**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**June      30, 2006**

**000-29803**

**EYI      INDUSTRIES, INC. **

| **Nevada**                                              |   | **88-0407078**                                   |
|---------------------------------------------------------|--------|--------------------------------------------------|
| (State                or other jurisdiction of          |   | (IRS                Employer Identification No.) |
| incorporation                or organization)           |   |                                             |
|                                                    |   |                                             |
| **7865                Edmonds Street**                  |   |                                             |
| **Burnaby,                BC CANADA**                   |   | **V3N                1B9**                       |
| (Address                of principal executive offices) |   | (Zip                Code)                        |
|                                                    |   |                                             |
| Issuer's                telephone number:               |   | **(604)                759-5031**                |

**NOT      APPLICABLE**

** **

| Transitional Small Business Disclosure                Format                (check one): | Yes ̈                   No x   |
|------------------------------------------------------------------------------------------|---------------------------------------------------|

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**PART      I - FINANCIAL INFORMATION**

**ITEM      1.            FINANCIAL      STATEMENTS. **

----

| **EYI                  INDUSTRIES, INC.**                                    |   |
|------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  BALANCE SHEETS**                             |   |
|                                                                         |   |   |   |  June                  30, 2006 |   |  December                  31, 2005 |   |
|                                                                         |   |   |   |  (Unaudited) |   |    |   |
| **ASSETS**                                                                   |   |    |   |    |   |
| CURRENT                  ASSETS                                              |   |    |   |    |   |
| Cash                                                                         |   |   |   |   | $ | 3,066,354 |   | $ | 25,639 |   |
| Accounts                  receivable, net of allowance                       |   |   |   |   |   | 54,387 |   |   | 48,783 |   |
| Related                  party receivables                                   |   |   |   |   |   | 120 |   |   | - |   |
| Prepaid                  expenses                                            |   |   |   |   |   | 74,965 |   |   | 12,387 |   |
| Inventory                                                                    |   |   |   |   |   | 427,432 |   |   | 295,248 |   |
|  TOTAL                  CURRENT ASSETS                                  |   |   |   |   |   | 3,623,258 |   |   | 382,057 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| OTHER                  ASSETS                                                |   |   |   |   |   |   |   |   |   |   |
| Property,                  plant and equipment, net                          |   |   |   |   |   | 64,863 |   |   | 49,671 |   |
| Deposits                                                                     |   |   |   |   |   | 66,788 |   |   | 67,603 |   |
|  TOTAL                  OTHER ASSETS                                    |   |   |   |   |   | 131,651 |   |   | 117,274 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| INTANGIBLE                  ASSETS                                           |   |   |   |   |   | 13,944 |   |   | 15,044 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| **TOTAL                  ASSETS**                                            |   |   |   |   | $ | 3,768,853 |   | $ | 514,375 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIT)**          |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES                                         |   |   |   |   |   |   |   |   |   |   |
| Accounts                  payable and accrued liabilities                    |   |   |   |   | $ | 1,493,170 |   | $ | 1,929,049 |   |
| Accounts                  payable - related parties                          |   |   |   |   |   | 512,720 |   |   | 328,038 |   |
| Convertible                  debt - related party, net of discount           |   |   |   |   |   | 402 |   |   | - |   |
| Derivative                  on convertible debt                              |   |   |   |   |   | 2,176,695 |   |   | - |   |
| Interest                  payable, convertible debt                          |   |   |   |   |   | 41,096 |   |   | - |   |
| Notes                  payable - related party                               |   |   |   |   |   | 40,000 |   |   | 90,000 |   |
|  TOTAL                  CURRENT LIABILITIES                             |   |   |   |   |   | 4,264,083 |   |   | 2,347,087 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  liabilities from discontinued operations                |   |   |   |   |   | 375,344 |   |   | 375,344 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| MINORITY                  INTEREST IN SUBSIDIARY                             |   |   |   |   |   | 200,518 |   |   | 262,057 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'                  EQUITY (DEFICIT)                              |   |   |   |   |   |   |
| Preferred                  stock, $0.001 par value; 10,000,000 shares        |   |   |   |   |   |   |   |   |   |   |
|  authorized,                  no shares issued and outstanding          |   |   |   |   |   | - |   |   | - |   |
| Common                  stock, $0.001 par value; 1,000,000,000 shares        |   |   |   |   |   |   |   |   |   |   |
|  authorized,                  263,267,934 and 217,600,875 shares issued |   |   |   |   |   |   |   |   |   |   |
|  and                  outstanding, respectively                         |   |   |   |   |   | 263,268 |   |   | 217,600 |   |
| Additional                  paid-in capital                                  |   |   |   |   |   | 8,717,640 |   |   | 6,155,518 |   |
| Stock                  options and warrants                                  |   |   |   |   |   | 4,584,530 |   |   | 2,698,984 |   |
| Subscription                  receivable                                     |   |   |   |   |   | (195,000 | ) |   | (195,000 | ) |
| Accumulated                  deficit                                         |   |   |   |   |   | (14,441,530 | ) |   | (11,347,215 | ) |
|  TOTAL                  STOCKHOLDERS' EQUITY (DEFICIT)                  |   |   |   |   |   | (1,071,092 | ) |   | (2,470,113 | ) |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)**    |   |   |   |   | $ | 3,768,853 |   | $ | 514,375 |   |

----

| **EYI                    INDUSTRIES, INC.**CONSOLIDATED STATEMENTS OF                  OPERATIONS |   |
|---------------------------------------------------------------------------------------------------|--------|

|                                                                                                                                                                         |   |  Three                Months Ended |        | Three                Months Ended |   | Six                Months Ended |   | Six                Months Ended |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|-----------------------------------|--------|---------------------------------|--------|---------------------------------|-------------|
|                                                                                                                                                                         |   |  June                30, 2006      |        | June                30, 2005      |   | June                30, 2006    |   | June                30, 2005    |        |
|                                                                                                                                                                         |   |  (Unaudited)                       |        | (Unaudited)                       |   | (Unaudited)                     |   | (Unaudited)                     |        |
| **REVENUE,                NET OF RETURNS AND ALLOWANCES**                                                                                                                    |   | $                                       | 1,009,978   |                              | $      | 1,225,216                       |   | $                               | 2,118,737   |   | $ | 2,514,283 |   |
| **COST                OF GOODS SOLD**                                                                                                                                        |   |                                    | 390,896     |                              |   | 254,402                         |   |                            | 678,848     |   |   | 489,936 |   |
| **GROSS                PROFIT BEFORE COMMISSION EXPENSE**                                                                                                                    |   |                                    | 619,082     |                              |   | 970,814                         |   |                            | 1,439,889   |   |   | 2,024,347 |   |
| **COMMISSION                EXPENSE**                                                                                                                                        |   |                                    | 379,274     |                              |   | 450,857                         |   |                            | 764,717     |   |   | 922,462 |   |
| **GROSS                  PROFIT AFTER COST OF GOODS SOLD AND  **COMMISSION********EXPENSE****                                                                           |   |                                    | 239,808     |                              |   | 519,957                         |   |                            | 675,172     |   |   | 1,101,885 |   |
| **OPERATING                EXPENSES**                                                                                                                                        |   |                                    |        |                              |   |                            |   |                            |        |   |   |   |   |
| Consulting                fees                                                                                                                                               |   |                                    | 224,363     |                              |   | 240,848                         |   |                            | 484,099     |   |   | 478,810 |   |
| Legal                and professional fees                                                                                                                                   |   |                                    | 86,760      |                              |   | 80,512                          |   |                            | 161,242     |   |   | 146,757 |   |
| Customer                service                                                                                                                                              |   |                                    | 66,587      |                              |   | 65,471                          |   |                            | 107,003     |   |   | 152,005 |   |
| Finance                and administration                                                                                                                                    |   |                                    | 146,567     |                              |   | 92,898                          |   |                            | 428,694     |   |   | 300,978 |   |
| Sales                and marketing                                                                                                                                           |   |                                    | 133,668     |                              |   | 1,273                           |   |                            | 212,292     |   |   | 4,991 |   |
| Telecommunications                                                                                                                                                           |   |                                    | 34,365      |                              |   | 124,890                         |   |                            | 65,025      |   |   | 242,258 |   |
| Wages                and benefits                                                                                                                                            |   |                                    | 321,822     |                              |   | 371,526                         |   |                            | 599,393     |   |   | 743,152 |   |
| Warehouse                expense                                                                                                                                             |   |                                    | 67,775      |                              |   | 16,819                          |   |                            | 130,673     |   |   | 61,846 |   |
| TOTAL                OPERATING EXPENSES                                                                                                                                      |   |                                    | 1,081,996   |                              |   | 994,237                         |   |                            | 2,188,421   |   |   | 2,130,797 |   |
| **LOSS                FROM OPERATIONS**                                                                                                                                      |   |                                    | (842,188    | )                                 |   | (474,280                        | )      |                            | (1,513,249  | ) |   | (1,028,912 | ) |
| **OTHER                INCOME (EXPENSES)**                                                                                                                                   |   |                                    |        |                              |   |                            |   |                            |        |   |   |   |   |
| Interest                and other income                                                                                                                                     |   |                                    | 112    |                              |   | 319                             |   |                            | 243         |   |   | 3,468 |   |
| Interest                expense                                                                                                                                              |   |                                    | (47,588     | )                                 |   | (56,442                         | )      |                            | (56,734     | ) |   | (54,578 | ) |
| Financing                fees                                                                                                                                                |   |                                    | (89,002     | )                                 |   | (62,500                         | )      |                            | (306,937    | ) |   | (62,500 | ) |
| Loss                on derivatives                                                                                                                                           |   |                                    | (1,295,508  | )                                 |   | -                               |   |                            | (1,295,508  | ) |   | - |   |
| Foreign                currency gain (discount)                                                                                                                              |   |                                    | 11,663      |                              |   | (13,191                         | )      |                            | 16,332      |   |   | (149,487 | ) |
| TOTAL                OTHER INCOME (EXPENSES)                                                                                                                                 |   |                                    | 1,420,323   | )                                 |   | (109,814                        | )      |                            | (1,642,604  | ) |   | (263,097 | ) |
| **NET                LOSS BEFORE TAXES**                                                                                                                                     |   |                                    | (2,262,511  | )                                 |   | (584,094                        | )      |                            | (3,155,853  | ) |   | (1,292,009 | ) |
| **PROVISION                FOR INCOME TAXES**                                                                                                                                |   |                                    | -           |                              |   | -                               |   |                            | -           |   |   | - |   |
| **NET                LOSS BEFORE ALLOCATION TO MINORITY INTEREST**                                                                                                           |   |                                    | (2,262,511  | )                                 |   | (584,094                        | )      |                            | (3,155,853  | ) |   | (1,292,009 | ) |
| **ALLOCATION                OF LOSS TO MINORITY INTEREST**                                                                                                                   |   |                                    | 44,119      |                              |   | 17,161                          |   |                            | 61,539      |   |   | 32,749 |   |
| **ALLOCATION                OF LOSS TO DISCONTINUED OPERATIONS**                                                                                                             |   |                                    | -           |                              |   | (296,000                        | )      |                            | -           |   |   | (387,461 | ) |
| **NET                LOSS**                                                                                                                                                  |   | $                                       | (2,218,392  | )                                 | $      | (862,933                        | )      |                            | (3,094,314  | ) | $ | (1,646,721 | ) |
| **BASIC                AND DILUTED**                                                                                                                                         |   |                                    |        |                              |   |                            |   |                            |        |   |   |   |   |
| **NET                LOSS PER COMMON SHARE**                                                                                                                                 |   | $                                       | (0.01       | )                                 | $      | (0.01                           | )      | $                               | (0.01       | ) | $ | (0.01 | ) |
| **WEIGHTED                  AVERAGE NUMBER OF **COMMON                  STOCK SHARES OUTSTANDING **FOR                  BASIC AND DILUTED                  CALCULATION****** |   |                                    | 261,271,926 |                              |   | 157,060,345                     |   |                            | 261,271,926 |   |   | 157,060,345 |   |

