UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





[X]
            QUARTERLY
      REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
      FOR THE QUARTERLY PERIOD ENDED April 30, 2009OR[   ]
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





Commission
file number 000-53285





CHARMED
HOMES INC.


(Exact
name of registrant as specified in its charter)





NEVADA


(State
or other jurisdiction of incorporation or organization)





60
Mt Kidd Point SE


Calgary,
Alberta


Canada   T2Z
3C5


(Address of principal executive
offices, including zip code.)





(403)
831-2202


(telephone
number, including area code)





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 last 90 days.    YES
[X]     NO [   ]





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer, “accelerated filer,”
“non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.





Large
      Accelerated Filer
            [   ]
            
            Accelerated
      Filer
            [   ]Non-accelerated
      Filer
            [   ]
            
            Smaller
      Reporting Company
            [X](Do
      not check if a smaller reporting
company)





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


YES
[X]     NO [   ]





State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of the latest practicable date:   6,690,000 as of June 15,
2009.





















PART
I – FINANCIAL INFORMATION





ITEM
      1.
            FINANCIAL
      STATEMENTS





Charmed
Homes Inc.


(A
Development Stage Company)





April 30,
2009











IndexBalance
      Sheets
            F-1Statements
      of Operations
            F-2Statements
      of Cash Flows
            F-3Notes
      to the Financial Statements
            F-4






















































































-2-








Charmed
Homes Inc.


(A
Development Stage Company)


Consolidated
Balance Sheets


(Expressed
in US dollars)


(unaudited)








(Unaudited)
                  April
      30,
                January
      31,2009
                2008$
                $ASSETSCurrent
      AssetsCash
                83,531
                86,957Total
      Assets
                83,531
                86,957LIABILITIES
      AND STOCKHOLDERS’ EQUITYCurrent
      LiabilitiesAccounts
      payable and accrued liabilities
                13,843
                3,413Total
      Liabilities
                13,843
                3,413Contingency
      (Note 1)Commitment
      (Note 4)Stockholders’
      EquityCommon
      Stock, 200,000,000 shares authorized, $0.00001 par value;6,690,000
      shares issued and outstanding
                67
                67Additional
      Paid-in Capital
                173,933
                173,933Donated
      Capital (Note 3)
                17,000
                15,500Deficit
      Accumulated During the Development Stage
                (121,312)
                (105,956)Total
      Stockholders’ Equity
                69,688
                83,544Total
      Liabilities and Stockholders’ Equity
                83,531
                86,957



















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





F-1





-3-





Charmed
Homes Inc.


(A
Development Stage Company)


Consolidated
Statements of Operations


(Expressed
in US dollars)


(unaudited)








Accumulated
      fromJune
      27, 2006 (Date
                Three
      Months
                Three
      Monthsof
      Inception) to
                Ended
                EndedApril
      30,
                April
      30,
                April
      30,2009
                2009
                2008$
                $
                $Revenue
                505,665
                –
                –Cost
      of Goods Sold
                490,598
                –
                –Gross
      Profit
                15,067
                –
                –ExpensesDonated
      services and rent (Note 3)
                17,000
                1,500
                1,500Foreign
      exchange loss
                12,376
                –
                6,101General
      and administrative
                3,468
                12
                181Professional
      fees
                102,215
                13,844
                10,238Property
      taxes and utilities
                1,320
                –
                –Total
      Expenses
                136,379
                15,356
                18,020Net
      Loss for the Period
                121,312
                15,356
                18,020Net
      Loss Per Share – Basic and Diluted
                
                –
                –Weighted
      Average Shares Outstanding
                
                6,690,000
                6,690,000





























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





F-2





-4-





Charmed
Homes Inc.


(A
Development Stage Company)


Consolidated
Statements of Cash Flows


(Expressed
in US dollars)


(unaudited)








