UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549







FORM
      10-QSB







[X]
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934





For
      The
      Quarterly Period Ended August 31, 2006





[_]
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934




For
      The
      Transition Period from __________ To _________




Commission
      file number  0-9879





CAPITAL
      SOLUTIONS I, INC.





(Exact
      Name of Registrant as Specified in its Charter)




DELAWARE
              
              13-2648442(State
                  or Other Jurisdiction
                of
                  Incorporation
              
              (I.R.S.
                  Employer Identifi-
                cation
                  Number)




ONE
      N.E.
      FIRST AVENUE, SUITE 306


OCALA,
      FLORIDA 34470





(Address
      of principal executive offices)





(352)
      867-5183





Issuer’s
      telephone number











(Former
      Name, former address and former fiscal year, if changed since last
      report)





Check
      whether the Registrant (1) has filed all reports required by Section 13 or
      15(d)
      of the Securities Exchange Act of 1934 during the preceding 12 months (or for
      such shorter period that the Registrant was required to file such reports)
      and
      (2) has been subject to such filing requirements for the past 90 days: Yes
      |X|
      No |_|





APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE
      YEARS





Check
      whether the registrant filed all documents and reports required by Section
      12,
      13, or 15(d) of the Exchange Act after the distribution of securities under
      a
      plan confirmed by a court


Yes
      [_] No
      [_]





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


Yes
      [X] No
      [_]




APPLICABLE
      ONLY TO CORPORATE ISSUERS





State
      the
      number shares outstanding of each of the issuer’s classes of common stock, as of
      the latest practicable date:




As
      of
      October 17, 2006, there were 66,732 shares of the Registrant's Common Stock,
      $0.0000001 par value per share, outstanding.





Transitional
      Small Business Disclosure Format Yes [_]No [X]  1


CAPITAL
      SOLUTIONS I, INC.


FOR
      THE
      QUARTERLY PERIOD ENDED AUGUST 31, 2006





TABLE
      OF
      CONTENTS





PART
      I -
      FINANCIAL INFORMATION





Item
                  1.
              Financial
                  Statements
              3Item
                  2.
              Management's
                  Discussion and Analysis or Plan
                  ofOperation
              14Item
                  3.
              Controls
                  and Procedures
              19PART
                  II - OTHER INFORMATIONItem
                  1.
              Legal
                  Proceedings
              20Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use
                  ofProceeds
              20Item
                  3.
              Defaults
                  upon Senior Securities
              20Item
                  4.
              Submission
                  of Matters to a Vote of Securities
                  Holders
              20Item
                  5.
              Other
                  Information
              20Item
                  6.
              Exhibits
                  and Reports on Form 8-K
              21


THIS
      REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES.
      SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS, ASSUMPTIONS, ESTIMATES AND
      PROJECTIONS ABOUT THE COMPANY AND ITS INDUSTRY. FORWARD-LOOKING STATEMENTS
      ARE
      SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY
      CAUSE ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE, ACHIEVEMENTS AND
      PROSPECTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH
      FORWARD-LOOKING STATEMENTS. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE
      PUBLICLY ANY FORWARD-LOOKING STATEMENTS FOR ANY REASON EVEN IF NEW INFORMATION
      BECOMES AVAILABLE OR OTHER EVENTS OCCUR IN THE FUTURE.





2


PART
      I


FINANCIAL
      INFORMATION





Item
      1.Financial
      Statements




**CAPITAL
      SOLUTIONS I, INC.**


**CONDENSED
        CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**
 **FOR
        THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005**
 
 
 **INDEX
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**
  Balance
                    Sheet as of August 31, 2006
                4Statements
                    of Income for the Three Months EndedAugust
                    31, 2006 and 2005
                5Statements
                    of Cash Flows for the Three Months
                    EndedAugust
                    31, 2006 and 2005
                6Notes
                    to Condensed Consolidated Financial
                    Statements
                7
 3
 **CAPITAL
                  SOLUTIONS I, INC.****CONDENSED
                  CONSOLIDATED BALANCE SHEET (UNAUDITED)****AUGUST
                  31, 2006****ASSETS****2006****CURRENT
                  ASSETS**Cash
                  and cash equivalents
              
              $
              396**Total
                current assets**
              
              
              396**FIXED
                  ASSETS, net**
              
              
              -**OTHER
                  ASSETS**Goodwill
              
              
              -**Total
                other assets**
              
              
              -**TOTAL
                  ASSETS**
              
              $
              396**LIABILITIES
                  AND STOCKHOLDERS' EQUITY****CURRENT
                  LIABILITIES**Accounts
                  payable and accrued expenses
              
              $
              -Debentures
                  payable
              
              
              -Short-term
                  notes payable and advances
              
              
              -Lines
                  of credit
              
              
              -**Total
                current liabilities**
              
              
              -**STOCKHOLDERS'
                  EQUITY**Preferred
                  stock, $.0000001 par value, 20,000,000 sharesauthorized, 50,000 issued and outstanding at August 31,
                  2006Common
                  stock, $.0000001 par value, 900,000,000 sharesauthorized, 96,732 issued and outstanding at August 31,
                  2006Additional
                  paid-in capital
              
              
              451,450Accumulated
                  deficit
              
              
              (451,054
              )**Total
                stockholders' equity**
              
              
              396**TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY**
              
              $
              396
  The
        accompanying notes are an integral part of these condensed consolidated
        financial statements.


