U. S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB


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

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006


             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE
                             SECURITIES ACT OF 1934


                        COMMISSION FILE NUMBER 000-50893

                           LAKESIDE MORTGAGE FUND, LLC
                 (Name of Small Business Issuer in its Charter)


                    CALIFORNIA                          52-2387294
         (State or other jurisdiction of             (I.R.S. Employer
          Incorporation or organization)            Identification No.)


            443 REDCLIFF DRIVE, SUITE 240, REDDING, CALIFORNIA, 96002
                     (Address of Principal Executive Office)

                                 (530) 226-5850
                           (Issuer's Telephone Number)



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the 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 shall company (as defined in
Rule 12b-2 of the Exchange Act. Yes [ ] No [X]


Transitional Small Business Disclosure Format (Check One): Yes [X] No [ ]



                                       1
<PAGE>

                                TABLE OF CONTENTS



Part I - Financial Information

         Item 1  Financial Statements and Notes                                3

         Item 2  Management's Discussion and Analysis or Plan of Operation    20

         Item 3  Controls and Procedures                                      21


Part II - Other Information

         Item 1  Legal Proceedings                                            25

         Item 2  Unregistered Sales of Equity Securities and Use of Proceeds  25

         Item 3  Defaults Upon Senior Securities                              26

         Item 4  Submission of Matters to a Vote of Security Holders          26

         Item 5  Other Information                                            26

         Item 6  Exhibits                                                     26

         Signatures                                                           27




                                       2
<PAGE>

PART I

                           FORWARD-LOOKING STATEMENTS

This Form 10-QSB contains "forward-looking statements" relating to Lakeside
Mortgage Fund, LLC (the "Fund" or the "Company"), which represent the Fund's
current expectations or beliefs including, but not limited to, statements
concerning the Fund's operations, performance, financial condition and growth.
For this purpose, any statements contained in this Form 10-QSB that are not
statements of historical fact are forward-looking statements. Without limiting
the generality of the foregoing, words such as "may", "anticipation", "intend",
"could", "estimate", or "continue" or the negative or other comparable
terminology are intended to identify forward-looking statements. These
statements by their nature involve substantial risks and uncertainties, such as
credit losses, dependence on management and key personnel, variability of
quarterly results, and the ability of the Fund to continue its growth strategy
and competition, certain of which are beyond the Fund's control. Should one or
more of these risks or uncertainties materialize or should the underlying
assumptions prove incorrect, actual outcomes and results could differ materially
from those indicated in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which such statement
is made, and the Fund undertakes no obligation to update any forward-looking
statement or statements to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time and it is not possible for
management to predict all of such factors, nor can it assess the impact of each
such factor on the business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking statements.



                                       3
<PAGE>

ITEM 1. FINANCIAL STATEMENTS AND NOTES

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)

                           BALANCE SHEETS (UNAUDITED)
                      MARCH 31, 2006 AND DECEMBER 31, 2005

<TABLE>
<CAPTION>
                                                                              MARCH 31,  DECEMBER 31,
                                                                                2006         2005
                                     ASSETS
<S>                                                                        <C>           <C>
        Cash and cash equivalents                                          $   902,209   $ 1,338,972

        Loan interest reserve (restricted)                                     251,273       283,240

        Accrued interest receivable and other assets                            25,573        19,069
        Loans secured by trust deeds - related parties (Notes 3 and 4)         901,390       901,390
        Loans secured by trust deeds - others, net of allowance for loan
        losses  amounting to $ 81,000 and $ 59,000  (Notes 3 and 5)         11,419,497     8,671,424
                                                                           -----------   -----------


TOTAL ASSETS                                                               $13,499,942   $11,214,095
                                                                           -----------   -----------


                         LIABILITIES AND MEMBERS' EQUITY


        Accounts payable and accrued liabilities                           $    46,392   $    30,953
        Uninvested subscriptions                                               399,380       740,944

        Deferred interest receivable                                           251,273       283,240
                                                                           -----------   -----------


        TOTAL LIABILITIES                                                      697,045     1,055,137
                                                                           -----------   -----------


        Members' contributions, net                                         12,759,567    10,102,409

        Retained earnings                                                       43,330        56,549
                                                                           -----------   -----------

        TOTAL MEMBERS' EQUITY (NOTE 4)                                      12,802,897    10,158,958
                                                                           -----------   -----------


TOTAL LIABILITIES AND MEMBERS' EQUITY                                      $13,499,942   $11,214,095
                                                                           -----------   -----------
</TABLE>


See accompanying notes



                                       4
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)

                      STATEMENTS OF OPERATIONS (UNAUDITED)
                        FOR THE QUARTERS ENDED MARCH 31,

<TABLE>
<CAPTION>
                                                           2006                      2005
                                               ------------------        ------------------
<S>                                                      <C>                       <C>
REVENUES

     Interest income                                     $310,636                  $155,635
                                               ------------------        ------------------


     Total revenues                                       310,636                   155,635
                                               ------------------        ------------------


OPERATING EXPENSES
     Professional fees - accounting and
     taxes                                                 11,200                     6,283

     Advertising                                              750                     1,000

     Provision for loan losses                             22,000                     8,600

     Management fees (Note 4)                              14,393                     8,996
     Permits fees and licenses                                750                     3,248

     Printing                                                 600                     1,549
     Legal                                                  2,250                     1,327

     Trailer commissions                                   13,000                     3,000

     Conference and seminars                                1,500                        --
     Other operating expenses                               4,100                        --

     Taxes                                                    450                     1,850
                                               ------------------        ------------------


     Total operating expenses                              70,993                    35,853
                                               ------------------        ------------------