Accumulated
      fromJune
      27, 2006
              Three
      Months
              Three
      Months(Date
      of Inception)
              Ended
              Endedto
      April 30,
              April
      30,
              April
      30,2009
              2009
              2008$
              $
              $Operating
      ActivitiesNet
      loss for the period
              (121,312)
              (15,356)
              (18,020)Adjustments
      to reconcile net loss to net cash provided by (used in) operating
      activities:Donated
      services and rent
              17,000
              1,500
              1,500Changes
      in operating assets and liabilitiesAccounts
      payable
              4,393
              980
              1,435Accrued
      liability
              9,450
              9,450
              7,088Due
      to related party
              –
              –
              6,101Net
      Cash Provided By (Used In) Operating Activities
              (90,469)
              (3,426)
              (1,896)Financing
      ActivitiesProceeds
      from issuance of common stock
              174,000
              –
              –Net
      Cash Provided By (Used In) Financing Activities
              174,000
              –
              –Increase
      (decrease) in Cash
              83,531
              (3,426)
              (1,896)Cash
      - Beginning of Period
              –
              86,957
              22,748Cash
      - End of Period
              83,531
              83,531
              20,852Supplemental
      DisclosuresInterest
      paid
              –
              –
              –Income
      taxes paid
              –
              –
              –




















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





F-3





-5-








Charmed
Homes Inc.


(A
Development Stage Company)


Notes to
the Consolidated Financial Statements


April 30,
2009


(Expressed
in US dollars)


(unaudited)








1.    
   Nature of Operations and Continuance of Business





Charmed
Homes Inc. (the “Company”) was incorporated in the State of Nevada on June 27,
2006. The Company is a Development Stage Company, as defined by Statement of
Financial Accounting Standard (“SFAS”) No.7, “Accounting and Reporting by
Development Stage Enterprises”. The Company’s principal business is the sale of
constructed or purchased homes.





These
consolidated financial statements have been prepared on a going concern basis,
which implies the Company will continue to realize its assets and discharge its
liabilities in the normal course of business. The Company has generated revenues
of $505,665 since inception and has never paid any dividends and is unlikely to
pay dividends or generate earnings in the immediate or foreseeable future. The
continuation of the Company as a going concern is dependent upon the continued
financial support from its shareholders, the ability of the Company to obtain
necessary equity financing to continue operations, and the attainment of
profitable operations. As at April 30, 2009,the Company has accumulated losses
of $121,312. These factors raise substantial doubt regarding the Company’s
ability to continue as a going concern. These financial statements do not
include any adjustments to the recoverability and classification of recorded
asset amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern.








2.      
 Summary of Significant Accounting Policies





a)  Basis
of Presentation


These
financial statements and related notes are presented in accordance with
accounting principles generally accepted in the United States, are expressed in
US dollars and include the accounts of the Company and its wholly-owned
subsidiary, Charmed Homes Subsidiary, Inc., which was incorporated on November
26, 2008. All intercompany transactions and balances have been eliminated upon
consolidation.  The Company’s fiscal year-end is January
31.





b)  Interim
Financial Statements


These
interim unaudited financial statements have been prepared on the same basis as
the annual financial statements and in the opinion of management, reflect all
adjustments, which include only normal recurring adjustments, necessary to
present fairly the Company’s financial position, results of operations and cash
flows for the periods shown. The results of operations for such periods are not
necessarily indicative of the results expected for a full year or for any future
period.





c)  Use
of Estimates


The
preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. The
Company regularly evaluates estimates and assumptions related to donated
expenses and deferred income tax asset valuations. The Company bases its
estimates and assumptions on current facts, historical experience and various
other factors that it believes to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values
of assets and liabilities and the accrual of costs and expenses that are not
readily apparent from other sources. The actual results experienced by the
Company may differ materially and adversely from the Company’s estimates. To the
extent there are material differences between the estimates and the actual
results, future results of operations will be affected.





F-4





-6-





Charmed
Homes Inc.


(A
Development Stage Company)


Notes to
the Consolidated Financial Statements


April 30,
2009


(Expressed
in US dollars)


(unaudited)








2. 
      Summary of Significant Accounting Policies
(continued)





d)  Earnings
Per Share


The
Company computes earnings (loss) per share in accordance with SFAS No. 128,
"Earnings per Share". SFAS No. 128 requires presentation of both basic and
diluted earnings per share (“EPS”) on the face of the income statement. Basic
EPS is computed by dividing earnings (loss) available to common shareholders
(numerator) by the weighted average number of shares outstanding (denominator)
during the period. Diluted EPS gives effect to all dilutive potential common
shares outstanding during the period using the treasury stock method and
convertible preferred stock using the if-converted method. In computing Diluted
EPS, the average stock price for the period is used in determining the number of
shares assumed to be purchased from the exercise of stock options or warrants.
Diluted EPS excludes all dilutive potential shares if their effect is anti
dilutive. There are no dilutive securities outstanding at April 30,
2009.





