| Delaware                                                                               |   | 13-2622429                                                |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
| (State                or Other Jurisdictionof                Incorporation or Organization) |   | (IRS                EmployerIdentification                No.) |

----

ITEM      1.      FINANCIAL STATEMENTS 

----

----

----

| TABLE                  OF CONTENTS                                                                                                                                              |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                            |   |   |   |   |
| Interim                  Balance Sheets at June 30, 2007 (Unaudited) and December 31,                  2006                                                                |   |   | 1      |   |
|                                                                                                                                                                            |   |   |   |   |
| Interim                  Statements of Changes in Stockholders’ Deficiency for the Six Months Ended                  June 30, 2007 (Unaudited)                       |   |   | 2      |   |
|                                                                                                                                                                            |   |   |   |   |
| Interim                  Statements of Operations and Comprehensive Income for the Six Months                  Ended                  June 30, 2007 and 2006 (Unaudited)   |   |   | 3      |   |
|                                                                                                                                                                            |   |   |   |   |
| Interim                  Statements of Operations and Comprehensive Income for the Three                  Months                  Ended June 30, 2007 and 2006 (Unaudited) |   |   | 4      |   |
|                                                                                                                                                                            |   |   |   |   |
| Interim                  Statements of Cash Flows for the Six Months Ended June 30, 2007 and                  2006 (Unaudited)                                             |   |   | 5      |   |
|                                                                                                                                                                            |   |   |   |   |
| Condensed                  Notes to the Interim Financial Statements                                                                                                            |   |   | 6-8    |   |