NET INCOME                                               $239,643                  $119,782
                                               ==================        ==================
</TABLE>




                                       5
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)

                    STATEMENTS OF MEMBERS' EQUITY (UNAUDITED)
                  FOR THE QUARTERS ENDED MARCH 31, 2006 & 2005

<TABLE>
<CAPTION>
                                                               MEMBERS'          RETAINED
                                                            CONTRIBUTIONS        EARNINGS             TOTAL
<S>                                                         <C>                <C>                <C>
BALANCE, DECEMBER 31, 2005                                  $ 10,102,408       $     56,549       $ 10,158,957

          Member contributions                                 2,638,158                             2,638,158

          Costs incurred in raising capital                     (116,325)                             (116,325)
          Reinvestment of members' share of net income           150,260                               150,260
          Withdrawals by members                                 (14,934)                              (14,934)

          Net income                                                                239,643            239,643

          Cash distributions                                                       (252,862)          (252,862)
                                                            --------------------------------------------------


BALANCE, MARCH 31, 2006                                     $ 12,759,567       $     43,330       $ 12,802,897
                                                            ============       ============       ============


BALANCE, DECEMBER 31, 2004                                  $  5,267,710       $     19,759       $  5,287,469


          Member contributions                                 1,013,147                             1,013,147

          Costs incurred in raising capital                      (42,863)                              (42,863)

          Reinvestment of members' share of net income            80,822                                80,822
          Net income                                                                119,782            119,782

          Cash distributions                                                       (111,611)          (111,611)
                                                            --------------------------------------------------

BALANCE, MARCH 31, 2005                                     $  6,318,816       $     27,930       $  6,346,746
                                                            ============       ============       ============
</TABLE>


see accompanying notes



                                       6
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                            STATEMENTS OF CASH FLOWS
                        FOR THE QUARTERS ENDED MARCH 31,

<TABLE>
<CAPTION>
                                                          2006                      2005
                                              -------------------        -------------------
<S>                                                   <C>                       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

     Net income                                       $   239,643               $   119,782

     Provision for loan losses                             22,000                     7,100

     Accrued interest receivable                          (,6504)                     5,336

     Loan interest reserves (restricted)                   31,966                   (81,326)
     Accounts payable and other
     liabilities                                           15,438                     5,771

     Deferred interest receivable                         (31,966)                   81,326
                                              -------------------        -------------------

     Sub total                                            270,578                   137,988
                                              -------------------        -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Origination of secured loans -
     related parties                                           --                        --
     Origination of secured loans - non
     related parties                                   (3,209,072)               (2,178,635)

     Repayment of principal                               439,000                   950,200
                                              -------------------        -------------------

     Sub total                                         (2,770,072)               (1,228,435)
                                              -------------------        -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:

     Uninvested subscriptions                            (341,564)                   53,467

     Member contributions                               2,788,418                 1,093,969

     Costs incurred in raising capital                   (116,325)                  (42,863)

     Withdrawals by members                               (14,934)                       --

     Cash distributions                                  (252,862)                 (111,611)
                                              -------------------        -------------------

     Sub total                                          2,062,732                   992,962
                                              -------------------        -------------------

NET CHANGE IN CASH DURING THE PERIOD                     (436,762)                  (97,484)

CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD                                                  1,338,971                   514,164
                                              -------------------        -------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD              $   902,209               $   416,679
                                              ===================        ===================
</TABLE>




                                       7
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Lakeside Mortgage Fund, LLC (the "Fund"), a California limited liability company
was formed on December 4, 2002 under the California Beverly-Killea Limited
Liability Company Act (the "Act") to conduct any lawful business for which a
limited liability company may be organized under the Act, including investment
of the Fund's cash and making or investing in notes, mortgages and loans to
members of the general public secured by deeds of trust on real estate
properties located primarily in the State of California.

The accompanying unaudited condensed financial statements of the Fund have been
prepared in accordance with accounting principles generally accepted in the
United States of America ("U.S. GAAP") for interim financial information and
pursuant to the instructions to Form 10-QSB and Article 10 of Regulation S-X of
the Securities and Exchange Commission ("SEC"). Accordingly, these statements do
not include all of the information and footnotes required by U.S. GAAP for
complete financial statements. In the opinion of the Fund's Manager, these
unaudited condensed financial statements reflect all adjustments (consisting of
normal recurring adjustments) necessary to present fairly the financial position
of the Fund at March 31, 2006 and 2005, the results of operations for the three
months ended March 31, 2006 and 2005 and cash flows for the three months ended
March 31, 2006 and 2005. Results of operations for the three months ended March
31, 2006 are not necessarily indicative of results of operations expected for
the full fiscal year ending December 31, 2006. Please refer to the Fund's 2005
Annual Report on Form 10-KSB for the complete financial statements for the
period ended December 31, 2005.

The Fund will continue to operate indefinitely until dissolved and terminated by
vote of Members holding a majority of the outstanding membership interests, with
the concurrence of the Fund Manager.

The Fund began operations on September 26, 2003. Fiscal year 2003 was the first
year during which the Fund is considered an operating company. Prior to
September 26, 2003, the Company had been in the development stage. The fiscal
year of the Fund ends on December 31.

The Fund's operation plan is to continue to seek investors and use those
proceeds to fund suitable loans consistent with the Fund's lending criteria.
Management believes qualified investors will continue to invest in the Fund so
that the Fund will continue to raise capital from such investors, and invest
such capital in commercial mortgage loans.

The Manager of the Fund is Lakeside Financial Group, Inc. ("Lakeside"), a
California corporation formed for the purpose of managing the Fund. Lakeside was
incorporated in August 2002 and began doing business in November 2002. Lakeside
is not a Member of the Fund, and is owned by shareholders who are not members of
the Fund.

