U.S. Securities and Exchange Commission
                          Washington D.C.  20549


                                Form 10-KSB

[X]  Annual report under section 13 or 15(d) of the Securities Exchange Act
of 1934

                For the Fiscal Year ended December 31, 2005

[_]  Transition report under section 13 or 15(d) of the Securities Exchange
Act of 1934

For the transition period from ______to______.

Commission file number:  001-15777

                               UNITREND, INC.
              (Name of small business issuer in its charter)

               Nevada                              34-1904923
  (State or other jurisdiction of       (IRS Employer Identification No.)
   incorporation or organization)

  4665 W. Bancroft Street, Toledo,                    43615
                Ohio                               (Zip code)
  (Address of principal executive
              offices)

                              (419) 536-2090
                        (Issuer's telephone number)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

                                        Common Stock no par value
                                        Options
                                       (Title of Class)

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes _X_   No __

Check  if  disclosure  of  delinquent  filers  in  response  to Item 405 of
Regulation  S-B  is  not  contained in this form, and no disclosure will be
contained,  to  the  best of registrant's knowledge, in definitive proxy or
information  statements  incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. /_ /

State issuer's revenues for its most recent year: $185

State the aggregate market value of the voting and non-voting common equity
held by non-affiliates of the registrant computed by reference to the price
at  which  the  stock  was  sold, or the average bid and ask prices of such
stock  equity, as  of  a date within the past 60 days:  $ 133,985,145 as of
November 15, 2006.

State the number  of shares outstanding of  each of the issuer's classes of
common equity, as of the latest practicable date:
As of November 15, 2006:             Common Stock:             70,390,770


                       DOCUMENTS INCORPORATED BY REFERENCE
Form 10-12b filed March 30, 2000

Transitional Small Business Disclosure Format:
Yes ___    No X


FORWARD-LOOKING STATEMENTS

Unitrend, Inc. may from  time  to  time  make  written  or  oral  "forward-
looking statements,"  including  statements  contained in its  filings with
the  Securities and Exchange Commission.  These forward-looking  statements
may be  included in this  Annual Report on Form  10-KSB  and  the  exhibits
attached to  it,  in  Unitrend's  reports  to  shareholders  and  in  other
communications, which  are  made in  good faith by us pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These  forward-looking  statements include statements  about  our  beliefs,
plans,  objectives,  goals,  expectations,  anticipations,  estimates   and
intentions,  that  are subject to significant risks and uncertainties,  and
are  subject to change based on various factors, some of which  are  beyond
our  control.   The  words  "may", "could", "should",  "would",  "believe",
"anticipate",   "estimate",   "expect",  "intend",   "plan"   and   similar
expressions  are  intended  to  identify forward-looking  statements.   The
following  factors, among others, could cause our financial performance  to
differ  materially from the plans, objectives, expectations, estimates  and
intentions expressed in the forward-looking statements:

  - the strength of the United States economy in general and the strength
    of the local economies in which we conduct operations;

  - the effects of, and changes in, trade, monetary and fiscal policies and
    laws, including interest rate policies of the Federal Reserve Board;

  - the timely development of and acceptance of our new products and the
    perceived overall value of these products by users, including the
    features, pricing and quality compared to competitors' products;

  - the willingness of users to substitute our products for products of
    our competitors;

  - the impact of technological changes;

  - acquisitions;

  - changes in consumer spending habits; and

  - our success at managing the risks involved in the foregoing.

The  list  of important factors stated above is not exclusive.  We  do  not
undertake to update any forward-looking statement, whether written or oral,
that may be made from time to time by or on behalf of Unitrend, Inc.


                                  PART I

Item 1.   Description of Business

Unitrend, Inc. (the "Company") is a development stage company founded as an
Ohio  Corporation  in  1996  by  Conrad  A.H.  Jelinger.   The Company  was
reincorporated  in  Nevada  in  July, 1999.  The  Company  focuses  on  the
computer  enclosure, power supply  and wire management industry.  Since the
Company's  formation, it  has  focused  on  research  and  development  and
procuring  patents  on its technology.  The Company released the Cablety(R)
wire management system in  the fourth quarter 2003 and plans to follow with
the VersaCase(R)  "Viking Chassis"  computer  enclosure, Stable(R) "Breeze"
power  supply  in  2007.   Final  prototypes  of  Breeze  power supply were
delivered to the Company in April, 2006.

In 1998, the  Company  formed  Osborne Manufacturing, Inc. (OMI) to produce
the  Company's  products.  In 2002 OMI  was  dissolved  because  management
believed that it could save time and money by entering into a contract with
New Product Innovations, Inc. (NPI) to provide turnkey manufacturing of its
product line.  In 1998 we agreed to acquire by merger a related party known
as  Server Systems Technology, Inc., (SSTI),  an  Ohio  corporation  formed
September 27, 1994,  for  the  purpose  of  obtaining  patented  technology
crucial  to  retaining  control  of  the  VersaCase line of products.  This
acquisition was legally effectuated in July 1999.

COMPANY OVERVIEW

Unitrend, Inc. was founded with the purpose of expanding the useful life of
computer technology.  Our  mission  is to maximize our customers' return on
investment  in  information   systems  by  extending  the  value  of  older
technologies  as  they  combine  with  the  latest  advances.  Our patented
products which are designed to accomplish  this aim are the Cablety, Stable
"Breeze" power supply  and  the  highly  modular VersaCase "Viking Chassis"
computer enclosure.  Unitrend's  current  goal is to establish its products
as the industry standard  for open architecture, accessibility, scalability
and  thermal  stability  while  setting  new  benchmarks  for  quality  and
adaptability.

