**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**IDEAL      ACCENTS, INC.**

| **Florida**                                    | **65-0888146**                     |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |
|                                           |                               |

**50      Tiffield Rd., Unit 1, Scarborough, Ontario M1V 5B7**

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

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

| Class                                        | Outstanding                As of September 30, 2006                                                                                |
|----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
| Common                Stock $ .001 par value | 15,563,252                     |

----

**IDEAL      ACCENTS, INC. AND SUBSIDIARIES**

**(A      FLORIDA CORPORATION)**

**Miami,      Florida**

|                              |
|-----------------------------------|
| FINANCIAL                REPORTS  |
| AT                                |
| SEPTEMBER                30, 2006 |

----

**IDEAL      ACCENTS, INC. AND SUBSIDIARIES**

**(A        FLORIDA CORPORATION)**

**Miami,        Florida**

| **TABLE                OF CONTENTS**                                                                |   |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |
| Consolidated                  Balance Sheets at September 30, 2006 (Unaudited)                      |   |
| and                  December 31, 2005                                                              | 2      |
|                                                                                                |   |
| Consolidated                  Statements of Changes in Stockholders' Deficit for the                |   |
| Nine                  Months Ended September 30, 2006 and 2005 (Unaudited)                          | 3      |
|                                                                                                |   |
| Consolidated                  Statements of Operations and Comprehensive Loss                       |   |
| for                  the Nine Months Ended September 30, 2006 and 2005                  (Unaudited) | 4      |
|                                                                                                |   |
| Consolidated                  Statements of Cash Flows from Discontinued Operations                 |   |
| for                  the Nine Months Ended September 30, 2006 and 2005                  (Unaudited) | 5      |
|                                                                                                |   |
| Notes                  to Consolidated Financial Statements                                         | 6-8    |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES**                 |   |                             |           |                        |   |
|------------------------------------------------------------------------|--------|----------------------------------|----------------|-----------------------------|--------|
| **(A                FLORIDA CORPORATION)**                             |   |                             |           |                        |   |
| **Miami,                Florida**                                      |   |                             |           |                        |   |
|                                                                   |   |                             |           |                        |   |
| **CONSOLIDATED                BALANCE SHEETS**                         |   |                             |           |                        |   |
|                                                                   |   |                             |           |                        |   |
|                                                                   |   | **(Unaudited)**                  |           |                        |   |
|                                                                   |   | **September                30,** |           | December                31, |   |
|                                                                   |   | **2006**                         |           | 2005                        |   |
|                                                                   |   |                             |           |                        |   |
| **ASSETS**                                                             |   |                             |           |                        |   |
|                                                                   |   |                             |           |                        |   |
| **Current                Assets**                                      |   |                             |           |                        |   |
| Cash                and Cash Equivalents                               |   | **$**                            | **2,695**      |                        | $      | 6,168 |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **Total                Current Assets**                                |   |                             | **2,695**      |                        |   | 6,168 |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **Total                Assets**                                        |   | **$**                            | **2,695**      |                        | $      | 6,168 |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' DEFICIT**               |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **Current                Liabilities**                                 |   |                             |           |                        |   |   |   |
| Accounts                Payable                                        |   | **$**                            | **471,050**    |                        | $      | 474,572 |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **Total                Post-Petition Liabilities**                     |   |                             | **471,050**    |                        |   | 474,572 |   |
|                                                                   |   |                             |           |                        |   |   |   |
| Pre-Petition                Liabilities                                |   |                             | **3,242,871**  |                        |   | 3,242,871 |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **Total                Liabilities**                                   |   |                             | **3,713,921**  |                        |   | 3,717,443 |   |