                                       8
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

The profit or loss of the Fund is allocated to the Members in proportion to
their respective Percentage Interest. The Manager is required to allocate to the
Members all profits and losses realized by the Fund during the month as of the
close of business on the last day of each calendar month, in accordance with
their respective Percentage Interests and in proportion to the number of days
during the calendar month that they owned the interests.

Cash available for distribution will be the net income during the calendar month
using the accrual method of accounting and in accordance with US GAAP. Monthly,
the Fund will provide statements of account to Members and distribute or
reinvest amounts equal to the Members' proportionate share of the Fund's net
income during such month. NET INCOME MEANS THE EXCESS OF ACCRUED INCOME FROM
OPERATIONS AND INVESTMENT OF, OR SALE OR REFINANCING OR OTHER DISPOSITION OF,
FUND ASSETS DURING SUCH CALENDAR MONTH OVER THE ACCRUED OPERATING EXPENSES OF
THE FUND DURING SUCH MONTH, INCLUDING ANY ADJUSTMENTS FOR ALLOWANCE FOR LOAN
LOSSES, ACCRUED FUND'S OPERATING EXPENSES OR OTHER RESERVES FOR EXPENSES AND
LOSSES AS THE MANAGER MAY DEEM APPROPRIATE OR FOR WHICH THE MANAGER BELIEVES IT
TO BE IN THE BEST INTERESTS OF THE FUND, ALL DETERMINED IN ACCORDANCE WITH US
GAAP. The Manager is required to distribute funds only to the extent that funds
are available.

Fund Members are allowed to withdraw from the Fund and receive a return of the
amount in their capital accounts only after 12 months from the date of admission
into the Fund ("Holding Period"). Members must give a 60-day written notice
prior to withdrawing and payments to any withdrawing member are limited to $
25,000 per quarter. After the Holding Period, Members may withdraw and receive a
return of their capital accounts subject to the availability of cash in the
Fund, and subject to the following penalties for early withdrawal pursuant to
the terms of the Operating Agreement: (i) 3% of withdrawal amount within the
first year following the Holding Period; (ii) 2% of withdrawal amount within the
second year following the Holding Period; and (iii) 1% of withdrawal amount
within the third year following the Holding Period. Aggregate withdrawals among
all Members may not exceed 10% of the Fund's total capital for any calendar
year. The Fund does not maintain a reserve for withdrawing members. The Fund's
capacity to return a withdrawing member's capital account is limited by the
availability of cash on hand after payment of expenses and provision for
maintaining adequate reserves, in the discretion of the Manager.

The Manager is entitled to receive certain fees, compensation and expense
reimbursements from the Fund. The Manager is entitled to receive from the Fund
an Asset Management Fee, payable monthly, in a maximum amount of 2.75% of the
gross assets under management per year (0.229% per month). The Manager is also
entitled to receive a Loan Servicing Fee, payable monthly, in a maximum amount
of 0.25% of the total unpaid principal balances of loans serviced (0.02% per
month). The Manager may waive these fees in order to improve the return to
investor Members. The Manager is also entitled to receive reimbursement from the
Fund for organizational, syndication and other operating expenses incurred on
behalf of the Fund, including out-of-pocket general and administrative expenses
of the Fund related to the offering of membership interests, accounting and
audit fees, legal fees and expenses, postage and other expenses related to the
preparation of reports to Members.

                                       9
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

The Manager receives other fees from third parties as compensation to the
Manager for acting as broker in arranging loans from the Fund. These fees (which
are not paid by the Fund, but rather by third party borrowers) are determined on
a case-by-case basis, are generally 3% to 5% of the loan amount, and generally
consist of brokerage, origination, renewal and/or processing fees.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(A)      BASIS OF ACCOUNTING
         The financial statements of the organization have been prepared on the
         accrual basis of accounting and accordingly reflect all significant
         receivables, payables and other liabilities.

(B)      ESTIMATES AND ASSUMPTIONS
         The preparation of financial statements in conformity with US GAAP
         requires management to make estimates and assumptions that affect the
         reported amounts of assets and liabilities and disclosure of contingent
         assets and liabilities at the date of the financial statements and the
         reported amounts of revenues and expenses during the reporting period.
         Actual results could differ from those estimates.

(C)      REVENUE RECOGNITION
         Interest is recognized as revenue when earned according to the
         contractual terms of the loan and in accordance with US GAAP.

(D)      INCOME TAXES
         The Fund is treated as a partnership for federal and California income
         tax purposes. Consequently, all tax effects of the Fund's income or
         loss are passed through to the Members individually, and no federal or
         California income taxes are provided for in the financial statements of
         the Fund. The Fund pays an annual California tax of $800 and an annual
         California LLC fee based upon its annual gross receipts.

(E)      CASH AND CASH EQUIVALENTS
         For purposes of the statements of cash flows, cash and cash equivalents
         include interest-bearing and non interest-bearing bank deposits, money
         market accounts and commercial paper with original maturities of three
         months or less.