We  utilize  proprietary  and   patented  technology  to  design,  develop,
manufacture, and  market  our  products.  The  patented  Cablety  is a wire
management system that  routes and supports internal wires and ribbon cable
in  a  vertical  position  which  allows warm air to rise to the top of the
enclosure where it is swept away and vented out of the case.   This results
in  a  cooler  and  cleaner  operating  environment  inside  the  computer.
VersaCase  is  a  family  of  computer  enclosures  that  allows  a user or
technician  to rapidly  access all internal components of a computer.  This
architecture  dramatically  reduces  downtime  for  maintenance, and allows
quick  upgrading  of  a  single component  (such as the  computer's central
processing  unit) without  having  to  replace or tear down and rebuild the
entire computer.   We  have  also  patented the Stable "Prism" and "Breeze"
power supply units that greatly enhances the energy performance and cooling
operations inside a computer case. These products save substantial time and
financial resources for both users and technical support staff.   As of the
date  of  this  filing,  we  have  commenced sales of the Cablety, although
sales have been modest, we expect them to increase later in 2006.   We have
not had any sales of the VersaCase family of  computer enclosures or Stable
family of power supplies.

We have entered into a contract with New Product Innovations, Inc. (NPI) to
provide turnkey manufacturing  of  our product line.   NPI began as a joint
venture between General Electric, Inc. (GE) and Fitch, Inc.  NPI along with
Fitch will complete product development, obtain agency approvals, engage in
product positioning and manufacturing development.   Upon completion of the
manufacturing  development  process, NPI will utilize GE's "Global Network"
to  produce Unitrend's products  and  deliver complete units ready for sale
and shipment. These companies have successful long-term operating histories
as manufacturers/providers of component parts for the computer industry.

The Cablety,  VersaCase,  Stable power supply  will  be  marketed  and sold
through direct  and  indirect channels.   After introducing the  product to
North America,  we will expand to Europe,  Asia/Pacific, and Latin America,
although not necessarily in that order.  The  unique  total  modularity  of
VersaCase  and  related  products enables the end-user to save considerable
time and money, whether the product is utilized as a personal computer (PC)
or as a server  in  a  network  of  computers.  Due to the mission-critical
nature  of  computer  network activities, our primary marketing efforts for
the VersaCase and Stable are directed at server applications.  We will also
market to  high-end  PC users concerned with complex, high quality computer
systems, and  expect  these  users  to  be  strong  early  adopters  of the
VersaCase and Stable technology.

Unitrend's corporate headquarters is in Toledo, Ohio. The company currently
employs two people, and expects to grow to approximately ten people by late
2007.

PATENTS AND TRADEMARKS

We  rely  on  a  combination of patents, trademarks, trade secrets and non-
disclosure  agreements  to  protect  our  proprietary  rights.  We  execute
confidentiality  and  non-disclosure agreements with our employees and with
key  vendors  and  suppliers.  These  efforts  allow  us  to  rely upon the
knowledge and experience of our  management and technical personnel and our
ability  to  market our existing products and to develop new products.  The
departure  of  any of our management and technical personnel, the breach of
their confidentiality and non-disclosure obligations to us,  or the failure
to achieve our intellectual property objectives may have a material adverse
effect on our business, financial condition and results of operations.

Currently, we  have  nine  United  States patents issued and fifteen United
States patent applications pending. We also have nine registered trademarks
and service marks.   There can be no assurance that any new patents will be
issued,  that   we   will  continue  to  develop  proprietary  products  or
technologies  that  are  able  to  be patented, that any issued patent will
provide  us  with  any  competitive advantages or will not be challenged by
third parties, or  that  the  patents  of  others  will not have a material
adverse effect on our business and operating results.

Our ability to  compete successfully and achieve future revenue growth will
depend, in part, on  our  ability to protect our proprietary technology and
operate  without  infringing  upon  the  rights of others.  There can be no
assurance  that  these  measures will successfully protect our intellectual
property  or  that  our  intellectual  or  proprietary  technology will not
otherwise  become  known  or be independently developed by competitors.  In
addition, the laws of various countries in which our products are or may be
sold may not  protect our products and intellectual property rights  to the
same extent as the laws of the United States.  Our inability to protect our
intellectual  property  and  proprietary  technology  could have a material
adverse  effect  on  our  business,  financial  condition  and  results  of
operations.  As  the  number  of patents, copyrights and other intellectual
property  rights  in  the computer enclosure industry increases, and as the
coverage  of  these  rights  and  the  functionality of the products in the
market  further  overlap, computer  enclosure  companies  may  increasingly
become subject of infringement claims.  In  the  future, we may be notified
that we  are  infringing on patent or other intellectual property rights of
others.   Although there are no pending or threatened intellectual property
lawsuits  against  us,   we  may   become  the  subject  of  litigation  or
infringement  claims  in  the  future.  Any of these potential claims could
result  in  substantial costs and diversion of resources  and  could have a
material  effect  on  our  business,  results  of  operations and financial
condition.