----

| **EYI              INDUSTRIES, INC.**                                                      |
|--------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' EQUITY                (DEFICIT)** |

|                                                                                                                                                     |   | **Common                Stock**  |        |                  **Additional**  |   |                               |   |                                             |      |               |   |            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|--------------------------------------------|--------|-----------------------------------------|--------|--------------------------------------------------|-----------|--------------------|--------|-----------------|--------|
|                                                                                                                                                     |   | **Number                of**     |        |                                       |   |                  **Paid-in**  |   |                  **Subscription**      |      | **Option/**   |   | **Accumulated** |   |   |   |
|                                                                                                                                                     |   | **Shares**                       |        |                  **Amount**      |   |                  **Capital**  |   |                   **Receivable**  |      | **Warrants**  |   | **Deficit**     |   | **Total**  |   |
| Balance                December 31, 2004                                                                                                                 |   |                                  | 162,753,292 |                                       | $      | 162,753                                 |   | $                                                | 3,048,606 |               | $      | (15,000         | )      | $ | 2,563,044 |   | $ | (7,085,205 | ) | $ | (1,325,802 | ) |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                         |   |                                             |      |               |   |                 |   |   |  |   |   |   |   |   |  |   |
| Stock                issued at $0.06 per Share                for promissory note for exercise of options                                                |   |                                  | 3,000,000   |                                       |   | 3,000                                   |   |                                             | 177,000   |               |   | (180,000        | )      |   | - |   |   | - |   |   | - |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Vested                stock options issued for consulting at an average price of $0.07                per                share                           |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | 35,250 |   |   | - |   |   | 35,250 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Vested                stock options issued for employee compensation at an average price                of                $0.07 per share                |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | 133,750 |   |   | - |   |   | 133,750 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to employee for financing guaranty & pledge valued at $0.05 per                share                                     |   |                                  | 800,000     |                                       |   | 800                                     |   |                                             | 39,200    |               |   | -               |   |   | - |   |   | - |   |   | 40,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Consultant-options                exercised                                                                                                              |   |                                  | 250,000     |                                       |   | 250                                     |   |                                             | 14,750    |               |   | -               |   |   | (5,000 | ) |   | - |   |   | 10,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Gladys                Sargeant 506 Subscription Agreement                                                                                                |   |                                  | 1,000,000   |                                       |   | 1,000                                   |   |                                             | 4,000     |               |   | -               |   |   | 15,000 |   |   | - |   |   | 20,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Vested                stock option issued for consulting at an average price of $0.03 per                share                                           |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | 62,250 |   |   | - |   |   | 62,250 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Cancelled                stock options issued for compensation and consulting at an average                price                of $0.08 per option      |   |                                  | -           |                                       |   | -                                       |   |                                             | 425,300   |               |   | -               |   |   | (425,300 | ) |   | - |   |   | - |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Cancelled                stock options issued for compensation at $0.20                                                                                  |   |                                  | -           |                                       |   | -                                       |   |                                             | 2,400     |               |   | -               |   |   | (2,400 | ) |   | - |   |   | - |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to TAIB Bank to retire $75,000 of $300,000                debenture                                                          |   |                                  | 2,027,027   |                                       |   | 2,027                                   |   |                                             | 72,973    |               |   | -               |   |   | - |   |   | - |   |   | 75,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to TAIB Bank to retire $170,000 of $300,000 debenture plus                interest                of $10,830                 |   |                                  | 4,487,096   |                                       |   | 4,487                                   |   |                                             | 176,343   |               |   | -               |   |   | - |   |   | - |   |   | 180,830 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to TAIB Bank to retire $5,000 debenture plus interest of                $14,245                                              |   |                                  | 375,146     |                                       |   | 375                                     |   |                                             | 18,870    |               |   | -               |   |   | - |   |   | - |   |   | 19,245 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to Agora as part of contract                                                                                                 |   |                                  | 250,000     |                                       |   | 250                                     |   |                                             | 12,250    |               |   | -               |   |   | - |   |   | - |   |   | 12,500 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to Consultant as part of contract                                                                                            |   |                                  | 500,000     |                                       |   | 500                                     |   |                                             | 34,500    |               |   | -               |   |   | - |   |   | - |   |   | 35,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued for exercise of options at $0.08 per share                                                                                   |   |                                  | 100,000     |                                       |   | 100                                     |   |                                             | 7,900     |               |   | -               |   |   | - |   |   | - |   |   | 8,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to Cornell to retire prom note                                                                                               |   |                                  | 22,789,581  |                                       |   | 22,789                                  |   |                                             | 1,008,099 |               |   | -               |   |   | - |   |   | - |   |   | 1,030,888 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Vested                stock options issued for consulting at an average price of $0.20                per                share                           |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | 33,500 |   |   | - |   |   | 33,500 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Vested                stock options issued for employee and management compensation at                an                average price of $0.20 per share |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | 27,840 |   |   | - |   |   | 27,840 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to Cornell in exchange for $700,000 pursuant to                SEDA                                                          |   |                                  | 19,268,733  |                                       |   | 19,269                                  |   |                                             | 680,731   |               |   | -               |   |   | - |   |   | - |   |   | 700,000 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Cancelled                stock options issued for compensation                                                                                           |   |                                  | -           |                                       |   | -                                       |   |                                             | 10,500    |               |   | -               |   |   | (10,500 | ) |   | - |   |   | - |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Vested                stock options for consulting at an average price of $0.20 per                share                                                 |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | 271,550 |   |   | - |   |   | 271,550 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Beneficial                conversion of convertible debt                                                                                                 |   |                                  | -           |                                       |   | -                                       |   |                                             | 422,096   |               |   | -               |   |   | - |   |   | - |   |   | 422,096 |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Net                loss for year ended December 31, 2005                                                                                                 |   |                                  | -           |                                       |   | -                                       |   |                                             | -         |               |   | -               |   |   | - |   |   | (4,262,010 | ) |   | (4,262,010 | ) |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                     |   |                                  |        |                                       |   |                                    |   |                                             |      |               |   |            |   |   |   |   |   |   |   |   |   |   |
| Balance,                December 31, 2005                                                                                                                |   |                                  | 217,600,875 |                                       | $      | 217,600                                 |   | $                                                | 6,155,518 |               | $      | (195,000        | )      | $ | 2,698,984 |   |   | (11,347,215 | ) | $ | (2,470,113 | ) |

----

| Vested                stock options issued for consulting at an average price of $0.20                per                share |   |   | -           |   |   | -       |   |   | -         |   |   | -        |   |   | 3,750     |   |   | -           |   |   | 3,750       |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|---------|--------|--------|-----------|--------|--------|----------|--------|--------|-----------|--------|--------|-------------|--------|--------|-------------|--------|
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Stock                issued to Cornell in exchange for $1,084,565 pursuant to the                SEDA                          |   |   | 42,941,686  |   |   | 42,942  |   |   | 1,041,623 |   |   | -        |   |   | -         |   |   | -           |   |   | 1,084,565   |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Shares                returned to treasury                                                                                     |   |   | (268,639    | )      |   | (269    | )      |   | 269       |   |   | -        |   |   | -         |   |   | -           |   |   | -           |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Beneficial                conversion of convertible debt                                                                       |   |   | -           |   |   | -       |   |   | 200,207   |   |   | -        |   |   | -         |   |   | -           |   |   | 200,207     |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Stock                issued to Cornell to retire portion of debenture                                                          |   |   | 1,497,006   |   |   | 1,497   |   |   | 23,503    |   |   | -        |   |   | -         |   |   | -           |   |   | 25,000      |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Stock                issued to Certain Wealth to retire portion of debenture                                                   |   |   | 664,671     |   |   | 665     |   |   | 10,435    |   |   | -        |   |   | -         |   |   | -           |   |   | 11,000      |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Stock                issued to TAIB Bank to retire portion of debenture                                                        |   |   | 832,335     |   |   | 832     |   |   | 13,068    |   |   | -        |   |   | -         |   |   | -           |   |   | 13,900      |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Warrants                issued to Cornell Capital for financing services                                                       |   |   | -           |   |   | -       |   |   | -         |   |   | -        |   |   | 3,148,413 |   |   | 0           |   |   | 3,148,413   |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Vested                stock options for consulting at $0.10 per share                                                          |   |   | -           |   |   | -       |   |   | -         |   |   | -        |   |   | 5,000     |   |   | 0           |   |   | 5,000       |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Vested                stock options issued to employees at $0.02 per share                                                     |   |   | -           |   |   | -       |   |   | -         |   |   | -        |   |   | 1,400     |   |   | 0           |   |   | 1,400       |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Expired                Consultant stock options                                                                                |   |   | -           |   |   | -       |   |   | 961,300   |   |   | -        |   |   | (961,300  | )      |   | 0           |   |   | -           |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Expired                employee stock options                                                                                  |   |   | -           |   |   | -       |   |   | 311,717   |   |   | -        |   |   | (311,717  | )      |   | 0           |   |   | -           |   |
|                                                                                                                           |   |   |        |   |   |    |   |   |      |   |   |     |   |   |      |   |   |        |   |   |        |   |
| Net                loss for period ended June                30, 2006                                                          |   |   | -           |   |   | -       |   |   | -         |   |   | -        |   |   | -         |   |   | (3,094,314  | )      |   | (3,094,314  | )      |
|                                                                                                                           |   |   |        |   |   |         |   |   |      |   |   |          |   |   |           |   |   |        |   |   |             |   |
| Balance                June 30, 2006 (Unaudited)                                                                               |   |   | 263,267,934 |   | $      | 263,268 |   | $      | 8,717,640 |   | $      | (195,000 | )      | $      | 4,584,530 |   | $      | (14,441,529 | )      | $      | (1,071,092) | )      |

