----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

| **Florida**                                                                                     |   | **65-0888146**                                                        |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation                  or organization) |   | (I.R.S.                  EmployerIdentification                  No.) |

**c/o      Windels Marx Lane & Mittendorf, LLP**

**156      West 56**
**th**

**      Street**

**New      York, New York 10019**

| YES                  x | NO                  o |   |
|------------------------|-----------------------|--------|

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

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

| Class                                          |   | Outstanding                  As of March 31, 2007 |
|------------------------------------------------|--------|---------------------------------------------------|
| Common                  Stock $ .001 par value |   | 15,563,252                                        |

----

**FORM      10-QSB**

**IDEAL      ACCENTS, INC. **

**TABLE      OF CONTENTS**

|                                                                                                  | Page(s) |
|-------------------------------------------------------------------------------------------------------|---------|
|                                                                                                  |    |
|                                                                                                  |    |
| PART                  I. FINANCIAL INFORMATION                                                        | 1       |
| ITEM                  1. Financial Statements                                                         | 1       |
| ITEM                  2. Management's Discussion And Analysis                                         |    |
| Of                  Financial Condition And Results Of Operations                                     | 10      |
| ITEM                  3. Controls and Procedures                                                      | 15      |
|                                                                                                  |    |
| PART                  II. OTHER INFORMATION                                                           | 15      |
| ITEM                  1. Legal Proceedings                                                            | 15      |
| ITEM                  2. Unregistered Sales Of Equity Securities And Use Of                  Proceeds | 16      |
| ITEM                  3. Defaults Upon Senior Securities                                              | 16      |
| ITEM                  4. Submission Of Matters To A Vote Of Security Holders                          | 17      |
| ITEM                  5. Other Information                                                            | 17      |
| ITEM                  6. Exhibits                                                                     | 17      |

----

| **PART              I.  ** | **FINANCIAL                INFORMATION** |
|--------------------------------------|------------------------------------------|

| **ITEM              1.  ** | **Financial                Statements** |
|--------------------------------------|-----------------------------------------|

**IDEAL      ACCENTS, INC. AND SUBSIDIARIES**

**(A      FLORIDA CORPORATION)**

**Miami,      Florida**

|                             |
|----------------------------------|
| FINANCIAL                REPORTS |
| AT                               |
| MARCH                31, 2007    |

----

**IDEAL      ACCENTS, INC. AND SUBSIDIARIES**

**(A      FLORIDA CORPORATION)**

**Miami,      Florida**

|                                                                                  |   |
|---------------------------------------------------------------------------------------|--------|
| **TABLE                  OF CONTENTS**                                                |   |
|                                                                                  |   |
|                                                                                  |   |
| Consolidated                  Balance Sheets at March 31, 2007 (Unaudited)            |   |
| and                  December 31, 2006                                                | 3      |
|                                                                                  |   |
| Consolidated                  Statements of Changes in Stockholders' Deficit for the  |   |
| Three                  Months Ended March 31, 2007 and 2006 (Unaudited)               | 4      |
|                                                                                  |   |
| Consolidated                  Statements of Operations and Comprehensive Loss for the |   |
| Three                  Months Ended March 31, 2007 and 2006 (Unaudited)               | 5      |
|                                                                                  |   |
| Consolidated                  Statements of Cash Flows from Discontinued Operations   |   |
| for                  the Three Months Ended March 31, 2007 and 2006 (Unaudited)       | 6      |
|                                                                                  |   |
| Notes                  to Consolidated Financial Statements                           | 7-9    |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES** |   |   |   |
|--------------------------------------------------------|--------|--------|--------|
| **(A                FLORIDA CORPORATION)**             |   |   |   |
| **Miami,                Florida**                      |   |   |   |
|                                                   |   |   |   |
| **CONSOLIDATED                BALANCE SHEETS**         |   |   |   |

