- 2 -  UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period endedJuly31, 2007 oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE EXCHANGE ACT For the transition period from _________ to ________ Commission File No.000-52452 DUSSAULT APPAREL INC.(Exact name of small business issuer as specified in its charter)Nevada
        98-0513727(State or other jurisdiction of incorporation or organization)
        (I.R.S. Employer Identification No.)8010 Melrose Avenue, Los Angeles California, 90046-7010(Address of principal executive offices)(866) 841 - 2010(Issuers telephone number)N/A(Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports 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 [   ]   Nox Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [
        ]
        Nox APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after distribution of securities under a plan confirmed by a court.YesoNoo APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuers classes of common equity as of the latest practicable date: As of September 18, 2007, there were 49,000,000 shares of common stock, par value $0.001, outstanding. Transitional Small Business Disclosure Format (Check One):
        Yeso
        Nox   CW1418789.1   PART I  -  FINANCIAL INFORMATION  DUSSAULT APPAREL INC.(A Development Stage Company)Balance SheetJuly 31, 2007
        
        October 31, 2006(Unaudited)ASSETSCurrent AssetsCash
        
        
        $        147,516
        
        $           43,846Inventory
        
        $     1,305,076
        
        -Total Current Assets
        $     1,452,592
        
        $           43,846Total Assets
        1,452,592
        
        43,846LIABILITIES AND SHAREHOLDERS' EQUITYCurrent LiabilitiesPayroll Payable
        
        $            8,586
        
        $                    -Payroll Taxes Payable
        6,743
        
        -Subscription Received
        1,478,225
        
        -Total Current Liabilities
        1,493,554
        
        -Total Liabilities
        1,493,554
        
        -Shareholders' EquityCommon Stock, $0.001 par value;1,050,000,000 shares authorized;49,000,000 shares issued and outstanding.
        49,000
        
        3,050Additional Paid-In Capital
        6,000
        
        42,950Deficit accumulated during the development stage
        (95,962)
        
        (2,154)Total Shareholders' Equity
        (40,962)
        
        43,846Total Liabilities and Shareholders' Equity
        $     1,452,592
        
        $           43,846    CW1418789.1     - 3 -    DUSSAULT APPAREL INC.(A Development Stage Company)Statement of Operations(Unaudited)For the periodFor the three
        
        For the nine
        
        from Aug. 1 2006months ended
        
        months ended
        
        (date of inception)July 31, 2007
        
        July 31, 2007
        
        to July 31, 2007Revenue
        
        
        $                       -
        
        $                 -
        
        $                       -Cost of Sales
        
        -
        
        -
        
        -Operating Loss
        
        -
        
        -
        
        -General and Administrative Expenses:Salaries & Wages
        
        3,750
        
        3,750
        
        3,750Professional Fees
        
        -
        
        25,401
        
        27,401Other Administrative Expenses
        64,476
        
        64,657
        
        64,811Total General and Administrative Expenses
        68,226
        
        93,808
        
        95,962Net Loss
        
        
        $           (68,226)
        
        $     (93,808)
        
        $           (95,962)Loss Per Common Share:Basic and diluted
        
        $             (0.001)
        
        $       (0.002)Weighted Average Shares Outstanding:Basic and diluted
        
        49,000,000
        
        48,833,333   CW1418789.1     - 4 -    DUSSAULT APPAREL INC.(A Development Stage Company)Statement of Cash Flows(Unaudited)For the periodFor the three
        For the nine
        
        from Aug. 1 2006months ended
        months ended
        
        (date of inception) toJuly 31, 2007
        July 31, 2007
        
        July 31, 2007Cash flows from operating activities:Net loss
        
        (68,226)
        (93,808)
        
        (95,962)Adjustments to reconcile net loss to net cashused by operating activities:Change in operating assets and liabilities:Increase in Inventory
        (1,305,076)
        (1,305,076)
        