----

| **EYI                INDUSTRIES, INC.**                  |
|----------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS** |

|                                                                                             |   |  Six                Months Ended         |       |  Six                Months Ended |   |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|---------------------------------------|--------|
|                                                                                             |   |  (Unaudited)June                30, 2006 |       |  June                30, 2005    |   |
| **CASH                FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES**                            |   |                                     |       |                             |   |
| Net                loss                                                                          |   | $                                             | (3,094,314 | )                                     | $      | (1,646,721 | ) |
| Loss                allocated to minority interest                                               |   |                                          | 61,539     |                                  |   | 32,749 |   |
|                                                                                             |   |                                          | (3,155,853 | )                                     |   | (1,679,470 | ) |
| Adjustments                to reconcile net loss                                                 |   |                                          |            |                                  |   |  |   |
| to                net cash used by operating activities:                                         |   |                                          |            |                                  |   |  |   |
| Depreciation                and amortization                                                     |   |                                          | 9,918      |                                  |   | 44,064 |   |
| Stock                and warrants issued for employee compensation and                consulting |   |                                          | 10,150     |                                  |   | 231,250 |   |
| Loss                (gain) on valuation of derivative                                            |   |                                          | 1,295,508  |                                  |   | - |   |
| Stock                issued for financing guaranty & pledge                                  |   |                                          | -          |                                  |   | 40,000 |   |
| Discount                recognized on convertible debt                                           |   |                                          | 50,002     |                                  |   | 38,159 |   |
| Beneficial                conversion of convertible debt                                         |   |                                          | 200,207    |                                  |   | - |   |
| Liabilities                in excess of assets on discontinued operations                        |   |                                          | -          |                                  |   | 382,067 |   |
| Decrease                (increase) in:                                                           |   |                                          |       |                                  |   |   |   |
| Related                party receivables                                                         |   |                                          | (120       | )                                     |   | 427 |   |
| Accounts                receivable                                                               |   |                                          | (5,603     | )                                     |   | 5,351 |   |
| Prepaid                expenses                                                                  |   |                                          | (62,578    | )                                     |   | 188,013 |   |
| Inventory                                                                                        |   |                                          | (132,184   | )                                     |   | 48,431 |   |
| Deposits                                                                                         |   |                                          | 816        |                                  |   | (3,385 | ) |
| Increase                (decrease) in:                                                           |   |                                          |            |                                  |   |  |   |
| Accounts                payable and accrued liabilities                                          |   |                                          | (435,879   | )                                     |   | 249,301 |   |
| Accounts                payable - related parties                                                |   |                                          | 184,682    |                                  |   | 175,096 |   |
| Notes                payable, related party                                                      |   |                                          | (50,000    | )                                     |   | - |   |
| Interest                payable, convertible debt                                                |   |                                          | 41,096     |                                  |   | - |   |
| Net                cash used by operating activities                                             |   |                                          | (2,049,838 | )                                     |   | (280,696 | ) |
| **CASH                FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES**                            |   |                                          |            |                                  |   |  |   |
| Decrease                (increase) in restricted cash                                            |   |                                          | -          |                                  |   | 100,248 |   |
| Decrease                (increase) in property, plant, and equipment                             |   |                                          | (24,012    | )                                     |   | (12,726 | ) |
| Net                cash provided by investing activities                                         |   |                                          | (24,012    | )                                     |   | 87,522 |   |
| **CASH                FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES**                            |   |                                          |            |                                  |   |  |   |
| Net                change in bank indebtedness                                                   |   |                                          | -          |                                  |   | (48,344 | ) |
| Issuance                of stock, net of private placement costs & warrants                  |   |                                          | -          |                                  |   | 8,500 |   |
| Proceeds                from Cornell SEDA                                                        |   |                                          | 1,084,565  |                                  |   | - |   |
| Net                proceeds from loan payable - Cornell                                          |   |                                          | -          |                                  |   | 200,000 |   |
| Net                proceeds from convertible debt                                                |   |                                          | 4,030,000  |                                  |   | - |   |
| Net                cash provided by financing activities                                         |   |                                          | 5,114,565  |                                  |   | 160,156 |   |
| Net                increase in cash and cash equivalents                                         |   |                                          | 3,040,715  |                                  |   | (33,018 | ) |
| **CASH                - Beginning of Year**                                                      |   |                                          | 25,639     |                                  |   | 33,018 |   |
| **CASH                - End of Period**                                                          |   | $                                             | 3,066,354  |                                  | $      | - |   |
| **SUPPLEMENTAL                CASH FLOW DISCLOSURES:**                                           |   |                                          |       |                                  |   |  |   |
| **Interest                expense paid**                                                         |   | $                                             | 56,756     |                                  | $      | 34,442 |   |
| **Income                taxes paid**                                                             |   | $                                             | -          |                                  | $      | - |   |
| **NON-CASH                INVESTING AND FINANCING TRANSACTIONS:**                                |   |                                          |            |                                  |   |  |   |
| Beneficial                conversion of convertible debt                                         |   | $                                             | 200,207    |                                  | $      | - |   |
| Stock                subscription for promissory note                                            |   | $                                             | -          |                                  | $      | 180,000 |   |
| Stock                options and warrants vested for consulting and                compensation  |   | $                                             | 10,150     |                                  | $      | 231,250 |   |
| Stock                issued for options exercised in lieu of legal fees                          |   | $                                             | -          |                                  | $      | 10,000 |   |
| Stock                and warrants issued through private placement                               |   | $                                             | -          |                                  | $      | 20,000 |   |

----

| **EYI                INDUSTRIES, INC.****CONDENSED                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS****June                30, 2006** |
|------------------------------------------------------------------------------------------------------------------------------------------------|

**NOTE      1 - DESCRIPTION OF BUSINESS**
**      AND BASIS OF PRESENTATION**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES**

----

----

**NOTE      3 - CONVERTIBLE DEBT**

**NOTE      4 - DERIVATIVES**

**NOTE      5 - ACCOUNTS RECEIVABLE AND CREDIT RISK**

**NOTE      6 - PROPERTY AND EQUIPMENT**

----

**NOTE      7 - INTANGIBLE      ASSETS**

**NOTE      8 - CAPITAL STOCK **

**NOTE      9 - COMMON STOCK OPTIONS AND WARRANTS**

|                                                          |   |                            |       | Weighted                Average |   |
|---------------------------------------------------------------|--------|---------------------------------|------------|---------------------------------|--------|
|                                                          |   | Number                of Shares |       | Exercise                Price   |   |
| Outstanding                at December 31, 2005               |   |                            | 16,252,390 |                            | $      | 0.14 |   |
| Granted                                                       |   |                            | -          |                            |   | - |   |
| Exercised                                                     |   |                            | -          |                            |   | - |   |
| Forfeited                or cancelled                         |   |                            | 7,212,640  |                            |   | - |   |
| Options                outstanding at June 30, 2006           |   |                            | 9,039,750  |                            | $      | 0.10 |   |
| Options                exercisable at June 30, 2006           |   |                            | 8,969,750  |                            | $      | 0.10 |   |
|                                                          |   |                            |       |                            |   |   |   |
| Weighted                average fair value of options granted | $      | 0.06                            |       |

----

|                         | Options                Outstanding |
|------------------------------|------------------------------------|
| Exercise                     |                               | Weighted                Ave. | Weighted                Ave. |
| Price                        | Number                             | Remaining | Exercise |
| Range                        | of                Shares           | Life | Price |
| $0.02                - $0.26 | 9,039,750                          | 0.81 | $                0.10 |
|                         |                               |   |   |
|                         | Options                Exercisable |   |
| Exercise                     |                               | Weighted                Ave. | Weighted                Ave. |
| Price                        | Number                             | Remaining | Exercise |
| Range                        | of                Shares           | Life | Price |
| $0.02                - $0.26 | 8,969,750                          | 0.80 | $                0.10 |

|                         | Non-vested                Granted Options Outstanding |
|------------------------------|-------------------------------------------------------|
| Exercise                     |                                                  | Weighted                Ave. | Weighted                Ave. |
| Price                        | Number                                                | Remaining | Exercise |
| Range                        | of                Shares                              | Life | Price |
| $0.02                - $0.10 | 70,000                                                | 1.42 | $                0.02 |

**Warrants**

|                                       | Number                of Warrants |   | Weighted                Average Remaining                Life |   | Average                ExercisePrice |
|--------------------------------------------|-----------------------------------|--------|--------------------------------------------------------------------|--------|--------------------------------------|
| Outstanding                and exercisable | 129,538,868                       |   | 5.00                                                               |   | $0.09                                |

**NOTE      10 - COMMITMENTS AND CONTINGENCIES**

----

|                                   |   |
|----------------------------------------|--------|
| Year                ended December 31, |   | Minimum                Amount |
| 2006                                   |   | $218,469 |
| 2007                                   |   | 163,285 |
| 2008                                   |   | 141,841 |
| 2009                                   |   | 147,013 |
| 2010                and thereafter     |   | 309,544 |

