UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

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

                     For the quarter ended November 30, 2006

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

          For the transition period from _____________ to ____________

                             Commission File Number:

                               SEW CAL LOGO, INC.
               (Exact name of Registrant as specified in charter)


             Nevada                                         46-0495298
  (State or other jurisdiction of                  (I.R.S. Employer I.D. No.)
  incorporation or organization)

               207 W. 138th Street, Los Angeles, California 90061
               (Address of principal executive offices) (Zip Code)

         Issuer's telephone number, including area code: (310) 352-3300

Check  whether  the Issuer  (1) has 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 |_|

State the number of shares outstanding of each of the Issuer's classes of common
equity as of the latest  practicable  date:  At November  30,  2006,  there were
12,074,036  shares of the  registrant's  Common  Stock  outstanding  and 234,800
shares of Series A Preferred Stock outstanding.
<PAGE>

                                     PART I

ITEM 1. FINANCIAL STATEMENTS

The  financial  statements  included  herein have been  prepared by the Company,
without  audit,  pursuant to the rules and  regulations  of the  Securities  and
Exchange  Commission.  Certain  information  and footnote  disclosures  normally
included in financial  statements prepared in accordance with generally accepted
accounting principles have been omitted.  However, in the opinion of management,
all  adjustments  (which include only normal  recurring  accruals)  necessary to
present fairly the financial  position and results of operations for the periods
presented  have been made. The results for interim  periods are not  necessarily
indicative  of trends or of results  to be  expected  for the full  year.  These
financial statements should be read in conjunction with the financial statements
and notes thereto included in the Company's most recent  registration  statement
on Form SB-2 as amended.

                          MOORE & ASSOCIATES, CHARTERED
                            ACCOUNTANTS AND ADVISORS
                                PCAOB REGISTERED

             Report of Independent Registered Public Accounting Firm

To the Board of Directors
Sew Cal Logo, Inc.


We have reviewed the  accompanying  balance sheet of Sew Cal Logo as of November
30, 2006, and the related statements of operations,  retained earnings, and cash
flows for the three months then ended,  in accordance  with the standards of the
Public Company  Accounting  Oversight  Board (United  States).  All  information
included in these financial  statements is the  representation of the management
of Sew Cal Logo, Inc.

A review consists  principally of inquiries of company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the financial  statements in order for them to be in conformity  with
generally accepted accounting principles.

The  accompanying  financial  statements  have been  prepared  assuming that the
company  will  continue as a going  concern.  As  discussed  in the notes to the
financial  statements,  the Company has  accumulated a loss during the last five
years of operations.  This raises  substantial doubt about the Company's ability
to continue as a going  concern.  The  financial  statements  do not include any
adjustments that might result from this uncertainty.


/s/ Moore & Associates, Chartered


Moore & Associates, Chartered
Las Vegas, Nevada
January 11, 2007

             2675 S. JONES BLVD. SUITE 109, LAS VEGAS, NEVADA 89146
                        (702) 253-7511 Fax: (702)253-7501


                                       F-1
<PAGE>
                               SEW CAL LOGO, INC.

                                 BALANCE SHEETS
                                 --------------
                                   (Unaudited)

                                                                      August 31,
                                                     November 30,        2006
                                                         2006         (Audited)
                                                     -----------    -----------
                            ASSETS
Current Assets
     Cash and cash equivalents                       $   656,345    $   988,251
     Accounts Receivable, net                            235,405        261,515
     Inventory                                           126,759        124,049
     Prepaid Expenses                                      7,516          4,219
                                                     -----------    -----------
     Total current assets                              1,026,025      1,378,034
                                                     -----------    -----------
Equipment and machinery, net                             284,166        290,058
Other assets                                                  --             --
                                                     -----------    -----------
     Total assets                                    $ 1,310,191    $ 1,668,092
                                                     ===========    ===========


            LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Accounts payable                                $    18,606    $    39,226
     Note Payable-shareholder                            347,884        347,884
     Other current liabilities                            47,852        115,463
     Current Poriton of Long Term Debt                   262,374        285,764
                                                     -----------    -----------
     Total current liabilities                           676,716        788,337

Long-term liabilities
     Note Payable-related party                           62,112         77,298
     Convertible Debentures                            2,369,362      2,421,969
     Discount on Convertible Debentures                 (474,245)      (485,014)
     Equipment Loans                                      25,853         28,070
                                                     -----------    -----------
     Total liabilities                                 2,659,798      2,830,660
                                                     -----------    -----------
Stockholders' Equity (Deficit)
     Preferred stock, authorized 300,000 shares,
     Par value $0.001, issued and outstanding at
     30-Nov-06 and 31-Aug-06 is 234,800 shares
     respectively                                            235            235

     Common stock, authorized 500,000,000 shares,
     $0.001 par value, issued and outstanding at
     30-Nov-06 and 31-Aug-06 is 12,074,036 and
     5,549,502 shares respectively                        12,074          5,549

     Paid in Capital                                     872,925        746,008
     Stock Subscribed                                         --         36,000
     Retained Earnings(Deficit)                       (2,234,841)    (1,950,360)
                                                     -----------    -----------
     Total stockholders' equity (deficit)             (1,349,607)    (1,162,568)
                                                     -----------    -----------
Total liabilities and stockholders' equity           $ 1,310,191    $ 1,668,092
                                                     ===========    ===========


     All assets are pledged as collateral for the SBA and shareholder loans
                          The accompanying notes are an
                  integral part of these financial statements.

                                       F-2
<PAGE>

                               SEW CAL LOGO, INC.