        (1,305,076)Increase in accounts payable and accruedliabilities
        
        15,329
        15,329
        
        15,329Net cash (used by) operating activities
        (1,357,973)
        (1,383,555)
        
        (1,385,709)Cash flows from financing activities:Subscriptions received
        1,478,225
        1,478,225
        
        1,478,225Common stock issued for cash
        
        9,000
        
        55,000Net cash (used by) provided byfinancing activities
        1,478,225
        1,487,225
        
        1,533,225Net increase (decrease) in cash
        120,252
        103,670
        
        147,516Cash, beginning of the period
        27,264
        43,846
        
        -Cash, end of the period
        147,516
        147,516
        
        147,516Supplemental cash flow disclosure:Interest paid
        
        
        
        
        -Taxes paid
        
        
        
        
        -   CW1418789.1     - 5 -    DUSSAULT APPAREL INC.(A Development Stage Company)Statement of Shareholders' Equity(Unaudited)DeficitAccumulated
        
        TotalCommon Stock
        
        Additional
        
        during the
        
        Shareholders'Number of
        
        
        
        Paid-In
        
        Development
        
        EquityShares
        
        Amount
        
        Capital
        
        Stage
        
        (Deficit)Inception: August 1, 2006
        -
        
        $        -
        
        $            -
        
        $             -
        
        $                 -Aug. 31, 2006: issued stock for cash at $0.02 per share
        1,500,000
        
        1,500
        
        13,500
        
        
        
        15,000Oct.. 31, 2006: issued stock for cash at $0.02 per share
        1,550,000
        
        1,550
        
        29,450
        
        
        
        31,000Net loss for period January 12 - October 31, 2006
        
        
        
        
        
        
        (2,154)
        
        (2,154)Balance, October 31, 2006
        3,050,000
        
        $ 3,050
        
        $   42,950
        
        $    (2,154)
        
        $       43,846Nov. 8, 2006: issued stock for cash at $0.02 per share
        450,000
        
        450
        
        8,550
        
        
        
        9,000Balances before 14 for 1 forward common stock split
        3,500,000
        
        3,500
        
        51,500
        
        (2,154)
        
        52,846Jun 11, 2007:       14 for 1 forward common stock split
        45,500,000
        
        45,500
        
        (45,500)
        
        
        
        -Balances after    14 for 1 forward common stock split
        49,000,000
        
        49,000
        
        6,000
        
        (2,154)
        
        52,846Net loss for period Nov.1, 2006 to July 31, 2007
        
        
        
        
        
        
        (93,808)
        
        (93,808)Balances at July 31, 2007
        49,000,000
        
        49,000
        
        6,000
        
        (95,962)
        