*Oppression      Action by Lavorato/Heyman*

*Action      By Suhl, Harris and Babich*

----

**NOTE      11 - DISCONTINUED OPERATIONS**

**NOTE      12 - RELATED PARTY NOTES PAYABLE**

**NOTE      13 - CONCENTRATIONS**

**NOTE      14 - RELATED PARTY TRANSACTIONS**

----

**NOTE      15 - SUBSEQUENT EVENTS**

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

**FORWARD      LOOKING STATEMENTS**

**OVERVIEW**

----

**Recent      Corporate Developments**

| ·   | On                August 12, 2006 we entered into a joint venture agreement (the "                Joint                Venture") with Internet Marketing Consortium ("IMC") to provide multi                media strategies, promotional, direct and targeted marketing services                for                an undetermined period of time. In consideration for the services                provided                by IMC, we will pay a fee of $25,000. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                July 27, 2006 we entered into an addendum (the "Addendum") to the                China                Agency Agreement dated September 15, 2005 between Essentially Yours                Industries (Hong Kong) Limited and Guangzhou Zhongdian Enterprises                (Group)                Co. Ltd. and China Electronics Import and Export South China Corporation.                Pursuant to the Addendum, we agreed to extend the purchasing and                exclusivity terms of the China Agency Agreement for an additional                one year                period. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                July 19, 2006, our majority owned subsidiary Essentially Yours Industries,                Inc. ("EYII") signed a letter of intent ("LOI") with Mach 3 Technologies                Group, LLC ("Mach 3"). Subject to the receipt of sufficient efficiency                testing and Environmental Protection Agency ("EPA") registration,                EYI may                acquire the exclusive individual residential consumer rights for                the USA,                Canada and Mexico for the Ultimate ME2 product. The Ultimate ME2                product                is designed to reduce emissions and save fuel. On August 2, 2006                confirmation of EPA registration was received by Mach 3. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                July 12, 2006 and July 14, 2006 we received letters from Metals &                Arsenic Removal Technology, Inc. ("MARTI") advising that the worldwide                license for the ARTI-64 technology used for the production of the                Code                BlueTM product had been transferred from Hydroflo, Inc. to MARTI. MARTI                has                also transferred some of its inventory to Markus Group Ltd. ("Markus                Group") and in the event MARTI is unable to meet production requirements                they have granted the rights to produce Code BlueTM to Markus Group. On                July 20, 2006 Markus Group provided EYI with an Indemnity in connection                with the letters provided by MARTI. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                July 1, 2006 EYII entered into a consulting agreement with James                Toll. Mr.                Toll is to provide training and marketing services for a period of                three                (3) months. Mr. Toll will receive $3,750 per month as compensation                for his                services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                May 17, 2006 our wholly owned subsidiary Essentially Yours Industries                (Hong Kong) Limited entered into a distribution agreement (the                "Distribution Agreement") with Nozin, LLC. The Distribution Agreement                is                for a term of five years for the distribution of the nozin nasal                sanitizer                product in Hong Kong, Philippines and China. At present, the Company                has                not placed any purchase orders with Nozin, LLC. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                May 1, 2006 we entered into a settlement agreement with Thomas K.                Viccars,                SAV Management Co. Ltd. and VFT Management Co. Ltd. (collectively,                "Viccars group") in the amount of $60,000 pursuant to which we entered                into a full and final settlement of all claims by Viccars Group against                our company and subsidiaries whereby Mr. Viccars claimed that he                was                entitled to certain unpaid compensation and benefits from our company                and                subsidiaries. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                May 1, 2006 EYI HK amended the Logistics Management Agreement originally                dated September 1, 2005 with All In One Global Logistics Ltd. which                provides international freight, warehousing and distribution services                in                Hong Kong. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 24, 2006 we entered into a Securities Purchase Agreement with                Cornell Capital Partners, LP ("Cornell") pursuant to which we entered                into                the following agreements: an Investor Registration Rights Agreement,                Irrevocable Transfer Agent Instructions and a Security Agreement.                Pursuant                to the terms of the Securities Purchase Agreement, we may sell convertible                debentures to Cornell in the amount of $4,500,000 plus accrued interest                which are convertible into shares of our common stock. The convertible                debentures accrue interest at 10% per annum, convertible at $0.06                or 80%                of the lowest volume weighted average price of EYI's common stock                during                five (5) trading days immediately preceding the date of conversion                as                quoted by Bloomberg. Of this amount $1,500,000 must be paid five                days                after April 24, 2006, $1,500,000 must be paid two (2) business days                prior                to the date a registration statement is filed with the SEC and $1,500,000                shall be paid two (2) business days prior to the date that such                registration statement is declared effective by the SEC. We received                proceeds of $1,305,000 (net of fees associated with the issuance                of the                convertible debentures) on April 27, 2006 in connection with the                issuance                of $1,500,000 of convertible debentures in the following amounts:                $750,000                to Cornell, $416,667 to TAIB Bank, B.S.C., and $333,333 to Certain                Wealth,                Ltd. pursuant to the terms of the Securities Purchase Agreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Pursuant                to the terms of the Securities Purchase Agreement and the issuance                of our                convertible debentures, on April 24, 2006 we issued to Cornell seventeen                warrants to purchase up to an aggregate 124,062,678 shares of our                common                stock at the discretion of Cornell (collectively, the “Warrants”) each for                good and valuable consideration. Cornell is entitled to purchase                from us:                (1) 10,416,650 shares of our common stock at $0.02 per share, (2)                13,888,866 shares of our common stock at $0.03 per share, (3) 10,416,650                shares of our common stock at $0.04 per share, (4) 8,333,320 shares                of our                common stock at $0.05 per share, (5) 6,944,433 shares of our common                stock                at $0.06 per share, (6) 5,952,371 shares of our common stock at $0.07                per                share, (7) 11,250,000 shares of our common stock at $0.08 per share,                (8)                10,000,000 shares of our common stock at $0.09 per share, (9) 19,000,000                shares of our common stock at $0.10 per share, (10) 8,181,818 shares                of                our common stock at $0.11 per share, (11) 7,500,000 shares of our                common                stock at $0.12 per share, (12) 3,333,333 shares of our common stock                at                $0.15 per share, (13) 2,500,000 shares of our common stock at $0.20                per                share, (14) 2,000,000 shares of our common stock at $0.25 per share,                (15)                1,666,666 shares of our common stock at $0.30 per share, (16) 1,428,571                shares of our common stock at $0.35 per share and (17) 1,250,000                shares of                our common stock at $0.40 per share upon surrender of the Warrants                (or as                subsequently adjusted pursuant to the terms of each Warrant) . Each                Warrant has “piggy back” registration rights and shall expire five (5)                years from the date of issuance, on or about April 24,                2011. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 6, 2006 Essentially Yours Industries (International) Limited                ("EYIINT"), our wholly owned subsidiary, signed a Letter of Intent                and                Good Faith Commitment ("LOI") with Raul Bautista and Rommel Panganiban                to                act as managing partners and distributors for the Philippines. The                LOI is                subject to the entry into a definitive agreement between the parties                on or                before July 1, 2006. At present, the Company has not signed a definitive                agreement. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 3, 2006 we signed a termination agreement ("Termination Agreement")                with Cornell terminating our Standby Equity Distribution Agreement,                Registration Rights Agreement and Escrow Agreement previously entered                into                with Cornell on May 13, 2005. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2006      Growth Strategy**

*New      Product Introduction*

*International      Expansion*
*.      *
***®***
***,***
***®***

In      January 2006, we relocated our Executive Vice President and COO, Dori O’Neill to      Hong Kong for six months and Mr. O’Neill will now continue his work in Asia from      his office in Burnaby, British Columbia, Canada and through periodic trips      to      Asia. Mr. O’Neill is expected to play a key role in our Asian market initiative.      His initial focus will be to introduce and train our unified global binary      program to new Asian IBAs. In addition, Mr. O’Neill will also focus on      researching and reviewing other locations and markets for      expansion.

----

*Distributor      Commission Pay Plan Enhancement*

**RESULTS      OF OPERATIONS**

***Second      Quarter and Six Months Summary***

|                                                                 |   | **Three                months ended** |      | **Six                months ended** |   |
|----------------------------------------------------------------------|--------|---------------------------------------|-----------|-------------------------------------|--------|
|                                                                 |   | **30-Jun-06**                         |      | **30-Jun-05**                       |   | **Variance** |   | **30-Jun-06** |   | **30-Jun-05** |   | **Variance** |   |
|                                                                 |   |                                  |      |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                              |   | $                                     | 1,009,978 |                                | $      | 1,225,216 |   |   | ($215,238 | ) |   | -18 | % | $ | 2,118,737 |   | $ | 2,514,283 |   |   | ($395,546 | ) |   | -16 | % |
| Cost                of goods sold                                    |   | $                                     | 390,896   |                                | $      | 254,402 |   | $ | 136,494 |   |   | 54 | % | $ | 678,848 |   | $ | 489,936 |   | $ | 188,912 |   |   | 39 | % |
| Gross                profit before commissions expense               |   | $                                     | 619,082   |                                | $      | 970,814 |   |   | ($351,732 | ) |   | -36 | % | $ | 1,439,889 |   | $ | 2,024,347 |   |   | ($584,458 | ) |   | -29 | % |
|                                                                 |   |                                  |      |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission                expense                                    |   | $                                     | 379,274   |                                | $      | 450,857 |   |   | ($71,583 | ) |   | -16 | % | $ | 764,717 |   | $ | 922,462 |   |   | ($157,745 | ) |   | -17 | % |
| Gross                profit after cost of goods sold and commissions |   | $                                     | 239,808   |                                | $      | 519,957 |   |   | ($280,149 | ) |   | -54 | % | $ | 675,172 |   | $ | 1,101,885 |   |   | ($426,713 | ) |   | -39 | % |
|                                                                 |   |                                  |      |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses                                    |   | $                                     | 1,081,996 |                                | $      | 994,237 |   | $ | 87,759 |   |   | 9 | % | $ | 2,188,421 |   | $ | 2,130,797 |   | $ | 57,624 |   |   | 3 | % |
| Operating                loss                                        |   |                                  | ($842,188 | )                                   |   | ($474,280 | ) |   | ($367,908 | ) |   | 78 | % |   | ($1,513,249 | ) |   | ($1,028,912 | ) |   | ($484,337 | ) |   | 47 | % |

