----

----

| Colorado                                                       |   | 20-1892264                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification Number) |

| Large Accelerated Filer o | Accelerated Filer o | Non-Accelerated Filer o | Smaller Reporting Company x |
|---------------------------|---------------------|-------------------------|-----------------------------|

----

|      |                                                                                         | Page   |
|-----------|----------------------------------------------------------------------------------------------|--------|
|      | PART I.—FINANCIAL INFORMATION                                                          |   |
| Item 1.   | Financial Statements                                                                         | 1      |
|      | Consolidated Balance Sheets                                                                  | 2      |
|      | Consolidated Statements of Operations (Unaudited)                                            | 3      |
|      | Consolidated Statements of Cash Flows (Unaudited)                                            | 4      |
|      | Consolidated Statements of Stockholders' Deficit (Unaudited)                                 | 5      |
|      | Notes to Consolidated Financial Statements (Unaudited)                                       | 6      |
| Item 2.   | Management’s Discussion and Analysis of Financial Conditions and Results of Operations | 18     |
| Item 3.   | Quantitative and Qualitative Disclosures About Market Risks                                  | 22     |
| Item 4.   | Controls and Procedures                                                                      | 22     |
|      |                                                                                         |   |
|      | PART II—OTHER INFORMATION                                                              |   |
| Item 1.   | Legal Proceedings                                                                            | 23     |
| Item 2.   | Unregistered Sales of Equity Securities and Use of Proceeds                                  | 23     |
| Item 3.   | Defaults Upon Senior Securities                                                              | 23     |
| Item 4.   | Removed and Reserved                                                                         | 23     |
| Item 5.   | Other Information                                                                            | 23     |
| Item 6.   | Exhibits                                                                                     | 23     |
| SIGNATURE | 24                                                                                           |

----

----

|                                                                                                                                       |   | March 31, |        | December 31, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------------|-----------|
|                                                                                                                                       |   | 2011      |        |  2010   |      |
|                                                                                                                                       |   |      |        |         | (Audited) |   |
|                                                                                                                                       |   |      |        |         |      |   |
| Assets                                                                                                                                     |   |      |        |         |      |   |
| Current assets                                                                                                                             |   |      |        |         |      |   |
| Cash and cash equivalents                                                                                                                  |   | $         | 30,529      |         |      | $ | 23,234 |   |
| Accounts receivable                                                                                                                        |   |      | 88,839      |         |      |   | 72,857 |   |
| Inventory                                                                                                                                  |   |      | 227,262     |         |      |   | 305,307 |   |
| Total current assets                                                                                                                       |   |      | 346,630     |         |      |   | 401,398 |   |
|                                                                                                                                       |   |      |        |         |      |   |   |   |
| Property and equipment, net                                                                                                                |   |      | 87,943      |         |      |   | 109,418 |   |
|                                                                                                                                       |   |      |        |         |      |   |   |   |
| Total assets                                                                                                                               |   | $         | 434,573     |         |      | $ | 510,816 |   |
|                                                                                                                                       |   |      |        |         |      |   |   |   |
| Liabilities                                                                                                                                |   |      |        |         |      |   |   |   |
| Current liabilities                                                                                                                        |   |      |        |         |      |   |   |   |
| Accounts payable                                                                                                                           |   | $         | 212,737     |         |      | $ | 388,447 |   |
| Accrued interest payable                                                                                                                   |   |      | 460,162     |         |      |   | 330,723 |   |
| Accrued liabilities                                                                                                                        |   |      | 637         |         |      |   | 637 |   |
| Related party payable                                                                                                                      |   |      | 810,299     |         |      |   | 637,392 |   |
| Warrant liability                                                                                                                          |   |      | 1,538,400   |         |      |   | 1,448,400 |   |
|                                                                                                                                       |   |      |        |         |      |   |   |   |
| Short-term notes payable and current portion of long-term debt (Net of Unamortized Discount of $0 in 2011 and $0 in 2010)                  |   |      | 1,295,615   |         |      |   | 1,301,074 |   |
| Total current liabilities                                                                                                                  |   |      | 4,317,850   |         |      |   | 4,106,673 |   |
| Long-term debt to related party                                                                                                            |   |      | 1,650,841   |         |      |   | 1,650,841 |   |
| Long-term debt (Net of Unamortized Discount of $1,016,111 in 2011 and $919,624 in 2010)                                                    |   |      | 2,837,801   |         |      |   | 2,673,559 |   |
| Total liabilities                                                                                                                          |   |      | 8,806,492   |         |      |   | 8,431,073 |   |
|                                                                                                                                       |   |      |        |         |      |   |   |   |
| Stockholders’ de ficit                                                                                                               |   |      |        |         |      |   |   |   |
| Preferred Stock, $0.001 par value; 25,000,000 shares authorized                                                                            |   |      |        |         |      |   |   |   |
| Series A Preferred Stock, 100,000 shares authorized, shares issued and outstanding - 91,111 shares in 2011 and 2010                        |   |      | 91          |         |      |   | 91 |   |
| Common Stock, $0.001 par value; 500,000,000 shares authorized, shares issued and outstanding - 344,413,849 in 2011 and 302,167,779 in 2010 |   |      | 344,414     |         |      |   | 302,168 |   |
| Additional paid in capital                                                                                                                 |   |      | 74,649,252  |         |      |   | 71,965,937 |   |
| Issuances in exchange for promotional consideration                                                                                        |   |      | (110,026    | )            |      |   | (158,776 | ) |
| Accumulated deficit                                                                                                                        |   |      | (83,255,650 | )            |      |   | (80,029,677 | ) |
| Total stockholders’ deficit                                                                                                          |   |      | (8,371,919  | )            |      |   | (7,920,257 | ) |
|                                                                                                                                       |   |      |        |         |      |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                          |   | $         | 434,573     |         |      | $ | 510,816 |   |