                            STATEMENTS OF OPERATIONS
                            ------------------------
                                   (Unaudited)


                                                          Three Months Ended
                                                              November 30
                                                    ---------------------------
                                                        2006            2005
                                                    -----------     -----------
Revenue:
     Sales of Caps, Embroidery and Other            $   566,033     $   654,657
                                                    -----------     -----------
     Total Revenue                                      566,033         654,657

Cost of Goods Sold                                      455,882         580,445
                                                    -----------     -----------
     Gross profit                                       110,151          74,212
                                                    -----------     -----------
Expenses:
     General and Administrative                         102,446          48,357
     Officer and Administrative Compensation            106,843          55,985
     Consulting, Legal and Accounting                    54,872          12,713
     Depreciation                                        20,892          20,357
     Rent                                                80,000          15,000
     Interest Expense                                    29,580          23,355
                                                    -----------     -----------
     Total expenses                                     394,633         175,767
                                                    -----------     -----------
     Income (loss) before income taxes                 (284,482)       (101,555)
                                                    -----------     -----------
Provision for income taxes                                   --              --
                                                    -----------     -----------
     Net income (loss)                              $  (284,482)    $  (101,555)
                                                    ===========     ===========

Basic and Diluted Earnings (Loss) per Share         $     (0.05)    $     (0.02)
                                                    -----------     -----------
Weighted Average Number of Common Shares              5,307,438       5,176,000
                                                    -----------     -----------


                          The accompanying notes are an
                  integral part of these financial statements.

                                       F-3
<PAGE>

                               SEW CAL LOGO, INC.

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                       ----------------------------------
                                   (Unaudited)
<TABLE>
<CAPTION>


                                          Preferred Stock                   Common Stock
                                       --------------------------    -------------------------     Paid in
                                          Shares        Amount          Shares        Amount       Capital
                                       -----------    -----------    -----------   -----------   -----------
<S>                                        <C>        <C>              <C>         <C>           <C>
Balance, August 31, 2002                   189,800    $       190      3,000,000   $     3,000   $     1,810

Contributed Officer Services                                                                          60,000

Net (Loss) for the year
                                       -----------    -----------    -----------   -----------   -----------

Balance, August 31, 2003                   189,800            190      3,000,000         3,000        61,810

Recapitalization 2/24/04
     Shares issued at par value                                          520,000           520          (520)

Shares issued for services at par           45,000             45      1,500,000         1,500

Net Income for the year
                                       -----------    -----------    -----------   -----------   -----------

Balance, August 31, 2004                   234,800            235      5,020,000         5,020        61,290

Equipment Purchase                                                        33,334            33       114,067

Shares issued for Services
     at $0.10 per share                                                  122,834           123        12,160

Stock Subscribed

Net Income (Loss) for year
                                       -----------    -----------    -----------   -----------   -----------

Balance, August 31, 2005                   234,800            235      5,176,168         5,176       187,517

Shares issued for Services
     at $0.15 per share                                                   50,000            50         7,450

Discount on Convertible Debentures                                                                   515,000

Shares issued for Services
     at $0.10 per share                                                   33,334            33         3,300

Shares issued for Conversion of Debt                                     290,000           290        32,741

Net Income (Loss) for period
                                       -----------    -----------    -----------   -----------   -----------

Balance, August 31, 2006                   234,800            235      5,549,502         5,549       746,008

Common Stock Issued for Cash                                              61,000            61        60,939

Shares issued for Services                                               683,534           684        19,151


Shares issued for Conversion of Debt                                   5,780,000         5,780        46,827


Net Income (Loss) for period
                                       -----------    -----------    -----------   -----------   -----------
Balance, November 30, 2006                 234,800    $       235     12,074,036   $    12,074   $   872,925
                                       ===========    ===========    ===========   ===========   ===========

<CAPTION>
                                                     Retained       Total
                                          Stock      Earnings    Stockholders'
                                       Subscribed   (Deficit)       Equity
                                       ----------  -----------    -----------
<S>                                      <C>       <C>            <C>
Balance, August 31, 2002                 $    --   $  (573,885)   $  (568,885)

Contributed Officer Services                                           60,000

Net (Loss) for the year                                (45,381)       (45,381)
                                         -------   -----------    -----------

Balance, August 31, 2003                              (619,266)      (554,266)

Recapitalization 2/24/04
     Shares issued at par value

Shares issued for services at par                                       1,545

Net Income for the year                                 50,818         50,818
                                         -------   -----------    -----------

Balance, August 31, 2004                              (568,448)      (501,903)

Equipment Purchase                                                    114,100

Shares issued for Services
     at $0.10 per share                                                12,283

Stock Subscribed                          36,000                       36,000

Net Income (Loss) for year                            (105,366)      (105,366)
                                         -------   -----------    -----------

Balance, August 31, 2005                  36,000      (673,814)      (444,886)

Shares issued for Services
     at $0.15 per share                                                 7,500

Discount on Convertible Debentures                                    515,000

Shares issued for Services
     at $0.10 per share                                                 3,333

Shares issued for Conversion of Debt                                   33,031

Net Income (Loss) for period                        (1,276,545)    (1,276,545)
                                         -------   -----------    -----------

Balance, August 31, 2006                  36,000    (1,950,359)    (1,162,567)

Common Stock Issued for Cash             (36,000)                      25,000

Shares issued for Services                                             19,835


Shares issued for Conversion of Debt                                   52,607


Net Income (Loss) for period                          (284,482)      (284,482)
                                         -------   -----------    -----------
Balance, November 30, 2006               $    --   $(2,234,841)   $(1,349,607)
                                         =======   ===========    ===========
</TABLE>



                          The accompanying notes are an
                  integral part of these financial statements.

                                       F-4
<PAGE>

                               SEW CAL LOGO, INC.

                            Statements of Cash Flows
                            ------------------------
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                    Three Months Ended
                                                                       November 30,
                                                            ----------------------------------
                                                               2006                     2005
                                                            ---------                ---------
<S>                                                         <C>                      <C>
Operating Activities:
Net income (loss)                                           $(284,482)               $(101,555)
        Depreciation                                           20,892                   20,358
        Stock issued for services                              19,835                       --
        Amortization of Discount on Debentures                 10,769                       --
        Stock issued in conversion of debt                     52,607                       --
Adjustments to reconcile net income (loss)
        (Increase) decrease in prepaid Expenses                (3,297)                     697
        (Increase) decrease in inventory                       (2,710)                  14,290
        (Increase) decrease in other assets                        --                       --
        (Increase) decrease in accounts
        receivable                                             26,110                  (97,984)
        Increase (decrease) in accounts payable               (20,620)                  16,089
        Increase (decrease) in other current
        liabilities                                           (91,001)                 141,677
                                                            ---------                ---------
                                                                   --
        Net cash provided by (used in)
         operating activities                                (271,897)                  (6,428)
                                                            ---------                ---------
Investing Activities:
Purchases/disposals of equipment                              (15,000)                      --
                                                            ---------                ---------
        Cash (used) in investing activities                   (15,000)                      --
                                                            ---------                ---------
Financing Activities:
Notes Payable                                                 (15,186)                 (40,616)
Debentures Payable                                            (52,607)                      --
Stock Sales                                                    25,000                       --
Increase/(Decrease) in shareholder loan                            --                   (4,485)
Repayment of equipment loan                                    (2,217)                  (3,303)
                                                            ---------                ---------
        Net cash provided by (used in)
         financing activities                                 (45,010)                 (48,404)
                                                            ---------                ---------
Net increase (decrease) in cash and cash
equivalents                                                  (331,907)                 (54,832)