----

|                                                                                                                                                                                                                                                                                                        |   | (Unaudited)                  June 30, 2007  |        | December 31,                  2006  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-------------|-----------------------------------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                 |   |                                                  |        |                                          |   |   |   |
| Current                  Assets                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                   |   | $                                                     | 106,401     |                                          | $      | 2,968 |   |
| Accounts                  Receivable                                                                                                                                                                                                                                                                   |   |                                                  | 17,629      |                                          |   | 9,515 |   |
| Other                  receivable                                                                                                                                                                                                                                                                      |   |                                                  | 185,780     |                                          |   | 77,942 |   |
| Inventories                                                                                                                                                                                                                                                                                            |   |                                                  | 25,928      |                                          |   | 39,564 |   |
| Total                  Current Assets                                                                                                                                                                                                                                                                  |   |                                                  | 335,738     |                                          | $      | 129,989 |   |
|                                                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Long                  Term Assets                                                                                                                                                                                                                                                                      |   |                                                  | 244,770     |                                          |   | 258,975 |   |
| Taxes                  Recoverable                                                                                                                                                                                                                                                                     |   |                                                  | 500         |                                          |   | 500 |   |
| Long                  term deposits                                                                                                                                                                                                                                                                    |   |                                                  | 245,270     |                                          |   | 259,475 |   |
|                                                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Property,                  Plant and Equipment - Net of Accumulated Depreciation                                                                                                                                                                                                                       |   |                                                  | 1,979,622   |                                          |   | 1,862,122 |   |
|                                                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Total                  Assets                                                                                                                                                                                                                                                                          |   | $                                                     | 2,560,630   |                                          | $      | 2,251,586 |   |
| LIABILITIES                  AND STOCKHOLDERS’ DEFICIENCY                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Current                  Liabilities                                                                                                                                                                                                                                                                   |   |                                                  |        |                                          |   |   |   |
| Short                  term loans                                                                                                                                                                                                                                                                      |   | $                                                     | 1,898,811   |                                          | $      | 1,646,564 |   |
| Current                  maturities of long-term loans and notes                                                                                                                                                                                                                                       |   |                                                  | 1,344,693   |                                          |   | 782,153 |   |
| Accounts                  Payable                                                                                                                                                                                                                                                                      |   |                                                  | 380,617     |                                          |   | 321,272 |   |
| Tax                  institutions                                                                                                                                                                                                                                                                      |   |                                                  | 2,168,551   |                                          |   | 1,915,816 |   |
| Other                  payables                                                                                                                                                                                                                                                                        |   |                                                  | 2,007,554   |                                          |   | 2,020,413 |   |
| Total                  Current Liabilities                                                                                                                                                                                                                                                             |   |                                                  | 7,800,226   |                                          |   | 6,686,218 |   |
| Long                  Term Liabilities                                                                                                                                                                                                                                                                 |   |                                                  |        |                                          |   |   |   |
| Long                  term bank loans                                                                                                                                                                                                                                                                  |   |                                                  | 63,563      |                                          |   | 253,374 |   |
| Allowance                  for severance pay                                                                                                                                                                                                                                                           |   |                                                  | 126,096     |                                          |   | 104,497 |   |
| Convertible                  notes                                                                                                                                                                                                                                                                     |   |                                                  | 11,833,019  |                                          |   | 10,823,425 |   |
| Total                  Long Term Liabilities                                                                                                                                                                                                                                                           |   |                                                  | 12,022,678  |                                          |   | 11,181,296 |   |
|                                                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Total                  Liabilities                                                                                                                                                                                                                                                                     |   |                                                  | 19,822,904  |                                          |   | 17,867,514 |   |
|                                                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Stockholders’                  Deficiency                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| As                  of June 30, 2007 and December 31, 2006 - Common shares of $                  0.001 par value; Authorized: 400,000,000 shares; As                  of June 30, 2007 - Issued and outstanding: 127,900,000; As                  of December 31, 2005 - Issued and outstanding 100,000,000 |   |                                                  | 127,900     |                                          |   | 104,250 |   |
| Additional                  Paid-In Capital                                                                                                                                                                                                                                                            |   |                                                  | 1,853,856   |                                          |   | 1,199,756 |   |
| Accumulated                  Deficit                                                                                                                                                                                                                                                                   |   |                                                  | (18,478,499 | )                                             |   | (16,540,299 | ) |
| Accumulated                  Other Comprehensive Loss                                                                                                                                                                                                                                                  |   |                                                  | (765,531    | )                                             |   | (379,635 | ) |
| Total                  Stockholders’ Deficiency                                                                                                                                                                                                                                                  |   |                                                  | (17,262,274 | )                                             |   | (15,615,928 | ) |
|                                                                                                                                                                                                                                                                                                        |   |                                                  |        |                                          |   |   |   |
| Total                  Liabilities and Stockholders’ Deficit                                                                                                                                                                                                                                     |   | $                                                     | 2,560,630   |                                          | $      | 2,251,586 |   |

