UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  Form 10-QSB/A   XQUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2005  ___ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____  DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. (Name of small business issuer in its charter)  Delaware0-5000252-2175896(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)15/F East Wing
Sincere Insurance Building
6 Hennessy Road, Wanchai
Hong Kong(Address of Principal Executive Office) Issuer's telephone number:  (239) 598-2300  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No....  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes...  No  X  Applicable only to issuers involved in bankruptcy proceedings during the past five years.  Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.  Yes...  No.....  Applicable only to corporate issuers  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date. At June 30, 2005, the following shares were outstanding: 22,200,000.  Transitional Small Business Disclosure Format (Check one):  Yes...     No X   - 1 -    EXPLANATORY NOTE  We are filing this Form 10-QSB/A for the period ended June 30, 2005, to reflect a change in our internal control and procedures.  Any items included in the original report on Form 10-QSB for the period ended June 30, 2005, that are not included herein, are not amended and remain in effect as of the date of the original filing thereof.  Additionally, this Form 10-QSB does not purport to provide a general update or discussion of any other developments subsequent to the original filing.  The filing of this Form 10-QSB/A shall not be deemed to be an admission that the original filing, when made, included any untrue statement of material fact or omitted to state a material fact necessary to make a statement contained therein not misleading.   PART 1 - FINANCIAL INFORMATION   ITEM 1.  FINANCIAL STATEMENTS AND EXHIBITS  (a) The restated unaudited financial statements of registrant for the six months ended June 30, 2005, follow.  The financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented.        - 2 -         DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.     RESTATED UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS    FOR THE SIX MONTHS ENDED JUNE 30, 2005              - 3 -          CONTENTS    PAGESConsolidated balance sheets5Consolidated statements of operations6Consolidated statements of cash flows8Notes to unaudited consolidated financial statements10           - 4 -


DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.CONSOLIDATED BALANCE SHEETS30-Jun-0531-Dec-04(Unaudited)Audited(restated)USDUSDASSETSCurrent assetsCash and cash equivalents$                 52,892$                  71,343Trade accounts receivable898,976151,400Stock subscription receivable0100,000Installation in progress350,0000Prepaid expenses and other assets36,022105,666Total current assets1,337,890428,409Plant and equipment, net32,28934,094Total assets$             1,370,179$               462,503LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current liabilitiesTrade accounts payable$               906,059$                236,292Accrued expenses5,38144,141Deposits54,95681,994Deferred revenue500,0000Current portion of long-term debt4,5734,573Total current liabilities1,470,969367,000Long-term debt, less current portion8233,109Stockholders' Equity (Deficit)Common stock - Par value $.001; authorized 200,000,000shares authorized, 11,100,000 sharesissued and outstanding11,10011,100Additional paid in capital2,282,1402,282,140Retained Deficit(2,395,491)(2,201,484)Accumulated other comprehensive income638638Total Stockholders' Equity (Deficit)(101,613)92,394Total Liabilities and Stockholders' Equity (Deficit)$            1,370,179$                462,503  See the accompanying notes to the unaudited consolidated financial statements


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS  Three months ended June 3020052004(Unaudited)(Unaudited)(Restated)USDUSDSales revenues$          427,278$         245,385Cost of goods sold408,276150,015Gross profit19,00295,370General and administrative expenses140,12459,802Operating profit (loss)(121,122)35,568Other income (expense)Interest expense(120)0Other income10,00617,142Total other income (expense)9,88617,142Income (loss) before income tax(111,236)52,710Provision for income taxes--Net income (loss) for the period$      (111,236)$            52,710Net income (loss) per common share$       (0.01002)$          0.00579Weighted average common shares outstanding11,100,0009,100,000    See the accompanying notes to the unaudited consolidated financial statements


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS  Six months ended June 3020052004(Unaudited)(Unaudited)(Restated)USDUSDSales revenues$   1,031,732$           567,793Cost of goods sold954,822452,703Gross profit76,910115,090General and administrative expenses285,404137,111Operating loss(208,494)(22,021)Other income (expense)Interest expense(241)(241)Other14,72818,783Total other income (expense)14,48718,542Loss before income tax(194,007)(3,479)Provision for income taxes--Net loss for the period$         (194,007)$             (3,479)Net loss per common share$ (0.01748)$  (0.00038)Weighted average common shares outstanding11,100,0009,100,000      See the accompanying notes to the unaudited consolidated financial statements