4


**CAPITAL
                    SOLUTIONS I,
                    INC.****CONDENSED
                    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)****FOR
                    THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005****2006**
                
                
                **2005****REVENUES**
                
                $
                -
                
                $
                -**COST
                    OF REVENUES**
                
                
                -
                
                
                -**GROSS
                    PROFIT**
                
                
                -
                
                
                -**OPERATING
                    EXPENSES**Professional
                    fees and consulting
                
                
                -
                
                
                -Accounting
                    and
                    audit fees
                
                
                -
                
                
                -Stock
                    transfer fees
                
                
                -
                
                
                -Administrative
                    and other
                
                
                36
                
                
                36**Total
                    operating expenses**
                
                
                36
                
                
                36**LOSS
                    BEFORE OTHER INCOME (EXPENSE)**
                
                
                (36
                )
                
                (36
                )**OTHER
                    INCOME (EXPENSE)**Debt
                    forgiveness
                
                
                629,707Interest
                    expense
                
                
                -
                
                
                (8,004
                )**Total
                  other Income (expense)**
                
                
                629,707
                
                
                (8,004
                )**NET
                    INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES:**
                
                
                (36
                )
                
                (8,040
                )Provision
                    for
                    income taxes
                
                
                -
                
                
                -**NET
                    INCOME (LOSS) APPLICABLE TO COMMON SHARES**
                
                $
                629,671
                
                $
                (8,040
                )**NET
                    INCOME (LOSS) PER BASIC AND DILUTED SHARES**From
                    continuing operations
                
                $
                6.5094
                
                $
                (0.0005
                )**WEIGHTED
                    AVERAGE NUMBER OF COMMON****SHARES
                    OUTSTANDING**
                
                
                96,732
                
                
                3,349
  The
          accompanying notes are an integral part of these condensed consolidated
          financial statements.
 5
 **CAPITAL
                    SOLUTIONS I, INC.****CONDENSED
                    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)****FOR
                    THE THREE MONTHS ENDED AUGUST 31, 2006 AND 2005****2006**
                
                **2005****CASH
                    FLOWS FROM OPERATING ACTIVITIES**Net
                    Income (Loss)
                
                $
                629,671
                
                $
                (36
                )**Adjustments
                    to reconcile net loss to net cash****provided
                    by
                    (used in) operating activities:**Issuance
                    of
                    common stock - fees
                
                
                -
                
                
                -Forgiveness
                    of
                    debt
                
                
                (629,707
                )**Changes
                    in assets and liabilities**Increase
                    in
                    accounts payable and accrued expenses
                
                
                -
                
                
                8,004**Total
                  adjustments**
                
                
                (629,707
                )
                
                8,004**Net
                  cash provided by (used in) operating activities**
                
                
                (36
                )
                
                7,968**CASH
                    FLOWS FROM FINANCING ACTIVITIES**Payments
                    from
                    short-term notes payable and advances
                
                
                -
                
                
                -**Net
                    cash (used in) provided by financing activities**
                
                
                -
                
                
                -**NET
                    INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**
                
                
                (36
                )
                
                7,968**CASH
                    AND CASH EQUIVALENTS - BEGINNING OF PERIOD**
                
                
                432
                
                
                137**CASH
                    AND CASH EQUIVALENTS - END OF PERIOD**
                
                $
                396
                
                $
                8,105
 The
          accompanying notes are an integral part of these condensed consolidated
          financial statements.
 6
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**
 **AUGUST
              31, 2006 AND 2005**
 **NOTE
        1 -**  **ORGANIZATION**
 
 The
        condensed consolidated unaudited interim financial statements included herein
        have been prepared by Capital Solutions I, Inc. (formerly Vacation Ownership
        Marketing, Inc.) (the “Company”) without audit, pursuant to the rules and
        regulations of the Securities and Exchange Commission (the “SEC”). Certain
        information and footnote disclosures normally included in the condensed
        consolidated financial statements prepared in accordance with accounting
        principles generally accepted in the United States of America have been
        condensed or omitted as allowed by such rules and regulations, and the Company
        believes that the disclosures are adequate to make the information presented
        not
        misleading. It is suggested that these condensed consolidated financial
        statements be read in conjunction with the May 31, 2006 audited consolidated
        financial statements and the accompanying notes thereto. While management
        believes the procedures followed in preparing these condensed consolidated
        financial statements are reasonable, the accuracy of the amounts are in some
        respects dependent upon the facts that will exist, and the procedures that
        will
        be accomplished by the Company later in the year.
 