----

|                                                                       |   | Number                  of Shares  |        | Common                  Stock |   | Additional                  Paid-In Capital  |   | Accumulated                  Deficit  |      | Accumulated                  Other Comprehensive Income (Loss)  |   | Total                  Stockholders’ Deficiency  |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------|-------------|-------------------------------|--------|---------------------------------------------------|--------|--------------------------------------------|-----------|----------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|                                                                       |   |                                    |        |                          |   |                                              |   |                                       |      |                                                                 |   |                                                        |   |   |   |   |   |   |   |
| Balance                  December 31, 2005                            |   |                                    | 100,000,000 |                          | $      | 100,000                                           |   | $                                          | 371,381   |                                                                 | $      | (12,962,775                                                 | )      | $ | (177,983 | ) | $ | (12,669,377 | ) |
| Issuance                  of shares to service provider               |   |                                    | 250,000     |                          |   | 250                                               |   |                                       | 32,375    |                                                                 |   | -                                                           |   |   | - |   |   | 32,625 |   |
| Issuance                  of shares to parent company                 |   |                                    | 4,000,000   |                          |   | 4,000                                             |   |                                       | 796,000   |                                                                 |   |                                                        |   |   |   |   |   | 800,000 |   |
| Net                  loss for the period                         |   |                                    | -           |                          |   | -                                                 |   |                                       | -         |                                                                 |   | (3,577,524                                                  | )      |   | - |   |   | (3,577,524 | ) |
| Other                  Comprehensive Loss for the Period                   |   |                                    | -           |                          |   | -                                                 |   |                                       | -         |                                                                 |   | -                                                           |   |   | (201,652 | ) |   | (201,652 | ) |
| Balance                  December 31, 2006                                 |   |                                    | 104,250,000 |                          | $      | 104,250                                           |   | $                                          | 1,199,756 |                                                                 | $      | (16,540,299                                                 | )      | $ | (379,635 | ) | $ | (15,615,928 | ) |
| Issuance                  of shares to related parties                |   |                                    | 4,150,000   |                          |   | 4,150                                             |   |                                       | 348,600   |                                                                 |   | -                                                           |   |   | - |   |   | 352,750 |   |
| Issuance                  of shares and warrants to service provider  |   |                                    | 19,500,000  |                          |   | 19,500                                            |   |                                       | 305,500   |                                                                 |   | -                                                           |   |   | - |   |   | 325,000 |   |
| Net                  loss for the period                              |   |                                    | -           |                          |   | -                                                 |   |                                       | -         |                                                                 |   | (1,938,200                                                  | )      |   | - |   |   | (1,938,200 | ) |
| Other                  Comprehensive Loss for the Period                   |   |                                    | -           |                          |   | -                                                 |   |                                       | -         |                                                                 |   | -                                                           |   |   | (385,896 | ) |   | (385,896 | ) |
| Balance                  June 30, 2007 (Unaudited)                    |   |                                    | 127,900,000 |                          | $      | 127,900                                           |   | $                                          | 1,853,856 |                                                                 | $      | (18,478,499                                                 | )      | $ | (765,531 | ) | $ | (17,262,274 | ) |
|                                                                       |   |                                    |        |                          |   |                                              |   |                                       |      |                                                                 |   |                                                        |   |   |   |   |   |   |   |

----

| Six                  Months Ended June 30,                          |   | 2007  |        | 2006  |   |
|--------------------------------------------------------------------------|--------|------------|-------------|------------|--------|
|                                                                     |   |       |        |       |   |   |   |
| Revenue                  from Coffee Production                     |   | $          | 75,005      |       | $      | 255,096 |   |
| Operating                  Expenses                                      |   |       |        |       |   |   |   |
| Cost                  of revenues                                        |   |       | 530,689     |       |   | 341,747 |   |
| General                  and administrative expenses                     |   |       | 681,363     |       |   | 835,864 |   |
| Total                  Operating Expenses                                |   |       | 1,212,052   |       |   | 1,177,611 |   |
|                                                                     |   |       |        |       |   |   |   |
| Loss                  From operations                                    |   |       | (1,137,047  | )          |   | (922,515 | ) |
| Financial                  Expenses, net                                 |   |       | (761,533    | )          |   | (685,390 | ) |
| Other                  Expenses                                          |   |       | (39,620     | )          |   | (52,505 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Loss                  for the period                                     |   |       | (1,938,200  | )          |   | (1,660,410 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Other                  Comprehensive Loss                                |   |       |        |       |   |   |   |
| Foreign                  Currency Translation                            |   |       | (385,896    | )          |   | (156,470 | ) |
| Comprehensive                  Loss for the Period                       |   | $          | (2,324,096  | )          | $      | (1,816,880 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Loss                  Per Share - Basic and Diluted                 |   | $          | (0.02       | )          | $      | (0.02 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Weighted                  Average Shares Outstanding - Basic and Diluted |   |       | 107,604,167 |       |   | 100,104,167 |   |