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS  Six months ended June 30,20052004(Unaudited)(Unaudited)(Restated)USDUSDOperating activities:Net loss$         (194,007)$           (3,479)Adjustments to reconcile net loss to net cashused in operating activities:Depreciation and amortization7,0046,845Stock subscription collected100,0000Changes in operating assets and liabilities:Trade accounts receivable(747,576)(42,379)Prepaid expenses and other assets69,64483,756Installation in progress(350,000)0Trade accounts payable669,767(74,392)Accrued expenses(38,760)3,600Deposits(27,038)2,258Deferred revenue500,0000Net cash used in operating activities(10,966)(23,791)Investing activities:Purchase of fixed assets(5,199)(23,224)Net cash used in investing activities(5,199)(23,224)Financing activities:Principal payments on long-term debt(2,286)(1,482)Payments on shareholders' loans0(7,166)Net cash used in financing activities(2,286)(8,648)Decrease in cash and cash equivalents(18,451)(55,663)Cash and cash equivalents, beginning of period71,34364,523Cash and cash equivalents, end of period$            52,892$              8,860


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Cash paid for interest$                 241$                 241Cash paid for income taxes$                     0$                     0                See the accompanying notes to the unaudited consolidated financial statements


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS   NATURE OF OPERATIONS  1. Digital Network Alliance International, Inc. (the Company) was incorporated on August 20, 1997 in the State of Delaware as Sheffield Products, Inc. On August 13, 2004 the Company acquired all of the outstanding stock of Digital Network Alliance Holdings (BVI) Inc., a British Virgin Islands Corporation (Digital BVI) in exchange for stock of the Company. On November 30, 2004 the Company changed its name to Digital Network Alliance International, Inc. The consolidated results of operations are primarily those of Digital BVI and its consolidated subsidiaries.  The principal activities of the consolidated company are that of provision of voice termination, satellite and broadband internet services throughout the Asia Pacific region, including Hong Kong, Singapore, Indonesia, Bangladesh, Pakistan and Mongolia.  2. BASIS OF PRESENTATION  The accompanying consolidated financial statements include those of the Company and its wholly owned subsidiaries; Digital BVI, Digital Network Alliance (S) Pte Ltd (Digital S), and Digital Network Alliance (HK) Limited (Digital HK). Digital BVI incorporated in British Virgin Islands on June 4, 2004, Digital S incorporated in the Republic of Singapore on October 19, 2001, and Digital HK incorporated in Hong Kong on November 12, 2001. The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and have been retroactively restated to give effect to the recapitalization due to a reverse merger consummated on August 13, 2004. This basis differs from that used in the statutory accounts of the Company, which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in Singapore and Hong Kong. All necessary intercompany transactions and balances have been eliminated in consolidation, and all necessary adjustments have been made to present the consolidated financial statements in accordance with US GAAP.  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Quarterly Financial Statements  The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-QSB but do not include all of the information and footnotes required by generally accepted accounting principles and should, therefore, be read in conjunction with the Companys 2004 financial statements in Form 10-KSB.  These statements do include all normal recurring adjustments which the Company believes necessary for a fair presentation of the statements.  The interim operating results are not necessarily indicative of the results for a full year.


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Economic and Political Risks  The Company faces a number of risks and challenges as a result of having primary operations and markets in the PRC. Changing political climates in the PRC could have a significant effect on the Companys business.  Cash and Cash Equivalents  For purposes of the statements of cash flows, cash and cash equivalents includes cash on hand and demand deposits held by banks. None of the Companys deposits are insured by the Federal Deposit Insurance Corporation or any other entity of the U.S. government.  Trade Accounts Receivable  Trade accounts receivable are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount becomes questionable. At June 30, 2005 the allowance for doubtful accounts totaled $2,834.  Prepaid Expenses  Prepaid expenses consist primarily of prepayments made to contractors for circuits and services not yet received by the Company.  Plant and Equipment  Property, plant and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are charged to expense as incurred.  Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income.  Depreciation related to property and equipment used in production is reported in cost of sales.  Property and equipment are depreciated over their estimated useful lives as follows:


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Computer equipment 2 years Office equipment 4 years Network equipment 3 years  Long-term assets of the Company are reviewed annually to assess whether the carrying value has become impaired, according to the guidelines established in Statement of Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. The Company also evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. No impairment of assets was recorded in the periods reported.  Deposits  The Company commonly receives payments of deposit in advance for circuits and voice termination services to be provided to customers. Those deposits are recognized into income in accordance with the Companys revenue recognition policy, as stated below. Revenue Recognition  Revenue from provision of voice termination, satellite and broadband Internet services is recognized as earned when customers are invoiced for monthly services they have received in accordance with the service contracts. At that time the Company considers the earnings process to be complete and collectibility to be reasonably assured.  Revenue from hardware sales is recognized when delivery has been made in accordance with contract terms, pricing is fixed or determined, and collectibility is reasonably assured. The Company had one such contract sale in March of 2005 in the amount of $212,200. This sale included a one-year warranty, which was to be covered by the hardware manufacturer. Consequently, no warranty reserve was made on the books of the Company.  The Company was engaged to perform a base station installation in Indonesia. The terms call for payment in advance and a one-year service contract following the completion of installation. In accordance with EITF 00-21, Accounting for Revenue Arrangements with Multiple Deliverables, the Company estimated that 5% of the contract amount will be attributable to the one year service agreement using the residual method. Revenue will be recognized for 95% of the $500,000 contract, or $475,000, upon completion of installation and the remaining $25,000 will be recognized ratably over the one-year term of the service contract. Accordingly, deferred revenue in the amount of $500,000 is included on the balance sheet at June 30, 2005. Advertising Expenses  Advertising costs will be expensed when and if incurred. The Company has incurred no advertising expenses to date.


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Retirement Benefits  The Company has a defined contribution benefit plan. The Companys contributions are discretionary. For the period ended June 30, 2005, the contribution made by Digital Network Alliance amounted to $3,251.  Foreign Currency and Comprehensive Income  The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Singapore dollar (S$) and Hong Kong dollar (HK$). The consolidated financial statements are translated into US dollars from S$ and HK$ at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.  Taxes  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Estimates  The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.


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DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)   Loss Per Share  Basic loss per common share ("LPS") is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares, assuming conversion of all potentially dilutive securities, such as stock options and warrants.  The Company had no potentially dilutive securities outstanding at June 30, 2005.   4. RESTATEMENT OF FINANCIAL STATEMENTS  Subsequent to the publication of the 2004 financial statements and the deferred revenue and installation for the first half year, management revised its estimates of certain asset and liability valuations which had a material impact on the 2004 results of operations of the Company, and consequently, the balance sheet as of December 31, 2004 and June 30, 2005. These financial statements have been restated to reflect those revised estimates, details of which can be found in the restated financial statements as filed in the revised Form 10-KSB of the Company. Consequent to these adjustments, total assets of the Company as of June 30, 2005 were increased by $347,166, total liabilities were increased by $500,000, paid in capital was increased by $2,002,066, and accumulated deficit was increased by $2,159,409.  Adjustments were made to the results of operations for the period ended June 30, 2005 to eliminate 2004 expenses previously reported in 2005.  5. SUBSEQUENT EVENT  On September 22, 2005 the Company effected a 1:2 reverse stock split. The Company had 22,200,000 shares of its common stock issued and outstanding prior to the split, and 11,100,000 directly afterward. These financial statements have been retroactively restated to show the effects of the reverse split as if it had occurred at beginning of the earliest period presented.