**Revenues**

| ·   | Our                inability to attract new IBA's |
|--------------------|---------------------------------------------------|

| ·   | Lack                of IBA participation in our auto-ship program |
|--------------------|-------------------------------------------------------------------|

**Gross      Profit before Commission Expense**

**Revenue      by Segments**

| **Revenue                by Segments** |   |                                  |      |          |                                |         |   |   |          |   |          |   |         |   |   |      |   |   |
|----------------------------------------|--------|---------------------------------------|-----------|---------------|-------------------------------------|--------------|--------|--------|---------------|--------|---------------|--------|--------------|--------|--------|-----------|--------|--------|
|                                   |   | **Three                months ended** |      |          | **Six                months ended** |         |
|                                   |   | **30-Jun-06**                         |      | **30-Jun-05** |                                | **Variance** |   |   | **30-Jun-06** |   | **30-Jun-05** |   | **Variance** |   |
|                                   |   |                                  |      |          |                                |         |   |   |          |   |          |   |         |   |   |      |   |   |
| Administration                fees     |   | $                                     | 38,970    |          | $                                   | 33,550       |   | $      | 5,420         |   |          | 16     | %            |   | $      | 78,961    |   | $      | 74,645 |   | $ | 4,316 |   |   | 6 | % |
| Binary                Sales            |   | $                                     | 714,586   |          | $                                   | 902,497      |   |   | ($187,911     | )      |          | -21    | %            |   | $      | 1,476,781 |   | $      | 1,850,919 |   |   | ($374,138 | ) |   | -20 | % |
| Direct                sales            |   | $                                     | 155,706   |          | $                                   | 213,531      |   |   | ($57,826      | )      |          | -27    | %            |   | $      | 357,382   |   | $      | 426,272 |   |   | ($68,890 | ) |   | -16 | % |
| Affiliate                sales         |   | $                                     | 99,274    |          | $                                   | 74,056       |   | $      | 25,219        |   |          | 34     | %            |   | $      | 199,887   |   | $      | 156,800 |   | $ | 43,086 |   |   | 27 | % |
| Sales                Aids              |   | $                                     | 1,442     |          | $                                   | 1,582        |   |   | ($140         | )      |          | -9     | %            |   | $      | 5,727     |   | $      | 5,647 |   | $ | 80 |   |   | 1 | % |
| Warehouse                              |   | $                                     | 0.00      |          | $                                   | 0.00         |   | $      | 0             |   |          | 0      | %            |   | $      | 0.00      |   | $      | 0.00 |   | $ | 0 |   |   | 0 | % |
|                                   |   | $                                     | 1,009,978 |          | $                                   | 1,225,216    |   |   | ($215,238     | )      |          | -18    | %            |   | $      | 2,118,737 |   | $      | 2,514,283 |   |   | ($395,545 | ) |   | -16 | % |

----

*Binary      sales*

*Direct      sales*

*Affiliate      sales*

**Expenses**

| **Operating                Expenses**      |   | **Three                months ended** |      |          | **Six                months ended** |         |
|--------------------------------------------|--------|---------------------------------------|-----------|---------------|-------------------------------------|--------------|
|                                       |   | **30-Jun-06**                         |      | **30-Jun-05** |                                | **Variance** |   |   | **30-Jun-06** |   | **30-Jun-05** |   | **Variance** |   |
|                                       |   |                                  |      |          |                                |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Consulting                fees             |   | $                                     | 224,362   |          | $                                   | 240,848      |   |   | ($16,486 | ) |   | -7 | % |   | $ | 484,099 |   | $ | 478,810 |   | $ | 5,289 |   |   | 1 | % |
| Legal                and professional fees |   | $                                     | 86,760    |          | $                                   | 80,512       |   | $ | 6,248 |   |   | 8 | % |   | $ | 161,242 |   | $ | 146,757 |   | $ | 14,485 |   |   | 10 | % |
| Customer                service            |   | $                                     | 66,587    |          | $                                   | 65,471       |   | $ | 1,116 |   |   | 2 | % |   | $ | 107,003 |   | $ | 152,005 |   |   | ($45,002 | ) |   | -30 | % |
| Finance                and administration  |   | $                                     | 146,657   |          | $                                   | 92,898       |   | $ | 53,759 |   |   | 58 | % |   | $ | 428,694 |   | $ | 300,978 |   | $ | 127,716 |   |   | 42 | % |
| Sales                and marketing         |   | $                                     | 133,668   |          | $                                   | 1,273        |   | $ | 132,395 |   |   | 10400 | % |   | $ | 212,292 |   | $ | 4,991 |   | $ | 207,301 |   |   | 4153 | % |
| Telecommunications                         |   | $                                     | 34,365    |          | $                                   | 124,890      |   |   | ($90,525 | ) |   | -72 | % |   | $ | 65,025 |   | $ | 242,258 |   |   | ($177,233 | ) |   | -73 | % |
| Wages                and benefits          |   | $                                     | 321,822   |          | $                                   | 371,526      |   |   | ($49,704 | ) |   | -13 | % |   | $ | 599,393 |   | $ | 743,152 |   |   | ($143,759 | ) |   | -19 | % |
| Warehouse                expense           |   | $                                     | 67,775    |          | $                                   | 16,819       |   | $ | 50,956 |   |   | 303 | % |   | $ | 130,673 |   | $ | 61,846 |   | $ | 68,827 |   |   | 111 | % |
|                                       |   | $                                     | 1,081,996 |          | $                                   | 994,237      |   | $ | 87,759 |   |   | 9 | % |   | $ | 2,188,421 |   | $ | 2,130,797 |   | $ | 57,624 |   |   | 3 | % |

**Operating      Expenses**

*Customer      Service*

----

*Finance      and administration*

| §   | Expenditures                relating to Hong Kong operations |
|--------------------|--------------------------------------------------------------|

| §   | Investor                relations fees |
|--------------------|----------------------------------------|

*Sales      & Marketing*

| §   | Hong                Kong marketing initiatives for the Grand Opening |
|--------------------|----------------------------------------------------------------------|

| §   | Registration                costs for Code Blue in China |
|--------------------|----------------------------------------------------------|

| §   | North                American Training event expenditures |
|--------------------|-----------------------------------------------------------|

*Telecommunications*

*Wages      and benefits*

*Warehouse      expenses*

**Other      Income (Expense)**
**:**

**FINANCIAL      CONDITION **

**Cash      and Working Capital **

|                                     |   | **As                at** |      | **As                at** |   |         |   |   |      |
|------------------------------------------|--------|--------------------------|-----------|--------------------------|--------|--------------|--------|--------|-----------|
|                                     |   | **30-Jun-06**            |      | **31-Dec-05**            |   | **Variance** |   |
|                                     |   |                     |      |                     |   |         |   |   |      |
| Current                assets            |   | $                        | 3,623,258 |                     | $      | 382,057      |   | $      | 3,241,201 |   |   | 848 | % |
| Current                Liabilities       |   | $                        | 4,264,083 |                     | $      | 2,347,087    |   | $      | 1,916,996 |   |   | 82 | % |
|                                     |   |                     |      |                     |   |         |   |   |      |   |   |   |   |
| Working                Capital (deficit) |   |                     | ($640,825 | )                        |   | ($1,965,030  | )      | $      | 1,324,205 |   |   | -67 | % |

We      had      cash of $3,066,354 as at June 30, 2006, compared with cash of $25,639 as at      December 31, 2005. We had a working capital deficit at June 30, 2006 and      December 31, 2005 of $640,825 and $1,965,030 respectively. 

----

**Liabilities**

|                                                             |   | **As                at** |      | **As                at** |   |         |   |   |      |
|------------------------------------------------------------------|--------|--------------------------|-----------|--------------------------|--------|--------------|--------|--------|-----------|
|                                                             |   | **30-Jun-06**            |      | **31-Dec-05**            |   | **Variance** |   |
|                                                             |   |                     |      |                     |   |         |   |   |      |
| Accounts                payable and accrued liabilities          |   | $                        | 1,493,170 |                     | $      | 1,929,049    |   |   | ($435,879 | ) |   | -23 | % |
| Accounts                payable - related parties                |   | $                        | 512,720   |                     | $      | 328,038      |   | $      | 184,682   |   |   | 56 | % |
| Convertible                debt - related party, net of discount |   | $                        | 402       |                     | $      | 0            |   | $      | 402       |   |   | 100 | % |
| Derivative                on convertible debt                    |   | $                        | 2,176,695 |                     | $      | 0            |   | $      | 2,176,695 |   |   | 100 | % |
| Interest                payable, convertible debt                |   | $                        | 41,096    |                     | $      | 0            |   | $      | 41,096    |   |   | 100 | % |
| Notes                payable - related party                     |   | $                        | 40,000    |                     | $      | 90,000       |   |   | ($50,000  | ) |   | -56 | % |
|                                                             |   |                     |      |                     |   |         |   |   |      |   |   |   |   |
|                                                             |   | $                        | 4,264,083 |                     | $      | 2,347,087    |   | $      | 1,916,996 |   |   | 82 | % |

**Cash      Used in Operating Activities**

**Cash      Provided by Financing Activities **

**Financing      Requirements**

**OFF-BALANCE      SHEET ARRANGEMENTS **

----

**Critical      Accounting      Policies**

**Recent      Accounting Pronouncements**

**RISKS      AND UNCERTAINTIES**

**We      have an accumulated deficit and may have continued losses for the foreseeable      future with no assurance of profitability**

----

**We      have been subject to a going concern opinion from our independent      auditors**

**We      are dependent on our IBAs for our product marketing efforts, the loss of a      significant number of IBAs or the loss of a key IBA could adversely affect      our      sales.**

**Government      regulation by the Food and Drug Administration and other federal and state      entities of our products can impact our ability to market      products.**

| ·   | is                a product (other than tobacco) that is intended to supplement the                diet                that bears or contains one or more of the following dietary ingredients:                a                vitamin, a mineral, a herb or other botanical, an amino acid, a dietary                substance for use by man to supplement the diet by increasing the                total                daily intake, or a concentrate, metabolite, constituent, extract,                or                combinations of these ingredients. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | is                intended for ingestion in pill, capsule, tablet, or liquid                form. |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | is                not represented for use as a conventional food or as the sole item                of a                meal or diet. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | is                labeled as a "dietary supplement" . |
|--------------------|-------------------------------------------------------|

      restrictions may restrict our flexibility in marketing our      product.