|                                                                                              |   |                         |           |                        |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------------|----------------|-----------------------------|--------|
|                                                                                              |   | **(Unaudited)**              |           |                        |   |
|                                                                                              |   | **March                31,** |           | December                31, |   |
|                                                                                              |   | **2007**                     |           | 2006                        |   |
|                                                                                              |   |                         |           |                        |   |
| **ASSETS**                                                                                        |   |                         |           |                        |   |
|                                                                                              |   |                         |           |                        |   |
| **Current                Assets**                                                                 |   |                         |           |                        |   |
| Cash                and Cash Equivalents                                                          |   | **$**                        | **234**        |                        | $      | -- |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Total                Assets**                                                                   |   | **$**                        | **234**        |                        | $      | -- |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' DEFICIT**                                          |   |                         |           |                        |   |   |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Current                Liabilities**                                                            |   |                         |           |                        |   |   |   |
| Bank                Overdraft                                                                     |   | **$**                        | **--**         |                        | $      | 2,064 |   |
| Accounts                Payable                                                                   |   |                         | **564,217**    |                        |   | 554,684 |   |
| Note                Payable                                                                       |   |                         | **3,993**      |                        |   | -- |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Total                Post-Petition Liabilities**                                                |   | **$**                        | **568,210**    |                        | $      | 556,748 |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| Pre-Petition                Liabilities                                                           |   |                         | **3,242,871**  |                        |   | 3,242,871 |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Total                Liabilities**                                                              |   | **$**                        | **3,811,081**  |                        | $      | 3,799,619 |   |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Stockholders'                Deficit**                                                          |   |                         |           |                        |   |   |   |
| Common                Stock  -  $.001 Par; 50,000,000 Shares                Authorized; |   |                         |           |                        |   |   |   |
| 15,563,252                Shares Issued and Outstanding                                           |   |                         | **15,563**     |                        |   | 15,563 |   |
| Additional                Paid-In Capital                                                         |   |                         | **1,390,144**  |                        |   | 1,390,144 |   |
| Deficit                                                                                           |   |                         | **(4,874,559** | **)**                       |   | (4,872,745 | ) |
| Accumulated                Comprehensive Loss                                                     |   |                         | **(341,995**   | **)**                       |   | (332,581 | ) |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Total                Stockholders' Deficit**                                                    |   |                         | **(3,810,847** | **)**                       |   | (3,799,619 | ) |
|                                                                                              |   |                         |           |                        |   |   |   |
| **Total                Liabilities and Stockholders' Deficit**                                    |   | **$**                        | **234**        |                        | $      | -- |   |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES**                         |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| **(A                FLORIDA CORPORATION)**                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Miami,                Florida**                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT** |   |   |   |   |