|                                                                   |   |                             |           |                        |   |   |   |
|                                                                   |   |                             |           |                        |   |   |   |
| **Stockholders'                Deficit**                               |   |                             |           |                        |   |   |   |
| Common                Stock - $.001 Par; 50,000,000 Shares Authorized; |   |                             |           |                        |   |   |   |
| 15,563,252                Shares Issued and Outstanding                |   |                             | **15,563**     |                        |   | 15,563 |   |
| Additional                Paid-In Capital                              |   |                             | **1,390,144**  |                        |   | 1,390,144 |   |
| Deficit                                                                |   |                             | **(4,776,541** | **)**                       |   | (4,768,769 | ) |
| Accumulated                Comprehensive Loss                          |   |                             | **(340,392**   | **)**                       |   | (348,213 | ) |
|                                                                   |   |                             |           |                        |   |   |   |
| **Total                Stockholders' Deficit**                         |   |                             | **(3,711,226** | **)**                       |   | (3,711,275 | ) |
|                                                                   |   |                             |           |                        |   |   |   |
| **Total                Liabilities and Stockholders' Deficit**         |   | **$**                            | **2,695**      |                        | $      | 6,168 |   |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES**                                                    |   |   |           |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|--------|
| **(A                FLORIDA CORPORATION)**                                                                |   |   |           |   |   |
| **Miami,                Florida**                                                                         |   |   |           |   |   |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT                (UNAUDITED)** |   |   |           |   |   |
|                                                                                                      |   |   |           |   |   |   |   |    |   |   |   |   |   |
|                                                                                                      |   |   |           |   |   |   |   |    |   |   |   |   |   |
|                                                                                                      |   | Number |           |   |   | Additional |   |    |   | Accumulated |   | Total |   |
|                                                                                                      |   | of     |           | Common |   | Paid-In |   |    |   | Comprehensive |   | Stockholders’ |   |
|                                                                                                      |   | Shares |           | Stock  |   | Capital |   | Deficit |   | Loss |   | Deficit |   |
|                                                                                                      |   |   |           |   |   |   |   |    |   |   |   |   |   |
| **Balance                - January 1, 2005**                                                              |   |   | **15,563,252** |   | **$**  | **15,563** |   | **$** | **1,390,144** |   | **$** | **(4,919,953** | **)** | **$** | **(269,386** | **)** | **$** | **(3,783,632** | **)** |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the Period Ended                                                              |   |   | —        |   |   | — |   |   | — |   |   | (154,520 | ) |   | — |   |   | (154,520 | ) |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income for the Period Ended                                                  |   |   | —        |   |   | — |   |   | — |   |   | — |   |   | (70,357 | ) |   | (70,357 | ) |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                - September 30, 2005**                                                           |   |   | **15,563,252** |   |   | **15,563** |   |   | **1,390,144** |   |   | **(5,074,473** | **)** |   | **(339,743** | **)** |   | **(4,008,509** | **)** |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income for the Period Ended                                                            |   |   | —        |   |   | — |   |   | — |   |   | 305,704 |   |   | — |   |   | 305,704 |   |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                Loss for the Period Ended                                                    |   |   | —        |   |   | — |   |   | — |   |   | — |   |   | (8,470 | ) |   | (8,470 | ) |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                - December 31, 2005**                                                            |   |   | **15,563,252** |   |   | **15,563** |   |   | **1,390,144** |   |   | **(4,768,769** | **)** |   | **(348,213** | **)** |   | **(3,711,275** | **)** |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the Period Ended                                                              |   |   | —        |   |   | — |   |   | — |   |   | (7,772 | ) |   | — |   |   | (7,772 | ) |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income for the Period Ended                                                  |   |   | —        |   |   | — |   |   | — |   |   | — |   |   | 7,821 |   |   | 7,821 |   |
|                                                                                                      |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                - September 30, 2006**                                                           |   |   | **15,563,252** |   | **$**  | **15,563** |   | **$** | **1,390,144** |   | **$** | **(4,776,541** | **)** | **$** | **(340,392** | **)** | **$** | **(3,711,226** | **)** |

