC, 2006-CA-001229-NC, 2006-CA-002111-NC, 2006-CA-002597-NC, 2006-CA-003068-NC, 2006-CA-004264-NC and 2006-CA-003851-NC).   The Debentures provided that the principal amount and accrued interest were convertible, at the option of the holders of the Debentures, into Unicos common stock at a price per share equal to 50% of the closing bid price of Unicos common stock as quoted on the OTC Bulletin Board on the immediately preceding trading day prior to the notice of conversion.  Unico agreed to settle each action by issuing shares of its common stock to the plaintiffs using a valuation of approximately 14% to 20% of the then existing bid price of Unico, Incorporated common stock.  These shares were issued pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended, after a hearing with notice to, and an opportunity to be heard from, interested parties, as to the fairness of each transaction, by a state court in Florida which specifically determined, prior to declaring that the transactions were exempt under Section 3(a)(10), that the transactions were fair to the interested parties.  From February 9, 2006 until May 12, 2006, in connection with the exercise of conversion rights by the holders of the Debentures and pursuant to the litigation settlements, Unico issued an aggregate of 44,006,686 post-reverse split shares of its common stock.   Item 4. Submission of Matters to a Vote of Security Holders.  None   Item 5. Other Information.  None   Item 6. Exhibits and Reports on Form 8-K.  (a) Exhibits  The following exhibits are filed as part of this statement:  The exhibits listed below are required by Item 601 of Regulation S-B.    Exhibit No.DescriptionLocation31.1Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002Filed herewith31.2Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002Filed herewith32.1Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002Filed herewith32.2Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002Filed herewith10.60Convertible Debenture No. 29 for $25,000 dated March 2, 2006 issued to Umbrella HoldingsFiled herewith10.61Convertible Debenture No. 30 for $75,000 dated March 8, 2006 issued to Umbrella HoldingsFiled herewith10.62Convertible Debenture No. 31 for $75,000 dated March 15, 2006 issued to Outboard Investments, LTDFiled herewith10.63Convertible Debenture No. 32 for $150,000 dated March 22, 2006 issued to Outboard Investments, LTDFiled herewith10.64Convertible Debenture No. 33 for $250,000 dated April 6, 2006 issued to Outboard Investments, LTDFiled herewith10.65Convertible Debenture No. 34 for $250,000 dated April 18, 2006 issued to Outboard Investments, LTDFiled herewith10.66Convertible Debenture No. 35 for $300,000 dated May 4, 2006 issued to Outboard Investments, LTDFiled herewith10.67Convertible Debenture No. 36 for $500,000 dated May 17, 2006 issued to Outboard Investments, LTDFiled herewith  (b) Reports on Form 8-K None.   20      SIGNATURES Pursuant to the requirements 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.  UNICO, INCORPORATED  Date: October 23, 2006/s/ Mark A. Lopez
Mark A. Lopez
Chief Executive Officer    21   EXHIBIT 31.1 SECTION 302 CERTIFICATION OF CHIEF EXECUTIVE OFFICER  I, Mark A. Lopez, certify that:  1.   I have reviewed this quarterly report on Form 10-QSB/A of Unico, Incorporated;  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;  4.The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:  (a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  (b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  (c)  Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  (d)  Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and  5.  The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuers board of directors (or persons performing the equivalent functions):  (a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and  (b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.  Date: October 23, 2006/s/ Mark A. Lopez
Mark A. Lopez
Chief Executive Officer  EXHIBIT 31.2 SECTION 302 CERTIFICATION OF CHIEF FINANCIAL OFFICER  I, Mark A. Lopez, certify that:  1.   I have reviewed this quarterly report on Form 10-QSB/A of Unico, Incorporated;  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;  4.The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:  (a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  (b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  (c)  Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  (d)  Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and  5.  The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):  (a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and  (b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.  Date: October 23, 2006/s/ Mark A. Lopez
Mark A. Lopez
Chief Financial Officer   EXHIBIT 32.1   CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with the Quarterly Report of Unico, Incorporated (the "Company") on Form 10-QSB/A for the period ending May 31, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Mark A. Lopez, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:  (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of the operation of the Company.  Date: October 23, 2006/s/ Mark A. Lopez
Mark A. Lopez
Chief Financial Officer      EXHIBIT 32.2   CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with the Quarterly Report of Unico, Incorporated (the "Company") on Form 10-QSB/A for the period ending May 31, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Mark A. Lopez, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:  (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of the operation of the Company.  Date: October 23, 2006/s/ Mark A. Lopez
Mark A. Lopez
Chief Financial Officer