----

| Three                  Months Ended June 30,                        |   | 2007  |        | 2006  |   |
|--------------------------------------------------------------------------|--------|------------|-------------|------------|--------|
|                                                                     |   |       |        |       |   |   |   |
| Revenue                  from Coffee Production                          |   | $          | 19,217      |       | $      | 72,237 |   |
| Operating                  Expenses                                      |   |       |        |       |   |   |   |
| Cost                  of revenues                                        |   |       | 413,345     |       |   | 87,923 |   |
| General                  and administrative expenses                     |   |       | 313,582     |       |   | 367,989 |   |
| Total                  Operating Expenses                                |   |       | 726,927     |       |   | 455,912 |   |
|                                                                     |   |       |        |       |   |   |   |
| Loss                  From operations                                    |   |       | (707,710    | )          |   | (383,675 | ) |
| Financial                  Expenses, net                                 |   |       | (380,620    | )          |   | (483,049 | ) |
| Other                  Expenses                                          |   |       | (31,525     | )          |   | (52,505 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Loss                  for the period                                     |   |       | (1,119,855  | )          |   | (919,229 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Other                  Comprehensive Loss                                |   |       |        |       |   |   |   |
| Foreign                  Currency Translation                            |   |       | (257,518    | )          |   | (11,528 | ) |
| Comprehensive                  Loss for the Period                       |   | $          | (1,377,373  | )          | $      | (930,757 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Loss                  Per Share - Basic and Diluted                      |   | $          | (0.01       | )          | $      | (0.01 | ) |
|                                                                     |   |       |        |       |   |   |   |
| Weighted                  Average Shares Outstanding - Basic and Diluted |   |       | 110,958,333 |       |   | 100,125,000 |   |

----

| Six                  Months Ended June 30,                                                                                  |   | 2007  |       | 2006  |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------|------------|------------|--------|
|                                                                                                                             |   |       |       |       |   |   |   |
| Cash                  Flows from Operating Activities                                                                            |   |       |       |       |   |   |   |
| Net                  Income (Loss) For the Period                                                                                |   | $          | (1,938,200 | )          | $      | (1,660,410 | ) |
| Adjustments                  To Reconcile Net Income For The Period To Net Cash Flows From Operating                  Activities |   |       |       |       |   |   |   |
| Depreciation                                                                                                                     |   |       | 75,249     |       |   | 73,251 |   |
| Deferred                  Income Taxes                                                                                           |   |       | 85,619     |       |   | 33,703 |   |
| Provision                  for Contingencies                                                                                     |   |       | -          |       |   | 9,862 |   |
| Allowance                  for severance pay                                                                                     |   |       | 9,973      |       |   | - |   |
| Interest                  due to convertible notes and bank loans                                                                |   |       | 587,057    |       |   | 788,150 |   |
| Loss                  from disposal of property, plant and Equipment                                                             |   |       | 1,692      |       |   | - |   |
| Changes                  in Operating Assets and Liabilities                                                                     |   |       |       |       |   |   |   |
| Accounts                  Receivable                                                                                             |   |       | (6,715     | )          |   | (22,967 | ) |
| Inventories                                                                                                                      |   |       | 16,829     |       |   | (11,477 | ) |
| Other                  receivable                                                                                                |   |       | (94,319    | )          |   | (44,217 | ) |
| Taxes                  Recoverable                                                                                               |   |       | --         |       |   | (8,398 | ) |
| Accounts                  Payable                                                                                                |   |       | 39,263     |       |   | 152,570 |   |
| Other                  Payable                                                                                                   |   |       | 242,936    |       |   | 469,239 |   |
| Net                  Cash Flows from Operating Activities                                                                        |   |       | (980,616   | )          |   | (220,694 | ) |
|                                                                                                                             |   |       |       |       |   |   |   |
| Cash                  Flows from Investing Activities                                                                            |   |       |       |       |   |   |   |
| Acquisition                  of Property, Plant and Equipment                                                                    |   |       | (1,506     | )          |   | -- |   |
| Net                  Cash Flows from Investing Activities                                                                        |   |       | (1,506     | )          |   | -- |   |
|                                                                                                                             |   |       |       |       |   |   |   |
| Cash                  Flows from Financing Activities                                                                            |   |       |       |       |   |   |   |
| Repayment                  of Debt                                                                                               |   |       | (31,382    | )          |   | (214,173 | ) |
| Loan                  from Related Party                                                                                         |   |       | 83,111     |       |   | 206,818 |   |
| Proceeds                  from issuance of shares                                                                                |   |       | 325,000    |       |   | -- |   |
| Proceeds                  from issuance of convertible note                                                                      |   |       | 690,000    |       |   | 150,000 |   |
| Net                  Cash Flows from Financing Activities                                                                        |   |       | 1,066,729  |       |   | 142,645 |   |
|                                                                                                                             |   |       |       |       |   |   |   |
| Increase                  (decrease) in cash and cash equivalents                                                                |   |       | 84,607     |       |   | (78,049 | ) |
| Effect                  of Exchange Rate Changes of Cash                                                                         |   |       | 18,826     |       |   | 990 |   |
| Net                  Change in Cash                                                                                              |   |       | 103,433    |       |   | (77,059 | ) |
| Cash                  - Beginning of Period                                                                                      |   |       | 2,968      |       |   | 84,217 |   |
| Cash                  - End of Period                                                                                            |   | $          | 106,401    |       | $      | 7,158 |   |