| **Dietary                Supplements**          |
|-------------------------------------------------|
|                                            |   |
| •                                    | Calorad® |
|                                            |   |
| •                                    | Agrisept-L® |
|                                            |   |
| •                                    | Triomin |
|                                            |   |
| •                                    | Noni                Plus® |
|                                            |   |
| •                                    | Iso-Greens® |
|                                            |   |
| •                                    | Definition                ® (drops) |
|                                            |   |
| •                                    | Prosoteine®  |
|                                            |
| **Personal                Care Products**  |
|                                            |   |
| •                                    | Definition®                (cream)  |
|                                            | Calorad                ® (cream) |
|                                            |
| **Water                Filtration Products**    |
|                                            |   |
| •                                    | Code                BlueTM  |
| •                                    | Code                BlueTM                Filter |

----

**If      the Federal Trade Commission or certain states object to our product claims      and      advertising we may be forced to give refunds, pay damages, stop marketing      certain products or change our business methods. **

| ·   | the                Federal Trade Commission will not question our past or future advertising                or other operations; or |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a                state will not interpret product claims presumptively valid under                federal                law as illegal under that state's regulations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

      take      action on their own initiative or on a referral from IBAs, consumers or others.      If taken, such actions may result in: 

| ·   | entries                of consent decrees; |
|--------------------|--------------------------------------------|

| ·   | refunds                of amounts paid by the complaining IBA or                consumer; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | refunds                to an entire class of IBAs or                customers; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | other                damages; and |
|--------------------|-----------------------------------|

| ·   | changes                in our method of doing business. |
|--------------------|---------------------------------------------------------|

**A      complaint based on the activities of one IBA, whether or not such activities      were authorized by us, could result in an order affecting some or all IBAs      in a      particular state, and an order in one state could influence courts or government      agencies in other States.**

| ·   | the                evolving interpretations of existing laws and regulations,                and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | the                enactment of new laws and regulations pertaining in general to network                marketing organizations and product distribution. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**The      legality of our network marketing program is subject to challenge by our      IBAs.**

| ·   | our                network marketing policies were enforced, and |
|--------------------|------------------------------------------------------------------|

| ·   | the                network marketing program and IBAs' compensation thereunder serve                as                safeguards to deter inventory loading and encourage retail sales                to the                ultimate consumers. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Proceedings      resulting from these claims could result in significant defense costs,      settlement payments or judgments, and could have a material adverse effect      on      us.**

**A      large portion of our sales is attributable to Calorad, if Calorad loses market      share or loses favor in the marketplace, our financial results will      suffer**

**Our      products are subject to obsolescence, which could reduce our sales significantly      **

----

**We      have no manufacturing capabilities and we are dependent upon Nutri-Diem, Inc.      and other companies to manufacture our products.**

      over us      with respect to pricing, availability of product and in other areas through      their control of the manufacturing process. In addition, if we are forced to      hold longer quantities of inventory, we face the risk that our inventory becomes      obsolete with the passage of large amounts of time.

**We      are materially dependent upon our key personnel and the loss of such key      consultants could result in delays in the implementation of our business plan      or      business failure.**

**We      face substantial competition in the dietary supplement and personal care      industry, including products that compete directly with      Calorad.**

**Depending      on the product category, our competition varies.**

**We      may be subject to products liability claims and may not have adequate insurance      to cover such claims. As with other retailers, distributors and manufacturers      of      products that are designed to be ingested, we face an inherent risk of exposure      to product liability claims in the event that the use of our products results      in      injury.**

----

**We      may be adversely affected by unfavorable publicity relating to our products      or      similar products manufactured by our competitors.**

** **
      occur      even if the publicity did not relate to our products. Adverse publicity directly      concerning our products could be expected to have an immediate negative effect      on the market for that product.

**Because      we have few proprietary rights, others can provide products and services      substantially equivalent to ours.**

**Our      common stock is "penny stock", which may make it more difficult for investors      to      sell their shares due to suitability requirements**

| ·   | With                a price of less than $5.00 per                share; |
|--------------------|--------------------------------------------------------------------------|

| ·   | That                are not traded on a "recognized" national                exchange; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Whose                prices are not quoted on the Nasdaq automated quotation system (Nasdaq                listed stock must still have a price of not less than $5.00 per share;                or |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                issuers with net tangible assets less than $2.0 million (if the issuer                has                been in continuous operation for at least three years) or $5.0 million                (if                in continuous operation for the last three                years. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      3.            CONTROLS      AND PROCEDURES.**

Under      the      supervision and with the participation of our management, including the Chief      Executive Officer and Chief 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 Chief Executive Officer and Chief Financial Officer have      concluded that these disclosure controls and procedures are effective.

**PART      II - OTHER INFORMATION **

**ITEM      1.            LEGAL      PROCEEDINGS. **

----

*1.      Oppression Action by Lavorato/Heyman*

*2.*
*Action      By Suhl, Harris and Babich*

**ITEM      2.           UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. **

**ITEM      3.            DEFAULTS      UPON SENIOR SECURITIES. **

**ITEM      4.            SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS. **

On      July      7, 2006 we filed a Preliminary Schedule 14A Information Statement with the      SEC      which encloses our Proxy Statement materials for our Special Meeting. Our      Special Meeting will be held on August 22, 2006 in Los Angeles, California      to      seek shareholder approval to increase the number of authorized common shares      from 1,000,000,000 to 3,000,000,000. On July 20, 2006 we filed our Definitive      Schedule 14A Information Statement with the SEC.

**ITEM      5.            OTHER      INFORMATION.**

----

**ITEM      6.            EXHIBITS      AND REPORTS ON FORM 8-K.**

| **Exhibit                Number** |   | **Description                of Exhibit**                                                                                                                                                                                               |
|-----------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |   |                                                                                                                                                                                                                                    |
| 3.1                               |   | Articles                of Incorporation.(1)                                                                                                                                                                                            |
|                              |   |                                                                                                                                                                                                                                    |
| 3.2                               |   | Certificate                of Amendment to Articles of Incorporation dated December 29,                2003.(11)                                                                                                                        |
|                              |   |                                                                                                                                                                                                                                    |
| 3.3                               |   | Certificate                of Amendment to Articles of Incorporation dated December 31,                2003.(11)                                                                                                                        |
|                              |   |                                                                                                                                                                                                                                    |
| 3.4                               |   | Bylaws.(1)                                                                                                                                                                                                                              |
|                              |   |                                                                                                                                                                                                                                    |
| 3.5                               |   | Amended                Bylaws.                (12)                                                                                                                                                                                      |
|                              |   |                                                                                                                                                                                                                                    |
| 3.6                               |   | Certificate                of Amendment to Articles of Incorporation dated March 30, 2006(23)                                                                                                                                           |
|                              |   |                                                                                                                                                                                                                                    |
| 10.1                              |   | Consulting                Agreement, dated as of November 5, 2002, between Essentially Yours                Industries, Inc., a Nevada corporation, and Flaming Gorge,                Inc.(1)                                           |
|                              |   |                                                                                                                                                                                                                                    |
| 10.2                              |   | Consulting                Agreement, dated as of November 5, 2002, between Essentially Yours                Industries, Inc., a Nevada corporation, and O’Neill Enterprises,                Inc.(1)                               |
|                              |   |                                                                                                                                                                                                                                    |
| 10.3                              |   | Registration                Rights Agreement, dated December 31, 2003, by and among Safe ID                Corporation, A Nevada corporation, and certain shareholders of EYI                Industries, Inc., A Nevada corporation.(5) |
|                              |   |                                                                                                                                                                                                                                    |
| 10.4                              |   | Stock                Compensation Program(4)                                                                                                                                                                                            |
|                              |   |                                                                                                                                                                                                                                    |
| 10.5                              |   | Consulting                Agreement dated December 27, 2003 between Rajesh Raniga Inc. and                Safe ID                Corporation.(6)                                                                                        |
|                              |   |                                                                                                                                                                                                                                    |
| 10.6                              |   | Consulting                Agreement dated January 1, 2004 between EYI Industries, Inc. and                O’Neill                Enterprises Inc.(6)                                                                         |
|                              |   |                                                                                                                                                                                                                                    |
| 10.7                              |   | Consulting                Agreement dated January 1, 2004 between EYI Industries, Inc. and Flaming                Gorge, Inc.                (6)                                                                                        |
|                              |   |                                                                                                                                                                                                                                    |
| 10.8                              |   | Addendum                to the Distribution and License Agreement between Essentially Yours                Industries, Inc. and Nutri-Diem Inc. dated April                30, 2004.(6)                                                 |
|                              |   |                                                                                                                                                                                                                                    |
| 10.9                              |   | Letter                Agreement dated May 4, 2004 between Eye Wonder, Inc. and EYI Industries,                Inc.(6)                                                                                                              |
|                              |   |                                                                                                                                                                                                                                    |
| 10.10                             |   | Standby                Equity Distribution Agreement, dated June 22, 2004 by and between                EYI                Industries, Inc. and Cornell Capital Partners, LP(6)                                                         |
|                              |   |                                                                                                                                                                                                                                    |
| 10.11                             |   | Registration                Rights Agreement, dated June 22, 2004 by and between EYI Industries,                Inc.                and Cornell Capital Partners, LP(6)                                                                 |
|                              |   |                                                                                                                                                                                                                                    |
| 10.12                             |   | Escrow                Agreement, dated June 22, 2004 by and between EYI Industries, Inc.                and                Cornell Capital Partners, LP(6)                                                                              |
|                              |   |                                                                                                                                                                                                                                    |
| 10.13                             |   | Placement                Agent Agreement, dated June 22, 2004 by and between EYI Industries,                Inc.                and Cornell Capital Partners, LP(6)                                                                     |
|                              |   |                                                                                                                                                                                                                                    |
| 10.14                             |   | Compensation                Debenture, dated June 22, 2004(7)                                                                                                                                                                           |
|                              |   |                                                                                                                                                                                                                                    |
| 10.15                             |   | Securities                Purchase Agreement, dated June 22, 2004 by and between EYI Industries,                Inc. and Cornell Capital Partners, LP(6)                                                                                |
|                              |   |                                                                                                                                                                                                                                    |
| 10.16                             |   | Investor                Registration Rights Agreement, dated June 22, 2004 by and between                EYI                Industries, Inc. and Cornell Capital Partners, LP(6)                                                        |
|                              |   |                                                                                                                                                                                                                                    |
| 10.17                             |   | Security                Agreement, dated June 22, 2004 by and between EYI Industries, Inc.                and                Cornell Capital Partners, LP(6)                                                                            |
|                              |   |                                                                                                                                                                                                                                    |
| 10.18                             |   | Irrevocable                Transfer Agent Instructions, dated June 22, 2004, by and among EYI                Industries, Inc., Cornell Capital Partners, LP and Corporate Stock                Transfer(6)                              |
|                              |   |                                                                                                                                                                                                                                    |
| 10.19                             |   | Escrow                Agreement, dated June 22, 2004 by and among EYI Industries, Inc.,                Cornell                Capital Partners, L.P. and Butler Gonzalez, LLP(6)                                                   |
| 10.20                             |   | Form                of Secured Convertible Debenture(6)                                                                                                                                                                                 |
|                              |   |                                                                                                                                                                                                                                    |
| 10.21                             |   | Form                of Warrant(7)                                                                                                                                                                                                       |
|                              |   |                                                                                                                                                                                                                                    |
| 10.22                             |   | Letter                Agreement dated May 25, 2004 between EYI Industries, Inc. and Source                Capital Group, Inc.(8)                                                                                                        |
|                              |   |                                                                                                                                                                                                                                    |
| 10.23                             |   | Lease                Agreement dated May 1, 2003 among 468058 B.C. Ltd., 642706 B.C. Ltd.,                Essentially Yours Industries Corp., and Essentially Yours Industries,                Inc.                (8)                  |
|                              |   |                                                                                                                                                                                                                                    |
| 10.24                             |   | 5%                Secured Convertible Debenture dated September 24, 2004 between EYI                Industries, Inc. and Cornell Capital Partners, LP(8)                                                                                |
|                              |   |                                                                                                                                                                                                                                    |
| 10.25                             |   | 5%                Secured Convertible Debenture dated September 27, 2004 between EYI                Industries, Inc. and Kent Chou(8)                                                                                                   |