                                       10
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

(F)      LOANS SECURED BY TRUST DEEDS
         Loans secured by trust deeds are recorded at cost. To date, no loans
         had been purchased from outside third party issuers of loans. Interest
         is recognized as revenue when earned according to the contractual terms
         of the loan. The Fund loans will have varying terms at the discretion
         of the Manager. Construction loans will generally have a term of
         between one and five years and will provide for monthly payments of
         interest only with a "balloon payment" at the end of the term. Other
         Fund loans may have a longer amortization schedule and may be fully
         amortizing, i.e. original principal amount of the loan will be repaid
         in equal monthly installments of principal and interest over the term.
         In such cases, the Fund will recognize income using the effective
         interest method of accounting in accordance with US GAAP. The Fund will
         not recognize interest income on loans once they are determined to be
         impaired until the interest is collected in cash. A loan is impaired
         when, based on current information and events, it is probable that the
         Fund will be unable to collect all amounts due according to the
         contractual terms of the loan agreement. Cash receipts will be
         allocated to interest income, except when such payments are
         specifically designated as principal reduction or when management does
         not believe the Fund's investment in the loan is fully recoverable.

         As of March 31, 2006, no outstanding principal loan amount was past
         due. However, interest on one (1) loan (Principal amount: $380,000) was
         delinquent over 120 days. The delinquency was however subsequently
         cured in May 2006.

(G)      ALLOWANCE FOR LOAN LOSSES
         The allowance for loan losses will be established as losses are
         estimated to have occurred through a provision for loan losses that
         will be charged to earnings. Loan losses will be charged against the
         allowance when management believes the uncollectibility of a loan
         balance is confirmed. Subsequent recoveries, if any, will be credited
         to income. The allowance for loan losses will be evaluated on a regular
         basis by management and is based upon management's periodic review of
         the collectibility of the loans in light of historical experience, the
         types and dollar amounts of loans in the portfolio, adverse situations
         that may affect the borrower's ability to repay, estimated value of any
         underlying collateral and prevailing economic conditions. This
         evaluation is inherently subjective as it requires estimates that are
         susceptible to significant revision as more information becomes
         available. Impairment is measured on a loan by loan basis by either the
         present value of expected future cash flows discounted at the loan's
         effective interest rate, the loan's obtainable market price or the fair
         value of the underlying collateral.

                                       11
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

         The following shows the activities in the allowance for loan losses
         during the 3-month period ended March 31, 2006:

                  Balance, December 31, 2005                            $ 59,000
                  Additions                                             $ 22,000
                  Write offs                                            $      0

                  Balance, March 31, 2006                               $ 81,000

  (H)    LOAN INTEREST RESERVE
         The Fund often requires borrowers to set up interest reserve accounts
         from which monthly payments of interest are made. The interest reserve
         is deposited into a separate bank account in the name of the Fund,
         designated specifically as interest reserve on loans issued by the
         Fund. At the end of the month, the Fund draws the calculated monthly
         interest on outstanding loans from the interest reserve account and
         transfers such amount into the general operating account of the Fund as
         part of the distributable fund available for monthly disbursement to
         the members. The equivalent unearned amount is recorded as a Deferred
         Interest account in the liabilities section of the balance sheet. As of
         March 31, 2006 and 2005, the loan interest reserve and deferred
         interest were $ 251,273 and $316,947, respectively.

(I)      CONTRA-EQUITY ACCOUNTS: OFFERING COSTS AND COMMISSIONS INCURRED IN
         CONNECTION WITH RAISING OF CAPITAL
         Syndication costs incurred in connection with the raising of capital by
         offering units of membership interest in the Fund are being treated as
         a reduction of paid in capital. Initial marketing fees and broker's
         commissions paid to an outside brokerage firm are treated as
         contra-equity accounts. The fees range between 3.5% - 4.5%, depending
         on the commission plan selected by individual brokers. The brokers are
         also entitled to receive "trailer commissions" equivalent to 1/2 of 1%
         of the average daily invested capital at the anniversary of the
         invested funds. The initial marketing/broker's fees are capitalized in
         accordance with US GAAP, pursuant to the AICPA's Technical Practice Aid
         TIS 7200.07 (Accounting for Syndication Costs of Limited Partnerships).
         Subsequent payments of trailer commissions however are treated as
         period costs and charged to current earnings of the Fund. As such, the
         initial marketing/broker's fees are included in the Balance Sheet under
         the caption heading "Members' contributions, net" while the trailer
         commissions are shown in the Statement of Operations, when incurred.
         The Fund has capitalized $ 116,325 and $ 42,863 of syndication costs
         and brokers' fees during the quarters ended March 31, 2006 and 2005,
         respectively.

(J)      ORGANIZATION COSTS
         All costs including registration and legal fees incurred in connection
         with the setting up and incorporating of the Fund have been borne by
         the Manager.

                                       12
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

(K)      SUBSCRIPTION ACCOUNT
         Upon receipt of the funds from prospective investors subscribing to
         purchase membership interests, those funds are deposited into a
         Subscription Account. The funds are held, in the Manager's discretion
         up to a maximum of 60 days, until needed by the Fund for a loan or
         other purpose. The funds are then contributed to the capital of the
         Fund in exchange for a Membership Interest. The Manager may hold funds
         in the Subscription Account for longer than 60 days only upon the
         written consent of the subscriber.

         As of March 31, 2006 and 2005, the uninvested funds in the Subscription
         Account were $399,380 and $ 288,208, respectively.

NOTE 3 - LOANS SECURED BY TRUST DEEDS

At March 31, 2006 and December 31, 2005, the Fund held the following types of
mortgages:

                                                 2006                    2005
                                                 ----                    ----

         Commercial                         $  2,307,390            $  1.957.390
         Construction                       $  2,863,210            $  2.261.637
         Unimproved Land                    $  7,231,287            $  5.412.787
                                            ------------            ------------


         Total                              $ 12,401,887            $  9.631.814
                                            ====================================



         First Mortgages                    $  7,666,247             $ 4.930.374
         Second Mortgages                   $  4,735,640             $ 4.701.440
                                            --------------           -----------


         Total                              $12,401,887              $ 9.631.814
                                            ====================================


Scheduled maturities of loans secured by trust deeds as of March 31, 2006 and
the interest sensitivity of such loans are as follows:

                                        Fixed             Variable
                                        Interest          Interest
                                        Rate                Rate       Total

         Year Ending December 31:
         2006                           $  8,909,919          0     $ 8,909,919
         2007                           $  2,939,968          0     $ 2,939,968
         2008                           $    552,000          0     $   552,000
                                        ---------------              -----------


         Total                          $ 12,401,887          0     $12,401,887
                                          ======================================

                                       13
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

The Fund has no variable interest rate loans at March 31, 2006.