----

----

|   | a.                  | On                January 4, 2007, the Board of Directors authorized the issuance of                3,150,000 shares of the Company’s Common Stock to two of the Company’s                officers in consideration for their services. The shares were issued                on                January 18, 2007. Based on the closing price of the Company’s Common Stock                par value $0.001 per share (the “Common Stock”) as recorded on the OTC                Bulletin Board at the Issuance Date the value recorded in for the                services                was estimated to be $267,750. |
|--------|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.                  | On                January 10, 2007, the Company issued a convertible promissory note                in the                principal amount of $150,000 to a third party (the “January Note”). The                note bears annual interest of 10% and matures after two years. At                any time                after the first six months, the holder has the right to convert the                principal and interest due into fully paid and non-assessable shares                of                the Company’s Common Stock. The number of shares of Common Stock to be                issued upon such conversion shall be equal to the quotient obtained                by                dividing the entire principal amount plus accrued interest (if any)                by                0.25. |
|--------|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c.                  | On                August 20, 2006, the Board of Directors authorized the issuance of                1,000,000 shares of the Company’s Common Stock to two of the Company’s                shareholders in consideration for their personal guarantees to two                banks                in Brazil in connection with loans received from those banks by BDFC.                The                shares were issued on January 18, 2007. Based on the closing price                of the                Company’s Common Stock as recorded on the OTC Bulletin Board at the                Issuance Date, the value of the guarantees was estimated to be $85,000. |
|--------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d.                  | On                January 31, 2007, the Company issued a convertible promissory note                in the                principal amount of $100,000 to a third party. The note bears annual                interest of 11% and matures after one year. At any time after the                first                six months, the holder has the right to convert the principal and                interest                due into fully paid and non-assessable shares of the Company’s Common                Stock. The number of shares of Common Stock to be issued upon such                conversion shall be equal to the quotient obtained by dividing the                entire                principal amount plus accrued interest (if any) by 0.35. |
|--------|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | On                February 21, 2007, the Company issued a promissory note in the principal                amount of $100,000 to a third party. The note bears annual interest                of                10.5% and matures on January 30, 2008. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | On                March 13, 2007, the Company issued a promissory note in the principal                amount of $120,000 to a third party. The note bears annual interest                of 9%                and matures after one year. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | h.                  | On                March 19, 2007, the Company issued a promissory note in the principal                amount of $100,000 to a third party. The note bears annual interest                of 10                % and matures after two years. At any time after the first six months,                the                holder has the right to convert the principal and interest due into                fully                paid and non-assessable shares of the Company’s Common Stock. |
|--------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | On                April 27, 2007, the Company issued a non-convertible promissory note                in                the principal amount of $120,000 to a third party. The note bears                annual                interest of 6% and matures after one year. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j.                  | On                May 29, 2007, the Company issued a promissory note in the principal                amount                of $100,000 to a third party. The note bears annual interest of 11%                and                matures after one year. At any time after the first six months, the                holder                has the right to convert the principal and interest due into fully                paid                and non-assessable shares of the Company’s Common                Stock. |
|--------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k.                  | On                June 13, 2007, the Company issued to two affiliated investors 19,500,000                shares of the Company’s Common Stock and warrants to purchase 19,500,000                shares of the Company’s Common Stock at an exercise price of $0.10 per                share. In consideration therefore the company received $325,000 in                cash.                The fair value of the warrants totaled to $657,367, estimated by                Black                Scholes Model with a risk less rate of 4.36% and volatility of 152%.                The                fair value of the warrants was limited to the proceeds recieved in                the                amount of $325,000. As of June 30, 2007, the warrants were not exercised. |
|--------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.                    | On                    May 6, 2007, the Company entered into a note amendment agreement                    (the                    "Amendment") with Livorno Investments S.A. ("Livorno") amending                    the terms                    of the Promissory Note dated July 8, 2005 (the "Note") of the                    Company in                    favor of Livorno in the amount of $10,000,000 with interest accruing                    thereon at a rate of eight percent per annum. The Note contained                    a                    conversion provision allowing Livorno, at its sole option, to                    convert some                    or all of the principal and interest owing on the Note into shares                    of the                    Company at the rate of $0.20 per share. The Amendment provides                    that,                    effective April 15, 2007, Livorno may elect to convert some or                    all of the                    principal and interest owing on the Note into shares of the company                    at the                    rate of $0.04 per share. All other terms of the Note remain in                    full force                    and effect and are enforceable in accordance with their terms. |
|--------|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