e)  Comprehensive
Loss


SFAS No.
130, “Reporting Comprehensive Income,” establishes standards for the reporting
and display of comprehensive loss and its components in the financial
statements. As at April 30, 2009 and 2008, the Company has no items that
represent a comprehensive loss and, therefore, has not included a schedule of
comprehensive loss in the financial statements.





f)  
Cash and Cash Equivalents


The
Company considers all highly liquid instruments with maturity of three months or
less at the time of issuance to be cash equivalents.





g)
 Inventory


Inventory
consists of real estate purchased for resale and is valued at the lower of cost
and net realizable value. Cost is determined using the specific identification
method.





h)  Financial
Instruments


Financial
instruments, which include cash, accounts payable and accrued liabilities, were
estimated to approximate their carrying values due to the immediate or
short-term maturity of these financial instruments. The Company’s operations are
in Canada, which results in exposure to market risks from changes in foreign
currency rates. The financial risk is the risk to the Company’s operations that
arise from fluctuations in foreign exchange rates and the degree of volatility
of these rates. Currently, the Company does not use derivative instruments to
reduce its exposure to foreign currency risk.





i)   Income
Taxes


The
Company accounts for income taxes using the asset and liability method in
accordance with SFAS No. 109, “Accounting for Income Taxes”. The asset and
liability method provides that deferred tax assets and liabilities are
recognized for the expected future tax consequences of temporary differences
between the financial reporting and tax bases of assets and liabilities, and for
operating loss and tax credit carryforwards. Deferred tax assets and liabilities
are measured using the currently enacted tax rates and laws that will be in
effect when the differences are expected to reverse. The Company records a
valuation allowance to reduced deferred tax assets to the amount that is
believed more likely than not to be realized.





j)   Foreign
Currency Translation


The
Company’s functional and reporting currency is the United States dollar.
Significant transactions may occur in Canadian dollars and management has
adopted SFAS No. 52, “Foreign Currency Translation”. Monetary assets and
liabilities denominated in foreign currencies are translated using the exchange
rate prevailing at the balance sheet date. Non-monetary assets and liabilities
denominated in foreign currencies are translated at rates of exchange in effect
at the date of the transaction. Average monthly rates are used to translate
revenues and expenses. Gains and losses arising on translation or settlement of
foreign currency denominated transactions or balances are included in the
determination of income.








F-5





-7-





Charmed
Homes Inc.


(A
Development Stage Company)


Notes to
the Consolidated Financial Statements


April 30,
2009


(Expressed
in US dollars)


(unaudited)








2.     
  Summary of Significant Accounting Policies (continued)





k)  Revenue
Recognition


The
Company recognizes revenue in accordance with SFAS No. 66, ”Accounting for Sales
of Real Estate”. The sale of constructed or purchased houses will be recognized
in full once the real estate property has been sold, the profit is determinable,
collectibility of the sales price is reasonably assured, and the earnings
process is virtually complete whereas the Company is no longer further obligated
to perform significant activities after the sale to earn the
profit.





l)   Recent
Accounting Pronouncements


In May
2009, the FASB issued SFAS No. 165 “Subsequent Events”. SFAS No. 165 provides
general standards of accounting for and disclosure of events that occur after
the balance sheet date but before financial statements are issued or are
available to be issued or available to be issued. The statement sets forth the
period after the balance sheet date during which management of a reporting
entity should evaluate events or transactions that may occur for potential
recognition or disclosure in the financial statements. The statement also sets
forth the circumstances under which an entity should recognize events or
transactions occurring after the balance sheet date in its financial
statements.  Furthermore, this statement identifies the disclosures
that an entity should make about events or transactions that occurred after the
balance sheet date. It is effective for interim or annual financial periods
ending after June 15, 2009. Management is currently evaluating the impact of
this statement.





In April
2009, the FASB issued SFAS No. 164, “Not-for-Profit Entities: Mergers and
Acquisitions”. SFAS No. 164 provides guidance on accounting for a combination of
not-for-profit entities, which is a transaction or other event that results in a
not-for-profit entity initially recognizing another not-for-profit entity, a
business, or a non-profit activity in its financial statements. It is effective
for financial statements issued for fiscal years beginning after December 15,
2009. The adoption of this statement is not expected to have a material effect
on the Company’s financial statements.