Cash and cash equivalents at beginning of the year            988,251                   56,865
                                                            ---------                ---------
Cash and cash equivalents at end of the year                $ 656,344                $   2,033
                                                            =========                =========

Supplemental Information
Interest                                                    $  29,580                $  23,355
Taxes                                                       $      --                $      --
</TABLE>


                          The accompanying notes are an
                  integral part of these financial statements.

                                       F-5
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

NOTE 1. Summary of Significant Accounting Policies

The Company

C J Industries  was  incorporated  in the State of California on August 30, 1985
and changed its name to Southern California Logo, Inc (the Company). The Company
transacts business as Sew Cal Logo.

On February  24, 2004 the Company  merged  with  Calvert  Corporation,  a Nevada
Corporation.  This  was a  recapitalization  accounted  for as a stock  exchange
transaction  (reverse  merger).  Calvert  also changed its name to Sew Cal Logo,
Inc. See Note 8 for more details of this merger.

The Company is located in Los  Angeles,  California.  The Company  produces  and
manufactures   custom   embroidered  caps,   sportswear  and  related  corporate
identification  apparel.  The Company provides an in-house,  full-service custom
design center where original  artwork and logo  reproduction  for embroidery are
available. The Company also offers contract embroidery and silk-screening to the
manufacturing  and  promotional  industry.  The  Company's  products  are  sold,
primarily in the United States,  to Fortune 500 companies,  major motion picture
and television studios, retailers, and local schools and small businesses.

Use of Estimates

The  financial  statements  have been  prepared in  conformity  with  accounting
principles  generally accepted in the United States, which require management to
make estimates,  and assumptions  that affect the reported amounts of assets and
liabilities  (including  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.

Accounts Receivable

The Company's trade accounts  receivable and allowance for doubtful accounts are
shown below.

                                                    30-Nov-06      31-Aug-06

         Gross Trade Accounts Receivable              $236,665     $262,765
         Allowance for Doubtful Accounts                (1,250)      (1,250)
                                                      --------     --------
         Accounts Receivable, net                     $235,405     $261,515
                                                      ========     ========

Revenue Recognition

The Company  recognizes  revenue from product sales upon shipment,  which is the
point in time when risk of loss is transferred to the customer, net of estimated
returns and allowances.


                                       F-6
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Cash and Cash equivalents

The  Company  maintains  cash  deposits in banks and in  financial  institutions
located in southern California.  Deposits in banks are insured up to $100,000 by
the  Federal  Deposit  Insurance  Corporation  ("FDIC").  The  Company  has  not
experienced  any losses in such  accounts  and believes it is not exposed to any
significant credit risk on cash deposits.

Inventory

Inventory is stated at the lower of cost (first-in,  first-out method) or market
and consists of raw material,  work-in-process and finished goods.  Normally the
Company  ships  out to the  customer  the  finished  goods  as soon as they  are
produced and  therefore  usually does not maintain a finished  goods  inventory.
Overhead  items are  applied  on a standard  cost  basis to work in process  and
finished goods.

                                            30-Nov-06         31-Aug-06
                                            ---------         ---------
         Raw Materials and WIP               $126,759          $124,049
         Finished Goods                             0                 0
                                            ---------         ---------
         Total Inventory                     $126,759          $124,049
                                            =========         =========

Equipment and Machinery

Equipment and machinery are stated at cost.  Depreciation  is computed using the
straight-line  method over their  estimated  useful  lives  ranging from five to
seven years.  Depreciation and amortization  expense for the fiscal years August
31, 2006,  and 2005 amounted to $56,847,  and $78,330  respectively.  Gains from
losses on sales and  disposals  are included in the  statements  of  operations.
Maintenance  and repairs are charged to expense as incurred.  As of May 31, 2006
and August 31, 2005 equipment and machinery consisted of the following:

                                            30-Nov-06         31-Aug-06
                                            ---------         ---------
         Equipment and Machinery             $983,644          $968,644
         Less:
         Accumulated depreciation             699,478           678,856
                                            ---------         ---------

                                             $284,166          $290,058
                                            =========         =========

Fiscal Year

The Company operates on a fiscal year basis with a year ending August 31.


                                       F-7
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Earnings and Loss Per Share Information

Basic net earnings  (loss) per common share is computed by dividing net earnings
(loss)  applicable  to common  shareholders  by the  weighted-average  number of
common shares outstanding during the period.

Segment Reporting

Pursuant to  Statement  of  Financial  Accounting  Standards  No. 131 ("SFAS No.
131"), "Disclosure about Segments of an Enterprise and Related Information," the
Company has determined it operated in only one segment.

NOTE 2.  Going Concern

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going concern,  which contemplates the realization of
assets and the  liquidation  of  liabilities  in the normal  course of business.
However,  the  Company  has  accumulated  a loss  during  the last five years of
operations.  This  raises  substantial  doubt  about the  Company's  ability  to
continue  as a going  concern.  The  financial  statements  do not  include  any
adjustments that might result from this uncertainty.

Managements Plan

Management  continues to seek funding from its  shareholders and other qualified
investors to pursue its  business  plan.  It is in the process of expanding  its
sales and distribution capability.