On      July      10, 2007, the Company signed a non binding letter of intent to acquire two      Brazilian companies- Leite Canaan Industria e Comercio Ltda - a manufacture      of      16,800 kg a day (or 200,000 liters a day) of milk powder and Geskan Industria      e      Comercio Ltda a coffee service distribution company. The final agreement is      expected to be signed prior to December 31, 2007. 

----

----

----

----

----

----

----

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

----

ITEM 3.   DEFAULTS      UPON SENIOR SECURITIES. 

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

ITEM 5.   OTHER      INFORMATION 

On      July      10, 2007, the Company signed a non binding letter of intent to acquire two      Brazilian companies- Leite Canaan Industria e Comercio Ltda - a manufacture      of      16,800 kg a day (or 200,000 liters a day) of milk powder and Geskan Industria      e      Comercio Ltda a coffee service distribution company. The final agreement is      expected to be signed prior to December 31, 2007. 

----

| Number |   | Title                                                                                                                                                                                                                      |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   |   | Material                Contract:                Amendment to Promissory Note and related Notice of Conversion                                                                                                             |
|   |   |                                                                                                                                                                                                                       |
| 31.1   |   | Certification                  by Yaron Arbell, Chief Executive Officer, Pursuant to Section 302                  of the                  Sarbanes-Oxley Act of 2002                                                       |
|   |   |                                                                                                                                                                                                                       |
| 31.2   |   | Certification                  by Daniel Ollech , Chief Financial Officer, Pursuant to Section                  302 of the                  Sarbanes-Oxley Act of 2002                                                     |
|   |   |                                                                                                                                                                                                                       |
| 32.1   |   | Certification                  by Yaron Arbell, Chief Executive Officer, Pursuant to 18 U.S.C.                  Section 1350, as Adopted Pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002   |
|   |   |                                                                                                                                                                                                                       |
| 32.1   |   | Certification                  by Daniel Ollech , Chief Financial Officer, Pursuant to 18 U.S.C.                  Section 1350, as Adopted Pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002 |

----

|         |                                          |                                |
|--------------|-----------------------------------------------|-------------------------------------|
|         | B&D              FOOD,              CORP. |
|    |                                     |                           |
|         | By:                                 | /s/              Yaron Arbell  |
|         | Yaron              Arbell                     |
|         | Chief              Executive Officer     |

----