In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles”. SFAS No. 162 identifies the sources of accounting
principles and the framework for selecting the principles to be used in the
preparation of financial statements of non-governmental entities that are
presented in conformity with generally accepted accounting principles in the
United States. It is effective 60 days following the SEC’s approval of the
Public Company Accounting Oversight Board amendments to AU Section 411, “The
Meaning of Present Fairly in Conformity With Generally Accepted Accounting
Principles”. The adoption of this statement is not expected to have a material
effect on the Company’s financial statements.





m) Recently Adopted
Accounting Pronouncements


In May
2008, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 163,
“Accounting for Financial Guarantee Insurance Contracts – An interpretation of
FASB Statement No. 60”. SFAS No. 163 requires that an insurance enterprise
recognize a claim liability prior to an event of default when there is evidence
that credit deterioration has occurred in an insured financial obligation. It
also clarifies how Statement 60 applies to financial guarantee insurance
contracts, including the recognition and measurement to be used to account for
premium revenue and claim liabilities, and requires expanded disclosures about
financial guarantee insurance contracts. Effective February 1, 2009, the Company
adopted SFAS No.163. The adoption of SFAS No. 163 did not have a material effect
on the Company’s financial statements.





In March
2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments
and Hedging Activities – an amendment to FASB Statement No. 133”. SFAS No. 161
is intended to improve financial standards for derivative instruments and
hedging activities by requiring enhanced disclosures to enable investors to
better understand their effects on an entity's financial position, financial
performance, and cash flows. Entities are required to provide enhanced
disclosures about: (a) how and why an entity uses derivative instruments; (b)
how derivative instruments and related hedged items are accounted for under
Statement 133 and its related interpretations; and (c) how derivative
instruments and related hedged items affect an entity’s financial position,
financial performance, and cash flows. Effective February 1, 2009, the Company
adopted SFAS No. 161. The adoption of SFAS No. 161 did not have a material
effect on the Company’s financial statements.








F-6





-8-





Charmed
Homes Inc.


(A
Development Stage Company)


Notes to
the Consolidated Financial Statements


April 30,
2009


(Expressed
in US dollars)


(unaudited)








2.     
  Summary of Significant Accounting Policies (continued)





m) Recently Adopted
Accounting Pronouncements (continued)


In
December 2007, the FASB issued No. 160, “Noncontrolling Interests in
Consolidated Financial Statements - an amendment of ARB No.51”. SFAS No. 160
requires consolidated net income to be reported at amounts that include the
amounts attributable to both the parent and the noncontrolling interest. It also
requires disclosure, on the face of the consolidated statement of income, of the
amounts of consolidated net income attributable to the parent and to the
noncontrolling interest. SFAS No. 160 also requires that a parent recognize a
gain or loss in net income when a subsidiary is deconsolidated. SFAS No. 160
also requires expanded disclosures in the consolidated financial statements that
clearly identify and distinguish between the interests of the parent’s owners
and the interests of the noncontrolling owners of a subsidiary. Effective
February 1, 2009, the Company adopted SFAS No. 160. The adoption of SFAS No. 160
did not have a material effect on the Company’s financial
statements.





In
December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business
Combinations”. This statement replaces SFAS No. 141 and defines the acquirer in
a business combination as the entity that obtains control of one or more
businesses in a business combination and establishes the acquisition date as the
date that the acquirer achieves control. SFAS No. 141 (revised 2007) requires an
acquirer to recognize the assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree at the acquisition date, measured at
their fair values as of that date. SFAS No. 141 (revised 2007) also requires the
acquirer to recognize contingent consideration at the acquisition date, measured
at its fair value at that date. Effective February 1, 2009, the Company adopted
SFAS No. 141. The adoption of SFAS No. 141 did not have a material effect on the
Company’s financial statements.





3.       Related
Party Transactions





Commencing
July 1, 2006, the President of the Company provided management services and
office space to the Company with a fair value of $300 and $200 per month,
respectively. During the three months ended April 30, 2009, the Company recorded
donated services of $900 (2008 - $900) and donated rent of $600 (2008 -
$600).





4.       Commitment





On
January 8, 2009, the Company entered into a merger agreement (the “Agreement”)
with IntelaSight, Inc. (“IntelaSight”). Under the Agreement, the Company will
engage in a 1 for 2 reverse stock split and IntelaSight’s stock and derivative
securities will be exchanged for stock and derivative securities of the Company
at a ratio of one share of the Company’s common stock for one share of
IntelaSight. IntelaSight will merge with the Company’s subsidiary, Charmed Homes
Subsidiary, Inc. The Agreement is subject to the satisfaction of closing
conditions and shareholder approval.