|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |
|------------------------------------------------------------|--------|--------|----------------|--------|--------|------------|--------|---------|---------------|---------------|--------|---------------------|--------|
|                                                       |   | Number |           |   |   | Additional |   |    |          | Accumulated   |   | Total               |   |
|                                                       |   | of     |           | Common |   | Paid-In    |   |    |          | Comprehensive |   | Stockholder’s |   |
|                                                       |   | Shares |           | Stock  |   | Capital    |   | Deficit |          | Loss          |   | Deficit             |   |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |
| **Balance                  - January 1, 2006**             |   |   | **15,563,252** |   |   | **15,563** |   | **$**   | **1,390,144** |          | **$**  | **(4,768,769**      | **)**  | **$** | **(348,213** | **)** | **$** | **(3,711,275** | **)** |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| Net                  Loss for the Period Ended             |   |   | —        |   |   | —    |   |    | —       |          |   | (3,886              | )      |   | — |   |   | (3,886 | ) |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| Comprehensive                  Income for the Period Ended |   |   | —        |   |   | —    |   |    | —       |          |   | —             |   |   | 3,136 |   |   | 3,136 |   |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| **Balance                  - March 31, 2006**              |   |   | **15,563,252** |   |   | **15,563** |   |    | **1,390,144** |          |   | **(4,772,655**      | **)**  |   | **(345,077** | **)** |   | **(3,712,025** | **)** |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| Net                  Loss for the Period Ended             |   |   | —        |   |   | —    |   |    | —       |          |   | (100,090            | )      |   | — |   |   | (100,090 | ) |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| Comprehensive                  Income for the Period Ended |   |   | —        |   |   | —    |   |    | —       |          |   | —             |   |   | 12,496 |   |   | 12,496 |   |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| **Balance                  - December 31, 2006**           |   |   | **15,563,252** |   | **$**  | **15,563** |   | **$**   | **1,390,144** |          | **$**  | **(4,872,745**      | **)**  | **$** | **(332,581** | **)** | **$** | **(3,799,619** | **)** |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| Net                  Loss for the Period Ended             |   |   | —        |   |   | —    |   |    | —       |          |   | (1,814              | )      |   | — |   |   | (1,814 | ) |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| Comprehensive                  Income for the Period Ended |   |   | —        |   |   | —    |   |    | —       |          |   | —             |   |   | (9,414 | ) |   | (9,414 | ) |
|                                                       |   |   |           |   |   |       |   |    |          |          |   |                |   |   |   |   |   |   |   |
| **Balance                  - March 31, 2007**              |   |   | **15,563,252** |   | **$**  | **15,563** |   | **$**   | **1,390,144** |          | **$**  | **(4,874,559**      | **)**  | **$** | **(341,995** | **)** | **$** | **(3,810,847** | **)** |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES**                                         |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| **(A                FLORIDA CORPORATION)**                                                     |   |   |   |   |   |   |   |
| **Miami,                Florida**                                                              |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |
| **CONSOLIDATED                STATEMENTS OF OPERATIONS AND COMPREHENSIVE                LOSS** |

|                                                                                           |   | Unaudited |           |
|------------------------------------------------------------------------------------------------|--------|-----------|----------------|
| Three                Months Ended March 31,                                                    |   | **2007**  |           | 2006 |   |
|                                                                                           |   |      |           |   |   |
| **Discontinued                Operations:**                                                    |   |      |           |   |   |
| **Sales**                                                                                      |   | **$**     | **—**    |   | $ | — |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Cost                of Goods Sold**                                                          |   |      | **—**    |   |   | — |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Gross                Profit**                                                                |   |      | **—**    |   |   | — |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Operating                Expenses**                                                          |   |      |           |   |   |   |   |
| Selling,                General and Administrative                                             |   |      | **975**        |   |   | 2,088 |   |
| Interest                                                                                       |   |      | **839**        |   |   | 1,798 |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Total                Operating Expenses**                                                    |   |      | **1,814**      |   |   | 3,886 |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Loss                From Discontinued Operations Before Provision for                Taxes** |   |      | **(1,814**     | **)** |   | (3,886 | ) |
|                                                                                           |   |      |           |   |   |   |   |
| Provision                for Taxes                                                             |   |      | —        |   |   | — |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Net                Loss for the Period Ended**                                               |   |      | **(1,814**     | **)** |   | (3,886 | ) |
|                                                                                           |   |      |           |   |   |   |   |
| **Comprehensive                Income**                                                        |   |      |           |   |   |   |   |
| Foreign                Currency Translation                                                    |   |      | **(9,414**     | **)** |   | 3,136 |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Comprehensive                Income (Loss)**                                                 |   | **$**     | **(11,228**    | **)** | $ | (750 | ) |
|                                                                                           |   |      |           |   |   |   |   |
| **Loss                Per Common Share -**                                                     |   |      |           |   |   |   |   |
| **Basic**                                                                                      |   | **$**     | **0.00**       |   | $ | 0.00 |   |
| **Diluted**                                                                                    |   | **$**     | **0.00**       |   | $ | 0.00 |   |
|                                                                                           |   |      |           |   |   |   |   |
| **Weighted                Average Number of Common Shares Outstanding -**                      |   |      |           |   |   |   |   |
| **Basic**                                                                                      |   |      | **15,563,252** |   |   | 15,563,252 |   |
| **Diluted**                                                                                    |   |      | **15,563,252** |   |   | 15,563,252 |   |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES**                                               |   |   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|
| **(A                FLORIDA CORPORATION)**                                                           |   |   |   |
| **Miami,                Florida**                                                                    |   |   |   |
|                                                                                                 |   |   |   |
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS FROM DISCONTINUED                OPERATIONS** |