NOTE 3.  Accounts Payable and Other Current Liabilities

As of the period ends shown,  accounts payable and accrued liabilities consisted
of the following:

                                                 30-Nov-06         31-Aug-06
                                                 ---------         ---------
Trade accounts payable                             $18,606         $ 39,266
                                                   =======         ========

Sales tax payable                                    4,122            4,896
Short Term Loan - Related Party
Payroll Liabilities                                  2,801           71,177
Credit Card Debt                                    15,299           15,299
Revolving bank line of credit (Prime +
3.8 %, interest only)                               24,091           24,091
Revolving bank line of credit (prime +
3.8750 % Interest only, reviewed yearly)                               0.00
                                                   -------         --------

                                                   $47,852         $115,463
                                                   =======         ========


                                       F-8
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

NOTE 4.  Note Payable- Related Party

On March 1, 2003,  for purposes of working  capital,  the sole  shareholder  and
spouse  made a  $355,384  subordinated  loan  to the  Company.  The  Company  is
obligated to pay monthly interest only on the subordinated  loan during its term
at the rate of 10% per annum  (fixed-rate  calculated as simple  interest).  The
entire principal amount of the loan was originally due on March 1, 2004, and has
continued from that time on a month-to-month basis. The subordinated loan, which
was  consented  to  by  United   Commercial   Bank  and  subsequent   banks,  is
collateralized  by the assets of the Company,  including  but not limited to any
and all equipment owned by the Company,  inventory, and outstanding receivables.
Balance at November 30, 2006 is $347,884.

NOTE 5. Commitments and Contingencies

Long-Term Debt

On March 25, 2002 the Company  entered into an agreement with United  Commercial
Bank for a $515,000 SBA loan. For the years ending August 31, 2003 and 2002, the
unpaid principal balance of the loan was $462,100 and $500,313 respectively. The
monthly  required  payment  varied with an annual  interest  rate of 6.75% and a
maturity date of March 1, 2012. This loan related to the purchase of equipment.

On August 11, 2004 the Company  refinanced  this SBA loan with  Pacific  Liberty
Bank.  As of November 30, 2006 the balance was  $262,374.  Monthly  payments are
made the 15th of each  month with  interest  at prime  plus 2.5.  Currently  the
interest  rate  is  9.5%.  This  loan is  collateralized  by the  assets  of the
corporation and is in first place before the shareholder loan.

On April 16, 2003 the Company entered an installment sale contract with GMAC for
the purchase of a vehicle. The total amount financed at signing was $40,754 that
represents the total sale price.  The agreement  requires 60 monthly payments of
approximately  $679  beginning on May 16, 2003 and ending on April 16, 2008. The
outstanding  balance at November 30, 2006,  2006 was $13,266.  This vehicle note
was obtained by GMAC under special financing and carries no interest.

The Company has a second  installment loan with GMAC on a vehicle with a balance
as of November 30, 2006 of $12,587.

Lease Commitments

The Company  leases  warehouse and office  facilities  under an operating  lease
requiring  the Company to pay property  taxes and  utilities.  In July 2004 this
building  was  purchased by a related  party (a  corporation  controlled  by the
officers) and the lease was re-written  for 5 years.  Lease expense is currently
$12,500 per month.

The lease obligation is shown below for the next five years.

                             Year 1     Year 2     Year 3    Year 4    Year 5
                           --------   --------   --------  --------  --------
Office /warehouse lease    $150,000   $150,000   $150,000  $150,000  $150,000


                                       F-9
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Callable Convertible Debentures

On February 16, 2006 the Company executed an equity financing  agreement wherein
it will issue an aggregate of  $2,000,000  callable  convertible  debentures  in
three segments. The Company has received a net of $1,955,000. The debentures are
convertible  to common  stock at 45% below the lowest  three  intra-day  trading
price  during  the  20  trading  days  immediately  preceding  conversion.   The
Debentures also carry  five-year  warrants  exercisable at $0.50 per share.  The
aggregate number of warrants to be issued is 2,142,855.

Because  the  current  stock  price is well below the  exercisable  price of the
warrants,  they are  considered  "out of the  money"  and no  discount  has been
recorded.

The Company has recorded a discount on the  convertible  debentures of $315,000.
During the period ended May 31, 2006 the Company has converted $33,031 debt into
stock and expensed  $14,985 of the recorded  discount as interest  expense.  The
company will amortize the remaining discount over the life of the debentures.

On July 31, 2006 the Company executed an equity financing  agreement  wherein it
has issued $500,000 in callable convertible debentures and 20,000,000 seven year
warrants  exercisable  at $0.05 per share.  The  debentures  are  convertible to
common stock at 40% below the lowest three intra-day trading price during the 20
trading days immediately preceding conversion. The aggregate number of shares to
possibly be issued at 100% conversion is 69,444,444  shares.  Calculated using a
current 3 day  trading  average  price per share of $0.012 per share less 40% is
$0.0072 per share divided into $500,000 equals  69,444,444  shares.  Because the
current stock price is well below the  exercisable  price of the warrants,  they
are considered "out of the money" and no discount has been recorded. The Company
has  recorded  a  discount  on the  convertible  debentures  of  $200,000  which
represents  the 40% discount and will be amortized to interest  expense over the
life of the debentures.

NOTE 6.  Stockholders' Equity

Preferred Stock

The  Company  (post  merger)  is  authorized  to issue  three  hundred  thousand
(300,000)  shares of series A  preferred  stock at a par  value of  $0.001.  The
preferred  stock is  convertible  to common stock at one share of preferred  for
every 100 shares of common.  The preferred shares can only be converted when the
Company reaches  $10,000,000 in sales for any fiscal year. As of August 31, 2004
there were 234,800 shares of preferred  stock.  The value was placed at par. The
conversion  to common stock would be  23,480,000  shares.  Based upon the actual
growth  for the last two  years,  the  $10,000,000  in sales will not be reached
within five years. Therefore, these shares are not considered in calculating the
loss per share.


                                      F-10
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Common Stock

On August  25,  2006 the  Company's  authorization  to issued  common  stock was
increased from 50,000,000 shares to 500,000,000 shares at par value of $0.001

As of August 31, 2004 (post  merger) the Company  had  5,020,000  common  shares
issued and outstanding.

In May 2005 the Company purchased equipment valued at $114,100 for 33,334 common
share and issued 122,834 common shares for services valued at $12,283.

On January 6, 2006 the Company  issued 50,000 common shares for services  valued
at $7,500.