        (40,962)   CW1418789.1     - 6 -   DUSSAULT APPAREL INC. (A Development Stage Company) NOTES TO THE FINANCIAL STATEMENTS JULY 31, 2007 (Unaudited)  NOTE 1  BASIS OF PRESENTATION  These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America and with the instructions to Form 10-QSB as promulgated by the Securities and Exchange Commission (SEC).  While the information presented in the accompanying interim nine months financial statements is unaudited,  it includes all adjustments that in the opinion of management are necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented.  These interim financial statements follow the same accounting policies and methods of their application as the Companys October 31, 2006 annual financial statements. All adjustments are of a normal recurring nature. It is suggested that these abridged interim financial statements be read in conjunction with the Companys October 31, 2006 annual financial statements.  Operating results for the nine months ended July 31, 2007 are not necessarily indicative of the results that can be expected for the year ending October 31, 2007.  Use of Estimates  The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period.  Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Companys financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Companys financial position and results of operations.  NOTE 2  OPERATIONS  The financial statements presented are those of Dussault Apparel Inc. (the Company).  The Company was incorporated   under the laws of the State of Nevada on August 1, 2006 as Release Your Lease Inc.  In May, 2007 control of the company changed as a result of a stock transaction wherein Mark Hammer sold 1,500,000 common shares of his capital stock to Jason Dussault.  On May 10, 2007 Mark Hammer was replaced as President , CEO, CFO, Secretary and Treasurer by Jason Dussault. Mark Hammer resigned as Director and Jason Dussault joined the Board as a Director.  On June 11, 2007 the Company effected a reverse forward merger with Dussault Apparel Inc.  The Company survived the merger and the name was changed to Dussault Apparel, Inc.  The Company became oriented toward the retail clothing business.  Going Concern  The Companys financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.   The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease development of operations.   CW1418789.1     - 7 -   In order to continue as a going concern, develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things, additional capital resources.  However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.  The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.  Development-Stage Company  The Company is considered a development-stage company, with no operating revenues during the periods presented, as defined by Statement of Financial Accounting Standards (SFAS) No. 7.  SFAS.  No. 7 requires companies to report their operations, shareholders deficit and cash flows since inception through the date that revenues are generated from managements intended operations, among other things.  Management has defined inception as August 1, 2006.  Since inception, the Company has incurred operating losses totaling $95,962.  The Companys working capital has been generated through the sales of common stock.  Management has provided financial data since August 1, 2006 Inception in the financial statements, as a means to provide readers of the Companys financial information to make informed investment decisions.  Subscriptions Received  On July 18, 2007 the Company entered into a private placement subscription agreement with a subscriber for   1,480,000 units, each unit consisting of one common share and one warrant, at a price of $1 per unit.   $1,478,225 was received for the subscription net of fees.  Loss Per Share  Net loss per share is calculated in accordance with SFAS 128, Earnings Per Share for the period presented.  Basic net loss per share is based upon the weighted average number of common shares outstanding.  Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised.  The Company has no potentially dilutive securities as of July 31, 2007.  The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ending July 31, 2007:  On June 11, 2007 a forward stock split of Common Stock occurred on a 14 for 1 basis.  The loss per share for the three months and nine months ending July 31, 2007 has been calculated accordingly, giving retroactive effect to the forward stock split.   Three Months
        Six MonthsBasic and diluted net loss per share:NumeratorNet (Loss)
        $(68,226)
        $(93,808)  Denominator Basic and diluted weighted averagenumber of shares outstanding
        49,000,000
        48,833,333  Basic and Diluted Net Loss Per Share
        $ (0.001)
        $ (.002)   NOTE 3 - COMMITMENTS AND CONTINGENCIES  There were no commitments or contingencies at July 31, 2007.  CW1418789.1     - 8 -   NOTE 4  CAPITAL STRUCTURE  Common Stock Transactions during the period from inception August 1, 2006 through July 31, 2007  On August 31, 2006, the company issued 1,500,000 shares of its common stock to a single investor at a price of $0.01 per share for a total of $15,000.  On October 31, 2006 the Company issued a total of 1,550,000 shares of its common stock to 27 investors. The shares were sold at $0.02 for a total of $31,000.  As of October 31, 2005, the Company had authorized 75,000,000 of $0.001 par common stock, of which 3,050,000 shares were issued and outstanding.  On November 8, 2006, the Company issued a total of 450,000 shares of its common stock to 5 investors.  The shares were sold at $0.02 realizing $9,000.  