At March 31, 2006, 98% of the Fund's loans receivable were collateralized by
properties located in California.

As of March 31, 2006, the Fund's loan portfolio consisted of twenty (20) real
estate loans to unrelated parties totaling $ 11,500,497 and three (3) loans
receivable from related parties amounting to $ 901,390. These debt securities
are all secured by deeds of trust.

1.       Loan 200301 amounting to $ 484,000, due in monthly installments of $
         4,396 interest only at 10.90% maturing on May 1, 2006. This loan is
         secured by a first trust deed on the underlying property.
2.       Loan 200408 amounting to $ 206,000, due in monthly installments of $
         1,871 interest only at 10.90% maturing on June 22, 2006. This loan is
         secured by a second trust deed on the underlying property.
3.       Loan 200410 amounting to $ 890,000, due in monthly installments of $
         8,900 interest only at 12.00% maturing on September 14, 2006. This loan
         is secured by a second trust deed on the underlying property.
4.       Loan 200409 amounting to $ 450,000, due in monthly installments of $
         4,088 interest only at 10.90% maturing on October 12, 2006. This loan
         is secured by a first trust deed on the underlying property.
5.       Loan 200411 amounting to $ 819,767, due in monthly installments of $
         7,446 interest only at 10.90% maturing on June 6, 2006. This loan is
         secured by a first trust deed on the underlying property.
6.       Loan 200501 amounting to $ 160,000, due in monthly installments of $
         1,453 interest only at 10.90% maturing on January 11, 2006. This loan
         is secured by a first trust deed on the underlying property. This loan
         was paid off in January 2006.
7.       Loan 200502 amounting to $ 470,737, due in monthly installments of $
         4,276 interest only at 10.90% maturing on January 18, 2007. This loan
         is secured by a first trust deed on the underlying property.
8.       Loan 200503 amounting to $ 868,250, due in monthly installments of $
         7,887 interest only at 10.90% maturing on May 1, 2006. This loan is
         secured by a second trust deed on the underlying property.
9.       Loan 200504 amounting to $ 750,000 due in monthly installments of $
         7,500 interest only at 12.00% maturing on September 8, 2006. This loan
         is secured by a second trust deed on the underlying property.

                                       14
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

10.      Loan 200505 amounting to $ 153,000 due in monthly installments of $
         1,390 interest only at 10.90% maturing on March 11, 2006. This loan is
         secured by a first trust deed on the underlying property. This loan was
         paid off in January 2006.
11.      Loan 200506 amounting to $ 126,000 due in monthly installments of $
         1,272 interest only at 10.90% maturing on March 11, 2006. This loan is
         secured by a second trust deed on the underlying property. This loan
         was paid off in January 2006.
12.      Loan 200507 amounting to $ 230,000 due in monthly installments of $
         2,300 interest only at 12.00% maturing on September 25, 2006. This loan
         is secured by a second trust deed on the underlying property.
13.      Loan 200508 amounting to $ 490,000 due in monthly installments of $
         4,900 interest only at 12.00% maturing on October 11, 2006. This loan
         is secured by a second trust deed on the underlying property.
14.      Loan 200509 amounting to $ 380,000 due in monthly installments of
         $3,452 interest only at 10.90% maturing on May 19, 2006. This loan is
         secured by a first trust deed on the underlying property.
15.      Loan 200510 amounting to $ 400,000 due in monthly installments of $
         4,000 interest only at 12.00% maturing on November 8, 2006. This loan
         is secured by a second trust deed on the underlying property.
16.      Loan 200511 amounting to $ 1,071,564 due in monthly installments of $
         10,716 interest only at 12.00% maturing on September 15, 2006. This
         loan is secured by a first trust deed on the underlying property.
17.      Loan 200512 amounting to $ 850,000 due in monthly installments of $
         8,500 interest only at 12.00% maturing on October 14, 2006. This loan
         is secured by a first trust deed on the underlying property.
18.      Loan 200513 amounting to $ 118,947 due in monthly installments of $
         1,189 interest only at 12.00% maturing on December 12, 2006. This loan
         is secured by a first trust deed on the underlying property.
19.      Loan 200601 amounting to $ 552,000 due in monthly installments of $
         5,014 interest only at 10.90% maturing on January 11, 2008. This loan
         is secured by a first trust deed on the underlying property.
20.      Loan 200602 amounting to $ 586,300 due in monthly installments of $
         5,863 interest only at 12% maturing on January 30, 2007. This loan is
         secured by a first trust deed on the underlying property.
21.      Loan 200603 amounting to $ 852,931 due in monthly installments of $
         8,529 interest only at 12% maturing on February 2, 2007. This loan is
         secured by a first trust deed on the underlying property.
22.      Loan 200604 amounting to $ 680,000 due in monthly installments of $
         6,177 interest only at 10.90% maturing on March 7, 2007. This loan is
         secured by a first trust deed on the underlying property.