 The
        management of the Company believes that the accompanying unaudited condensed
        consolidated financial statements contain all adjustments including normal
        recurring adjustments necessary to present fairly the operations, changes
        in
        stockholders’ equity (deficit), temporary equity, and cash flows for the period
        presented.
 
 Capital
        Solutions I, Inc., “CSI” (formerly Vacation Ownership Marketing, Inc.) (the
“Company”) was incorporated in Delaware as Magnum Communications Corp in 1969.
        It changed names to its present name on May 10, 2004. Before changing its
        name
        to Capital Solutions I, Inc. they changed to Vacation Ownership Marketing,
        Inc.
        Coinciding with the name change, the Company did not change its business
        structure, which was the development and marketing of time-shared condominiums,
        which it continued until 1983. During the year 1983, the Company experienced
        financial difficulties and encountered adverse litigation. The Company’s charter
        expired until May 7, 2000, when a certificate of renewal was
        issued.
 
 
 
 
 
 
  7
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**
 **AUGUST
              31, 2006 AND 2005**
   
 **NOTE
        1 -**  **ORGANIZATION
        (CONTINUED)**
 
 On
        January 21, 2004, the Company took the following actions in lieu of an annual
        meeting of the stockholders pursuant to Section 228 of the Delaware General
        Corporation Law: re-election of directors; the Company increased its authorized
        common stock from 50,000,000 to 1,000,000,000 shares; the ratification of
        the
        issuance of common stock; the ratification of the assignment of Encore Builders
        common stock; and the approval of the Amended and Restated Articles of
        Incorporation. An Amended and Restated Certificate of Incorporation was filed
        with the Secretary of State on January 22, 2004.
 
 As
        of May
        10, 2004, the Company merged with Vacation Ownership Marketing, Inc. A 1:50
        reverse stock split of the company’s common stock became effective. As a result
        of the reverse stock split, Vacation Ownership Marketing, Inc. changed its
        name
        to Capital Solutions I, Inc. “the Company”. The stock split decreased the issued
        and outstanding common stock from 61,110,595 to 1,222,005. Capital Solutions
        I,
        Inc. had no assets or liabilities. After the consummation of the merger,
        Capital
        Solutions I, Inc. will cease to exist. Additionally, the authorized shares
        of
        common stock increased from 1 billion to 20 billion and the authorized shares
        of
        preferred stock increased from 10 million to 200 million. The par value of
        the
        common stock and preferred stock authorized was reduced from $.001 par value
        per
        share to $.0000001 par value per share. The Company does not believe the
        merger
        will have any effect on the Company of its finances other than the amendment
        and
        restatement of the Company’s Certificate of Incorporation.
 
 On
        June
        17, 2005 the Company took the following actions in lieu of an annual meeting
        of
        the stockholders pursuant to Section 228 of the Delaware General Corporation
        Law: the Company decreased its authorized common stock from 20,000,000,000
        to
        900,000,000 shares; decreased its authorized preferred stock from 200,000,000
        to
        20,000,000; engaged in a 1:10 reverse stock split of its common stock,
        decreasing the Company’s issued outstanding common stock from 783,667,072 to
        78,366,672; and the approval of the Amended and Restated Articles of
        Incorporation. An amended and Restate Certificate of Incorporation was filed
        with the Delaware Secretary of State on June 17, 2005.
 
 On
        October 19, 2005, the company took the following actions based on the Rescission
        Agreement to cancel 30,000,000 shares of common stock, which had been issued
        to
        the Bedrock Shareholders, and certain other individuals have been cancelled
        and
        returned to the treasury.
 
 
  8
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              (CONTINUED)**
 **AUGUST
              31, 2006 AND 2005**
   
 **NOTE
        1 -**  **ORGANIZATION
        (CONTINUED** )
 
 **Principles
        of Consolidation**
 
 The
        condensed consolidated financial statements for 2006 and 2005 include the
        accounts of the Company and all of its wholly-owned subsidiaries. All
        significant intercompany accounts and transactions have been eliminated in
        consolidation.
 
 **NOTE
        2 -**  **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES**
  **Use
        of Estimates**
 
 The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        estimates and assumptions that affect the reported amounts of assets and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the financial statements and the reported amounts of revenues and expenses
        during the reporting period. Actual results could differ from those
        estimates.
 
 **Cash
        and Cash Equivalents**
 
 The
        Company considers all highly liquid debt instruments and other short-term
        investments with an initial maturity of three months or less to be cash or
        cash
        equivalents.
 