INDUSTRY

The  PC  market  is  defined as shipments of desktops, portables and Intel-
based  servers  priced  under  $25,000.   About 154.7  million  units  were
shipped worldwide in 2003, an 11.4 percent increase over the previous year,
according  to  figures  released  by  International  Data Corporation(IDC).
Gartner Inc., which uses slightly different measurement methods, calculated
that 168.9 million units were shipped in 2003, a 10.9 percent increase over
2002.   Domestic  PC shipments totaled 57.7 million in 2003, a 12.4 percent
increase  from 2002 (tallahassee.com 1/15/04).  In  2004, shipments reached
177.5 million  units worldwide, up 14.7 percent from 2003 according to IDC.
IDC also reports that domestic PC shipments totaled 58.3 million in 2004, a
slight increase over 2003 and  a strong 15.5 percent in 2005, compared with
2004.

According to market research firm Gartner Inc.,  shipments of PCs worldwide
will grow at a slower pace in 2006 than in 2005 (PC shipments grew 15.5% in
2005, compared with 2004.)   However,  PC shipments in 2006 are expected to
reach 234.5 million units, up 10.7% compared with 2005.  Although shipments
of mobile  PCs  are  expected to grow strongly in 2006, the deceleration in
desktop  PC  replacements will drag down the overall growth rate, according
to Gartner.  Desktop PC shipments are projected to grow just 1.9% this year
overall, declining 8.6%  in  mature  markets  while  increasing  19.55%  in
emerging  markets, said Gartner.   Mature  markets  include  the  U.S.  and
Western Europe.  IDC  separately  has  similar  expectations. IDC predicted
that worldwide PC shipments will grow 10.5%  this year over 2005, helped in
large part by strong sales in the Asia-Pacific region, with 13.2% growth in
shipments  and in emerging markets such as Eastern Europe, the Middle East,
Africa  and  Latin America,  with 18.5%  growth,  analyst David Daoud said.
Mature  markets  will  experience  more moderate growth with Western Europe
seeing  a  9.7% increase  in  shipments, the U.S. a 6.8% increase and Japan
remaining essentially flat this year.  In 2005, worldwide PC shipments grew
15.9%  over  2004, Daoud said.  This  year, the  growth  will  slow in part
because  of  a  deskto PC saturation in mature markets, he said.  Growth in
2007  isn't expected to fall below 2006 levels because Vista is expected to
help the market, he said.

IDC  originally  expected  a 9.7 percent increase  in worldwide PC sales in
2005 over 2004 (Figures now show 15.9%).  Domestic  shipments were expected
to  grow  to  62.7 million  in  2005, a 7.6 percent according to IDC.  Even
though  sales  have slightly increased, the Company believes that worldwide
PC  sales  will  continue  to  increase  in the coming years because of the
replacement of outdated units.  Market researcher IDC attributes the lower-
than-expected  growth  to  the  delayed  economic  recovery  in Japan and a
cautious  outlook  in  the  United States.  In 2004, pre-Year 2000 machines
began to reach the end of their life cycles. This replacement cycle appears
to be slowly under way.   We believe that this will be the major reason for
upgrading  and/or  replacing  existing  PCs,  not  technology  innovations.
Although  these old PCs would  normally have been replaced by now, economic
uncertainty may have delayed new purchases.  Simon  Yates  of research firm
Forrester states, "helping to create strong PC demand is the fact that many
businesses  stretched  their  PC  refresh cycles much longer than is really
healthy and have gone beyond the existing warranties on this equipment, and
Microsoft  has finally killed off support for some of their older operatin
systems" (newsfactor.com 12/12/03).   "While IT buyers in the United States
have  indicated  firm  intentions  to  buy  in  2005, we have kept the U.S.
forecast  modest  because  of what we see as a host of risk factors," Roger
Kay, vice president of client computing at IDC, said in a statement. "These
factors  include a recovery that appears to be getting long in the tooth, a
lack  of  jobs  growth, rising budget and trade deficits, persistently high
oil prices, a Treasury-draining foreign war, rising interest rates, a stock
market  that  continues  to  move sideways and record-low household savings
rates."  In  the  fourth  quarter of 2002 these replacements began to occur
with  PC shipments to U.S. businesses with more than 500 employees per site
growing  by 13.9 percent  from  the  fourth  quarter  of  2001 according to
Dataquest. Dataquest also reports that in the same time period PC shipments
to business with fewer than 500 employees per site increased by 5.4 percent
over the same period in the previous year. Small and midsize businesses are
changing  their  PC  and  server  buying  habits, choosing, for example, to
purchase  hardware  from  the  manufacturer.  Slower replacement cycles are
among the challenges facing vendors.   Business customers are in the middle
of  the  replacement  cycle  that PC vendors have been anticipating for two
years,  but consumers have largely tapped themselves out after two years of
keeping the PC market afloat amid slow business sales(Pcworld.com 1/19/05).
Enterprises  will  continue to prioritize cost savings through optimization
and  extension of technology and solution investments that will make this a
perfect  environment  for  the  introduction  of  the VersaCase and related
products.  Our  product  line  will  help  reduce the costs associated with
maintaining outdated machines.

Open Architecture.  The concept of open architecture enables computer users
to combine various components and peripherals from different manufacturers.
To some extent, the industry has moved in the direction of common standards
typified  by  open  architecture.   For  example,  mounting boards,  DVD's,
CD-ROM's, floppy drives,  and  serial  ports,  to  name a few, are designed
according to a set of common specifications. In addition, the ATX/BTX logic
board  platform  developed  by  Intel,  the world's largest manufacturer of
microprocessors, sets  the  standard for placement of connecting devises to
the logic board.  However, fiercely competitive market forces have thus far
defeated true open architecture.