----

| **IDEAL                ACCENTS INC. AND SUBSIDIARIES**                                                     |   |                              |           |                             |   |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------------|----------------------------------|--------|
| **(A                FLORIDA CORPORATION)**                                                                 |   |                              |           |                             |   |
| **Miami,                Florida**                                                                          |   |                              |           |                             |   |
|                                                                                                       |   |                              |           |                             |   |
|                                                                                                       |   |                              |           |                             |   |
| **CONSOLIDATED                STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS                (UNAUDITED)** |   |
|                                                                                                       |   |                              |           |                             |   |   |   |    |   |
|                                                                                                       |   | Three                Months Ended |           | Nine                Months Ended |   |
|                                                                                                       |   | September                30,      |           | September                30,     |   |
|                                                                                                       |   |                              |           |                             |   |   |   |    |   |
|                                                                                                       |   | **2006**                          |           | 2005                             |   | **2006** |   |  2005 |   |
| **Discontinued                Operations:**                                                                |   |                              |           |                             |   |   |   |    |   |
| **Sales**                                                                                                  |   | **$**                             | —        |                             | $      | 1,191 |   | **$** | — |   | $ | 137,291 |   |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Cost                of Goods Sold**                                                                      |   |                              | —        |                             |   | 1,270 |   |   | — |   |   | 146,300 |   |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Gross                Profit**                                                                            |   |                              | —        |                             |   | (79 | ) |   | — |   |   | (9,009 | ) |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Operating                Expenses**                                                                      |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| Advertising                and Promotion                                                                   |   |                              | —        |                             |   | 15 |   |   | — |   |   | 1,680 |   |
| Selling,                General and Administrative                                                         |   |                              | **392**        |                             |   | 13,844 |   |   | **2,879** |   |   | 84,961 |   |
| Depreciation                and Amortization                                                               |   |                              | —        |                             |   | 1,558 |   |   | — |   |   | 4,593 |   |
| Interest                                                                                                   |   |                              | **1,428**      |                             |   | 1,965 |   |   | **4,893** |   |   | 8,271 |   |
| Asset                Impairment Writedown                                                                  |   |                              | —        |                             |   | 44,697 |   |   | — |   |   | 44,697 |   |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Total                Operating Expenses**                                                                |   |                              | **1,820**      |                             |   | 62,079 |   |   | **7,772** |   |   | 144,202 |   |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Loss                From Discontinued Operations****Before                Provision for Taxes**          |   |                              | **(1,820**     | **)**                            |   | (62,158 | ) |   | **(7,772** | **)** |   | (153,211 | ) |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| Provision                for Taxes                                                                         |   |                              | —        |                             |   | 11 |   |   | — |   |   | 1,309 |   |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Net                Loss**                                                                                |   | **$**                             | **(1,820**     | **)**                            | $      | (62,169 | ) | **$** | **(7,772** | **)** | $ | (154,520 | ) |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Comprehensive                Income (Loss)**                                                             |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| Foreign                Currency Translation                                                                |   |                              | **1,753**      |                             |   | (107,376 | ) |   | **7,821** |   |   | (70,357 | ) |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Comprehensive                Income (Loss)**                                                             |   | **$**                             | **(67**        | **)**                            | $      | (169,545 | ) | **$** | **49** |   | $ | (224,877 | ) |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Income                (Loss) Per Common Share -**                                                        |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Basic**                                                                                                  |   | **$**                             | **(0.00**      | **)**                            | $      | (0.00 | ) | **$** | **(0.00** | **)** | $ | (0.01 | ) |
| **Diluted**                                                                                                |   | **$**                             | **(0.00**      | **)**                            | $      | (0.00 | ) | **$** | **(0.00** | **)** | $ | (0.01 | ) |
|                                                                                                       |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Weighted                Average Number of**                                                              |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Common                Shares Outstanding -**                                                             |   |                              |           |                             |   |   |   |   |   |   |   |   |   |
| **Basic**                                                                                                  |   |                              | **15,563,252** |                             |   | 15,563,252 |   |   | **15,563,252** |   |   | 15,563,252 |   |
| **Diluted**                                                                                                |   |                              | **15,563,252** |                             |   | 15,563,252 |   |   | **15,563,252** |   |   | 15,563,252 |   |