----

|                                                                                                   |   | Three Months Ended March 31, |        |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|
|                                                                                                   |   | 2011                         |        |   | 2010 |   |
| Net Revenues, net                                                                                      |   | $                            | 128,961     |   |   | $ | 145,935 |   |
| Cost of goods sold                                                                                     |   |                         | 72,554      |   |   |   | 129,638 |   |
| Gross margin                                                                                           |   |                         | 56,407      |   |   |   | 16,297 |   |
|                                                                                                   |   |                         |        |   |   |   |   |   |
| Operating Expenses                                                                                     |   |                         |        |   |   |   |   |   |
| General and administrative (includes share based compensation of $827,092 in 2011 and $16,796 in 2010) |   |                         | 1,304,707   |   |   |   | 631,543 |   |
| Sales and marketing (includes share based compensation of $232,219 in 2011 and $35,204 in 2010)        |   |                         | 430,019     |   |   |   | 278,936 |   |
| Depreciation                                                                                           |   |                         | 21,475      |   |   |   | 21,475 |   |
| Total operating expenses                                                                               |   |                         | 1,756,201   |   |   |   | 931,954 |   |
| Loss from operations                                                                                   |   |                         | (1,699,794  | ) |   |   | (915,657 | ) |
|                                                                                                   |   |                         |        |   |   |   |   |   |
| Other Expense                                                                                          |   |                         |        |   |   |   |   |   |
| Interest expense                                                                                       |   |                         | 275,679     |   |   |   | 282,082 |   |
| Interest expense - warrant liability                                                                   |   |                         | 90,000      |   |   |   | 323,000 |   |
| Loss on retirement of debt                                                                             |   |                         | 1,160,500   |   |   |   | 133,629 |   |
| Total other expense                                                                                    |   |                         | 1,526,179   |   |   |   | 738,711 |   |
|                                                                                                   |   |                         |        |   |   |   |   |   |
| Net Loss                                                                                               |   | $                            | (3,225,973  | ) |   | $ | (1,654,368 | ) |
|                                                                                                   |   |                         |        |   |   |   |   |   |
| Weighted average number of common shares outstanding                                                   |   |                         | 323,290,814 |   |   |   | 207,514,720 |   |
|                                                                                                   |   |                         |        |   |   |   |   |   |
| Basic and diluted net loss per common share                                                            |   | $                            | (0.01       | ) |   | $ | (0.01 | ) |