 The
        Company maintains cash and cash equivalent balances at several financial
        institutions, which are insured by the Federal Deposit Insurance Corporation
        up
        to $100,000.
  **Start-Up
        Costs**
 
 The
        Company adopted Statement of Position No. 98-5 (“SOP 98-5”), “Reporting the
        Costs of Start-Up Activities.” SOP 98-5 requires that all non-governmental
        entities expense the cost of start-up activities, including organizational
        costs
        as those costs are incurred.
 
 **Revenue
        and Cost Recognition**
  The
        Company records its transactions under the accrual method of accounting whereby
        income gets recognized when the services are rendered and collection is
        reasonably assured.
 
  9
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              (CONTINUED)**
 **AUGUST
              31, 2006 AND 2005**
   
 **NOTE
        2 -**  **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES** **(CONTINUED)**
 
 **Income
        Taxes**
 
 Income
        taxes are computed on the pretax loss based on the current tax law. Deferred
        income taxes are recognized for the tax consequences in future years of
        differences between the tax basis of assets and liabilities and their financial
        reporting amounts at each year-end based on enacted tax laws and statutory
        tax
        rates. All deferred tax assets that arose from the carryforward of net operating
        losses have been offset by a valuation allowance due to the uncertainty of
        the
        realization of these tax assets.
 
 **Fair
        Value of Financial Instruments**
 
 The
        carrying amounts reported in the consolidated balance sheet for cash and
        cash
        equivalents, and accounts payable approximate fair value because of the
        immediate or short-term maturity of these condensed consolidated financial
        instruments.
 
 **Stock-Based
        Compensation**
 
 The
        Company has elected to follow (“SFAS 123”), “ *Accounting
        for Stock-Based Compensation* ”.
        SFAS
        123 requires companies to provide a pro-forma disclosure of net income and
        earnings per share. The accounting for both fixed and variable awards is
        compensation expense at least equal to a defined minimum value over the service
        period. SFAS 123 measures compensation with reference to “fair value”, which
        equals the sum of three elements; intrinsic value, time value of money, and
        time
        value associated with the stock’s volatility.
 
 **Earnings
        (Loss) Per Share of Common Stock**
 
 Historical
        net income (loss) per common share is computed using the weighted average
        number
        of CSI Common Stock outstanding. Diluted earnings per share (EPS) include
        additional dilution from CSI Common Stock equivalents, such as stock issuable
        pursuant to the exercise of stock options and warrants. CSI Common Stock
        equivalents were not included in the computation of diluted earnings per
        share
        when the Company reported a loss because to do so would be antidilutive for
        periods presented.
 
 
  10
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              (CONTINUED)**
 **AUGUST
              31, 2006 AND 2005**
   
 **NOTE
        2 -**  **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES**  **(CONTINUED)**
 
 **Earnings
        (Loss) Per Share of Common Stock (Continued)**
 
 The
        following is a reconciliation of the computation for basic and diluted
        EPS:
  **August
                    31,**
                
                **August
                    31,****2006**
                
                **2005**Net
                    Income (Loss)
                
                $
                629,671
                
                $
                (8,040
                )Weighted-average
                    common sharesOutstanding
                    (Basic)
                
                
                96,732
                
                
                3,349Weighted-average
                    common stockEquivalentsStock
                    options
                
                
                -
                
                
                -Warrants
                
                
                -
                
                
                -Weighted-average
                    common sharesOutstanding
                    (Diluted)
                
                
                96,732
                
                
                3,349
  There
        are
        no options and warrants outstanding to purchase stock at August 31, 2006
        and
        2005.
 
 
 **NOTE
        3 -**  **STOCKHOLDERS’
        EQUITY**
 
 There
        were no stock transactions for the period ended August 31, 2006.
 
 
 11
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              (CONTINUED)**
 **AUGUST
              31, 2006 AND 2005**
   
 
 .
 
 **NOTE
        4 -**  **PROVISION
        FOR INCOME TAXES**
 
 The
        Company did not provide for income taxes in the three months ended August
        31,
        2006 and 2005. Additionally, the Company established a valuation allowance
        equal
        to the full amount of the deferred tax assets due to the uncertainty of the
        utilization of the operating losses in future periods.
  At
        August
        31, 2006 and 2005, the deferred tax assets consists of the
        following:
  **2006**
                
                **2005**Deferred
                    taxes due to net operating losscarryforwards
                
                $
                135,316
                
                $
                337,187Less:
                    Valuation allowance
                
                
                (135,316
                )
                
                (337,187
                )Net
                    deferred tax asset
                
                $
                -
                
                $
                -
 
  12
 **CAPITAL
              SOLUTIONS I, INC.**
 **NOTES
              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              (CONTINUED)**
 **AUGUST
              31, 2006 AND 2005**
  **NOTE
        5 -**  **GOING
        CONCERN**
 
 As
        shown
        in the accompanying condensed consolidated financial statements the Company
        incurred net operating losses for the three months ended August 31, 2006
        and
        2005. The Company has no revenues to support itself.
 