Major assemblers such as Apple, Dell, Gateway,  and Compaq (HP) build units
that  support  only  their  proprietary  components.  If one of these parts
should fail,  the  only option is to replace it with the same part from the
same company.   While this provides additional revenue for the PC producer,
the  consumer  suffers in significant ways.   Consumers are locked into the
price,  availability,  and delivery time dictated by the PC producer, which
can add to downtime and cost of maintenance.

Accessibility.   In  order to simplify the repair and upgrade of computers,
the  industry  is  beginning  to create hardware that is easily accessible.
Historically, the  design of computer enclosures has severely limited one's
ability  to  service  both critical and ordinary problems with a PC.  Rapid
access  is  especially  important  in mission-critical applications where a
technician  must  make  a  prompt intervention to save the computer network
from crashing. Some industry leaders have moved toward tool-less cases that
can be opened by pressing tabs to lift the top panel.  Apple introduced the
G-3 model highlighting the ease of access to the "guts" through a drop-down
side panel.  Gateway  and  Dell  have  introduced  models that move in this
direction.   These models are tower units that will most likely  be used in
desktop  applications  as  opposed  to the VersaCase that will be initially
targeted to server applications.

Continuous Need to Upgrade.    Both  hardware  and  software components are
updated at an astounding pace.   Moore's  Law  states that processing power
doubles roughly every 18 to 24 months.  The rapid release of 12 Intel micro
processing chips from the 8080 through the Pentium 4 over the last 25 years
shows  that  Moore's  observation  is still remarkably accurate, while also
demonstrating  technology's  rushing  rate  of  change.  A steady stream of
software  upgrades  takes  advantage of this additional processing power to
create   more  powerful,   intuitive,   and  stable  software.   We  become
increasingly  dependent  on  the  software, and thus the software upgrades,
which  in  turn  require  upgrading  the  computer's  memory,  storage,  or
processing capabilities. There are many additional expenses associated with
PC ownership,  not just the base sticker price.   A mid-range PC, featuring
all  the  bells and whistles for a mere US$1,300, might have a price tag of
$4-6,000 or more. The average annual cost of a PC for an enterprise could
be  as  low  as  $2-4,000 or as high as $13,000, IDC analyst Roger Kay told
NewsFactor.   80 percent  of what a PC costs over its life goes largely for
support, including the labor costs for repairs(newsfactor network 12/1/03).

Scalability.    The ability to  change internal components is essential for
extending  the  investment  in  computer technology.  There has been little
change  in  recent  years,   but  in  2005  the  desktop   PC  may  undergo
transformations.  A series of developments are combining to bring about the
changes, with most of them centered on the new Balanced Technology Extended
BTX) interface.   The  BTX  interface  specification  provides  a  flexible
standards-based form factor foundation that  supports the implementation of
new   desktop   technologies,  including   PCI  Express  and   Serial   ATA
TechWeb 1/23/04).  It could take five years or more to implement.

Thermal Stability.     The ability to maintain a proper cooling environment
within the computer system reduces heat induced failures.  Heat is an enemy
because   it   causes  components  to  expand  or  respond  differently  to
electricity.   Restricted  airflow  in  the  case is often the crux of case
temperature problems.   Ribbon  cables  and  power  connectors can create a
barrier in the case (TechRepublic 8/12/03).   Restricted airflow allows for
dust  to  settle  on  the equipment causing an "insulating blanket" on heat
emitting devices such as a processing chip.

UNITREND SOLUTION

We believe Unitrend  is  well positioned  to offer solutions to many of the
issues listed above.   Cablety,  VersaCase  and  Stable power supplies were
designed  with  these  factors  in mind, resulting in products that address
these  five  areas:  true open architecture;  complete accessibility; rapid
upgrade and maintenance; creative scalability and thermal stability.

True Open Architecture.   The  VersaCase  achieves  true open architectural
design  by   allowing  the  combination  of  various  technologies   and/or
peripherals  from different  manufacturers.  VersaCase accepts all industry
standard components, such as motherboard configurations from Intel and AMD.
Because  the  case  design and interchanging back plane apertures allow for
the  acceptance  of  any non-proprietary  part,  the  consumer  will not be
restricted to using proprietary components. This significantly enhances the
computer's  value  by  allowing  the owner to choose the best component for
each repair, upgrade and/or life cycle rotation.

Complete Accessibility.    The  VersaCase  allows  a  user or technician to
quickly  access  the internal components of a computer.   The design of the
case is similar to a drawer, thereby providing quick access, without tools,
to the inside of the computer.  Internal components become modules that can
be installed or replaced simply and easily.  This design simplifies routine
repair, maintenance, and upgrade procedures.   This  full-access-design  is
vital  for  mission-critical  applications.  Often, a  failure  in a server
system  can  be  isolated  to  two  or three units, and the technician must
rapidly check all three units to save the entire system from shutting down.
Standard  computer  enclosures  require  considerable  time  to  access all
internal components because  they must be laboriously dismantled.  With the
VersaCase,  the  technician  simply  slides open the drawer.  What can take
agonizing minutes or even hours with a typical enclosure is done in seconds
or minutes with a VersaCase.