----

|                                                                        |   | Three Months Ended March 31, |       |
|-----------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                        |   | 2011                         |       |   | 2010 |   |
| Cash used in operating activities                                           |   |                         |       |   |   |   |
| Net loss                                                                    |   | $                            | (3,225,973 | ) |   | $ | (1,654,368 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                         |       |   |   |   |   |   |
| Depreciation and amortization                                               |   |                         | 21,475     |   |   |   | 21,475 |   |
| Common stock issued for services                                            |   |                         | 1,059,311  |   |   |   | 144,500 |   |
| Loss on retirement of debt                                                  |   |                         | 1,160,500  |   |   |   | 133,629 |   |
| Amortization of debt discount                                               |   |                         | 94,860     |   |   |   | 144,461 |   |
| Changes in operating assets and liabilities:                                |   |                         |       |   |   |   |   |   |
| Accounts receivable                                                         |   |                         | (15,982    | ) |   |   | 86,724 |   |
| Inventory                                                                   |   |                         | 78,045     |   |   |   | (108,274 | ) |
| Accounts payable                                                            |   |                         | (175,710   | ) |   |   | (79,463 | ) |
| Accrued interest payable                                                    |   |                         | 172,168    |   |   |   | 69,674 |   |
| Accrued liabilities                                                         |   |                         | -          |   |   |   | (1,846 | ) |
| Related party payable                                                       |   |                         | 172,907    |   |   |   | 123,011 |   |
| Warrant liability                                                           |   |                         | 90,000     |   |   |   | 323,000 |   |
| Net cash used in operating activities                                       |   |                         | (568,399   | ) |   |   | (797,477 | ) |
| Cash used in investing activities                                           |   |                         |       |   |   |   |   |   |
| Purchase of property and equipment                                          |   |                         | -          |   |   |   | (8,303 | ) |
| Net cash used in investing activities                                       |   |                         | -          |   |   |   | (8,303 | ) |
| Cash provided by financing activities                                       |   |                         |       |   |   |   |   |   |
| Proceeds from issuance of common stock                                      |   |                         | -          |   |   |   | 352,000 |   |
| Proceeds from notes payable                                                 |   |                         | 580,500    |   |   |   | 754,000 |   |
| Payment on notes payable                                                    |   |                         | (4,806     | ) |   |   | (112,577 | ) |
| Net cash provided by financing activities                                   |   |                         | 575,694    |   |   |   | 993,423 |   |
| Net increase in cash and cash equivalents                                   |   |                         | 7,295      |   |   |   | 187,643 |   |
| Cash and cash equivalents                                                   |   |                         |       |   |   |   |   |   |
| Beginning of period                                                         |   |                         | 23,234     |   |   |   | 81,362 |   |
| End of period                                                               |   | $                            | 30,529     |   |   | $ | 269,005 |   |
|                                                                        |   |                         |       |   |   |   |   |   |
| Supplemental Disclosure of Noncash Investing and Financing Activities       |   |                         |       |   |   |   |   |   |
| Notes payable paid throught the issuance of stock                           |   | $                            | 1,579,771  |   |   | $ | 456,000 |   |
| Common stock issued for retirement of debt and accrued int                  |   | $                            | 1,522,500  |   |   | $ | - |   |
| Common stock as discount in connection with debt offering                   |   | $                            | 192,500    |   |   | $ | 260,000 |   |
| Supplemental Disclosure                                                     |   |                         |       |   |   |   |   |   |
| Interest paid                                                               |   | $                            | 8,653      |   |   | $ | 79,894 |   |