On June 11, 2007 a fourteen (14) for one (1) forward stock split was effected of authorized, issued and outstanding common stock.  Authorized capital was increased from 75,000,000 shares to 1,050,000,000 shares.   Issued and outstanding capital was increased from 3,060,000 to 42,840,000 shares.  Par value of $0.001 per common share remained the same.  As of July 31, 2007 the Company had authorized 1,050,000,000 of $0.001 par common stock, of which 49,000,000 shares were issued and outstanding.  NOTE 5  LITIGATION  There were no legal proceedings against the Company with respect to matters arising in the ordinary course of business.  CW1418789.1     - 9 -   Item 2.Managements Discussion and Analysis or Plan of Operation. Corporate History Our company was incorporated in the State of Nevada on August 1, 2006. Effective June 11, 2007, we completed a merger with our subsidiary Dussault Apparel Inc.  As a result, we have changed our name from Release Your Lease Inc. to Dussault Apparel Inc.  We changed the name of our company to better reflect the anticipated direction and business of our company. Effective June 11, 2007 we have effected a fourteen (14) for one (1) forward stock split of our authorized, issued and outstanding common stock.  As a result, our authorized capital has increased from 75,000,000 shares of common stock with a par value of $0.001 to 10,050,000,000 shares of common stock with a par value of $0.001.  Our issued and outstanding share capital has increased from 3,500,000 shares of common stock to 49,000,000 shares of common stock. Our common shares were quoted for trading on the OTCBB on March 14, 2007 under the symbol "RLYL".  On June 11, 2007 our symbol changed to DUSS. The address of our principal executive office is 8010 Melrose Avenue, Los Angeles California, 90046-7010.  Our telephone number is (866) 841 - 2010. Our Current Business Dussault Apparel Inc. was incorporated on August 1, 2006 in Nevada as Release Your Lease Inc., a development stage company.  The business was to create a web-based service for buyers and sellers of leased automobiles.  Given our recent management changes and change in corporate direction, we will in all likelihood no longer pursue this business. We have been pursuing opportunities in the retail fashion industry.  On June 25, 2007, we entered in a non-binding letter of intent with Dussault Jeans Inc., pursuant to which we will negotiate the terms of a formal agreement for a business combination of our two companies. Under the letter of intent, both companies have the right to conduct due diligence on each other while we negotiate the terms of the formal agreement.  If we and Dussault Jeans Inc. have not entered into the formal agreement by November 1, 2007, the letter of intent will terminate without prejudice to either party. The letter of intent contemplates that the shareholder of Dussault Jeans Inc. will have the right to acquire up to 25% interest in our company.  In addition, the letter of intent provides that we are to provide a short term bridge loan of $1.2 million to Dussault Jeans Inc. The terms of the letter of intent are not comprehensive and additional terms, including reasonable warranties and representations, and various closing conditions and requirements will be incorporated into the formal agreement to be negotiated. Plan of Operations Liquidity and Capital Resources As at July 31, 2007 we had $147,516 of cash on hand and a working capital deficiency of $40,962.  As at July 31, 2007, our total assets were $1,452,592, which consisted primarily of inventory. As at July 31, 2007, our total current liabilities increased to $1,452,592 from $43,846 at October 31, 2006, primarily reflecting inventory as we prepare to launch our line of products and open our first retail location.  CW1418789.1     - 10 -   Historically, we have financed our cash flow and operations from the sale of stock and advances from shareholders.  Our total cash position as at July 31, 2007 was $147,516. For the three months ended July 31, 2007, net cash used in operating activities was ($1,357,973).  Net cash provided by financing activity was $1,478,225.  This amount was primarily due to proceeds received from the issuance of our common stock. We have no external sources of liquidity in the form of credit lines from banks.  Based on our future operations described below, management believes that our available cash will not be sufficient to fund our working capital requirements in the near future and therefore, we will have to raise financing through the sale of our equity securities or arrange an advance from shareholders of our company. Future Operations Immediate Objectives Our primary objective in the next twelve months will be to further develop and expand our retail store locations and increase sales in such locations as they open. Retail Locations Our business plan envisions opening our initial retail location by the end of the year.  Our first retail location that is currently under construction is in Los Angeles and is scheduled to open in November of 2007. Cash Requirements Presently, our revenues are not significant enough to meet our operating and capital expenses.  We have incurred operating losses since inception, and this is likely to continue into the year 2008.  Management projects that we will require at least $1.200,000. to fund our operations for the next twelve months. There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon obtaining further financing, successful and sufficient market acceptance of our products, the continuing successful development of our products, and, finally, achieving a profitable level of operations.  The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders.  Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. There are no assurances that we will be able to obtain further funds required for our continued operations.  We are pursuing various financing alternatives to meet our immediate and long-term financial requirements, which we anticipate will consist of further private placements of our equity securities or shareholder loans.  There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms.  If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our other obligations as they become due and we will be forced to scale down or perhaps even cease our current operations. Purchase of Significant Equipment  We do not intend to purchase any significant equipment over the twelve months ending July 31, 2008 other than the completion of our first retail location and the purchase of equipment associated with that. Employees Currently the only employees we have are our directors and officers.  In the event that we open our store as planned, we expect to hire 12 employees over the next 12 month period as we expand into the retail fashion industry.  We do and will continue to outsource contract employment as needed.  CW1418789.1     - 11 -   Going Concern We have suffered recurring losses from operations.  The continuation of our company as a going concern is dependent upon our company attaining and maintaining profitable operations and raising additional capital.  The financial statements do not include any adjustment relating to the recovery and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should our company discontinue operations. Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted above, in their report on the annual financial statements for the year ended October 31, 2006, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern.  Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors. The continuation of our business is dependent upon us raising additional financial support.  The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders.  Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. Recently Issued Accounting Standards In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115.  This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option.  However, the amendment to SFAS No. 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available-for-sale and trading securities.  SFAS No. 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007.  Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of
SFAS No. 157, Fair Value Measurements.  In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115.  This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option.  However, the amendment to SFAS No. 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available-for-sale and trading securities.  SFAS No. 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007.  Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, Fair
Value Measurements.  The adoption of this statement is not expected to have a material effect on our financial statements. In September 2006, the SEC issued Staff Accounting Bulletin (SAB) No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.  SAB No. 108 addresses how the effects of prior year uncorrected misstatements should be considered when quantifying misstatements in current year financial statements.  SAB No. 108 requires companies to quantify misstatements using a balance sheet and income statement approach and to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative and qualitative factors.  SAB No. 108 is effective for period ending after November 15, 2006.  We are currently evaluating the impact of adopting SAB No. 108 but does not expect that it will have a material effect on its financial statements. In September 2006, the FASB issued SFAS No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106, and 132®.  This statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization.  This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited  CW1418789.1     - 12 -  exceptions.  The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as of the end of the fiscal year ending after December 15, 2006.  The adoption of this statement did not have a material effect on our reported financial position or results of operations. In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements.  The objective of SFAS No. 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements.  SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.  SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements.  The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007.  The adoption of this statement is not expected to have a material effect on our future reported financial position or results of operations. In June 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statements No. 109.  FIN 48 clarifies the accounting for uncertainty in income taxes by prescribing a two-step method of first evaluating whether a tax position has met a more likely than not recognition threshold and second, measuring that tax position to determine the amount of benefit to be recognized in the financial statements.  FIN 48 provides guidance on the presentation of such positions within a classified statement of financial position as well as on derecognition, interest and penalties, accounting in interim periods, disclosure, and transition.  FIN 48 is effective for fiscal years beginning after December 15, 2006.  The adoption of this statement is not expected to have a material effect on our future reported financial position or results of operations. In September 2006, the SEC issued Staff Accounting Bulletin (SAB) No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.  SAB No. 108 addresses how the effects of prior year uncorrected misstatements should be considered when quantifying misstatements in current year financial statements.  SAB No. 108 requires companies to quantify misstatements using a balance sheet and income statement approach and to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative and qualitative factors.  SAB No. 108 is effective for period ending after November 15, 2006.  We are currently evaluating the impact of adopting SAB No. 108 but do not expect that it will have a material effect on our financial statements. In September 2006, the FASB issued SFAS No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106, and 132®.  This statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization.  This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions.  The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as