 In
        view
        of these matters, continuing as a going concern is dependent upon the Company’s
        ability to raise additional capital, and to secure a future business
        combination. Management believes that actions planned and presently being
        taken
        to revise the Company’s operating and financial requirements provide the
        opportunity for the Company to continue as a going concern.
 
 
 **NOTE
        6 -**  **FORGIVENESS
        OF DEBT**
 
 The
        company has recognized $629,707 of debt forgiveness for the quarter. The
        company
        had outstanding convertible debentures in the amount of $400,202 which matured
        August 27, 2003. The debentures had been reported as a current liability
        in
        previous quarters. Under Colorado Law, these debentures along with the
        associated interest accrued and expenses of $229,505 have
        expired.








13


Item
      2.Management's
      Discussion and Analysis or Plan of Operation.





THE
      FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH THE COMPANY'S FINANCIAL
      STATEMENTS AND THE NOTES TO THOSE STATEMENTS AND OTHER FINANCIAL INFORMATION
      APPEARING ELSEWHERE IN THIS REPORT.





**OVERVIEW**





The
      Company was incorporated in Delaware as "Magnum Communications Corp." in 1969
      and changed its name to Vacation Ownership Marketing, Inc. in 1980. Coinciding
      with the name change, the Company changed its business to the development and
      marketing of time-shared condominiums which it continued until 1983. From 1983
      until August 29, 2001, the Company was not engaged in any business. On August
      29, 2001, the Company acquired Encore Builders, Inc., a construction company,
      through what was then a subsidiary of the Company. Beginning on August 29,
      2001
      the Company was engaged in the construction of Conquistador Plaza Apartments
      in
      Miami, Florida, pursuant to a lump sum construction contract with Conquistador
      Plaza. These operations ceased with the separation of Encore Builders from
      the
      Company in the first quarter of 2002. The Company changed names to its present
      name on May 10, 2004.








**RESULTS
      OF OPERATIONS**





THREE
      MONTHS ENDED August 31, 2006 COMPARED TO THREE MONTHS ENDED August 31,
      2005





Revenues





Revenues
      were $0 for the three months ended August 31, 2006 and for the three months
      ended August 31, 2005.





Operating
      Expenses





Operating
      expenses for the three months ended August 31, 2006 were $36.





Other
      Income





Other
      income was $629,707 for the three months ended August 31, 2006. This $629,707
      represents the benefit received by the Company from the write off of the VAOM
      Debentures as discussed in further detail under “Continuing Operations,
      Liquidity and Capital Resources.”





Interest
      Expense





Interest
      expense was $0 and $8,004 for the three months ended August 31, 2006 and 2005,
      respectively. The decline in interest expense was the result of the write off
      of
      the VAOM Debentures and the debt and interest expense associated
      therewith.





Net
      Income (Loss) Applicable To Common Stock





Net
      income applicable to Common Stock was $629,671 for the three months ended August
      31, 2006, compared to a net loss of ($8,040) for the three months ended August
      31, 2005. Net income per common share was $6.5094 for the three months ended
      August 31, 2006 compared to a net loss of ($.0005) for the three months ended
      August 31, 2005.





14


**CONTINUING
      OPERATIONS, LIQUIDITY AND CAPITAL RESOURCES**





The
      Company does not have any ongoing business operations or revenue sources.
      Accordingly, the Company's remaining operations will be limited to business
      combination with an existing business. The Board of Directors of the Company
      has
      determined that, subject to stockholder approval, the best course of action
      for
      the Company is to complete a business combination with an existing business.
      The
      Company has limited liquidity or capital resources. In the event that the
      Company cannot complete a merger or acquisition and cannot obtain capital needs
      for ongoing expenses, including expenses related to maintaining compliance
      with
      the Securities laws and filing requirements of the Securities Exchange Act
      of
      1934, the Company could be forced to cease operations.





The
      Company currently plans to satisfy its cash requirements for the next 12 months
      by borrowing from affiliated company's with common ownership or control or
      directly from its officers and directors and believes it can satisfy its cash
      requirements so long as it is able to obtain financing from these affiliated
      companies. The Company currently expects that money borrowed will be used during
      the next 12 months to satisfy the Company's operating costs, professional fees
      and for general corporate purposes. The Company has also been exploring
      alternative financing sources. The Company currently has no plans to conduct
      any
      research and development, to purchase or sell any significant equipment or
      to
      make any significant changes in its number of employees.





The
      Company will use its limited personnel and financial resources in connection
      with seeking new business opportunities, including seeking an acquisition or
      merger with an operating company. It may be expected that entering into a new
      business opportunity or business combination will involve the issuance of a
      substantial number of restricted shares of common stock. If such additional
      restricted shares of common stock are issued, the shareholders will experience
      a
      dilution in their ownership interest in the Company. If a substantial number
      of
      restricted shares are issued in connection with a business combination, a change
      in control may be expected to occur.