----

| **Exhibit                Number** |   | **Description                of Exhibit** |
|-----------------------------------|--------|-------------------------------------------|
|                              |   |                                      |

| 10.26  |   | 5%                Secured Convertible Debenture dated September 27, 2004 between EYI                Industries, Inc. TAIB Bank, E.C.(8)                                                                                                        |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                           |
| 10.27  |   | Assignment                Agreement dated September 27, 2004 between Cornell Capital Partners,                LP                and TAIB Bank, E.C.                (8)                                                                         |
|   |   |                                                                                                                                                                                                                                           |
| 10.28  |   | Assignment                Agreement dated September 27, 2004 between Cornell Capital Partners,                LP                and Kent Chou(8)                                                                                               |
|   |   |                                                                                                                                                                                                                                           |
| 10.29  |   | Joint                Venture Agreement dated May 28, 2004 between EYI Industries, Inc.,                World                Wide Buyer’s Club Inc. and Supra Group, Inc.(9)                                                              |
|   |   |                                                                                                                                                                                                                                           |
| 10.30  |   | Indenture                of Lease Agreement dated January 3, 2005 between Golden Plaza Company                Ltd., 681563 B.C. Ltd., and 642706 B.C. Ltd.(10)                                                                            |
| 10.31  |   | Consulting                Services Agreement dated March 5, 2004 between EYI Industries, Inc.                and                EQUIS Capital Corp.(13)                                                                                        |
|   |   |                                                                                                                                                                                                                                           |
| 10.32  |   | Letter                dated May 25, 2004 between Source Capital Group, Inc. and EYI Industries,                Inc.(14)                                                                                                                        |
|   |   |                                                                                                                                                                                                                                           |
| 10.33  |   | Loan                Agreement between Janet Carpenter and EYI Industries, Inc., dated                February                10, 2005(15)                                                                                                      |
|   |   |                                                                                                                                                                                                                                           |
| 10.34  |   | Promissory                Note dated February 10, 2005 between Janet Carpenter and EYI                Industries(15)                                                                                                                           |
|   |   |                                                                                                                                                                                                                                           |
| 10.35  |   | Bonus                Share Agreement between Janet Carpenter and EYI Industries, Inc.                dated                February 14, 2005(15)                                                                                                |
|   |   |                                                                                                                                                                                                                                           |
| 10.36  |   | Pledge                and Escrow Agreement dated February 24, 2005 between Janet Carpenter,                Cornell Capital Partners, LP and David Gonzalez. (15)                                                                     |
| 10.37  |   | Guaranty                Agreement dated February 24, 2005 between Janet Carpenter, Cornell                Capital                Partners, LP(15)                                                                                              |
|   |   |                                                                                                                                                                                                                                           |
| 10.37  |   | Secured                Promissory Note dated February 24, 2005 between EYI Industries, Inc.                and                Cornell Capital Partners, LP(15)                                                                                 |
|   |   |                                                                                                                                                                                                                                           |
| 10.39  |   | Agreement                dated April 22, 2005 between Essentially Yours Industries Inc. and                Source                1 Fulfillment(17)                                                                                             |
|   |   |                                                                                                                                                                                                                                           |
| 10.40  |   | Reseller                Agreement dated May 11, 2005 between Essentially Yours Industries                Inc. and                Metals & Arsenic Removal Technology, Inc. (16)                                                       |
| 10.41  |   | Termination                Agreement dated May 13, 2005 between EYI Industries Inc. and Cornell                Capital Partners, LP(17)                                                                                                        |
|   |   |                                                                                                                                                                                                                                           |
| 10.42  |   | Standby                Equity Distribution Agreement dated May 13, 2005 between EYI Industries                Inc. and Cornell Capital Partners, LP(17)                                                                                        |
|   |   |                                                                                                                                                                                                                                           |
| 10.43  |   | Registration                Rights Agreement dated May 13, 2005 between EYI Industries Inc. and                Cornell Capital Partners, LP(17)                                                                                                |
|   |   |                                                                                                                                                                                                                                           |
| 10.44  |   | Escrow                Agreement dated May 13, 2005 between EYI Industries Inc. and Cornell                Capital Partners, LP(17)                                                                                                             |
|   |   |                                                                                                                                                                                                                                           |
| 10.45  |   | Placement                Agent Agreement dated May 13, 2005 between EYI Industries Inc. and                Cornell                Capital Partners, LP(17)                                                                                     |
|   |   |                                                                                                                                                                                                                                           |
| 10.46  |   | Consulting                Agreement dated June 1, 2005 between EYI Industries, Inc. and Eliza                Fung(18)                                                                                                                          |
|   |   |                                                                                                                                                                                                                                           |
| 10.47  |   | Addendum                to the Reseller Agreement dated June 1, 2005 between Essentially                Yours                Industries Inc. and Metals & Arsenic Removal Technology, Inc.                (18)                             |
|   |   |                                                                                                                                                                                                                                           |
| 10.48  |   | Non-Circumvention                and Non-Disclosure Agreement dated July 14, 2005 between Essentially                Yours                Industries Inc. and Metals & Arsenic Removal Technology,                Inc.                (18) |
|   |   |                                                                                                                                                                                                                                           |
| 10.49  |   | Promissory                Note dated August 1, 2005 between EYI Industries Inc. and Cornell                capital                Partners, LP(18)                                                                                             |
|   |   |                                                                                                                                                                                                                                           |
| 10.50  |   | Investor                Relations Agreement dated July 28, 2005 between EYI Industries, Inc.                and                Agora Investor Relations Corp.                (18)                                                              |
|   |   |                                                                                                                                                                                                                                           |
| 10.51  |   | China                Agency Agreement entered into with Guanghzhou Zhongdian Enterprises                (Group) Co. Ltd. and China Electronics Import and Export South China                Corporation. Dated September 15, 2005(19)          |
|   |   |                                                                                                                                                                                                                                           |
| 10.52  |   | Logistics                Management Agreement dated September 1, 2005 between Essentially                Yours                Industries (Hong Kong) Limited and All In One Global Logistics                Ltd.                (20)           |
|   |   |                                                                                                                                                                                                                                           |
| 10.53  |   | Contract                for Legal Services dated September 1, 2005 between EYI Industries                Inc. and                M. Ali Lakhani Law Corporation(21)                                                                            |
|   |   |                                                                                                                                                                                                                                           |
| 10.54  |   | Amended                Investor Relations Agreement dated October 5, 2005 between EYI Industries,                Inc. and Agora Investor Relations Corp. (22)                                                                                  |
|   |   |                                                                                                                                                                                                                                           |
| 10.55  |   | Settlement                Agreement dated December 21, 2005 between EYI Industries, Inc., Halo                Distribution, LLC and Business Centers, LLC. (23)                                                                           |
| 10.56  |   | Global                Consulting Group Agreement dated January 19, 2006 entered into with                Global                Consulting Group Inc. and EYI Industries Inc. (23)                                                         |
| 10.57  |   | Consulting                Agreement dated January 27, 2006 entered into with Lou Prescott and                Essentially Yours Industries, Inc. (23)                                                                                           |
|   |   |                                                                                                                                                                                                                                           |