F-7





-9-








ITEM
2.         MANAGEMENT'S DISCUSSION AND
ANALYSIS OR PLAN OF OPERATION.





This section of the report includes a
number of forward-looking statements that reflect our current views with respect
to future events and financial performance. Forward-looking statements are often
identified by words like: believe, expect, estimate, anticipate, intend, project
and similar expressions, or words which, by their nature, refer to future
events. You should not place undue certainty on these forward-looking
statements, which apply only as of the date of this report. These
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from historical results or our
predictions.





We are a development-stage corporation
and at this point we have realized a nominal profit on our first
project.





Our auditors have issued a going
concern opinion. This means that our auditors believe there is substantial doubt
that we can continue as an on-going business for the next twelve months unless
we obtain additional capital to pay our bills. This is because we have not
purchased any contracts and only generated nominal revenues from the first
development. We must raise cash from operations. Our only other source for cash
at this time is investments by others in our company. We must raise cash to
implement our project and begin our operations. Even with the money we raised
from our public offering, we do not know how long the money will last, however,
we do believe it will last twelve months.  Operations are now under
way since we raised the money from our public offering.





To meet our need for cash, we have
raised money through the public offering. We cannot guarantee that once we begin
operations we will stay in business after operations have commenced. Further, if
we are unable to attract enough clients to utilize our services, we may quickly
use up the proceeds from the minimum amount of money from our public offering
and will need to find alternative sources, like a second public offering, a
private placement of securities, or loans from our officers or others in order
for us to maintain our operations. At the present time, we have not made any
arrangements to raise additional cash, other than through our public
offering.





If we need additional cash and cannot
raise it, we will either have to suspend operations until we do raise the cash,
or cease operations entirely. We believe the amount raised from our public
offering will last a year but with limited funds available to develop growth
strategy.   If at some point we need more money, we will have to
revert to obtaining additional money as described in this paragraph. Other than
as described in this paragraph, we have no other financing plans.





Operation
to Date





With the success of our offering, we
were able to begin our operations.  We established our office and
acquired the equipment we needed to begin.  We did not hire any
employees up to this point and our officers and directors are handling the
administrative duties.





We located a suitable piece of land in
order to start our first project.  The lot was acquired in the
community of Lake Chaparral.








-10-





Once the land was located, we chose a
home plan which best suited the property.  The blueprints were drawn
up, specifications outlined and decisions on materials made.





Initial financing through the bank was
avoided by obtaining an interest free loan of $25,000 from our President Ian
Quinn.  The plot plan and blueprint were submitted to the developer of
the subdivision and approvals were received.





The process of tendering out for
construction was avoided by working with Shane Homes, who have all the suppliers
and trades people in place.  Construction of the home was completed at
the end of December, approximately three months earlier than
expected.





The home was listed as soon as it was
completed as it was decided that with the slowing in the market it would be best
to market the home once it was showing its best.





The home is now sold, but with the
significantly slower market in Calgary and area, it took much longer that
expected to sell and we did not realize the profit we had anticipated. The sale
of the home was just on June 3, 2008.





Due to the state of the Calgary housing
market, there is a tremendous amount of new home inventory available and house
prices are dropping significantly. Therefore we have discontinued our operations
in home building.





Future
Operations





Because of the change in the economy,
we believed that it was in the best interests of our shareholders to change our
business course.





On November 12, 2008, we entered into a
letter of intent with IntelaSight, Inc., a Washington corporation d/b/a Iveda
Solutions ("Iveda"). Under the Letter of Intent (“LOI”), we have agreed to
merger with Iveda whereby Iveda will become our wholly-owned subsidiary and
Iveda's shareholders will receive approximately 10 million shares of our common
stock. Prior to the merger, we will engage in a 1-for-2 reverse stock split to
reduce the number of our outstanding shares.





Iveda provides remote video monitoring
services and currently has clients in Arizona and California. Iveda offers a
proactive security solution using network cameras, real-time Internet-based
surveillance system, and a remote monitoring facility with trained intervention
specialists. Based in Mesa, Arizona, Iveda’s core monitoring service offers
private and public entities what Iveda management believes to be a more
affordable, reliable, and effective security solution than either security
guards or closed circuit television on-site monitoring.