of the end of the fiscal year ending after December 15, 2006.  The adoption of this statement did not have a material effect on our reported financial position or results of operations. In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements.  The objective of SFAS No. 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements.  SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements.  The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007.  The adoption of this statement is not expected to have a material effect on our future reported financial position or results of operations. In June 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statements No. 109.  FIN 48 clarifies the accounting for uncertainty in income taxes by prescribing a two-step method of first evaluating whether a tax position has met a more likely than not recognition threshold and second, measuring that tax position to determine the amount of benefit to be recognized in the financial statements.  FIN 48 provides guidance on the presentation of such positions within a classified statement of  CW1418789.1     - 13 -  financial position as well as on derecognition, interest and penalties, accounting in interim periods, disclosure, and transition.  FIN 48 is effective for fiscal years beginning after December 15, 2006.  The adoption of this statement is not expected to have a material effect on our future reported financial position or results of operations. Application of Critical Accounting Policies Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in the United States.  Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses.  These estimates and assumptions are affected by management's application of accounting policies.  We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our consolidated financial statements is critical to an understanding of our financials. Basic and Diluted Net Earnings (Loss) Per Share We compute net earnings (loss) per share in accordance with SFAS No. 128, Earnings per Share.  SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement.  Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period.  Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method.  In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants.  Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. Comprehensive Loss SFAS No. 130, Reporting Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements.  As at July 31, 2007 and October 31, 2006, we have no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in our financial statements. Cash and Cash Equivalents We consider all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. Financial Instruments The fair values of financial instruments, which include cash, accounts payable, and due to related parties were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments.  Our operations are in Canada which results in exposure to market risks from changes in foreign currency rates.  The financial risk is the risk to our companys operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates.  Currently, our company does not use derivative instruments to reduce its exposure to foreign currency risk. Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not.  We have adopted SFAS No. 109 Accounting for Income Taxes as of its inception.  Pursuant to SFAS No. 109 we are required to compute tax asset benefits for net operating losses carried forward.  Potential benefit of net operating losses have not been recognized in these financial statements because our company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. Foreign Currency Translation  CW1418789.1     - 14 -   Our functional and reporting currency is the United States dollar.  Monetary assets and liabilities denominated in foreign currencies are translated in accordance with SFAS No. 52 Foreign Currency Translation, using the exchange rate prevailing at the balance sheet date.  Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars.  We have not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Stock-based Compensation We record stock-based compensation in accordance with SFAS No. 123R Share Based Payments, using the fair value method.  We have not issued any stock options since its inception. RISK FACTORS Much of the information included in this quarterly report includes or is based upon estimates, projections or other forward looking statements.  Such forward looking statements include any projections or estimates made by us and our management in connection with our business operations.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Such estimates, projections or other forward looking statements involve various risks and uncertainties as outlined below.  We caution the reader that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other forward looking statements. Our common shares are considered speculative during the development of our new business operations.  