On February 16, 2006 the company  entered into a securities  purchase  agreement
for a total  subscription  amount of  $2,000,000  that includes  stock  purchase
warrants  and  callable  convertible  debentures.   A  discount  on  convertible
debentures  was recorded  against  additional  paid in capital of $315,000 which
will be  amortized  over  the life of the  debentures.  The  total  subscription
includes an aggregate of 2,142,858  five-year warrants  exercisable for the same
number of common shares at $0.50 per share.  An aggregate of  25,974,026  common
shares have been  registered and are available for issue to potentially  convert
the full $2,000,000.

On July 31, 2006 the company issued $500,000 in convertible  debentures at a 40%
discount.  A discount on convertible  debentures was recorded against additional
paid in  capital  of  $333,333  which  will be  amortized  over  the life of the
debentures.  Common stock registered to convert the full $500,000 was calculated
at  69,444,444  shares  using the current  three day average  price per share of
$0.012 less a 40% discount.

On May 31, 2006 the Company issued  290,000 common shares by converting  $33,031
of debenture debt and issued 33,334 common shares for consulting services valued
at $3,333.

The Company  converted  $52,607 debt into  5,780,000  common  shares  during the
period ended November 30, 2006.

The Company issued 61,000 common shares for cash of $25,000 and the subscription
deposit of $36,000 received in May 2005 in a private placement.

The Company issued 683,534 common shares for services valued at $19,835.


                                      F-11
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Warrants

With the $1,955,000  worth of convertible  debentures  described above 2,000,000
five-year  warrants for commons stock exercisable at $0.50 per share were issued
and with the $500,000 convertible  debentures 20,000,000 seven-year warrants for
common  shares  exercisable  at $0.05 per share were  issued.  Both  exercisable
prices are "out of the money" therefore no discount has been recorded.


NOTE 7.  Interest Expense

Interest  expense for the years ended  August 31, 2006 and 2005 is $126,810  and
$77,923 respectively.

NOTE 8.  Income Taxes

The Company  provides for income taxes under  Statement of Financial  Accounting
Standards No. 109, Accounting for Income Taxes. SFAS No. 109 requires the use of
an asset and  liability  approach in accounting  for income taxes.  Deferred tax
assets  and  liabilities  are  recorded  based on the  differences  between  the
financial statement and tax bases of assets and liabilities and the tax rates in
effect when these differences are expected to reverse.

SFAS No. 109  requires  the  reduction  of  deferred  tax assets by a  valuation
allowance if, based on the weight of available evidence,  it is more likely than
not that some or all of the  deferred  tax assets will not be  realized.  In the
Company's opinion, it is uncertain whether they will generate sufficient taxable
income in the future to fully utilize the net deferred tax asset. Accordingly, a
valuation allowance equal to the deferred tax asset has been recorded. The total
deferred tax asset is calculated by  multiplying a 15% estimated tax rate by the
items making up the deferred tax account. For the Company only the Net Operating
Loss (NOL) was available for a tax asset.

The provision for income taxes is comprised of the net changes in deferred taxes
less the valuation account plus the current taxes payable.

At August 31,  2006,  federal  income  tax net  operating  loss  carry  forwards
("NOL's")  which were  available to the Company were the following with the year
in which they expire.

        Year (8/31)                             Amount          Expires

        1996                                    $2,104             2011
        1997                                     9,265             2012
        1998                                    26,317             2013
        1999                                    21,074             2019
        2000                                    50,619             2020
        2001                                    21,675             2020
        2002                                   319,424             2022
        2003                                    45,381             2023
        2005                                   105,366             2025
        2006                                 1,276,546             2026
                                            ----------
        Total                               $1,877,771
                                            ==========


                                      F-12
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Were the NOL tax asset to be recorded at August 31, 2006 it would be a long-term
asset of $281,666. Continued profitability by the Company will be a major factor
in the valuation account being removed and the recording of this asset.

NOTE 9.  Merger with Calvert

On February 24, 2004 the Company  merged with Calvert  Corporation,  an inactive
Nevada  Corporation.  This  was a  recapitalization  accounted  for  as a  stock
exchange  reverse  acquisition with Calvert being the surviving legal entity and
Southern California becoming the surviving historical entity.  Before the merger
Southern  California had 100 shares of common stock issued and outstanding  that
were owned by a single shareholder. As part of the merger Calvert issued to this
shareholder  189,800 shares of series A preferred stock and 3,000,000  shares of
common stock in exchange for all the shares (100) of Southern California.  These
share totals have been retroactively applied to previous years.

As part of the merger 45,000 shares of preferred  stock and 1,500,000  shares of
common  stock were issued for  services  rendered.  A value of $1,545 was placed
upon these shares.

Calvert had a zero book value  prior to the merger and is shown as the  acquired
company on the statement of stockholders' equity with 520,000 shares outstanding
prior to the merger.

After the  completion of the merger the Company had  5,020,000  shares of common
stock and 234,800 shares of series A preferred stock.

NOTE  10.  The Effect Of Recently Issued Accounting  Standards

Below is a listing of the most  recent  accounting  standards  SFAS  150-154 and
their effect on the Company.

Statement  No.  150   Accounting   for  Certain   Financial   Instruments   with
Characteristics of both Liabilities and Equity (Issued 5/03)

This Statement  establishes  standards for how an issuer classifies and measures
certain  financial  instruments  with  characteristics  of both  liabilities and
equity.

Statement No. 151 Inventory  Costs-an amendment of ARB No. 43, Chapter 4 (Issued
11/04)

This statement amends the guidance in ARB No. 43, Chapter 4, Inventory  Pricing,
to  clarify  the  accounting  for  abnormal  amounts of idle  facility  expense,
freight, handling costs, and wasted material (spoilage).  Paragraph 5 of ARB 43,
Chapter 4, previously  stated that "...under some  circumstances,  items such as
idle facility expense,  excessive spoilage, double freight and re-handling costs
may be so abnormal ass to require treatment as current period  charges...." This
Statement  requires  that those items be recognized  as  current-period  charges
regardless  of whether they meet the  criterion of "so  abnormal."  In addition,
this Statement  requires that  allocation of fixed  production  overheads to the
costs  of  conversion  be  based  on  the  normal  capacity  of  the  production
facilities.