----

|                                                   |   | Series A Preferred |   |   |         |   |   |    |   |   | Additional  |   |   |        |    |   |                |   |       | Total   |   |
|--------------------------------------------------------|--------|--------------------|--------|--------|--------------|--------|--------|---------|--------|--------|-------------|--------|--------|-------------|---------|--------|---------------------|--------|------------|---------|--------|
|                                                   |   | Stock              |   |   | Common Stock |   |   | Paid in |   |   | Additional  |   |   | Accumulated |    |   | Stockholders’ |   |
|                                                   |   | Shares             |   |   | Amount       |   |   | Shares  |   |   | Amount      |   |   | Capital     |    |   | Issuances           |   |       | Deficit |   |   | Deficit |   |
| Balance, Dec 31, 2010                                  |   |               | 91,111 |   |         | $      | 91     |    |   |   | 302,167,779 |   |   | $           | 302,168 |   |                | $      | 71,965,937 |    |   | $ | (158,776 | ) |   |   | (80,029,677 | ) |   | $ | (7,920,257 | ) |
| Common stock issued in exchange for services           |   |               |   |   |         |   |   |    |   |   | 15,946,070  |   |   |        | 15,946  |   |                |   | 994,615    |    |   |   | 48,750 |   |   |   |   |   |   |   | 1,059,311 |   |
| Common stock issued in exchange for retirement of debt |   |               |   |   |         |   |   |    |   |   | 23,250,000  |   |   |        | 23,250  |   |                |   | 1,499,250  |    |   |   |   |   |   |   |   |   |   |   | 1,522,500 |   |
| Common stock issued in conjunction with debt offering  |   |               |   |   |         |   |   |    |   |   | 3,050,000   |   |   |        | 3,050   |   |                |   | 189,450    |    |   |   |   |   |   |   |   |   |   |   | 192,500 |   |
| Net loss                                               |   |               |   |   |         |   |   |    |   |   |        |   |   |        |    |   |                |   |       |    |   |   |   |   |   |   | (3,225,973 | ) |   |   | (3,225,973 | ) |
| Balance, Mar 31, 2011                                  |   |               | 91,111 |   |         | $      | 91     |    |   |   | 344,413,849 |   |   | $           | 344,414 |   |                | $      | 74,649,252 |    |   | $ | (110,026 | ) |   |   | (83,255,650 | ) |   | $ | (8,371,919 | ) |

----

| 1.   | Business and Significant Accounting Policies |
|----------------|----------------------------------------------|

----

| DC Brands International, Inc |         |   |       |   |   |     |   |
|------------------------------|--------------|--------|------------|--------|--------|----------|--------|
| Secret Shopper Program       |         |   |       |   |   |     |   |
|                         |         |   |       |   |   |     |   |
|                         | Period Ended |   |
|                         |         |   | 12/31/2009 |   |   | 12/31/10 |   |
| Sales Reversed               | $            |   | $          | 74,584 |   |     |   |   |
| COGS Reversed                | $            |   | $          | 47,105 |   |     |   |   |
| Marketing Expense Recorded   | $            |   | $          | 53,997 |   |     |   |   |
| Product by CEO               | $            |   |       |   |   |     | $      | 35,000 |   |

----

----

| 2.   | Inventory |
|----------------|-----------|

|                       |   | March 31, |    |   | December 31, |   |
|----------------------------|--------|-----------|---------|--------|--------------|--------|
|                       |   | 2011      |    |   | 2010         |   |
| Finished goods             |   | $         | 97,847  |   |         | $      | 174,555 |   |
| Work in process            |   |      | 78,741  |   |         |   | 71,358 |   |
| Raw materials              |   |      | 50,674  |   |         |   | 59,394 |   |
|                       |   |      | 227,262 |   |         |   | 305,307 |   |
| Allowance for obsolescence |   |      | -       |   |         |   | - |   |
|                       |   | $         | 227,262 |   |         | $      | 305,307 |   |

| 3.   | Property and Equipment |
|----------------|------------------------|

----

|                          |   | March 31, |     |   | December 31, |   |
|-------------------------------|--------|-----------|----------|--------|--------------|--------|
|                          |   | 2011      |     |   | 2010         |   |
| Leasehold improvements        |   | $         | 14,004   |   |         | $      | 14,004 |   |
| Office furniture and fixtures |   |      | 31,521   |   |         |   | 31,521 |   |
| Vehicles                      |   |      | 231,970  |   |         |   | 231,970 |   |
| Warehouse equipment           |   |      | 103,134  |   |         |   | 103,134 |   |
| Computer equipment            |   |      | 75,170   |   |         |   | 75,170 |   |
|                          |   |      | 455,799  |   |         |   | 455,799 |   |
| Accumulated depreciation      |   |      | (367,856 | )      |         |   | (346,381 | ) |
|                          |   | $         | 87,943   |   |         | $      | 109,418 |   |