Prospective investors should consider carefully the risk factors set out below. Risks Related To Our Business We have had minimal cash flows from operations and if we are not able to obtain further financing we may be forced to scale back or cease operations or our business operations may fail. To date we have had minimal cash flows from operations and we have been dependent on sales of our equity securities to meet our cash requirements.  We have incurred cumulative losses of $95,962 from inception to July 31, 2007.  As of July 31, 2007, we had working capital of $1,452,592.  We do not expect positive material cash flow from operations in the near term.  We have estimated that we may require up to $10,000,000 to carry out our plan in regards to retail fashion during the twelve month period ended July 31, 2008.  However, there is no assurance that actual cash requirements will not exceed our estimates. Risks Associated With Our Common Stock Trading in our common shares on the OTC Bulletin Board is limited and sporadic making it difficult for our shareholders to sell their shares or liquidate their investments. Our common shares are currently listed for public trading on the OTC Bulletin Board.  The trading price of our common shares has been subject to wide fluctuations.  Trading prices of our common shares may fluctuate in response to a number of factors, many of which will be beyond our control.  The stock market has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies with no current business operation.  There can be no assurance that trading prices and price earnings ratios previously experienced by our common shares will be matched or maintained.  These broad market and industry factors may adversely affect the market price of our common shares, regardless of our operating performance.  CW1418789.1     - 15 -   In the past, following periods of volatility in the market price of a companys securities, securities class-action litigation has often been instituted.  Such litigation, if instituted, could result in substantial costs for us and a diversion of managements attention and resources. Our stock is a penny stock. Trading of our stock may be restricted by the SECs penny stock regulations which may limit a stockholders ability to buy and sell our stock. Our stock is a penny stock.  The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines penny stock to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.  Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and accredited investors.  The term accredited investor refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk
disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customers account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customers confirmation.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the
purchasers written agreement to the transaction.  These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.  We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock. NASD sales practice requirements may also limit a stockholders ability to buy and sell our stock. In addition to the penny stock rules promulgated by the Securities and Exchange Commission, the NASD has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customers financial status, tax status, investment objectives and other information.  Under interpretations of these rules, the NASD believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  The NASD requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock
and have an adverse effect on the market for our shares. Item 3.
        Controls and Procedures. As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by the quarterly report, being July 31, 2007, we have carried out an evaluation of the effectiveness of the design and operation of our companys disclosure controls and procedures.  This evaluation was carried out under the supervision and with the participation of our companys management, including our companys president and our companys chief executive officer.  Based upon that evaluation, our companys president and our companys chief executive officerconcluded that our companys disclosure controls and procedures are effective as at the end of the period covered by this report.  There have been no changes in our internal controls over financial reporting that occurred during the period covered by this report that
have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.  CW1418789.1     - 16 -   Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our companys reports filed or submitted 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.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our companys reports filed under the Exchange Act is accumulated and communicated to management, including our companys chairman and chief financial as appropriate, to allow timely decisions regarding required disclosure. PART II  -  OTHER INFORMATION Item 1.
        Legal Proceedings None. Item 2.