                                      F-13
<PAGE>

                               SEW CAL LOGO, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                     (November 30, 2006 and August 31, 2006)

Statement  No. 152  Accounting  for Real Estate  Time-Sharing  Transactions  (an
amendment of FASB Statements No. 66 and 67)

This  Statement  amends  FASB  Statement  No. 66,  Accounting  for Sales of Real
Estate,  to reference the financial  accounting and reporting  guidance for real
estate time-sharing transactions that is provided in AICPA Statement of Position
(SOP) 04-2, Accounting for Real Estate Time-Sharing Transactions.

This  Statement  also amends FASB  Statement  No. 67,  Accounting  for Costs and
Initial Rental Operations of Real Estate Projects,  states that the guidance for
(a) incidental  operations  and (b) costs incurred to sell real estate  projects
does not apply to real estate  time-sharing  transactions.  The  accounting  for
those operations and costs is subject to the guidance in SOP 04-2.

Statement No. 153 Exchanges of Non-monetary  Assets (an amendment of APB Opinion
No. 29)

The guidance in APB Opinion No. 29, Accounting for Non-monetary Transactions, is
based on the principle that exchanges of non-monetary  assets should be measured
based on the fair value of the assets  exchanged.  The guidance in that Opinion,
however,  includes  certain  exceptions to the principle.  This Statement amends
Opinion 29 to eliminate  the  exception  for  non-monetary  exchanges of similar
productive  assts and  replaces it with a general  exception  for  exchanges  of
non-monetary  assets  that do not  have  commercial  substance.  A  non-monetary
exchange  has  commercial  substance  if the future cash flows of the entity are
expected to change significantly as a result of the exchange.

Statement No. 154 - Accounting  Changes and Error  Corrections (a replacement of
APB Opinion No. 20 and FASB Statement No. 3)

This  Statement  replaces  APB  Opinion  No. 20,  Accounting  Changes,  and FASB
Statement No. 3, Reporting  Accounting Changes in Interim Financial  Statements,
and changes the requirements for the accounting for and reporting of a change in
accounting  principle.  This  Statement  applies  to all  voluntary  changes  in
accounting  principle.  It also  applies to changes  required  by an  accounting
pronouncement  in the unusual instance that the  pronouncement  does not include
specific  transition   provisions.   When  a  pronouncement   includes  specific
transition provisions, those provisions should be followed.

The adoption of these new  Statements is not expected to have a material  effect
on the Company's  current  financial  position,  results or operations,  or cash
flows.


                                      F-14
<PAGE>

MOORE & ASSOCIATES, CHARTERED
  ACCOUNTANTS AND ADVISORS
      PCAOB REGISTERED


             Report of Independent Registered Public Accounting Firm

To the Board of Directors
Sew Cal Logo, Inc.


We have reviewed the  accompanying  balance sheet of Sew Cal Logo as of November
30, 2006, and the related statements of operations,  retained earnings, and cash
flows for the three months then ended,  in accordance  with the standards of the
Public Company  Accounting  Oversight  Board (United  States).  All  information
included in these financial  statements is the  representation of the management
of Sew Cal Logo, Inc.

A review consists  principally of inquiries of company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the financial  statements in order for them to be in conformity  with
generally accepted accounting principles.

The  accompanying  financial  statements  have been  prepared  assuming that the
company  will  continue as a going  concern.  As  discussed  in the notes to the
financial  statements,  the Company has  accumulated a loss during the last five
years of operations.  This raises  substantial doubt about the Company's ability
to continue as a going  concern.  The  financial  statements  do not include any
adjustments that might result from this uncertainty.


/s/ Moore & Associates, Chartered


Moore & Associates, Chartered
Las Vegas, Nevada
January 11, 2007



             2675 S. JONES BLVD. SUITE 109, LAS VEGAS, NEVADA 89146
                        (702) 253-7511 Fax: (702)253-7501

                                      F-15
<PAGE>

                               SEW CAL LOGO, INC.
                                 BALANCE SHEETS

                              Results of Operations

Total revenue was $566,033 for the quarter  ended  November 30, 2006 as compared
to  $654,657for  the quarter ended November 30, 2005, a net decrease of $88,624.
The net  decrease  is  primarily  due to loss of private  label  business as the
market for headwear manufacturing  continued moving to Chinese imports.  Officer
and Administrative  Compensation was $106,343 for the quarter ended November 30,
2006 as compared  to $55,985 for the quarter  ended  November  30,  2005,  a net
increase of $50,358.  The net increase is due to the addition of  administrative
staff and  scheduled  increases  in  officer  compensation.  Total  Assets  were
$1,310,191  at November 30, 2006 as compared to $1,668,092 at August 31, 2006, a
net  decrease  of  $357,901.  The  net  decrease  was  primarily  due  increased
investment, legal expenses, and advertising in development of our trademarks and
branding of our own apparel line.


                                Plan of Operation

In 2005 we acquired  the rights to a branded  line of Surf and Sports Wear items
named Pipeline  Posse. We have developed the necessary  relationships,  executed
exclusive  marketing and advertising  programs with some of the top names in the
Surfing  World,  designed an initial line of related  surf and sports  clothing,
created and  activated  an on-line  retail  store for  Pipeline  Posse,  and are
planning an early 2007 launch of these products into selected retail stores.  We
are currently in the process of developing  our  comprehensive  business plan to
include branded equipment,  film and television  projects,  sports equipment and
accessories,  as well as brand  endorsement  for  several  major  categories  of
products related to the action sports and youth markets.

Private Labeling

Domestic  headwear  suppliers  have  been  drastically  reduced  as a result  of
increased lower pieced imports.  Suppliers  remaining in this business each have
their own niche in the market place.  Few remain in California  and our customer
base is  increasing  somewhat  with  this  reduced  competition.  There are U.S.
suppliers located in the Midwest and on the East Coast. They seldom  manufacture
for our  market  and deal  mainly  in the golf,  major  league  baseball  and ad
specialty-type businesses.