                                       15
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

23.      Loan 200605 amounting to $ 350,000 due in monthly installments of $
         3,179 interest only at 10.90% maturing on February 27, 2007. This loan
         is secured by a first trust deed on the underlying property.
24.      Loan 200405 to a related party amounting to $ 177,000, due in monthly
         installments of $ 1,608 interest only at 10.90% maturing on June 11,
         2006. This loan is secured by a second trust deed on the underlying
         property.
25.      Investment in 2003 Combined Note Participation amounting to $305,000
         and maturing at various dates from September 2006 through December
         2006. This amount was partially paid off by $ 80,610 on December 23,
         2005. Interest is payable monthly at 12% per annum.
26.      Investment in participation notes issued by Mountain House Golf Course,
         LLC amounting to $ 500,000 and maturing in December 2006. Interest is
         payable monthly at an effective rate of approximately 11.00% per annum.

     NOTE 4 - RELATED PARTY TRANSACTIONS

     LOANS SECURED BY TRUST DEEDS
     The Fund may invest up to 20% of its total assets in loans to affiliated
     entities. On March 31, 2006, the Fund had an interest in two (2)
     participating loans issued by affiliated entities. One loan is a
     participation interest in five separate promissory notes. The loan is
     carried at cost. This loan anticipates earning a 12% interest rate and will
     be repaid between various dates ranging from September 21, 2006 to December
     21, 2006, at which time the amount of the loan will be returned to the
     Fund. The life of the loan may be extended up to two years pursuant to an
     extension option in the notes. The loan does have an option for early
     withdrawal. A portion of the combined notes was partially paid off ($
     80,610) on December 23, 2005. The second participation loan matures in
     December 2006 and bears an effective interest of approximately 11% per
     annum. Additionally, the Fund has a loan receivable from another related
     party amounting to $ 177,000 secured by a second trust deed on the
     underlying property. This loan accrues monthly interest of $ 1,608 (10.90%
     per year) and the principal amount is due in full on June 11, 2006. For the
     quarters ended March 31, 2006 and 2005, the Fund recognized interest income
     on loans to related parties amounting to $ 25,138 and $ 27,444,
     respectively.

     As noted, the Fund is limited in its investments with affiliated entities
     to a maximum of 20% of its total assets, as defined. As of March 31, 2006,
     the Fund is in compliance with this restriction.

     CONTRA EQUITY COSTS
     The Fund incurred $ 0 during the quarters ended March 31, 2006 and 2005 as
     additional costs in connection with the offering of units of membership
     interest in the Fund. These expenditures consisted primarily of the initial
     accounting and filing costs relating to the registration and as such being
     treated as syndication costs as contemplated in the AICPA's Technical
     Practice Aid TIS 7200.07 (Accounting for Syndication Costs of Limited
     Partnerships). Accordingly, these costs are treated as reduction of Paid in
     Capital.

                                       16
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

     The Fund paid commissions to securities brokers in connection with the sale
     of membership interests by the Fund. The commission rates ranged between
     3.50% and 4.50% of the gross sales proceeds from the sale of units of the
     Fund. The total amount of net brokers' commissions paid during the quarters
     ended March 31, 2006 and 2005 were $ 116,325 and $ 42,863, respectively.
     These costs are recorded as "Costs incurred in raising capital" and
     included in the Balance Sheet under the heading "Members' contributions,
     net".

     BORROWER'S COSTS
     The Manager acts as loan broker in the initial placement of the Fund loans
     and performs loan servicing function as well. The Manager is compensated by
     the Fund for such loan servicing activities and is compensated by the
     borrower for the initial placement of the loans. The Fund does not incur
     "Incremental Direct Costs" as defined in SFAS No. 91, "Accounting for
     Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans
     and Initial Direct Costs of Leases." These are costs to originate loans
     that result directly from and are essential to the lending transaction and
     would not have been incurred by the Fund had the lending transaction not
     occurred. The Manager of the Fund incurs these types of costs; consequently
     the Manager is entitled to receive certain fees for its services such as
     loan brokerage commissions, loan processing and documentation fees, loan
     servicing and asset management fees and reimbursement of other expenses of
     the Manager. None of these fees are paid by the borrower to the Fund
     directly and therefore are not included in the income and expenses of the
     Fund.

     BROKER'S COMMISSIONS ON INVESTED FUNDS
     The Fund has retained the services of securities broker/dealers to sell
     units of membership interest in the Fund. One such broker/dealer is
     ePlanning Securities, Inc., which is affiliated with the Manager. Certain
     shareholders of the Manager (who are not members of the Fund) are also
     shareholders and/or directors of ePlanning. ePlanning sold membership units
     of the Fund to its client-investors during the quarters ended March 31,
     2006 and 2005 amounting to $ 2,638,158 and $ 1,013,147 of which it realized
     commissions totaling $ 116,325 and $ 42,863, respectively. The brokers do
     not earn a commission until funds are transferred from the Subscription
     Account to the "Invested Funds" account, at which time the funds become
     contributed capital of the Fund.

     MANAGEMENT AND SERVICING FEES
     The Manager earned $ 14,393 and $ 8,996 during the quarters ended March 31,
     2006 and 2005, respectively representing management and servicing fees it
     was entitled to receive from the Fund.

                                       17
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

     NOTE 5 - CONCENTRATIONS

     CASH AND CASH EQUIVALENTS
     Cash and cash equivalents are maintained with several financial
     institutions. Deposits held with banks may exceed the amount of insurance
     provided on such deposits. At March 31, 2006, the Fund had approximately $
     602,209 of cash that exceeded this limit and thus was not covered by
     federal depository insurance. These deposits may be redeemed upon demand
     and therefore bear minimal risk. The Fund has not experienced any losses in
     such accounts

     NOTES RECEIVABLE - NON RELATED PARTIES
     Six (6) loans totaling $ 3,927,864 were made to separate entities
     controlled by the same person. The various borrowing entities were
     organized for different purposes, and own real property in various places
     in California, mostly in the Central Valley. These loans represent 32% of
     the total loan portfolio and 33% of total interest income. The loans are
     all current, are adequately collateralized by the underlying real estate
     properties and are personally guaranteed by the controlling person.