As part of the merger, we have agreed
to change our name to "Iveda Corporation.” After the filing of the amended
articles of incorporation with the Secretary of State of the State of Nevada, we
will cease using the corporate name “Charmed Homes Inc.” and do business as
“Iveda Corporation.”











-11-





Limited
operating history; need for additional capital





There is limited historical financial
information about us upon which to base an evaluation of our performance. We are
in start-up stage operations and have not generated any revenues. We cannot
guarantee we will be successful in our business operations. Our business is
subject to risks inherent in the establishment of a new business enterprise,
including limited capital resources and possible cost overruns due to price and
cost increases in services and products.





We have no assurance that future
financing will be available to us on acceptable terms. If financing is not
available on satisfactory terms, we may be unable to continue, develop or expand
our operations. Equity financing could result in additional dilution to existing
shareholders.





Results
of operations





From
Inception on June 27, 2006 to April 30, 2009





During this period we incorporated the
company, hired the attorney, and hired the auditor for the preparation of our
registration statement. We have also completed and sold our first house. Our
loss since inception is $121,312 of which $102,215 is for professional fees;
$17,000 is for donated rent and services; $3,468 is for filing fees and general
office costs; $1,320 is for property tax and utilities and $12,376 is for
foreign exchange loss. We have changed our proposed business operations and will
continue to complete the merger with Iveda Corporation.





Since inception, we have issued
5,000,000 shares of common stock to our officers and directors for cash proceeds
of $5,000.  On August 2007, we completed our public offering by
selling 1,690,000 shares of common stock and raising $169,000.





Liquidity
and capital resources





On June 15, 2006, we issued 5,000,000
shares of common stock pursuant to the exemption from registration contained in
section 4(2) of the Securities Act of 1933. This was accounted for as a sale of
common stock. In August, 2007, we also issued 1,690,000 shares of common stock
to 54 individuals. This was also accounted for as a sale of common
stock.





As of April 30, 2009, our total assets
were $83,531 comprised of $83,531 in cash and our total liabilities were
$13,843, comprised of accounts payable of $13,843.





On June 3, 2008, we sold our real
property for consideration of CDN$510,000.





Recent
accounting pronouncements
 
 In May 2009,
the FASB issued SFAS No. 165 “Subsequent Events”. SFAS No. 165 provides general
standards of accounting for and disclosure of events that occur after the
balance sheet date but before financial statements are issued or are available
to be issued or available to be issued. The statement sets forth the period
after the balance sheet date during which management of a reporting entity
should evaluate events or transactions that may occur for potential recognition
or disclosure in the financial statements. The statement also sets forth the
circumstances under which an entity should recognize events or transactions
occurring after the balance sheet date in its financial
statements.  Furthermore, this statement identifies the disclosures
that an entity should make about events or transactions that occurred after the
balance sheet date. It is effective for interim or annual financial periods
ending after June 15, 2009. Management is currently evaluating the impact of
this statement.