Rapid Upgrade and Maintenance.  The drawer-like design of the VersaCase not
only  allows  full  access  to all the internal components, it dramatically
reduces the time required to get to any given component.  The time it takes
to  perform  upgrades and repairs is increased when you add the cost of the
person's  time  performing  the  task  to the lost productivity of the user
while the system is down

The Stable "Prism" power supply  is  a two stage modular design that allows
the  user  to rapidly remove the unit by simply lifting it  out of its base
for repairs, maintenance or upgrades.   The Breeze power supply is based on
Stable technology. With both, if a fan should need replaced, one would just
need  to  remove  the  bad  fan by popping it off the power supply unit and
swapping in a new one.   In effect, every minute saved by VersaCase, Stable
"Prism" or "Breeze"  power  supply  buys  back  two  minutes  of  user  and
technical support time.  The total cost of  ownership  for a computer built
with  VersaCase,   Stable  "Prism"  or  "Breeze" power  supply  is  greatly
reduced  by allowing  individual  components  to  be  upgraded.  With other
cases, many  components  such as back plane apertures cannot be changed and
you are forced to discard the  entire PC.   You  are  forced to buy a whole
new computer and  software, leaving  you  with  many  perfectly  good,  but
unusable,  components.  VersaCase  allows  you  to  merely  upgrade the old
component and continue on with using the rest.

Creative Scalability.  The VersaCase provides unmatched flexibility. It can
be used as a PC or a server.   As a server, the unit can be used in a rack-
mount application or as a stand alone unit. Up to fifteen 3 1/2" drives can
be  mounted  internally onto three independent universal mounting racks, or
six  5 1/4"  drives  can be mounted onto two independent universal mounting
racks.  Removable drive bay panels allow for any combination of drive sizes
to  be  installed, including new 2 1/2" disk drives that were introduced to
the  market  by  the major drive manufacturers in 2004.   Due to the inter-
changeability  of  the components, hundreds of configurations are possible.

Innovative Thermal Stability.    The  Cablety  is designed to lift internal
cables and wires off the electronic system(s) board(s) and their microchips
by  holding  them  in  a  vertical  position  that  allows  heat that would
otherwise  be  trapped  in  and  around  the computer's critical devices to
escape  and  be  vented  out  of the computer case.  This increased airflow
around  the  computer's electronics allows for a proper cooling environment
making  the  system  more  stable  and  reducing heat induced failures.  By
organizing  the  internal  wires  and  cables,  dust  and  dirt build-up is
reduced.   Dust  and  dirt  build-up  inside  of  a computer will act as an
insulator  and  cause thermal instability.  The Stable power supply has two
high  quality  plug-in cooling fans pitched at fifteen degrees to allow for
the most efficient airflow throughout the computer case.   Properly cooling
the computer environment saves time and money that would otherwise be spent
in replacing damaged parts due to heat induced failures.

In summary,  the VersaCase,  Stable power supplies and Cablety  offers  new
technology  to  the market, which gives you the ability to easily maintain,
upgrade  and  cool  your  system  while providing unsurpassed configuration
options.   VersaCase, Stable power supply, and Cablety simplify changes and
extend  the  life  of computers, saving substantial time and money for both
companies and individuals.

COMPETITION

We  compete  in  the wire management, computer enclosure and computer power
supply markets.  The first product that has been sold by the Company is the
Cablety (wire management device(s)),  with  initial  sales  focus  on large
domestic  distributors  and computer original equipment manufactures (OEM).
Within  the  wire  management  market  we  may  encounter  competition from
domestic  manufactures  and  distributors.   To our knowledge, no competing
company,  such  as  ITW Fastex or Panduit, offers  a  product  with all the
benefits and features of the Cablety.  The next products to be offered will
be the Stable "Breeze" power supply,  with initial sales focus on Military,
OEM and VAR (Value Added Resellers) sales. The computer power supply market
is intensely competitive.  Within the power supply market we will encounter
competition from domestic manufactures and distributors. The only competing
company  that  offers  a  product that delivers some scalable and versatile
technology is Ultra Products' X-Connect power supply. The fourth product to
be  sold  will  be  the  VersaCase "Viking" computer  enclosure,  initially
focusing on the high-end PC and entry-level server segments.   The computer
enclosure  market  is  intensely  competitive.  Within the enclosure, power
supply and wire management markets, we will encounter competition primarily
from large domestic manufacturers and distributors such as, California P.C.
Products,  Portwell, Inc.  and Antec, Inc.   To our knowledge, no competing
company offers an enclosure that contains all the  features and benefits of
the VersaCase.

As  noted  above,  some major computer assembly firms,  e.g.,  HP, Gateway,
Acer, and  Dell, have  introduced  PC  models  that  contain  some  modular
features that are found in a VersaCase and or Stable.  No one, however, has
designed  or  introduced  a  model(s)  that  delivers  all the scalable and
versatile technology that our technology offers.

We  will  also  encounter  strong  competition  from international computer
enclosure, power supply and wire management companies who sell to worldwide
original  equipment  manufacturers  and  distributors.  These international
companies  also  set up  their  own  distribution networks in international
markets, including the United States. The international market is extremely
competitive due primarily to aggressive pricing.  Examples of international
companies include:  EverCase Technology, Inc., Addtronics Enclosures, Inc.,
Lead Year Enterprises Co. Ltd.,   Evergreat Computer Tech  Corporation  and
Chieftec Industries Co. Ltd.