As
      of
      August 31 2006, the Company had current assets consisting of cash and cash
      equivalents in the amount of $396. As of August 31, 2006, the Company had no
      current liabilities.




On
      August
      27, 2001, the Company's former parent, Acquisition Corp., offered Acquisition
      Corp. Debentures. The Acquisition Corp. Debentures were exchanged for Vacation
      Ownership Marketing, Inc. Debentures ("VAOM Debentures"). The Debentures were
      one year debentures and became due August 27, 2002. The Company did not repay
      the Debentures and accordingly, defaulted on the Debentures on August 27, 2002.
      The Debentures were issued in Colorado and pursuant to their terms, are governed
      by Colorado law which provides for a three year statute of limitations to pursue
      a claim under the Debentures. As of August 27, 2006 the Company had $400,202
      in
      VAOM Debentures outstanding and $170,005 in accrued interest expense on the
      Debentures. The Company has determined that the statute of limitations to file
      a
      claim to seek repayment on the VAOM Debentures has passed and that no such
      claim
      has been filed. Accordingly, On August 27, 2006, the Company wrote off the
      Debenture balance of $400,202 and accrued interest of $229,005.





During
      the three-month period ended August 31, 2006, the Company did not generate
      any
      cash and used $36 for operations.





In
      connection with the plan to seek new business opportunities and/or effecting
      a
      business combination, the Company may determine to seek to raise funds from
      the
      sale of restricted stock or debt securities. The Company has no agreements
      to
      issue any debt or equity securities and cannot predict whether equity or debt
      financing will become available at acceptable terms, if at all.





There
      are
      no limitations in the certificate of incorporation on the Company's ability
      to
      borrow funds or raise funds through the issuance of restricted common stock
      to
      effect a business combination. The Company's limited resources and lack of
      recent operating history may make it difficult to borrow funds or raise capital.
      Such inability to borrow funds or raise funds through the issuance of restricted
      common stock required to effect or facilitate a business combination may have
      a
      material adverse effect on the Company's financial condition and future
      prospects, including the ability to complete a business combination. To the
      extent that debt financing ultimately proves to be available, any borrowing
      will
      subject the Company to various risks traditionally associated with indebtedness,
      including the risks of interest rate fluctuations and insufficiency of cash
      flow
      to pay principal and interest, including debt of an acquired
      business.




15


**PLAN
      OF OPERATIONS**





The
      Company currently plans to satisfy its cash requirements for the next 12 months
      by borrowing from affiliated company's with common ownership or control or
      directly from its officers and directors and believes it can satisfy its cash
      requirements so long as it is able to obtain financing from these affiliated
      companies. The Company currently expects that money borrowed will be used during
      the next 12 months to satisfy the Company's operating costs, professional fees
      and for general corporate purposes. The Company currently has no plans to
      conduct any research and development, to purchase or sell any significant
      equipment or to make any significant changes in its number of
      employees.





**RECENT
      ACCOUNTING PRONOUNCEMENTS**





The
      Company continues to assess the effects of recently issued accounting standards.
      The impact of all recently adopted and issued accounting standards has been
      disclosed in the Notes to the audited Consolidated Financial
      Statements.





**CRITICAL
      ACCOUNTING ESTIMATES**





The
      Company is a shell company and, as such, the Company does not employ critical
      accounting estimates. Should the Company resume operations it will employ
      critical accounting estimates and will make any disclosures that are necessary
      and appropriate.





**RISK
      FACTORS**





IN
      ADDITION TO OTHER INFORMATION IN THIS REPORT, YOU SHOULD CONSIDER THE FOLLOWING
      RISK FACTORS CAREFULLY. THESE RISKS MAY IMPAIR THE COMPANY'S OPERATING RESULTS
      AND BUSINESS PROSPECTS AS WELL AS THE MARKET PRICE OF THE COMPANY'S COMMON
      STOCK.





RISKS
      RELATED TO THE COMPANY'S FINANCIAL CONDITION AND BUSINESS MODEL





THE
      COMPANY'S LIQUIDITY IS LIMITED AND IT MAY NOT BE ABLE TO OBTAIN SUFFICIENT
      FUNDS
      TO FUND ITS BUSINESS





The
      Company's cash is currently very limited and may not be sufficient to fund
      future operations. Although future operations are limited, the Company does
      incur expenses in maintaining its filing requirements in accordance with the
      Securities Exchange Act of 1934. If the Company is unable to raise additional
      capital, any future operations could be impeded. If the Company obtains
      additional funding, the issuance of additional capital stock may be dilutive
      to
      the Company's stockholders.





16


THE
      COMPANY CURRENTLY HAS NO OPERATIONS





The
      Company has had no operations since March 20, 2002.