     COMMITMENTS AND CONTINGENCIES
     The Fund has outstanding loan commitments on three (3) construction loans
     totalling $4,408,200; $ 2,744,263 of which had already been funded and the
     balance of $ 1,663,937 remained undisbursed at March 31, 2006.

     NOTE 6 - REGULATORY REQUIREMENTS

     EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 ("ERISA")
     Some of the investors purchasing membership interests are employee benefit
     plans, including Individual Retirement Accounts, which are subject to
     ERISA. Persons making the investment decisions for such ERISA investors are
     deemed to be "fiduciaries" of such investors and must discharge their
     duties with the care, skill and prudence which a prudent man would exercise
     under the circumstances.

     Normally an investment in an equity interest of an entity, such as a
     membership interest in the Fund, will be deemed a "plan asset" of the ERISA
     investor, but the underlying assets of the entity will not be deemed plan
     assets. However, if (i) the equity interests are not publicly-offered
     securities, (ii) the entity is not one of several types of "operating
     companies" defined in ERISA regulations, and (iii) investment by ERISA
     investors exceeds 25% of the value of the class of equity interests, then
     the underlying assets of the entity may be deemed "plan assets," with the
     entity deemed a "fiduciary" with respect to the ERISA investors.

                                       18
<PAGE>

                           LAKESIDE MORTGAGE FUND, LLC
                    (A CALIFORNIA LIMITED LIABILITY COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                              MARCH 31, 2006 & 2005

     SECURITIES LAWS
     In offering the units of membership interest, the Fund is subject to
     applicable federal and state securities laws. On the federal level, the
     Fund is offering the membership interests pursuant to the exemption from
     registration for intrastate offerings provided by Section 3(a) (11) of the
     Securities Act of 1933, as amended, and Rule 147 promulgated thereunder. In
     accordance with this exemption, the membership interests are offered only
     in California, the Fund restricts the amount of its assets which are
     located outside of California and members are prohibited from transferring
     any part of their membership interests to out-of-state transferees for a
     period of nine (9) months.

     On the state level, the Fund is offering the units of Membership Interest
     pursuant to a permit issued by the California Department of Corporations.
     The permit requires annual renewal. The original permit was issued on
     February 24, 2003. The permit was renewed on February 1, 2006.

     As of March 31, 2006, the Fund was in compliance with all applicable
     federal and state securities laws.










                                       19
<PAGE>

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

      As of March 31, 2006, we have sold a total of 131,963.86 Units, at $100
per Unit, for a total of $ 13,196,386. As of March 31, 2006, Company members
electing to reinvest their monthly income distributions have reinvested $
736,129 back into the Company. After deducting for broker commissions and
offering expenses ($ 682,029), the net proceeds to the Company from these sales
(which includes reinvestment of earnings) have been $ 13,250,486. Members
withdrew a total of $ 524,454 through the period ended March 31, 2006. As of
March 31, 2006, the Company has $12,401,887 invested in commercial mortgage
loans, with the remainder in the form of cash and other assets. As of March 31,
2006, the Company has 316 Members.

      To compare this with how the Company was doing at our last year end, as of
March 31, 2005, we had sold a total of 64,755.49 Units, for a total of $
6,475,549. Reinvested funds amounted to $ 228,159. After deducting for broker
commissions and offering expenses ($384,892), the net proceeds to the Company
from these sales were $ 6,318,816. The Company had $ 6,246,424 invested in
commercial mortgage loans, with the remainder in the form of cash and/or other
temporary investments such as short term commercial paper (none in 2005). As of
March 31, 2005, the Company had 195 Members.

      Syndication costs incurred in connection with the raising of capital by
offering units of membership interest in the Company are being treated as a
reduction of paid in capital. Initial marketing fees and broker's commissions
paid to an outside brokerage firm are treated as contra-equity accounts. The
fees are currently 4.5% (4% commission, 0.5% marketing fee). Brokers are also
entitled to receive "trailer commissions," equivalent to 0.5% of the average
daily balance of invested capital for each investor. These are received
following each anniversary of the investor's initial investment. As of March 31,
2006, the Company has capitalized $682,024 of syndication costs since inception.

      During the next twelve months, the Company will continue to be managed by
Lakeside Financial Group, Inc. (the "Manager"), which will continue to
underwrite and select loans for the Company to invest in, as well as short term
investments for cash between loans. The Company will continue to raise capital
with its intrastate offering under a permit from the California Department of
Corporations. It is anticipated that, at some point in the future, we will offer
the Units of Membership Interest in additional states through a registered
public offering, but this is not anticipated to occur within the next twelve
months. The Manager will continue to manage the Company as described in the
Company's Operating Agreement. The Company will continue to pay the Manager, on
a monthly basis, a management fee (annualized at 2.75% of gross assets under
management) and loan servicing fee (annualized at 0.25% of loan principal
amounts) to the extent these fees are not waived by the Manager. During the
quarter ended March 31, 2006, the Manager accepted $ 14,393 of these fees, and
waived a total of $ 81,087 of these fees.

                                       20
<PAGE>

      During the next 12 months the Company will continue to raise capital
through the sale of membership interests and invest that capital in commercial
real estate loans. The Company does not expect to make any significant plant or
equipment purchases or sales in the next 12 months. The Company has no
off-balance sheet arrangements.