The Cablety is  a  new concept in computer wire and cable management and as
such  we  hope  to  set new industry standards with its introduction to the
markets.  Retail pricing on a Cablety kit has been established at $9.99 for
2006.   A  kit  includes  three Cabletys, three base mounts, three mounting
screws, three  hex  nuts  and three 3M adhesive pads.   Kits and individual
components are also available to OEMs on a bulk basis to fit whatever their
requirements may be.   The Cablety is currently available in light blue and
flame orange.   Other colors will be added in the future.   The Prism power
supply  is  more expensive to  purchase than traditional PC power supplies,
with a retail price around $150 for  the  low wattage, entry  level  model.
However as power output(in wattage) increases in medium to high-end models,
Prism  becomes  very  competitive in price and offers numerous features and
benefits  not  offered  by any competitor.  The target price for the Breeze
power supply is around $130.  This is fairly competitive with others on the
market.   The VersaCase "Viking Chassis" is more expensive to purchase than
traditional  desktop  computer enclosures, with a retail price around $180,
the  price  will depend on whether the customer chooses  the medium wattage
"Blizzard" or  the  higher  wattage "Blizzard" power supply. (Blizzard is a
new generation power supply under development for use in the Viking(TM) and
Neptune(TM) Chassis.)  he VersaCase will also include cables. This price is
competitive  when  compared  to higher-end rackmount server enclosures.  We
will compete in the computer enclosure market by demonstrating the value of
the  features and benefits of VersaCase.   We separate ourselves from other
companies  now  offering  computer  enclosures  by focusing on common sense
solutions.  VersaCase is convertible technology.   Accordingly,  it may  be
used  as a single unit, in multiple stacks, rack-mount configuration, or as
a workstation.   It can be used in a variety of applications including, but
not  limited  to  file  servers,  web servers disk arrays, duplicators, and
e-mail  servers.   Further,  non-proprietary  components  can  be  used  to
configure a computer for a specific application, and possibly achieve lower
operating costs.

GROWTH STRATEGY

Our  growth  strategy  is   built  around  five  imperatives:   maintaining
technological leadership; increasing market share; acquiring other business
entities;  leveraging  strategic  relationships;  and  the  recruiting  and
retaining of key personnel.

Maintaining Technological Leadership.    The cutting edge of  our effort to
achieve  technological  leadership  is  to  establish  a  standard for open
architecture  and  modularity  in  the  computer enclosure industry.  Other
components, accessories, and products are in various stages of development.
They  will  be  supported by an aggressive research and development budget.

Increasing Market Share. Our entry into the market is estimated at a modest
level  to  allow  us  to  grow  at  a reasonable pace.  However, we make no
representations  or guarantees that we will be able to manage the growth of
our  business.   The  Cablety  was  introduced  to the market in the fourth
quarter  of 2003 and we have experienced modest sales.  We anticipate sales
to  grow  as  we  move forward into 2007.  Once VersaCase is introduced, we
expect  that  there  will be significant interest across a number of market
segments.  The VersaCase is unparalleled in its versatile  application as a
PC or server enclosure.  The  ease  of  access and scalability will provide
numerous  benefits  to  routine and mission-critical users that will propel
and  increase  market share.  By  moving  into  the "High end" power supply
market, the  Company  can  leverage its cutting edge patented technology to
generate further interest in its product line.

Acquiring Other Business Entities.    In order to  expand our technological
and market capabilities,  we  may  consider the pursuit of other companies.
Such acquisitions may include core and non-core entities. A core entity may
be a research and development group,  and a non-core firm could be one that
might enhance our production process.

Leveraging Strategic Relationships.  We intend to leverage our relationship
with companies that complement our mission. For instance, the uniqueness of
Cablety, Stable and VersaCase technology will  create  opportunities for us
to establish strong relationships with key distributors. These distributors
will be able to  offer their clients a product that is very competitive and
distinctive.  We have been approached by distributors to consider a channel
relationship or exclusive  position  with  them.   While we must maintain a
broader  market focus, we  may selectively enter into agreements that would
enhance market credibility and penetration.

Recruiting and Retaining of Key Personnel.   An entrepreneurial spirit that
was  based  in creativity, risk and reward drove the birth of this company.
We  intend  to maintain  this  quality  by  offering competitive salary and
incentive compensation.   Our  overriding  human resources philosophy is to
build a  corporate  culture  that supports the success of each employee, as
well as the Company.

MARKETING AND SALES

We are implementing brand-building strategies for Unitrend, Cablety, Stable
(Prism, Breeze and Blizzard) power supply and VersaCase(Viking, Neptune and
Orion Chassis).  Our  brand  objective  is  to  identify emerging trends in
computer-related  technologies  and  to  provide streamlined solutions that
make  those  technologies  more  user  friendly.  We will continue to build
equity  in  our brands by promoting the unique and patented features of our
products via multiple mediums to diverse market segments.

The Cablety wire management system is the first product we began to market.
Unitrend  has   entered  into   a  contract  with  Titan  Technologies,  an
established  national  sales  and  marketing group,  to market and sell the
Cablety,  VersaCase (Viking,  Neptune  and Orion Chassis),  Stable  (Prism,
Breeze  and  Blizzard) and any future products developed by Unitrend.   The
Cablety  will  be  marketed  through  various  channels  including, but not
limited  to,   value  added  re-sellers  (VARs)   and   original  equipment
manufacturers (OEMs).  VersaCase and Stable power supplies will be marketed
to, and sold for, two specific PC applications: high-end PC users,  such as
automated manufacturing functions, and entry-level servers. The Breeze will
be  marketed  as  a replacement for the standard slim power supply commonly
used  in  mini  towers.   We intend to market and sell our products to non-
profit and commercial organizations, individuals, and OEMs.   OEM sales and
licensing,  large corporate and  government accounts,  and large-volume VAR
sales will be managed by Unitrend's direct sales organization. Sales to all
other  organizations  will be through distributors.  We plan to establish a
multi-channel  distribution  network  that  will  allow  us to leverage the
distributors who are strategically focused on offering value added products
and  services  to  the  computer  industry.   However, we  will  modify our
distribution plans as demanded by the markets we serve in order to maximize
efficiency  throughout all channels of distribution.   We intend to promote
end-user  demand, and  will  support our sales efforts through a variety of
marketing  programs  including  but  not  limited  to:   trade and consumer
advertising, public relations, and trade shows.