IT
      MAY BE
      DIFFICULT TO CONSUMMATE A MERGER OR ACQUISITION WITH A PRIVATE
      ENTITY





The
      Company expects its purpose will include locating and consummating a merger
      or
      acquisition with a private entity. The Company anticipates the selection of
      a
      business opportunity in which to participate will be complex and extremely
      risky. The Company has, and will continue to have, little or no capital with
      which to provide the owners of business opportunities with any significant
      cash
      or other assets. However, management believes the Company will be able to offer
      owners of acquisition candidates
      the opportunity to acquire a controlling ownership interest in a publicly
      registered company without incurring the cost and time required to conduct
      an
      initial public offering. Such an acquisition candidate will, however, incur
      significant legal and accounting costs in connection with an acquisition of
      the
      Company, including the costs of preparing current and periodic reports, various
      agreements and other documents.





**RISKS
      RELATED TO LEGAL UNCERTAINTIES**





THE
      COMPANY HAS VIOLATED SECTION 5 OF THE SECURITIES ACT





Section
      5
      of the Securities Act prohibits the sale of securities absent an effective
      registration statement being filed with the SEC, unless an exemption from
      registration applies. On August 27, 2001, the Company's former parent,
      Acquisition Corp., offered and sold Acquisition Corp. Debentures. The
      Acquisition Corp. Debentures were exchanged for the VAOM Debentures, and the shares
      of
      the Company's common stock underlying the converted portion of the VAOM
      Debentures were sold by the holders of the VAOM Debentures. This series of
      transactions occurred over an approximate six month time period beginning August
      27, 2001.





This
      series of transactions was performed in a manner thought to be exempt from
      the
      registration requirements of Section 5 of the Securities Act. However, the
      requirements of the exemptions relied on do not appear to have been satisfied.
      As a result of this uncertainty, the Company classified certain amounts
      as temporary equity.





Section
      13 of the Securities Act provides that no action shall be maintained for
      offering or selling securities in violation of Section 5 unless that action
      is
      brought within one year of the date of the violation. Because actions by the
      holders of the Company's common stock received upon conversion of the VAOM
      Debentures are now barred by this statute of limitations, the Company has
      reclassified the amounts from temporary equity to permanent stockholder
      equity.





17


**OTHER
      RISKS**





THE
      COMPANY'S STOCK PRICE HAS DECLINED AND THE STOCK IS THINLY TRADED





The
      trading price of the Company's common stock has declined significantly since
      approximately October 2001. Although the stock price recovered for a short
      period of time after the June, 2005 reverse split, and again after the January,
      2006 reverse split, it has since declined again. The market for the Company's
      common stock is without significant volume and there can be no assurance of
      a
      change in the immediate future.





PENNY
      STOCK REGULATIONS AND REQUIREMENTS FOR LOW PRICED STOCK





The
      SEC
      adopted regulations which generally define a "penny stock" to be any non-Nasdaq
      equity security that has a market price of less than $5.00 per share, subject
      to
      certain exceptions. Based upon the price of the Company's common stock as
      currently traded on the OTC Bulletin Board, the Company's common stock is
      subject to Rule 15g-9 under the Exchange Act which imposes additional sales
      practice requirements on broker-dealers which sell securities to persons other
      than established customers and "accredited investors." For transactions covered
      by this rule, a broker-dealer must make a special suitability determination
      for
      the purchaser and have received a purchaser's written consent to the transaction
      prior to sale. Consequently, this rule may have a negative effect on the ability
      of stockholders to sell common shares of the Company in the secondary
      market.





ADDITIONAL
      DEBT, CONVERTIBLE DEBT, OR EQUITY FINANCING MAY EFFECT ABILITY OF INVESTORS
      TO
      SELL COMMON STOCK





The
      Company's common stock currently trades on the OTC Bulletin Board. Stocks
      trading on the OTC Bulletin Board generally attract a smaller number of market
      makers and a less active public market and may be subject to significant
      volatility. If the Company raises additional capital from the sale of the
      Company's common stock, the market price could drop and the ability of investors
      to sell the Company's common stock could be diminished.




18


**ITEM
      2. DESCRIPTION OF
      PROPERTY**




The
      Company's principal executive offices are located at One NE First Avenue, Suite
      306, Ocala, Florida 34470. The Company does not have a lease but rather shares
      office space with its officers and directors and the Company pays no rent for
      the leased space. The Company does not own any properties nor does it lease
      any
      other properties. The Company does not believe it will need to maintain an
      office at any time in the foreseeable future in order to carry out its plan
      of
      operations as described herein.