Overseas  suppliers  are a  different  situation.  They can  produce  a cap at a
fraction of the price we can and we are  constantly  in  competition  with them.
They can copy all that we create,  but if they are asked to create on their own,
they may fall short,  as our industry is constantly  changing by way of fabrics,
styles, and method of decorating. Overseas suppliers are in the business of mass
production for export.  Our current customers use overseas suppliers for some of
their  "bread and  butter"  styles but tend to use U.S.  suppliers  for the more
cutting edge products. However, overseas manufacturers require considerably more
time in creating new products because of their inability to provide face-to-face
contact with designers and domestic  customers.  They also require  greater lead
times for shipping and cannot make changes overnight  (literally) when required.
The  logistics  also may not allow them to be  immediately  aware of  developing
trends,  forecasting  them, and then developing an appropriate  finished product
instantly.


                                      F-16
<PAGE>

At  present,  the  youth  oriented  "action  sports"  lifestyle-clothing  market
(surf/skate/snow)  is led by labels such as  "Quiksilver"  of Huntington  Beach,
California, representing in excess of $1 billion in annual sales. Also, "O'Neill
Sportswear",  "Rip Curl",  "Lost",  "Billabong",  "Volcom",  and numerous  other
Orange County,  California-based  clothing companies service this market and can
be considered  competition  for our new brands.  We believe that teens and young
adults are looking for something new and trendy to identify with, purchase,  and
wear.

Although we believe we now have the  experience  and resources to take advantage
of and  fulfill the needs of this market and we have  already  made  significant
steps towards doing so, the youth,  active and sports apparel industry is highly
competitive,  with many of our competitors  having greater name  recognition and
resources  than we do.  Many  of our  competitors  are  well  established,  have
longer-standing   relationships  with  customers  and  suppliers,  greater  name
recognition  and greater  financial,  technical  and marketing  resources.  As a
result,  these  competitors  may be able to respond more quickly and effectively
than we can to new or changing opportunities or customer requirements.  Existing
or future competitors may develop or offer products that provide price, service,
number or other  advantages over those we intend to offer. If we fail to compete
successfully  against  current or future  competitors  with  respect to these or
other factors, our business,  financial condition, and results of operations may
be materially and adversely affected.

We currently have no market share data available for competition in these areas.
We work on each  job  through  personal  contacts  and are  frequently  the only
company contacted for the particular project.

We do not depend on any one or a few major customers.

Patents,  Trademarks,  Franchises,  Concessions,  Royalty  Agreements,  or Labor
Contracts

We recently  applied to the USTPO for the trademark  "Pipeline Posse" in several
categories.  Each of our  applications  is active and currently under review for
approval  by the USPTO  examiners  We will  continue  to assess the need for any
copyright, trademark or patent applications on an ongoing basis.

Film Wardrobe & Entertainment Related Business

Film wardrobe and related  business  remains slow as productions  continue to be
produced outside the United States.  This holds true for nearly all of the major
studios as well as  independent  filmmakers,  causing the  majority of the local
costume houses to downsize.

To counter  this trend and help  regain our lost  dollar  volume in this area we
will  continue  our  existing  strategy  of  marketing  directly  to  movie  and
television  productions  before they begin filming locally and send units out of
town on location.  Our strategy of dealing  directly  with  producers,  wardrobe
personnel,  and talent is  beginning  to pay off with  recent  orders from major
films such as "Superman Returns" and the upcoming  "American  Gangster" starring
Denzel Washington and Russell Crowe.

Corporate Sales

While corporate clients currently account for less than fifteen percent (15%) of
our business, we continue to focus on growing this area of our business over the
next year with the addition of in-house  salespeople.  Also, the addition of new
silk screening equipment has given us the capability to accept and produce large
orders of promotional  t-shirts and related items for corporate programs through
outside  sales and  advertising  organizations.  Our  salespeople  will  further
solicit  business to our existing client base via telephone and Internet as well
as to potential  new  customers  through the same means as well as through print
advertising via mailing and placement in trade  publications.  Additional  labor
has been  hired to  operate  the new  equipment  as needed  and second and third
manufacturing shifts can be added as growth requires. We have added two in-house
clerical  persons to service new inquiries and added accounts,  as well as order
finished goods for embellishment and shipping.  Current  production  capacity is
adequate to handle the anticipated increased volume.

Development of new Product Lines

We have  identified and developed an  opportunity to export the California  life
style to the rest of America and to the worldwide markets in general. Started as
an idea born in San Clemente, California, home of the premier surfing beaches in
the world, we have created a number of California Driven brands of products.
Under the California  Driven  umbrella,  several lines are being  developed with
specific target markets in mind.  Currently,  several California Driven products
are being  developed by us but they do not represent any  significant  amount of
our  current  overall  revenue.  The  California  Driven  brand  lines are being
developed as an expansion  into our own line of products to market and sell.  To
develop this market,  capital of $2,500,000 in the form a convertible  debenture
has been secured and is being  budgeted to support both current  operations  and
develop our brands of apparel and related projects.


                                      F-17
<PAGE>

The first  identified  brand line is Pipeline  Posse(TM).  Three trademarks have
been applied for and are under active review for approval by the USPTO.  We have
completed  initial  design of a line of surf wear under the  Pipeline  Posse(TM)
logo and  have  manufactured  lifestyle  oriented  goods  to  begin a sales  and
marketing campaign. The exclusive rights for Pipeline Posse(TM) were acquired on
August 15, 2005 from Braden Dias of Hawaii.  Mr. Dias is a world renowned surfer
and is under  agreement  with us to represent  Pipeline  Posse as a professional
athlete in the  development  of Surf and  Sportswear  lines.  In addition to Mr.
Dias,  several  additional  professional  Hawaiian  surfers are currently  under
agreement to represent the project and 3 support people have been hired, both in
Hawaii and California.  Clothing design is being aggressively  developed by both
in-house  personnel and  professional  independent  contractors  experienced  in
product development for the Action Sports Industry.

Contact with our target market has been  initially  established in several major
surf  publications  through  personal  interviews  with our  athletes as well as
editorials on The Pipeline Posse itself. Print and on-line advertising campaigns
have  commenced in both industry  related  magazines and websites.  We have also
published and activated PIPELINEPOSSE.COM, our website which features up to date
information on the athletes,  activities,  photo and video galleries,  an active
news blog,  related action sports links, and a fully developed online store. The
secure site and shopping capability has been recently activated to accept credit
cards and offer  shipment  of  merchandise  worldwide.  A multi-  faceted  major
advertising and marketing campaign is being budgeted and developed for launch in
early  2007 and  professional  sales  organizations  are being  interviewed  and
considered for  representation  and distribution of the brand both  domestically
and worldwide.