In April 2004, Unitrend along with a representative from Titan Technologies
participated  in  RetailVision Spring 2004.   RetailVision Spring 2004 is a
trade show that allows the manufacturer to sit face  to face with potential
retailers and distributors in the computer industry.  Unitrend presented to
representatives  that comprise approximately 90% of the computer industry's
manufacturers and/or distributors.   Positive results  of this show include
agreements signed with Micro Center, Inc.,  TigerDirect.com and Zones, Inc.
Micro Center, Inc. offers  a  huge selection of competitively priced, high-
quality  products, and  a  wealth  of  information  to  help customers make
informed buying decisions. Micro Center has twenty nationwide retail stores
along with an online retail site.   Currently, the Cablety may be purchased
at  www.microcenter.com.    TigerDirect.com  carries  the  world's  largest
selection  of  computer components,  making them the reseller of choice for
the "build-it-yourselfer."  Zones,  Inc.  and  their affiliates are single-
source,  multi-vendor direct marketing resellers of  name-brand information
technology   products  to  the  small  to  medium  sized  business  market,
enterprise  and  public  sector accounts and sells product through outbound
and inbound call center account executives, specialty print and e-catalogs,
and  the Internet.  The Cablety is available for purchase at www.zones.com.
In  August 2004,  Unitrend exhibited at the Zones Accessories Training Fair
where  representatives  from  Unitrend  showed  the  benefits  of using our
product line.  This  show  was  attended  by only Zones sales and marketing
representatives  in  order  for  them  to learn about all the products that
Zones carries.  In  September 2004, Unitrend  attended  the  Gartner System
Builders Summit.  This show is the leading event  for the white box market.
Vendors  and  resellers  meet at this show to  explore new technologies and
build  strategic  relationships.   Unitrend  established relationships with
interested  vendors  for  when  our product line is in full production.  In
early  April 2005,  Unitrend exhibited at the FOSE trade show.  FOSE is the
most comprehensive technology event serving the government marketplace. The
U.S. government is the largest buyer of technology in the world, which made
this  show  the  most  efficient  way  for  Unitrend  to  reach  government
customers. At this show we introduced the Breeze power supply and the "new"
flame orange Cablety with the industrial/military safety wire capabilities.
We  also  exhibited  the VersaCase (Orion Chassis)  and Cablety kits.  Many
government  agencies  reviewed  our products and gave us positive feedback.
Many leads were made to place beta units within the government for testing.

While our initial focus is the North American market,  we plan to expand to
Europe,  Asia/Pacific,  and Latin America as opportunity arises.   The data
presented at the beginning of the  business section illustrates the size of
these market segments.

PRODUCTS

The Cablety wire  management  system  has  been  available since the fourth
quarter 2003.

The Cablety features include:
      *  Made of "Static Resistant" GE Plastics(R).

      *  Lifts  internal  cables  and wires  off  the  electronic system(s)
         board(s) and their microchips by holding them in a vertical and/or
         horizontal position.  This  allows  heat  that  would otherwise be
         trapped  in  and  around the computer's critical devices to escape
         and be vented out of the computer case.

      *  Increased  airflow allows for  a proper cooling environment making
         the  system  more  stable and reducing heat induced failures.

      *  Wire  management  increases  airflow  thus reducing  dust and dirt
         build-up.

      *  New version includes military/industrial safety  wire capabilities
         for security seals and tagging.


The Stable power supply  is a two stage modular design that allows the user
to  rapidly  remove  the  unit  by  simply  lifting  it out of its base for
repairs, maintenance or upgrades.

The Stable "Prism" power supply features include:

      *  Snap-in upper power module for ultra fast power supply replacement.

      *  Two high quality plug-in  cooling  fans pitched at fifteen degrees
         for smooth, efficient  airflow  and rapid  replacement  in case of
         failure.

      *  RPM  sensors  on  cooling  fans send signal to front panel LEDs to
         warn of eminent failure

      *  Internal temperature sensors to warn of excessive heat conditions.

      *  Self diagnosing power  distribution  base with audible  and visual
         alarms.

      *  Sixteen  power  take-off  connectors  for  even  power delivery to
         individual internal peripheral drives and devices. Also allows for
         removal of the power module while leaving power connections intact

      *  Dual redundant power supply options connector.

      *  Emergency "Kill Switch" connector.

      *  Standard "Slim" power supply footprint.

      *  Available in three power sizes: 400 Watts, 450 Watts and 500 Watts.

      *  Optional battery pack allows for repairs, maintenance, or upgrades
         with the power on.

VersaCase  is  our first patented product.   The  VersaCase has undergone an
extensive development process.  Five developmental VersaCase prototypes have
been  developed, including the yet to be released  production-level "Viking"
beta units.  These units will undergo rigorous  in-house testing  as well as
field  placement  at  selected government sites, which will  mirror our more
prominent market segments.

The VersaCase is comprised of a number of characteristics and features,
such as:

      *  Chassis and outer shell are made of 16-gauge steel.

      *  Up to fifteen 3 1/2" drives can be mounted internally onto three
         independent universal mounting racks.

      *  Or six 5 1/4" drives can be mounted onto two independent
         universal mounting racks.