**ITEM
      3. CONTROLS AND
      PROCEDURES**





**EVALUATION
      OF DISCLOSURE CONTROLS AND PROCEDURES**





The
      Company's Chief Executive Officer and Chief Financial Officer, Christopher
      Astrom, have reviewed and evaluated the effectiveness of the Company's
      disclosure controls and procedures (as defined in Exchange Act Rules 13a15(e)
      and 15d15(e)) as of the end of the period covered by this quarterly report
      on
      Form 10QSB. Based on that evaluation, Christopher Astrom determined that he
      and
      Richard Astrom, the Company's only two directors and officers, are the only
      individuals involved in the Company's disclosure process. The Company's system
      is designed so that information is retained by the Company and relayed to
      counsel as it becomes available. The Company's Chief Executive Officer and
      Chief
      Financial Officer believes that, as of the end of the period covered by this
      report, the Company's disclosure controls and procedures are effective to ensure
      that information required to be disclosed by the Company in the reports that
      it
      filed or submits under the Exchange Act is recorded, processed, summarized
      and
      reported, within the required time periods. Further, the Company's officers
      have
      concluded that the disclosure controls and procedures are also effective to
      ensure that information required to be disclosed in the reports that the Company
      files and submits pursuant to the Exchange Act of 1934 is accumulated and
      communicated to management, including our chief executive officer and chief
      financial officer, to allow timely decisions regarding required
      disclosure.








**CHANGES
      IN INTERNAL CONTROL OVER FINANCIAL REPORTING**





No
      changes in the Company's internal control over financial reporting have come
      to
      management's attention during the Company's last fiscal quarter that have
      materially affected, or are likely to materially affect, the Company's internal
      control over financial reporting.





19


**PART
      II**


**OTHER
      INFORMATION**





**ITEM
      1. LEGAL
      PROCEEDINGS**





The
      Company is not a party to any pending legal proceedings nor is any of the
      Company's property the subject of any pending legal proceedings.





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





None





**ITEM
      3. DEFAULTS UPON SENIOR
      SECURITIES**





None





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





The
      Company did not submit any matters to a vote of its stockholders, through the
      solicitation of proxies or otherwise, during the first quarter of fiscal
      2007.





**ITEM
      5. OTHER
      INFORMATION**





**GOING
      CONCERN**





The
      Company has incurred recurring operating losses and does not have any revenue
      generating activities. These conditions raise substantial doubt about the
      Company's ability to continue as a going concern. If at any time the Company
      determines that it does not have sufficient cash in order to execute the
      foregoing strategy, then the Company intends to endeavor to obtain additional
      equity or other funding, if it is able do so. However, there can be no assurance
      that the Company will be able to raise additional funding necessary to operate.





**REGISTRATION
      OF SECURITIES**





The
      Company appears to be a blank check company, as defined by Rule 419 of
      Regulation C, promulgated under the Securities Act. Generally, a blank check
      company is a development stage company that has no specific business plan or
      purpose, is seeking to merge with or acquire an unidentified target, and is
      issuing "penny stock." So long as the Company continues to be a blank check
      company, any registration statement filed by the Company will need to comply
      with Rule 419. Rule 419 requires, among other things, that the proceeds of
      the
      offering and the securities issued pursuant to the offering be placed in escrow
      for the benefit of the investors of the securities. The offering must be made
      pursuant to an initial registration statement that meets the disclosure
      requirements of Rule 419, and the company must file and deliver to the investors
      a post-effective amendment upon execution of any agreement for the acquisition
      of one or more businesses or assets that will constitute the company's business.
      The investors must confirm their investments within prescribed time limits
      following the filing of the post-effective amendment, and the acquisition will
      be consummated only if the company is in receipt of confirmations from a
      sufficient number of investors to permit consummation (which must occur not
      more
      than 18 months following the effective date of the initial registration
      statement). However, any investor that does not confirm an investment is
      entitled to return of escrowed funds.





Additionally,
      it is the SEC's view that promoters and affiliates of a blank check company
      may
      resell their securities only in a registered offering, as Rule 144 promulgated
      under the Securities Act is not available. As such, the Company believes that
      any resale of the Company's common stock by a promoter or affiliate of the
      Company would have to be done in a registered offering that complies with Rule
      419.





20


**Item
      6. Exhibits**








EXHIBIT
              NUMBER
            
            DESCRIPTION31.1
            
            Certification
                of Principal Executive Officer andPrincipal
                Financial Officer pursuant to Sarbanes-Oxley Section
                30232.1
            
            Certification
                of Chief Executive Officer and ChiefFinancial
                Officer pursuant to Sarbanes-Oxley Section906









21


**SIGNATURES**




In
      accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934,
      the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned, thereunto duly authorized.





CAPITAL
      SOLUTIONS I, INC.





/s/
      CHRISTOPHER ASTROM





By:
      Christopher Astrom


CHIEF
      EXECUTIVE OFFICER


CHIEF
      FINANCIAL OFFICER


Date:
      October 18, 2006




In
      accordance with the Exchange Act, this report has been signed below by the
      following persons on behalf of the registrant and in the capacities and on
      the
      dates indicated:





/s/
      CHRISTOPHER ASTROM





Director


Date:
      October 18, 2006








/s/
      RICHARD ASTROM





By:
      Richard Astrom


Director


Date:
      October 18, 2006




22