----

| **IDEAL                  ACCENTS INC. AND SUBSIDIARIES**                                           |   |      |        |   |   |
|----------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------|
| **(A                  FLORIDA CORPORATION)**                                                       |   |      |        |   |   |
| **Miami,                  Florida**                                                                |   |      |        |   |   |
|                                                                                               |   |      |        |   |   |
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS (UNAUDITED)**                             |   |      |        |   |   |
|                                                                                               |   | Unaudited |        |
| Nine                  Months Ended September 30,                                                   |   | **2006**  |        | 2005   |   |
|                                                                                               |   |      |        |   |   |
| **Cash                  Flows from Operating Activities**                                          |   |      |        |   |   |
| Net                  Loss                                                                          |   | **$**     | **(7,772**  | **)**  | $      | (154,520 | ) |
|                                                                                               |   |      |        |   |   |   |   |
| **Non-Cash                  Adjustments:**                                                         |   |      |        |   |   |   |   |
| Asset                  Impairment Writedown                                                        |   |      | **—** |   |   | 13,541 |   |
| Bad                  Debt Expense                                                                  |   |      | **—** |   |   | 11,974 |   |
| Depreciation                  and Amortization                                                     |   |      | **—** |   |   | 4,593 |   |
| Inventory                  Impairment Writedown                                                    |   |      | **—** |   |   | 31,156 |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Changes                  in Assets and Liabilities**                                             |   |      |        |   |   |   |   |
| Accounts                  Receivable                                                               |   |      | **—** |   |   | 38,536 |   |
| Inventory                                                                                          |   |      | **—** |   |   | (3,728 | ) |
| Prepaid                  Expenses and Other Current Assets                                         |   |      | **—** |   |   | (227 | ) |
| Other                  Assets                                                                      |   |      | **—** |   |   | (96 | ) |
| Accounts                  Payable                                                                  |   |      | **(3,522**  | **)**  |   | 48,767 |   |
| Accrued                  Payroll                                                                   |   |      | **—** |   |   | 5,475 |   |
| Accrued                  Liabilities and Other Current Liabilities                                 |   |      | **—** |   |   | (40,525 | ) |
|                                                                                               |   |      |        |   |   |   |   |
| **Net                  Cash Flows from Operating Activities**                                      |   |      | **(11,294** | **)**  |   | (45,054 | ) |
|                                                                                               |   |      |        |   |   |   |   |
| **Net                  Cash Flows from Investing Activities**                                      |   |      | **—** |   |   | — |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Cash                  Flows from Financing Activities**                                          |   |      |        |   |   |   |   |
| Repayment                  of Lines of Credit                                                      |   |      | **—** |   |   | (34,739 | ) |
| Net                  Repayment of Notes Payable - Officers/Stockholders                            |   |      | **—** |   |   | (17,811 | ) |
| Proceeds                  from Related Parties                                                     |   |      | **—** |   |   | 168,606 |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Net                  Cash Flows from Financing Activities**                                      |   |      | **—** |   |   | 116,056 |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Effect                  of Exchange Rate Changes on Cash and Cash                  Equivalents** |   |      | **7,821**   |   |   | (70,357 | ) |
|                                                                                               |   |      |        |   |   |   |   |
| Net                  Change in Cash and Cash Equivalents                                           |   |      | **(3,473**  | **)**  |   | 645 |   |
|                                                                                               |   |      |        |   |   |   |   |
| Cash                  and Cash Equivalents - Beginning of Period                                   |   |      | **6,168**   |   |   | — |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Cash                  and Cash Equivalents - End of Period**                                     |   | **$**     | **2,695**   |   | $      | 645 |   |
|                                                                                               |   |      |        |   |   |   |   |
|                                                                                               |   |      |        |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURE OF CASH PAID FOR INTEREST AND TAXES**                     |   |      |        |   |   |   |   |
|                                                                                               |   |      |        |   |   |   |   |
| **Interest**                                                                                       |   | **$**     | **4,893**   |   | $      | 8,271 |   |
| **Taxes**                                                                                          |   | **$**     | **—** |   | $      | 1,309 |   |

----

**IDEAL      ACCENTS, INC. AND SUBSIDIARIES**

**(A      FLORIDA CORPORATION)**

**Miami,      Florida**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

----

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

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.