        Unregistered Sales of Equity Securities and Use of Proceeds On July 19, 2007, we entered into consulting agreements with Robert Mintak, our Chief Operating Officer, and Jason Sundar, our V.P. Corporate Finance.  The agreements are for three year terms.  Pursuant to the terms of the agreement with Mr. Mintak, we have agreed to issue 1,500,000 restricted shares of common stock.  Pursuant to the terms of the agreement with Jason Sundar, we have agreed to issue 1,000,000 restricted shares of common stock, which will be released in three equal annual installments after each year of service. We agreed to issue an aggregate of 5,272,000 common shares to certain officers, directors and consultants pursuant to the terms of their respective agreements with the company.  Of this amount, 1,972,000 shares will be issued to our President, Terry Fitzgerald pursuant to the terms of his agreement as previously announced; 1,500,000 and 1,000,000 shares will be issued to Robert Mintak and Jason Sundar respectively, pursuant to the terms of their consulting agreements discussed above; and an additional 800,000 common shares will be issued collectively to three further consultants.  As a result, the foregoing shares were issued to six individuals in reliance on the exemptions from registration provided for in Regulation S and/or Rule 506 of Regulation D, promulgated under the Securities Act of 1933, as amended. Item 3.
        Defaults Upon Senior Securities None. Item 4.
        Submission of Matters to a Vote of Security Holders None. Item 5.
        Other Information On June 11, 2007, we appointed Jason Sundar as our VP Corporate Finance.  Mr. Sundar began his career working for the British Columbia Attorney Generals office, where he developed and promoted youth programs to protect high-risk youth.  At 20 he became the youngest facilitator of corporate training programs for Peak Performance Systems  a Brian Tracy International Network focused on the psychology of achievement, goal setting, professional selling skills, advances selling skills and B2B selling skills.  Among their numerous clients were Yorkton Securities and Crown Packaging.  By the age of 23, Mr. Sundar was the top performer for investor relations specialists PCMI. Leaving that position, he partnered with Olivia Communications, raising over five million dollars and taking the organization from three people to a staff of 24.  Since founding Sundar Communications Group in 2002, he has personally raised over $50 million for his clients worldwide. On June 22, 2007, Jason Dussault resigned as President and Chief Executive Officer of our company and as a result we appointed Terry Fitzgerald as a member of our board of directors and our President and Chief Executive Officer.  CW1418789.1     - 17 -   Mr. Fitzgerald brings to our Company 16-years of corporate experience in the licensing, design, entertainment, and manufacturing arenas.  After graduating from university in British Columbia, Canada, he relocated to Portland, Oregon to help create the McFarlane Group of companies with partner Todd McFarlane. In 1992, Todd McFarlane Productions, Inc., a comic book company that to date has sold over 125 million comic books, in 30 different languages worldwide, was formed.He was integral in the acquisition and subsequent expansion of a manufacturing company that would later be known as McFarlane Toys.  This company is known for its highly detailed action figures of licensed properties such as theSimpsons, Halo, theMatrix, Kiss, Elvis, MLB, NBA, NFL
and NHL players, theTerminator, and theBeatles.  With his vital involvement at the executive level, the McFarlane Group has grown from a two-person organization to one that now has distribution in four continents at such retailing partners as Wal-Mart, Target, K-Mart, ToysRUs and Kaybee.  To date total retail spending on McFarlane Toys action figures totals well over $1 billion.  As President and COO of Todd McFarlane Entertainment, Inc., he oversaw the development and production of feature films and television series for New Line Cinema, Paramount Pictures, Universal Pictures, Warner Bros. Pictures, Home Box Office, UPN and Fox Television.  Mr. Fitzgeralds role as producer and/or director of these projects, as well as on music videos, has garnered him two Emmy Awards, two Grammy Award nominations with one win, nine MTV Music Video Award nominations with two wins and one
MuchMusic Music Video Award. On July 17, 2007, Jason Dussault resigned as Chief Financial Officer of our Company and as a result we appointed Jamie Arthur Lewin as our Chief Financial Officer.  Also on July 17, 2007 we appointed Robert Mintak as our Chief Operating Officer.  Mr. Lewin has 15 years of progressive experience and responsibility in accounting, financial analysis, financial management and business administration.  Mr. Lewin has been the Chief Financial Officer for Abenteuer Resources Corp. since June of 2006 and the Manager of Finance and Administration for CNIB BC/Yukon Division since October 2006.  Mr. Lewin has strong work ethic and is highly developed in accounting, financial and information technology.  Mr. Mintak has over 25 years of experience in the retail and wholesale industries.  His track record in management includes five years with the Robinson group, which was named one of the 50 best managed companies in Canada in 2005, and ten years of management experience in retail.  Mr. Mintak is also a certified lighting designer.  Mr. Mintak has been the Chief Financial Officer of Open Sundaes for Bath and Body products for the past three years. Item 6.
        Exhibits Exhibits required by Item 601 of Regulation S-B ExhibitNumber
        Description31.1*
        Section 302 Certification of Chief Executive Officer.31.2*
        Section 302 Certification of Chief Financial Officer.32.1*
        Section 906 Certifications of Chief Executive Officer.32.2*
        Section 906 Certifications of Chief Financial Officer.*
        Filed herewith.   CW1418789.1     - 18 -    SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DUSSAULT APPAREL INC.  By: /s/ Terry Fitzgerald Terry Fitzgerald President, Chief Executive Officer & Director (Principal Executive Officer) Dated:
        September 18, 2007   By:/s/ Jamie Arthur Lewin Jamie Arthur Lewin Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) Dated:  September 18, 2007   CW1418789.1