| 4.   | Commitments and Contingencies |
|----------------|-------------------------------|

| Remaining 9 months of 2011 |   | $ | 152,962 |   |
|----------------------------|--------|---|---------|--------|
| 2012                       |   | $ | 206,832 |   |
| 2013                       |   | $ | 69,260  |   |

| Remaining 9 months of 2011 |   | $ | 647,396   |   |
|----------------------------|--------|---|-----------|--------|
| 2012                       |   | $ | 962,812   |   |
| 2013                       |   | $ | 1,007,031 |   |
| 2014                       |   | $ | 750,000   |   |

| 5.   | Notes Payable |
|----------------|---------------|

----

|                                                                                                                                           |   | Current |      |   | Long Term |   |       | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|-----------|--------|------------|--------|--------|
| 1 Note payable, originated in 2004, due in 2006, 6% interest rate, secured by assets of DC Brands, LLC, a wholly owned subsidiary              |   |    | 539,995   |   |      |   | -          |   |   |   | 539,995 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable originated in 2005, due on demand, non interest bearing, unsecured                                                              |   |    | 242,188   |   |      |   | -          |   |   |   | 242,188 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable originated in 2005, due on demand, non interest bearing, unsecured                                                              |   |    | 14,500    |   |      |   | -          |   |   |   | 14,500 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable originated in 2007, due in 2007, 36% interest, unsecured                                                                        |   |    | 10,000    |   |      |   | -          |   |   |   | 10,000 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Notes payable originated in 2007, due in 2008, 24% interest, unsecured                                                                       |   |    | 14,266    |   |      |   | -          |   |   |   | 14,266 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 7 Notes payable, originated in 2008, due at various dates from July to August 2010, 15% interest, unsecured                                    |   |    | 462,874   |   |      |   | -          |   |   |   | 462,874 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable, originated in 2010, due January 1, 2015, 10.25% interest, unsecured                                                            |   |    | -         |   |      |   | 1,849,937  |   |   |   | 1,849,937 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 3 Notes payable, originated in 2010, due July 1, 2013, callable after January 1, 2012 6% interest, unsecured                                   |   |    | -         |   |      |   | 592,933    |   |   |   | 592,933 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable, originated in 2010, due July 1, 2013, 16% interest, unsecured                                                                  |   |    | -         |   |      |   | 333,209    |   |   |   | 333,209 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 9 Notes payable, originated in 2010, due at various dates from July to September 2013, 16% interest, unsecured                                 |   |    | -         |   |      |   | 773,333    |   |   |   | 773,333 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 3 Notes payable, originated in 2011, due at various dates from Jan to Mar 2014, 16% interest, unsecured                                        |   |    | -         |   |      |   | 305,000    |   |   |   | 305,000 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 2 Notes payable, originated in 2007, due in monthly installments, maturing 2011 to 2012, interest from 1.9% to 11% , secured by motor vehicles |   |    | 11,792    |   |      |   | -          |   |   |   | 11,792 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
|                                                                                                                                           |   |    | 1,295,615 |   |      |   | 3,854,412  |   |   |   | 5,150,027 |   |
| Unamortized discount                                                                                                                           |   |    | -         |   |      |   | (1,016,611 | )      |   |   | (1,016,111 | ) |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
|                                                                                                                                           |   | $       | 1,295,615 |   |      | $      | 2,838,801  |   |   | $ | 4,133,916 |   |
|                                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| Related party notes                                                                                                                            |   |    |      |   |      |   |       |   |   |   |   |   |
| 2 Notes payable, originated in 2010, callable with 366 day notice, 10% interest, unsecured                                                     |   | $       | -         |   |      | $      | 1,650,841  |   |   | $ | 1,650,841 |   |