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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION  DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS  Certain statements in this report, including statements in the following discussion, which are not statements of historical fact, are what are known as forward-looking statements, which are basically statements about the future.  For that reason, these statements involve risk and uncertainty since no one can accurately predict the future.  Words such as plans, intends, hopes, seeks, anticipates, expects, and the like, often identify such forward-looking statements, but are not the only indication that a statement is a forward-looking statement.  Such forward-looking statements include statements concerning our plans and objectives with respect to the present and future operations of the Company, and statements which express or imply that such present and future operations will or may produce revenues, income or profits.  Numerous factors and future events could cause the Company to change such plans and objectives, or fail to successfully implement such plans or achieve such objectives, or cause such present and future operations to fail to produce revenues, income or profits.  We caution you not to place undue reliance on these forward-looking statements.  Although we base these forward-looking statements on our expectations, assumptions, and projections about future events, actual events and results may differ materially, and our expectations, assumptions, and projections may prove to be inaccurate. The forward-looking statements speak only as of the date hereof, and we expressly disclaim any obligation to publicly release the results of any revisions to these forward-looking statements to reflect events or circumstances after the date of this filing.  OVERVIEW  Our overall objective is to build a comprehensive telecommunications network which delivers cost-effective services to our customers within the Asia Pacific region, and beyond.  This is a long-term objective, involving many elements, and there is no assurance that it can be achieved.  Our ability to do so will be dependent upon a number of factors including, but not limited to, our ability to achieve and maintain strategic partnerships and alliances with various local partners and suppliers, our ability to achieve and maintain consistently profitable operations and the availability of necessary working capital.  Our plan of operations for 2005 includes maintenance of our existing operations, and to the extent possible, expansion and improvement of our existing operations as well as commencement of new operations.  The extent to which we will be able to expand and improve existing operations and commence new operations will be dependent to a large extent on the availability of working capital either from our pending stock offering, or from other sources.  Since there is no assurance that the offering will be successful, or that working capital will be available to us from other sources, there is also no assurance regarding the extent to which we will be able to expand our current operations or commence new operations.  The Company does not directly carry on any business activities.  All of our business operations are carried on through three operating subsidiaries.  The operating subsidiaries are Digital Network Alliance (S) Pte Ltd., a Singapore corporation (DNA Singapore), Digital Network Alliance (HK) Ltd., a Hong Kong corporation (DNA Hong Kong), and DNA Financial Systems (HK) Ltd., a Hong Kong corporation (DNA Financial).  DNA Financial provides real-time online financial data solutions in Hong Kong.  DNA Singapore and DNA Hong Kong perform


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identical business activities of providing satellite Internet connections to customers in the Asia Pacific Region, and providing managed broadband services to commercial office buildings and apartment buildings in Hong Kong and Singapore. DNA Singapore manages business activities in Singapore and Indonesia.  DNA Honk Kong conducts and manages the business activities in Honk Kong, Mongolia, Bangladesh and Pakistan.  The following discussion concerning the results of operations, liquidity and capital resources of Digital Network Alliance International, Inc. (the Company), is based solely upon the business operations that are carried on by the Companys operating subsidiaries for the six-month interim periods ended June 30, 2005 and 2004.  However, DNA Financial was incorporated in Hong Kong on April 1, 2005, and revenues received to date from its operations have not been significant. Therefore, the results of operations of DNA Financial are not included in the following discussion regarding our Results of Operations.   RESULTS OF OPERATIONS  SIX MONTHS ENDED JUNE 30, 2005 COMPARED WITH SIX MONTHS ENDED JUNE 30, 2004  Net sales for the three months ended June 30, 2005 were $1,031,732 as compared to $567,793 for the six months ended June 30, 2004.  The increase of $463,939, or approximately 82% was primarily attributable to the fact that we received substantial revenues in 2005 from new services which were not offered in 2004.  Our new services include voice termination services in Hong Kong, from which we received revenues of approximately $101,594 during the six months ended June 30, 2005.  We first began providing voice termination services during the fourth quarter of 2004, and we added a substantial number of new customers during the first and second quarters of 2005.  The other new service, from which substantial revenues of approximately $212,000 were generated during the first quarter of 2005, is new managed network services in Indonesia.  These managed network services include managed broadband services and network build out and system integration services which were provided to new customers in Jakarta, Indonesia.  There is also an increase in our satellite service in the amount of $150,344.  We had more customers in Pakistan during the six months of 2005.  Cost of goods sold for the six months ended June 30, 2005 was $954,822 compared to $452,703 for the same period of 2004.  The increase of $502,119 or 111% was the result of initial set up costs for the new voice termination business and initial set up costs for the managed network services in Indonesia, which included building base stations in Jakarta.  Gross profit decreased from $115,090 for the six months ended June 30, 2004 to $76,910 for the six months ended June 30, 2005.  The decrease in gross profit reflects the increased cost in the new managed broadband business in the Asia Pacific market.  Total operating expenses for the period ended June 30, 2005 totaled $285,404 compared to $137,111 for the same period ended 2004.  The increase of $148,293 or 108% was primarily attributable to: (i) Salary expenses, due to the additional hiring of staff and related expensed, increased by approximately $73,133; (ii) professional fees, incurred in the course of the reverse takeover, increased by approximately $57,834; (iii) traveling expenses, related to sales and business development in the region, increase by $17,326.