|                                                                                               |   | Unaudited |        |
|----------------------------------------------------------------------------------------------------|--------|-----------|-------------|
| Three                  Months Ended March 31,                                                      |   | **2007**  |        | 2006 |   |
|                                                                                               |   |      |        |   |   |
| **Cash                  Flows from Operating Activities**                                          |   |      |        |   |   |
| Net                  Loss for the Period Ended                                                     |   | **$**     | **(1,814**  | **)** | $ | (3,886 | ) |
|                                                                                               |   |      |        |   |   |   |   |
| **Changes                  in Assets and Liabilities**                                             |   |      |        |   |   |   |   |
| Accounts                  Payable                                                                  |   |      | **7,469**   |   |   | 189 |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Net                  Cash Flows from Operating Activities**                                      |   |      | **5,655**   |   |   | (3,697 | ) |
|                                                                                               |   |      |        |   |   |    |  |
|                                                                                               |   |      |        |   |   |   |   |
| **Net                  Cash Flows from Investing Activities**                                      |   |      | **—** |   |   | — |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Cash                  Flows from Financing Activities**                                          |   |      |        |   |   |   |   |
| Proceeds                  from Note Payable                                                        |   |      | **3,993**   |   |   | -- |   |
| Repayment                  of Lines of Credit                                                      |   |      | **(34,466** | **)** |   | (12,972 | ) |
| Proceeds                  of Notes Payable - Officers/Stockholders                                 |   |      | **53,612**  |   |   | -- |   |
| Proceeds                  from (Repayment to) Related Parties                                      |   |      | **(19,146** | **)** |   | 12,972 |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Net                  Cash Flows from Financing Activities**                                      |   |      | **3,993**   |   |   | -- |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Effect                  of Exchange Rate Changes on Cash and Cash                  Equivalents** |   |      | **(9,414**  | **)** |   | 3,136 |   |
|                                                                                               |   |      |        |   |   |   |   |
| Net                  Change in Cash and Cash Equivalents                                           |   |      | **234**     |   |   | (561 | ) |
|                                                                                               |   |      |        |   |   |   |   |
| Cash                  and Cash Equivalents - Beginning of Period                                   |   |      | --          |   |   | 6,168 |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Cash                  and Cash Equivalents - End of Period**                                     |   | **$**     | **234**     |   | $ | 5,607 |   |
|                                                                                               |   |      |        |   |   |   |   |

|                                                                             |   |   |    |
|----------------------------------------------------------------------------------|--------|--------|---------|
|                                                                             |   |   |    |
| **SUPPLEMENTAL                  DISCLOSURE OF CASH PAID FOR INTEREST AND TAXES** |   |   |    |
| Interest                                                                         |   | **$**  | **839** |   | $ | 1,798 |   |
| Taxes                                                                            |   | **$**  | **--**  |   | $ | -- |   |

----

**IDEAL      ACCENTS, INC. AND SUBSIDIARIES**

**(A      FLORIDA CORPORATION)**

**Miami,      Florida**

| **NOTES                  TO CONSOLIDATED FINANCIAL                  STATEMENTS** |
|----------------------------------------------------------------------------------|

| **Note                  A -** | **Organization                  and Going Concern** |
|-------------------------------|-----------------------------------------------------|