----

|                                                                                                                                          |   | Current |      |   | Long Term |   |      | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|-----------|--------|-----------|--------|--------|
| 1 Note payable, originated in 2004, due in 2006, 6% interest rate, secured by assets of D C Brands, LLC, a w holly owned subsidiary           |   |    | 541,995   |   |      |   | -         |   |   |   | 541,995 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 1 Note payable originated in 2005, due on demand, non interest bearing, unsecured                                                             |   |    | 242,188   |   |      |   | -         |   |   |   | 242,188 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 1 Note payable originated in 2005, due on demand, non interest bearing, unsecured                                                             |   |    | 14,500    |   |      |   | -         |   |   |   | 14,500 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 1 Note payable originated in 2007, due in 2007, 36% interest, unsecured                                                                       |   |    | 10,000    |   |      |   | -         |   |   |   | 10,000 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 1 Notes payable originated in 2007, due in 2008, 24% interest, unsecured                                                                      |   |    | 14,266    |   |      |   | -         |   |   |   | 14,266 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 7 Notes payable, originated in 2008, due at various dates from July to August 2010, 15% interest, unsecured                                   |   |    | 462,873   |   |      |   | -         |   |   |   | 462,873 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 1 Note payable, originated in 2010, due January 1, 2015, 10.25% interest, unsecured                                                           |   |    | -         |   |      |   | 1,893,708 |   |   |   | 1,893,708 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 3 Notes payable, originated in 2010, due July 1, 2013, callable after January 1, 2012, 6% interest, unsecured                                 |   |    | -         |   |      |   | 592,933   |   |   |   | 592,933 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 1 Note payable, originated in 2010, due July 1, 2013, 16% interest, unsecured                                                                 |   |    | -         |   |      |   | 333,209   |   |   |   | 333,209 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 9 Notes payable, originated in 2010, due at various dates from July to September 2013, 16% interest, unsecured                                |   |    | -         |   |      |   | 773,333   |   |   |   | 773,333 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| 2 Notes payable, originated in 2007, due in monthly installments, maturing 2011 to 2012, interest from 1.9% to 11%, secured by motor vehicles |   |    | 15,252    |   |      |   | -         |   |   |   | 15,252 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
|                                                                                                                                          |   |    | 1,301,074 |   |      |   | 3,593,183 |   |   |   | 4,894,257 |   |
| Unamortized discount                                                                                                                          |   |    | -         |   |      |   | (919,624  | )      |   |   | (919,624 | ) |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
|                                                                                                                                          |   | $       | 1,301,074 |   |      | $      | 2,673,559 |   |   | $ | 3,974,633 |   |
|                                                                                                                                          |   |    |      |   |      |   |      |   |   |   |   |   |
| Related party notes                                                                                                                           |   |    |      |   |      |   |      |   |   |   |   |   |
| 2 Notes payable, originated in 2010, callable with 366 day notice, 10% interest, unsecured                                                    |   | $       | -         |   |      | $      | 1,650,841 |   |   | $ | 1,650,841 |   |

----

| 6.   | Income Taxes |
|----------------|--------------|

| 7.   | Stockholders’ Equity |
|----------------|----------------------------|

----

----

----

| 8.   | Share Based Compensation Expense |
|----------------|----------------------------------|

|                       |   | Three months ended March 31, |      |
|----------------------------|--------|------------------------------|-----------|
|                       |   | 2011                         |      |   | 2010 |   |
| General and administrative |   | $                            | 827,092   |   |   | $ | 16,796 |   |
| Sales and marketing        |   |                         | 232,219   |   |   |   | 35,204 |   |
|                       |   | $                            | 1,059,311 |   |   | $ | 52,000 |   |

| 9.   | Related Party Transactions |
|----------------|----------------------------|

----

| 10.   | Subsequent Events |
|-----------------|-------------------|

|                     |   |   |      |   |   |   |    | Additional |   |   |    |   |
|--------------------------|--------|--------|-----------|--------|--------|--------|---------|------------|--------|--------|---------|--------|
|                     |   |   |      | Common |   |   | Paid in |       |   |   |    |
|                     |   | Shares |      | Stock  |   |   | Capital |       |   | Amount |    |
| In exchange for services |   |   | 6,500,000 |   |   | $      | 6,500   |       |   | $      | 233,500 |   |   |   | 240,000 |   |
|                     |   |   | 6,500,000 |   |   | $      | 6,500   |       |   | $      | 233,500 |   |   | $ | 240,000 |   |