ITEM 3. CONTROLS AND PROCEDURES.

      As of the end of the period covered by this report, the Fund carried out
an evaluation, under the supervision and with the participation of the Manager's
Principal Executive Officer and Principal Financial Officer of the effectiveness
of the design and operation of the Fund's disclosure controls and procedures.
The Fund's disclosure controls and procedures are designed to provide a
reasonable level of assurance of achieving the Fund's disclosure control
objectives. The Manager's Principal Executive Officer and Acting Principal
Financial Officer have concluded that the Fund's disclosure controls and
procedures are, in fact, effective at this reasonable assurance level as of the
period covered. In addition, the Fund reviewed its internal controls, and there
have been no significant changes in its internal controls or in other factors
that could significantly affect those controls subsequent to the date of their
last evaluation or from the end of the reporting period to the date of this Form
10-QSB. In connection with the evaluation of the Fund's internal controls during
the Fund's first fiscal quarter ended March 31, 2006, the Manager's Principal
Executive Officer and Principal Financial Officer have determined that there are
no changes to the Fund's internal controls over financial reporting that has
materially affected, or is reasonably likely to materially effect, the Fund's
internal controls over financial reporting. The Company receives
subscriptions/investment funds from the general investing public through its
designated brokers (primarily ePlanning Securities), and uses those funds to
make loans secured by deeds of trust on real estate located primarily in
California. The Company's operations are managed by its fund manager, Lakeside
Financial Group, Inc. The Manager does not own a membership interest in the
Company.



                                       21
<PAGE>

PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

      None


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

      During the period covered by this report the Company made sales of
unregistered securities set forth in the table below. All sales were of Units of
Membership Interest in the Company, for the purchase price of $100 per Unit of
Membership Interest, and all sales were for cash consideration. No sales
involved any underwriter, but all sales were effected through a licensed
securities broker, ePlanning Securities, Inc., to whom a commission was paid of
up to 4.5% of the sales price.

      All sales were made under the exemption from registration provided by
Section 3(a)(11) of the Securities Act of 1933, as amended, and under Rule 147
promulgated thereunder. The offering is limited to California residents only.
The Company derives at least 80% of its revenues from loans secured by real
property located in California. The Company's Operating Agreement and
Subscription Agreement, both of which are executed by the investor, contain
written disclosures regarding the limitations on resale prescribed by Rule 147.

      With respect to applicable state securities laws, all sales were made
pursuant to a permit issued to the Company by the California Department of
Corporations ("DOC") pursuant to Sections 25110 and 25113 of the California
Corporations Code. The permit must be renewed each year by filing a renewal
application and an updated Offering Circular for approval by the DOC. The
renewed permit was issued by the DOC on February 1, 2006.

      During the period covered by this report the Company made the following
sales of unregistered securities, to various investors meeting the Company's
investor suitability standards, on the terms described above:

                  Date of Sale             Units Sold        Purchase Price
                  ------------             ----------        --------------
                  01/06/06                    789.71          $  78,971.37
                  01/13/06                  2,522.27          $ 252,227.32
                  01/20/06                  2,582.65          $ 258.264.95
                  01/30/06                  1,460.02          $ 146,002.23
                  02/02/06                  5,712.93          $ 571,293.06
                  02/21/06                  3,091.45          $ 309,144.70
                  03/03/06                  2,677.08          $ 267,708.00
                  03/08/06                  4,128.66          $ 412,866.23
                  03/09/06                    485.56          $  48,555.61
                  03/24/06                  1,676.30          $ 167,630.30
                  03/31/06                  1,254.94          $ 125,494.17

                  01/05/06 (re investment)    500.48          $ 50,048.17
                  02/03/06 (re investment)    504.82          $ 50,482.08
                  03/31/06 (re investment)    497.30          $ 49,729.71

                                       22
<PAGE>

ITEM 3. DEFAULTS ON SENIOR SECURITIES

      None


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

      The Company has held no regularly scheduled, called or special meetings of
members during the reporting period.


ITEM 5. OTHER INFORMATION

      None.


ITEM 6. EXHIBITS

Exhibit No.       Description
-----------       -----------

2.1.*             Articles of Organization
3.1.*             Operating Agreement of Lakeside Mortgage Fund, LLC
6.1.*             Broker/Dealer Agreement
6.2.*             Amendment No. 1 to Broker Dealer Agreement
12.1.**           Offering Circular dated March 2, 2005
31.1.             Certification of Chief Executive Officer Pursuant to Section
                  302 of the Sarbanes- Oxley Act of 2002.
31.2.             Certification of Chief Financial Officer Pursuant to Section
                  302 of the Sarbanes- Oxley Act of 2002.
32.1.             Certification of Chief Executive Officer Pursuant to Section
                  906 of the Sarbanes- Oxley Act of 2002.
32.2.             Certification of Chief Financial Officer Pursuant to Section
                  906 of the Sarbanes- Oxley Act of 2002.

*Incorporated by reference to the Company's Registration Statement on Form
10-SB, as amended, originally filed with the Commission under the Exchange Act
on August 6, 2004.

**Incorporated by reference to the Company's Quarterly Report on Form 10-QSB for
the period ended March 31, 2005, filed with the Commission under the Exchange
Act on May 13, 2005.


                                       23
<PAGE>

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.

                                       LAKESIDE MORTGAGE FUND, LLC,
                                       A California Limited Liability Company

                                       By:   Lakeside Financial Group, Inc.,
                                             Manager


Date:  May 12, 2006                    By:   /S/ William F. Webster
                                             ----------------------
                                                 William F. Webster, President




                                       24