|   | On                  October 13, 2004, the Company filed                  a voluntary petition under Chapter 11 of Title 11 of the United                  States Code (the “Bankruptcy Code”). The outstanding debt owed to                  Citizen’s Bank was purchased by Ideal Auto Restyling. The Company took                  action to alleviate that debt by voluntarily surrendering assets                  of two                  U.S. Subsidiaries to Ideal Auto Restyling, in full satisfaction                  of amounts                  owed by the two U.S. Subsidiaries and for a release and discharge                  of Ideal                  Auto Restyling’s liens on assets of the two U.S.                  Subsidiaries. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                Company ceased all U.S. operations during October 2004 and all Canadian                operations during March 2005. The Company is currently attempting                to                locate a new business (operating company) and offer itself as a merger                vehicle for a company that may desire to go public through a merger                rather                than through its own public stock offering.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                accompanying financial statements are prepared in accordance with                American                Institute of Certified Public Accountants’ Statement of Position 90-7,                “Financial Reporting by Entities in Reorganization Under the Bankruptcy                Code” (SOP 90-7), and on a going-concern basis, which assumes continuity                of operations, realization of assets, and satisfaction of liabilities                in                the ordinary course of business. SOP 90-7 requires that the financial                statements for periods subsequent to a Chapter 11 filing separate                transactions and events that are directly associated with the                reorganization from the ongoing operations of the business. The statements                of financial position distinguish pre-petition liabilities from                post-petition liabilities. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                financial statements do not include any adjustments relating to the                recoverability of assets and classification of liabilities that might                be                necessary should the Company be unable to continue as a going concern. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**IDEAL        ACCENTS, INC. AND SUBSIDIARIES**

**(A        FLORIDA CORPORATION)**

**Miami,        Florida**

| **NOTES                    TO CONSOLIDATED FINANCIAL                    STATEMENTS** |
|--------------------------------------------------------------------------------------|

| **Note                B -** | **Basis                of Presentation** |
|-----------------------------|------------------------------------------|

|   | The                condensed consolidated financial statements of Ideal Accents, Inc.                and                Subsidiaries (the “Company”) included herein have been prepared by 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 financial statements prepared                in                conjunction with accounting principles generally accepted in the                United                States of America have been condensed or omitted pursuant to such                rules                and regulations, although the Company believes that the disclosures                are                adequate to make the information presented not misleading. These                condensed                consolidated financial statements should be read in conjunction with                the                annual audited financial statements and the notes thereto, included                in the                Company’s Form 10K Annual Report, and other filings with the                SEC. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                accompanying unaudited interim consolidated financial statements                reflect                all adjustments of a normal and recurring nature which are, in the                opinion                of management, necessary to present fairly the financial position,                results                of operations and cash flows of the Company for the interim periods                presented. The results of operations for these periods are not necessarily                comparable to, or indicative of, results of any other interim period                of or                for the fiscal year taken as a whole. Factors that affect the                comparability of financial data from year to year and for comparable                interim periods include non-recurring expenses associated with the                Company’s registrations with the SEC and the seasonal fluctuations of the                business. Certain financial information that is not required for                interim                financial reporting purposes has been                omitted. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Note C -** | **Foreign Currency                Translation** |
|--------------|-------------------------------------------------|
|  | The                  Company’s foreign operations in Toronto, Ontario, Canada are measured                  using the local currency as the functional currency. Assets and                  liabilities are translated at exchange rates as of the balance                  sheet date.                  Revenues, expenses, and cash flows are translated at weighted average                  rates of exchange in effect during the year. The resulting cumulative                  translation adjustments have been recorded as a separate component                  of                  stockholder’s equity and comprehensive income. Realized gains and losses                  from foreign currency transactions are included in net income.                  Foreign                  currency cash flows are translated at the weighted average rate                  of                  exchange in effect during the period due to the minimal fluctuation                  in the                  currency exchange rates during the period. Management believes                  that                  substantially the same results would be derived if foreign cash                  flows were                  translated at the rates in effect at the time of the cash                  flows. |
|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Note                D -** | **Discontinued                Operations** |
|-----------------------------|--------------------------------------------|

|   | Due                to the bankruptcy of the Company (Note A), all operations are considered                discontinued. |
|--------|--------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
|  | Certain                expenses attributable to discontinued operations have been allocated                based                upon the period to which they are applicable. Earnings per share                with                respect to discontinued operations do not materially differ from                earnings                per share presented on net income. |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**IDEAL        ACCENTS, INC. AND SUBSIDIARIES**