----

| **Exhibit                Number** |   | **Description                of Exhibit** |
|-----------------------------------|--------|-------------------------------------------|
|                              |   |                                      |

| 10.58  |   | Termination                Agreement dated April 3, 2006 between EYI Industries Inc. and Cornell                Capital Partners, LP (25)                                                                              |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                   |
| 10.59  |   | Letter                of Intent dated April 6, 2006 between Essentially Yours Industries                (International) Limited and Rommel Panganiban and Raul Batista                (25)                             |
|   |   |                                                                                                                                                                                                                   |
| 10.60  |   | Securities                Purchase Agreement, dated as of April 24, 2006, by and between EYI                Industries, Inc. and the Buyers listed therein(24)                                                         |
|   |   |                                                                                                                                                                                                                   |
| 10.61  |   | Registration                Rights Agreement, dated as of April 24, 2006, by and between EYI                Industries, Inc. and the Buyers listed therein(24)                                                         |
|   |   |                                                                                                                                                                                                                   |
| 10.62  |   | $750,000                Secured Convertible Debenture No. CCP-1, dated as of April 24, 2006,                issued to Cornell Capital Partners, LP(24)                                                                 |
|   |   |                                                                                                                                                                                                                   |
| 10.63  |   | $333,333                Secured Convertible Debenture CW-1, dated as of April 24, 2006, issued                to                Cornell Capital Partners, LP(24)                                                       |
|   |   |                                                                                                                                                                                                                   |
| 10.64  |   | $416,667                Secured Convertible Debenture TAIB-1, dated as of April 24, 2006,                issued                to Cornell Capital Partners, LP(24)                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.65  |   | Security                Agreement, dated as of April 24, 2006, issued to Cornell Capital                Partners,                LP(24)                                                                                |
|   |   |                                                                                                                                                                                                                   |
| 10.66  |   | Warrant                No. CCP-001, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.67  |   | Warrant                No. CCP-002, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.68  |   | Warrant                No. CCP-003, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.69  |   | Warrant                No. CCP-004, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.70  |   | Warrant                No. CCP-005, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.71  |   | Warrant                No. CCP-006, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.72  |   | Warrant                No. CCP-007, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.73  |   | Warrant,                No. CCP-008, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                    |
|   |   |                                                                                                                                                                                                                   |
| 10.74  |   | Warrant                No. CCP-009, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.75  |   | Warrant                No. CCP-010, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.76  |   | Warrant                No. CCP-011, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.77  |   | Warrant                No. CCP-012, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.78  |   | Warrant                No. CCP-013, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.79  |   | Warrant                No. CCP-014, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.80  |   | Warrant                No. CCP-015, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.81  |   | Warrant                No. CCP-016, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.82  |   | Warrant                No. CCP-017, dated April 24, 2006, issued by the Company to Cornell                Capital Partners, LP(24)                                                                                     |
|   |   |                                                                                                                                                                                                                   |
| 10.83  |   | Irrevocable                Transfer Agent Instructions, dated April 24, 2006, by and among the                Company, the Buyers listed therein and Corporate Stock Transfer,                Inc.                (24) |

----

| **Exhibit                Number** |   | **Description                of Exhibit** |
|-----------------------------------|--------|-------------------------------------------|

|   |   |                                                                                                                                                                                                                                                                |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.84  |   | Consulting                Agreement dated May 1, 2006 between Essentially Yours Industries                (Hong                Kong) Limited and Siu Chung (Freeda) Chan (25)                                                                             |
| 10.85  |   | Amended                Logistics Management Agreement dated May 1, 2006 between Essentially                Yours                Industries (Hong Kong) Limited and All In One Global Logistics                Ltd.                                                  |
|   |   |                                                                                                                                                                                                                                                                |
| 10.86  |   | Distribution                Agreement dated May 17, 2006 between Essentially Yours Industries                (Hong                Kong) Limited and Nozin, LLC(27)                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                |
| 10.86  |   | Consulting                Agreement dated July 1, 2006 between Essentially Yours Industries,                Inc.                and James Toll                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                |
| 10.87  |   | Letters                dated July 12, 2006 and July 14, 2006 from Metals & Arsenic Removal                Technology                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                |
| 10.88  |   | Addendum                to the China Agency Agreement dated September 15, 2005 between EYI                HK and                Guangzhou Zhondian Enterprises (Group) Co. Ltd. and China Electronics                Import and Export South China Corporation (28) |
|   |   |                                                                                                                                                                                                                                                                |
| 14.1   |   | Code                of Ethics(5)                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                |
| 21.1   |   | List                of Subsidiaries(23)                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                |
| 23.1   |   | Consent                of Williams & Webster, P.S. (26)                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                |

| 31.1   |   | Certification              of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley              Act of 2002                                                                     |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                             |
| 31.2   |   | Certification              of              Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley              Act of 2002                                                   |
|   |   |                                                                                                                                                                                             |
| 32.1   |   | Certification              of              Chief Executive Officer pursuant to Section 1350, as adopted pursuant              to              Section 906 of the Sarbanes-Oxley Act of 2002      |
|   |   |                                                                                                                                                                                             |
| 32.2   |   | Certification              of              Chief Financial Officer pursuant to Section 1350, as adopted pursuant              to Section 906 of the Sarbanes-Oxley Act of              2002 |

| (1) | Filed                  as an exhibit to the registration statement on Form 10-SB/A of                  Safe ID                  Corporation, filed with the SEC on September 21,                  2000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed                  as an exhibit to the registration statement on Form SB-2 of Essentially                  Yours Industries, Inc., filed with the SEC on November 12,                  2002. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed                  as an exhibit to our Current Report on Form 8-K, filed with the                  SEC on                  January 8, 2004. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed                  as an exhibit to our Registration Statement on Form S-8, filed                  with the                  SEC on March 30, 2004. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Filed                  as an exhibit to our annual report on Form 10-KSB for the year                  ended                  December 31, 2003, filed with the SEC on April 14,                  2004. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Filed                  as an exhibit to our quarterly report on Form 10-QSB for the period                  ended                  March 31, 2004, filed with the SEC on May 24,                  2004. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Filed                  as an exhibit to our registration statement on Form SB-2, filed                  with the                  SEC on September 17, 2004. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Filed                  as an exhibit to our quarterly report on Form 10-QSB for the period                  ended                  September 30, 2004, filed with the SEC on November 22,                  2004. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Filed                  as an exhibit to our Amendment No. 1 to our registration statement                  on Form                  SB-2 on December 23, 2004. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Filed                  as an exhibit to our Current Report on Form 8-K, filed with the                  SEC on                  January 12, 2005. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Filed                  as an exhibit to our quarterly report on Form 10-QSB for the period                  ended                  September 30, 2004, filed with the SEC on November 22,                  2004. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Filed                  as an exhibit to our Current Report on Form 8-K, filed with the                  SEC on                  March 10, 2005. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Filed                  as an exhibit to our quarterly report on Form 10-QSB/A for the                  period                  ended March 31, 2004, filed with the SEC on December 15,                  2004. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Filed                  as an exhibit to our quarterly report on Form 10-QSB/A for the                  period                  ended June 30, 2004, filed with the SEC on December 15,                  2004. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Filed                  as an exhibit to our annual report on Form 10-KSB for the period                  ended                  December 31, 2004, filed with the SEC on April 18,                  2005. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Filed                  as an exhibit to our Current Report on Form 8-K, filed with the                  SEC on May                  17, 2005. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | Filed                  as an exhibit to our Quarterly Report on Form 10-QSB for the period                  ended                  March 31, 2005, filed with the SEC on May 23,                  2005. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | Filed                    as an exhibit to our Quarterly Report on Form 10-QSB for the                    period ended                    June 30, 2005, filed with the SEC on August 19,                    2005. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (19) | Filed                      as an exhibit to our Current Report on Form 8-K, filed with                      the SEC on                      September 27, 2005. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (20) | Filed                        as an exhibit to our quarterly report on Form 10-QSB for                        the period ended                        September 30, 2005, filed with the SEC on November 21,                        2005. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (21) | Filed                          as an exhibit to our quarterly report on Form 10-QSB for                          the period ended                          September 30, 2005, filed with the SEC on November 21,                          2005. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (22) | Filed                            as an exhibit to our quarterly report on Form 10-QSB                            for the period ended                            September 30, 2005, filed with the SEC on November 21,                            2005. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (23) | Filed                              as an exhibit to our annual report on Form 10-KSB for                              the period ended                              December 31, 2005, filed with the SEC on March 31,                              2006. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (24) | Filed                                as an exhibit to our Current Report on Form 8-K,                                filed with the SEC on                                April 28, 2006. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (25) | Filed                                  as an exhibit to our Quarterly Report on From 10-QSB                                  for the period ended                                  March 31, 2006, filed with the SEC on May 16,                                  2006. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (26) | Filed                                    as an exhibit to our registration statement on                                    Form SB-2/A on June 21,                                    2006. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (27) | Filed                                      as an exhibit to our Current Report on Form                                      8-K, filed with the SEC on                                      April 28, 2006 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (28) | Filed                                        as an exhibit to our Current Report on Form                                        8-K, filed with the SEC on                                        August 3, 2006 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

(b)      Reports on Form 8-K:

| **Date                of Event** | **Date                of filing** | **Description                of the Form 8-K**                                                                                                                                                                                                                                                                 |
|----------------------------------|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| July                27, 2006     | August                3, 2006     | Disclosure                of an Addendum to the China Agency Agreement dated September 15,                2005                between EYI HK and Guangzhou Zhongdian Enterprises (Group) Co. Ltd.                and                China Electronics Import and Export South China                Corporation |
| July                21, 2006     | July                24, 2006      | Disclosure                of news release dated July 21, 2006 regarding a non-binding letter                of                intent with Mach 3 Technologies Group, LLC                                                                                                                                       |
| May                17, 2006      | May                24, 2006       | Disclosure                of Distribution Agreement dated May 17, 2006 with Nozin,                LLC                                                                                                                                                                                                          |
| May                11, 2006      | May                11, 2006       | Amendment                No. 1 to Form 8-K filed on May 1, 2006                                                                                                                                                                                                                                                |
| April                24, 2006    | May                1, 2006        | Disclosure                of securities purchase agreement pursuant to which EYI will sell                convertible debentures and issuance of warrants to Cornell Capital                Partners, LP                                                                                                       |
| April                3, 2006     | April                4, 2006      | Disclosure                of Termination Agreement with Cornell Capital                Partners                                                                                                                                                                                                                |

----

**SIGNATURES**

| **EYI                INDUSTRIES, INC.** |                                               |
|-----------------------------------------|----------------------------------------------------|
| By:                                | /s/              Jay Sargeant                      |   |
|                                    | Jay                Sargeant                        |   |
|                                    | President,                Chief Executive Officer, |   |
|                                    | and                Director                        |   |
|                                    | (Principal                Executive Officer)       |   |
|                                    | Date:                August 21, 2006               |   |
|                                    |                                               |   |
| By:                                | /s/                Rajesh Raniga              |   |
|                                    | Rajesh                Raniga                       |   |
|                                    | Chief Financial              Officer               |   |
|                                    | (Principal              Accounting Officer)        |   |
|                                    | Date:                August 21, 2006               |   |
|                                    |                                               |   |

----