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Net loss before tax for the period ended June 30, 2005 was $(194,007) as compared to a net loss of $(3,479) for the period ended June 30, 2004.  The increased loss is primarily due to recurring operating expenses.  LIQUIDITY AND CAPITAL RESOURCES  For the period ended June 30, 2005, the Companys balance sheet reflects current assets of $1,337,890 and total current liabilities of $1,470,969 as compared to current assets of $428,409 and current liabilities of $367,000 as of December 31, 2004.  These changes reflect a slight decrease in our liquidity ratio from 1.17 as of December 31, 2004 to 0.91 as of June 30, 2005.  As a result of the deferred revenue and the installation in progress for one of our project during the first half of 2005, both our trade accounts receivable and our trade accounts payable increased substantially during the period.  Our trade accounts receivable increased from $151,400 as of December 31, 2004, to $898,976 as of June 30, 2005, an increase of $747,576, or approximately 494%, while our trade accounts payable increased from $236,292 as of December 31, 2004 to $906,059 as of June 30, 2005, an increase of $669,767, or approximately 283%.  We intend to rely on timely collection of our trade accounts receivable and on prepayment deposits and monthly service fees from our customers as our primary sources of cash. Our primary use of cash will be payment of our trade accounts payable and maintenance of our current operations.  However, to the extent our cash flow from operations is sufficient to do so, we intend to use it to continue to gradually expand our current operations.   ITEM 3. CONTROLS AND PROCEDURES  The Securities and Exchange Commission defines the term disclosure controls and procedures to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuers management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.  As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and principal accounting officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our chief executive officer and principal accounting officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to


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be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported with the time periods specified.  Our chief executive officer and principal accounting officer also concluded that our disclosure controls and procedures were effective as of June 30, 2005 to provide reasonable assurance of the achievement of these objectives.  There was no change in the Company's internal control over financial reporting during the quarter ended June 30, 2005, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.  After completing our evaluation, we received comments from the SEC staff in relation to our Registration Statement on Form SB-2.  After considering the staffs comments, our management concluded that we needed to restate certain of our financial statements to




 correct an error regarding revenue recognition.

  Such restatement is described in more detail in Note 4 to our Financial Statements included in our Quarterly Report on Form 10-QSB/A for the quarters ended March 31, 2005 and June 30, 2005.  Based on the foregoing, our principal executive officer and principal financial officer reviewed and reevaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded processed, summarized and reported within the time periods specified by the SEC.  Based on our re-evaluation of our disclosure controls and procedures, the Companys principal executive officer and principal financial officer have now concluded that a material weakness existed in the Companys internal control over financial reporting

 and that the controls and procedures were ineffective as of the end of the period ended June 30, 2005

.. The material weakness in internal control over financial reporting related to a lack of knowledge of United States GAAP procedures on the part of the Company.  The Company CFO plans to seek specific training in the areas of stock based compensation and contingency valuation in order to remedy this weakness.  . PART II - OTHER INFORMATION   ITEM 1. LEGAL PROCEEDINGS  None.   ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSUNREGISTERED SALES OF EQUITY SECURPROCEEDS  None.  ITEM 3. DEFAULTS UPON SENIOR SECURITIES  None.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS  None.


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ITEM 5. OTHER INFORMATION  None.  ITEM 6. EXHIBITS  The following exhibits are filed herewith:  3.1 Articles of Incorporation (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on September 12, 2002).  3.2 Bylaws (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on September 12,2002).  31.1 Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  31.2 Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  32.1 Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  32.2 Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


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SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   DIGITAL NETWORK ALLIANCE INTERNATIONAL, INC.   /s/ Terence Yap,



Director  Date: December 28, 2006  /s/ Eppie Wong, Chief Financial Officer and Director  Date: December 28, 2006   /s/ Edward Chan,

Chief Executive Officer,

Chief Operations Officer and Director  Date: December 28, 2006  /s/ Michael Yap, Director  Date: December 28, 2006   /s/ Leslie Ter Chiew Kim, Director  Date: December 28, 2006


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