----

**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. Foreign currency                transaction gains and losses are included in comprehensive 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**

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| **Note              E -** | **Subsequent              Events** |
|---------------------------|------------------------------------|
|   | On                October 6, 2006, the Company and its affiliated debtors-in-possession                filed a Chapter 11 Plan of Reorganization, related Disclosure Statement                and a Motion For An Order Pursuant To 11 U.S.C. §§ 105, 361 And 364 And                Federal Rule Of Bankruptcy Procedure 4001 Authorizing Debtor To Obtain                And                Incur Post-Petition Financing (the “Financing Motion”) with the United                States Bankruptcy Court for the Southern District of New York (the                “Court”), specifically Case No. 04-16632. A copy of the Disclosure                Statement is attached hereto as Exhibit                99.1. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

|   | Bankruptcy                law does not permit solicitation of acceptance of the Plan until                the Court                approves the applicable Disclosure Statement related to the Plan                as                providing adequate information of a kind, and in sufficient detail,                as far                as reasonably practical in light of the nature and history of the                debtor                and the condition of the debtor’s books and records, that would enable a                hypothetical reasonable investor typical of the holder of claims                or                interests of the relevant class to make an informed judgment about                the                Plan. Accordingly, this announcement is not intended to be, nor should                it                be construed as, a solicitation for a vote on the Plan. The Company                will                emerge from Chapter 11 if and when the Plan receives the requisite                stakeholder approval and is confirmed by the                Court. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

|   | On                October 10, 2006, the Court entered an order scheduling a hearing                to be                held on November 9, 2006 at 10:00 a.m. before the Hon. Allan L. Gropper                to                consider approval of the Disclosure Statement. A hearing will also                be held                at that time to consider approval of the Financing                Motion. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**MANAGEMENT'S      DISCUSSION AND ANALYSIS OF **

**FINANCIAL      CONDITION AND RESULTS OF OPERATION**

**FOR      THE THREE AND NINE MONTHS ENDED**

**SEPTEMBER      30, 2006 AND 2005**

**Forward-Looking      Statements.**
** **

**Introduction**

**Events      Leading to Chapter 11 Filing**
** **

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**Closing      of Remaining Operations**

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**Chapter      11 Progress.**

**Recent      Accounting Pronouncements.**

**Plan      of Operations for Next 12 Months.**

**Risk      Factors**

**Re-Organization      Plan may not be Approved**
**.**

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**PART      II: OTHER INFORMATION**

**ITEM      1:**
**LEGAL      PROCEEDINGS:**

**Brief      Explanation of Chapter 11**

**Other      Legal Actions**

**ITEM      2:**
**CHANGES      IN SECURITIES:**

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**ITEM      3:**
**DEFAULTS      UPON SENIOR SECURITIES:**

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

**ITEM      5:**
**OTHER      INFORMATION:**

**ITEM      6:**
**EXHIBITS      & REPORTS:**

| Exhibit |                                                                                                           |
|---------|----------------------------------------------------------------------------------------------------------------|
| Number  | Description                                                                                                    |
|    |                                                                                                           |
| 31      | Certificate                of CEO/CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
| 32      | Certificate                Pursuant to Section 906 of the Sarbanes-Oxley Act of                2002            |

**SIGNATURE**

|                                               |                                                                              |                             |
|----------------------------------------------------|-----------------------------------------------------------------------------------|----------------------------------|
| Dated:              November              20, 2006 | By:                                                                     | /s/                Karim Suleman |
|                                               | Karim                Suleman, Chairman, President,                                |
|                                               | Chief                Executive Officer and Chief Financial                Officer |

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