**(A          FLORIDA CORPORATION)**

**Miami,          Florida**

| **NOTES                      TO CONSOLIDATED FINANCIAL                      STATEMENTS** |
|------------------------------------------------------------------------------------------|

| **Note E                      -** | **Pre-Petition                      Liabilities** |
|----------------------------------------|---------------------------------------------------|
|   | Pre-Petition** **Liabilities                    consisted of the                    following: |
|--------|-----------------------------------------------------------------------------------------------------|

|                                                                      |   |    |          |
|---------------------------------------------------------------------------|--------|--------------|---------------|
| March                31,                                                  |   | **2007**     |          |
|                                                                      |   |         |          |
| Accounts                Payable                                           |   | **$**        | **1,800,796** |   |
| Note                Payable - Charter Bank                                |   |         | **5,346**     |   |
| Capital                Lease Payable - GE Capital                         |   |         | **57,682**    |   |
| Capital                Lease Payable - Compaq Financial Services          |   |         | **33,611**    |   |
| Capital                Lease Payable - Hewlett-Packard Financial Services |   |         | **18,516**    |   |
| Accrued                Payroll                                            |   |         | **46,332**    |   |
| Due                to Related Party                                       |   |         | **1,132,386** |   |
| Accrued                Liabilities and Other Current Liabilities          |   |         | **9,960**     |   |
| Notes                Payable - Officers/Stockholders                      |   |         | **138,242**   |   |
|                                                                      |   |         |          |   |
| Total                Pre-Petition Liabilities                             |   | **$**        | **3,242,871** |   |

|   | During                  the period ended March 31, 2007 the Line of Credit was paid off                  in full by                  a related party and through  loan                  proceeds from                  Officers/Stockholders. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Note F                  -** | **Post                  Petition Financing** |
|------------------------------------|----------------------------------------------|
|   | On                  March 15, 2007 the Bankruptcy Court entered an order approving                  post-petition financing with the  Company                  and Tryant Ideal Accent, LLC (“Tryant”). Tryant has offered to lend to the                  Company’s estate the  sum                  of $75,000 as part of a series of transactions that will be implemented                  under a chapter 11 plan to be  filed                  by the trustee. At March 31, 2007 the Company had borrowed $3,993                  from                  Tryant. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |  |
|--------|--|
|   | The note payable is a convertible                promissory note due and payable on March 15, 2008 with interest                 calculated                at 6% annually. Repayment of the $75,000 will be by the issuance                of                1,000,000 unrestricted  shares                of newly issued common stock if the Plan of Reorganization is approved                by                the courts. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **ITEM 2.** | **Management's Discussion                And                Analysis Of Financial Condition And Results Of                Operations.** |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------|

**FORWARD-LOOKING      STATEMENTS**

**INTRODUCTION**

**EVENTS      LEADING TO CHAPTER 11 FILING**

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*ua      sponte*

**CLOSING      OF REMAINING OPERATIONS**

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**CHAPTER      11 PROGRESS**

**RISK      FACTORS**

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| **ITEM                3.** | **Controls                    and Procedures.** |
|----------------------------|-------------------------------------------------|

| **PART                  II. ** | **OTHER                      INFORMATION** |
|-------------------------------------|--------------------------------------------|

| **ITEM                  1.** | **Legal                          Proceedings** |
|------------------------------|------------------------------------------------|

**Brief      Explanation of Chapter 11**

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**Other      Legal Actions**

| **ITEM                    2.** | **Unregistered                              Sales Of Equity Securities And Use Of                              Proceeds** |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------|

| **ITEM                    3.** | **Defaults                              Upon Senior                              Securities** |
|--------------------------------|-----------------------------------------------------------------------------------------------|

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| **ITEM                    4.** | **Submission                              Of Matters To A Vote Of Security                              Holders** |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------|

| **ITEM                    5.** | **Other                              Information** |
|--------------------------------|----------------------------------------------------|

| **ITEM                    6.** | **Exhibits** |
|--------------------------------|--------------|

**SIGNATURE**