----

----

----

----

|                                                                                                                                          |   | Current |      |   | Long Term |   |       | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|-----------|--------|------------|--------|--------|
| 1 Note payable, originated in 2004, due in 2006, 6% interest rate, secured by assets of D C Brands, LLC, a wholly owned subsidiary            |   |    | 539,995   |   |      |   | -          |   |   |   | 539,995 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable originated in 2005, due on demand, non interest bearing, unsecured                                                             |   |    | 242,188   |   |      |   | -          |   |   |   | 242,188 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable originated in 2005, due on demand, non interest bearing, unsecured                                                             |   |    | 14,500    |   |      |   | -          |   |   |   | 14,500 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable originated in 2007, due in 2007, 36% interest, unsecured                                                                       |   |    | 10,000    |   |      |   | -          |   |   |   | 10,000 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Notes payable originated in 2007, due in 2008, 24% interest, unsecured                                                                      |   |    | 14,266    |   |      |   | -          |   |   |   | 14,266 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 7 Notes payable, originated in 2008, due at various dates from July to August 2010, 15% interest, unsecured                                   |   |    | 462,874   |   |      |   | -          |   |   |   | 462,874 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable, originated in 2010, due January 1, 2015, 10.25% interest, unsecured                                                           |   |    | -         |   |      |   | 1,849,937  |   |   |   | 1,849,937 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 3 Notes payable, originated in 2010, due July 1, 2013, callable after January 1, 2012, 6% interest, unsecured                                 |   |    | -         |   |      |   | 592,933    |   |   |   | 592,933 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 1 Note payable, originated in 2010, due                                                                                                       |   |    | -         |   |      |   | 333,209    |   |   |   | 333,209 |   |
| July 1, 2013, 16% interest, unsecured                                                                                                         |   |    |      |   |      |   |       |   |   |   |   |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 9 Notes payable, originated in 2010, due at various dates from July to September 2013, 16% interest, unsecured                                |   |    | -         |   |      |   | 773,333    |   |   |   | 773,333 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 3 Notes payable, originated in 2011, due at various dates from Jan to Mar 2014, 16% interest, unsecured                                       |   |    | -         |   |      |   | 305,000    |   |   |   | 305,000 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| 2 Notes payable, originated in 2007, due in monthly installments, maturing 2011 to 2012, interest from 1.9% to 11%, secured by motor vehicles |   |    | 11,792    |   |      |   | -          |   |   |   | 11,792 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
|                                                                                                                                          |   |    | 1,295,615 |   |      |   | 3,854,412  |   |   |   | 5,150,027 |   |
| Unamortized discount                                                                                                                          |   |    | -         |   |      |   | (1,016,611 | )      |   |   | (1,016,111 | ) |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
|                                                                                                                                          |   | $       | 1,295,615 |   |      | $      | 2,838,801  |   |   | $ | 4,133,916 |   |
|                                                                                                                                          |   |    |      |   |      |   |       |   |   |   |   |   |
| Related party notes                                                                                                                           |   |    |      |   |      |   |       |   |   |   |   |   |
| 2 Notes payable, originated in 2010, callable with 366 day notice , 10% interest, unsecured                                                   |   | $       | -         |   |      | $      | 1,650,841  |   |   | $ | 1,650,841 |   |

----

----

| RegulationS-B Number |   | Exhibit                                                                                                                                            |
|----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                 |   | Certification of the Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                           |
|                 |   |                                                                                                                                               |
| 31.2                 |   | Certification of the Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                      |
|                 |   |                                                                                                                                               |
| 32.1                 |   | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act      |
|                 |   |                                                                                                                                               |
| 32.2                 |   | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act |

----

| DATE: May 16, 2011 | DC BRANDS INTERNATIONAL, INC.(Registrant) |
|--------------------|-------------------------------------------|
|               |                                      |   |
|               | By:                                       | /s/Richard Pearce |
|               |                                      | Richard Pearce President andChief Executive Officer(Principal Executive Officer) |

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