Additional  Action Sport related brands are being  considered and are in various
stages of development in regard to trademarks,  competition,  market  potential,
and strategy and cost. Target dates for launch have not been yet established.

This Form 10-QSB  includes  forward  looking  statements  concerning  the future
operations of the Company. This statement is for the express purpose of availing
the Company of the  protections  of such safe harbor with respect to all forward
looking  statements  contained in this Form 10-QSB. We have used forward looking
statements to discuss future plans and  strategies of the Company.  Management's
ability  to  predict  results  or the  effect  of  future  plans  is  inherently
uncertain.  Factors  that could  affect  results  include,  without  limitation,
competitive   factors,   general  economic   conditions,   customer   relations,
relationships  with  vendors,   the  interest  rate  environment,   governmental
regulation  and  supervision,   seasonality,   distribution  networks,   product
introductions,  acceptance,  technological change, changes in industry practices
and one-time  events.  These factors  should be considered  when  evaluating the
forward  looking  statements  and undue  reliance  should  not be placed on such
statements.  Should any one or more of these risks or uncertainties materialize,
or should any underlying  assumptions  prove incorrect,  actual results may vary
materially from those described herein.

Critical Accounting Policies

SewCal's financial statements and related public financial information are based
on the  application of accounting  principles  generally  accepted in the United
States ("GAAP"). GAAP requires the use of estimates; assumptions,  judgments and
subjective  interpretations of accounting  principles that have an impact on the
assets,  liabilities,  revenue and expense amounts reported. These estimates can
also affect  supplemental  information  contained  in our  external  disclosures
including information regarding contingencies,  risk and financial condition. We
believe our use if estimates and  underlying  accounting  assumptions  adhere to
GAAP and are consistently and conservatively  applied.  We base our estimates on
historical  experience  and on various other  assumptions  that we believe to be
reasonable under the  circumstances.  Actual results may differ  materially from
these  estimates  under  different  assumptions  or  conditions.  We continue to
monitor  significant  estimates  made during the  preparation  of our  financial
statements.

Our  significant  accounting  policies are summarized in Note 1 of our financial
statements. While all these significant accounting policies impact its financial
condition and results of operations, SewCal's views certain of these policies as
critical.  Policies  determined to be critical are those  policies that have the
most  significant  impact on  SewCal's  consolidated  financial  statements  and
require  management to use a greater  degree of judgment and  estimates.  Actual
results may differ from those  estimates.  Our  management  believes  that given
current  facts  and  circumstances,  it is  unlikely  that  applying  any  other
reasonable  judgments  or  estimate  methodologies  would  cause  effect  on our
consolidated  results of  operations,  financial  position or liquidity  for the
periods  presented in this report.  During the next twelve months,  we expect to
take the  following  steps in  connection  with the further  development  of our
business and the implementation of our plan of operations:

Item 3. Controls and Procedures

Under the supervision and with the  participation  of our management,  including
our principal executive officer and principal financial officer, we conducted an
evaluation of our disclosure  controls and  procedures,  as such term is defined
under  Rule  13a-15(e)  and Rule  15d-15(e)  promulgated  under  the  Securities
Exchange Act of 1934, as amended  (Exchange Act), as of February 28, 2006. Based
on this  evaluation,  our principal  executive  officer and principal  financial
officer have concluded that our disclosure controls and procedures are effective
to ensure that information required to be disclosed by us in the reports we file
or  submit  under the  Exchange  Act is  recorded,  processed,  summarized,  and
reported  within the time  periods  specified  in the  Securities  and  Exchange
Commission's  rules and forms and that our  disclosure and controls are designed
to ensure that information required to be disclosed by us in the reports that we
file or submit under the Exchange Act is  accumulated  and  communicated  to our
management,  including our principal  executive officer and principal  financial
officer, or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.

There were no changes  (including  corrective actions with regard to significant
deficiencies  or material  weaknesses)  in our internal  controls over financial
reporting  that  occurred  during  the  first  quarter  of  2006/2007  that  has
materially affected,  or is reasonably likely to materially affect, our internal
control over financial reporting.


                                      F-18
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

SEW CAL LOGO, INC. v. BURT MARTIN ARNOLD SECURITIES, INC., ET AL. Superior Court
of California for the County of Los Angeles CASE NO. BC351248

In April, 2006 we filed suit against Burt Martin Arnold  Securities  ("BMA") for
breach of contract and return of deposit.  BMA counter sued for a finder's  fee.
The case has settled and is pending dismissal.

GRAPHIC PRINTS,  INC. v. SEW CAL LOGO, INC. United States District Court for the
Central District of California CASE NO.: CV06-6427 JFW (PJWx)

In October Plaintiff  Graphic Prints Inc. filed suit asserting  infringement and
related causes of action with respect to its alleged trademarks.  Sew Cal denies
that any such activities have taken place,  disputes the validity of plaintiff's
purported trademarks and will vigorously defend the suit.

ITEM 2. CHANGES IN SECURITIES

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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

None

ITEM 5. OTHER INFORMATION


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<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS

           31.1  Certification of the Chief Executive Officer Pursuant to
                 Section 302 of the Sarbanes-Oxley Act

           31.2  Certification of the Chief Financial Officer Pursuant to
                 Section 302 of the Sarbanes-Oxley Act

           32.1  Certification of the Chief Executive Officer Pursuant to
                 Section 906 of the Sarbanes-Oxley Act

           32.2  Certification of the Chief Financial Officer Pursuant to
                 Section 906 of the Sarbanes-Oxley Act


(b) REPORTS ON FORM 8-K

None

                                   SIGNATURES

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

               Date:  January 12, 2007     By: /s/ Richard Songer
                                               ---------------------------------
                                               Richard Songer
                                               President, Director and Chie
                                               Executive Officer


                                           By: /s/ Judy Songer
                                               ---------------------------------
                                               Judy Songer
                                               Director and Chief
                                               Financial Officer

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