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In April
2009, the FASB issued SFAS No. 164, “Not-for-Profit Entities: Mergers and
Acquisitions”. SFAS No. 164 provides guidance on accounting for a combination of
not-for-profit entities, which is a transaction or other event that results in a
not-for-profit entity initially recognizing another not-for-profit entity, a
business, or a non-profit activity in its financial statements. It is effective
for financial statements issued for fiscal years beginning after December 15,
2009. The adoption of this statement is not expected to have a material effect
on the Company’s financial statements.
  In May 2008,
the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting
Principles”. SFAS No. 162 identifies the sources of accounting principles and
the framework for selecting the principles to be used in the preparation of
financial statements of non-governmental entities that are presented in
conformity with generally accepted accounting principles in the United States.
It is effective 60 days following the SEC’s approval of the Public Company
Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present
Fairly in Conformity With Generally Accepted Accounting Principles”. The
adoption of this statement is not expected to have a material effect on the
Company’s financial statements.
  In May 2008,
the Financial Accounting Standards Board (“FASB”) issued SFAS No. 163,
“Accounting for Financial Guarantee Insurance Contracts – An interpretation of
FASB Statement No. 60”. SFAS No. 163 requires that an insurance enterprise
recognize a claim liability prior to an event of default when there is evidence
that credit deterioration has occurred in an insured financial obligation. It
also clarifies how Statement 60 applies to financial guarantee insurance
contracts, including the recognition and measurement to be used to account for
premium revenue and claim liabilities, and requires expanded disclosures about
financial guarantee insurance contracts. Effective February 1, 2009, the Company
adopted SFAS No.163 . The adoption of SFAS No. 163 did not have a material
effect on the Company’s financial statements.
  In March
2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments
and Hedging Activities – an amendment to FASB Statement No. 133”. SFAS No. 161
is intended to improve financial standards for derivative instruments and
hedging activities by requiring enhanced disclosures to enable investors to
better understand their effects on an entity's financial position, financial
performance, and cash flows. Entities are required to provide enhanced
disclosures about: (a) how and why an entity uses derivative instruments; (b)
how derivative instruments and related hedged items are accounted for under
Statement 133 and its related interpretations; and (c) how derivative
instruments and related hedged items affect an entity’s financial position,
financial performance, and cash flows. Effective February 1, 2009, the Company
adopted SFAS No. 161. The adoption of SFAS No. 161 did not have a material
effect on the Company’s financial statements.
 In December
2007, the FASB issued No. 160, “Noncontrolling Interests in Consolidated
Financial Statements - an amendment of ARB No.51”. SFAS No. 160 requires
consolidated net income to be reported at amounts that include the amounts
attributable to both the parent and the noncontrolling interest. It also
requires disclosure, on the face of the consolidated statement of income, of the
amounts of consolidated net income attributable to the parent and to the
noncontrolling interest. SFAS No. 160 also requires that a parent recognize a
gain or loss in net income when a subsidiary is deconsolidated. SFAS No. 160
also requires expanded disclosures in the consolidated financial statements that
clearly identify and distinguish between the interests of the parent’s owners
and the interests of the noncontrolling owners of a subsidiary. Effective
February 1, 2009, the Company adopted SFAS No. 160. The adoption of SFAS No. 160
did not have a material effect on the Company’s financial
statements.
  -13-





In December
2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations”. This
statement replaces SFAS No. 141 and defines the acquirer in a business
combination as the entity that obtains control of one or more businesses in a
business combination and establishes the acquisition date as the date that the
acquirer achieves control. SFAS No. 141 (revised 2007) requires an acquirer to
recognize the assets acquired, the liabilities assumed, and any noncontrolling
interest in the acquiree at the acquisition date, measured at their fair values
as of that date. SFAS No. 141 (revised 2007) also requires the acquirer to
recognize contingent consideration at the acquisition date, measured at its fair
value at that date. Effective February 1, 2009, the Company adopted SFAS No.
141. The adoption of SFAS No. 141 did not have a material effect on the
Company’s financial statements.





ITEM
      3.
            QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.





We are a smaller reporting company as
defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not
required to provide the information under this item.





ITEM
      4.
            CONTROLS
      AND PROCEDURES.





Under the supervision and with the
participation of our management, including the Principal Executive Officer and
Principal Financial Officer, we have evaluated the effectiveness of our
disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as
of the end of the period covered by this report. Based on that evaluation, the
Principal Executive Officer and Principal Financial Officer have concluded that
these disclosure controls and procedures are effective. There were no changes in
our internal control over financial reporting during the quarter ended April 30,
2009 that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.





PART
II. OTHER INFORMATION





ITEM
1A.       RISK FACTORS.





We are a smaller reporting company as
defined by Rule 12b-2 of the Exchange Act and are not required to provide the
information required under this item.





ITEM
      6.
            EXHIBITS.





The
following documents are included herein:





Exhibit
      No.
            Document
      Description31.1
            Certification
      of Principal Executive Officer and Principal Financial Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002.32.1
            Certification
      of the Chief Executive Officer and Chief Financial Officer pursuant to
      Section 906 of the Sarbanes-Oxley Act of
2002.


-14-





SIGNATURES





Pursuant to the requirements of the
Securities Exchange Act of 1934, this report has been signed below by the
following person on behalf of the Registrant and in the capacities on this
15th
day of June, 2009.





CHARMED
      HOMES INC.(Registrant)BY:
            IAN
      QUINNIan
      QuinnPresident,
      Principal Accounting Officer, Principal Executive Officer, Principal
      Financial Officer, Treasurer and a member of the Board of
      Directors





































-15-





EXHIBIT
INDEX





Exhibit
      No.
            Document
      Description31.1
            Certification
      of Principal Executive Officer and Principal Financial Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002.32.1
            Certification
      of the Chief Executive Officer and Chief Financial Officer pursuant to
      Section 906 of the Sarbanes-Oxley Act of
2002.
































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