      *  Or twenty 2 1/2" drives can be mounted onto four independent
         universal mounting racks.

      *  Removable drive bay panels allow for any combination of drive
         sizes to be installed.

      *  Front mounted DB connector for easy laptop docking or serial,
         SCSI, USB, WiFi and parallel connections.

      *  Front DB connector can be swapped with a wireless infrared
         connecting port.

      *  High-security tumbler lock to protect against unauthorized entry
         into the computer's interior.

      *  Easy to read control panel with LED readouts for diagnostic
         activity.

      *  19" Rack-Mount ready chassis with invertible outer shell to
         maintain EMI/RFI shielding.

      *  Ultra-strong construction to allow units to be stacked up to
         six high with docking pin accessory.

      *  Rugged design allows even the heaviest analog CAD Monitors to be
         placed on top of unit.

      *  Ball bearing drawer sliders with heavy duty 100lb weight
         capacities, for smooth opening and closing.

      *  Removable and interchangeable back plane for simple upgrading of
         equipment.

      *  Back plane lockdown removes need for screws.

      *  Optional 10, 12, or 16 slot back planes available for AT,ATX,
         BTX, Passive back plane and other designs.

      *  Includes Stable power supply (when available) or Breeze power
         supply (when available) or allows the use of standard Slim power
         supplies mounted in either a horizontal or vertical position.

      *  Rear mounted cable transom to facilitate moving wires when
         opening and closing chassis drawer.

      *  Quick-release power supply base unit used to distribute power to
         electrical components which accepts optional battery pack for
         uninterrupted power in case of power supply failure.

      *  Removable thread-mounted feet allow unit to be bolted down on
         or under table, desk, wall, rack, etc.

The Breeze power supply premiered at the FOSE 2005 show.  Its features
include:

      *  Built with patented Stable technology.

      *  Independent cable sockets for rapid installation or removal of
         power supply.

      *  Reduces cable clutter by allowing use of only necessary cables.

      *  Removable external and internal fans.

      *  Self diagnostics capabilities an L.E.D. array.

      *  Fits in standard slim power supply form factor.

      *  Available in two power sizes:  500 Watts, 5500 Watts.

OPERATIONS

For the design and development of our  products, we rely  on  our  founder,
Mr. Conrad Jelinger,  our  project coordinator,   Mr. Jon Osborne, and  New
Product Innovations, Inc. (NPI).   In addition,  NPI  and  Mr. Osborne will
select principal suppliers based on experience and pricing considerations.

New Product Innovations, Inc. (NPI).   NPI began as a joint venture between
GE Plastics, a division  of  General Electric, Inc. (GE) and Fitch, Inc., a
Cordiant company. NPI, along with Fitch, will complete product development,
obtain agency approvals (UL, FCC, CE, CI, etc.),  Mil-Spec the products for
Military/Government  use  and  engage  in product branding and positioning.
Furthermore, NPI will design the manufacturing processes, establish ISO and
Six Sigma procedures and build the necessary tooling to develop a flexible,
high volume output capability for Unitrend's product lines. Upon completion
of  the  manufacturing  development  process, NPI will utilize GE's "Global
Network" to  produce  our  products  and  deliver completed units ready for
resale and shipment.

RESEARCH AND DEVELOPMENT

Apart from  tooling costs of $1,535,757,  as of December 31, 2005,  we have
invested $610,228 in research and development.   To date, our primary focus
had  been  the  development  of  the VersaCase.  In January 2003, our focus
shifted  to the Cablety wire management system.  The Cablety can be used in
any standard computer as well as an accessory for the VersaCase.   We began
selling product in  the fourth quarter 2003.   We are continuing to develop
accessories, like the Cablety, that will further enhance the VersaCase, and
allow for further customization.   It is our intent to continue to innovate
by  developing  similar  products  that will enable a computer user to save
time and  money while upgrading  and repairing his  or her computer.  Other
product designs are also on the drawing board.   There is no guarantee that
any of these products will become viable revenue sources.

We  believe  timely  introduction  of  new  and  enhanced  products will be
essential  to  maintaining  a  competitive  edge.    However,  we  make  no
representation or guarantee that we will be able to establish or maintain a
competitive edge in the marketplace.  Consequently, the human and financial
commitment  to  research and development  will increase  proportionately to
meet these demands.

At December 31, 2005, we had a total of four full-time employees.   None of
the  Company's  employees  are  represented by a  labor union or bound by a
collective bargaining agreement.   We consider our employee relations to be
good.

Item 2.   Properties

Unitrend's headquarters comprise approximately 10,000 square feet of  space
in  an  office building owned by the Company at 4665 West Bancroft  Street,
Toledo,  Ohio 43615.  The building houses the Company's principal executive
offices, as well as limited laboratory and technical development space.

Item 3.   Legal Proceedings

None

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

None

                                    PART II

Item 5.   Market for Common Equity and Related Stockholder Matters.

None

Item 6.   Management's Discussion and Analysis or Plan of Operation

                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The  following  discussion  should be  read  together  with  our  "Selected
Consolidated Financial Data"  and our financial statements and accompanying
notes.   This document  contains  forward-looking  statements  that involve
risks  and uncertainties.   The cautionary statements made in this document
should   be  read  as  being  applicable  to  all  related  forward-looking
statements  wherever  they appear  in this document.   Actual  results  may
differ materially from those indicated in forward-looking statements.

OVERVIEW

We invent and market computer-related products designed  to make technology
simple, accessible and  affordable  through modularity.   We have exclusive
rights  to patented and patent  pending products and technology for certain
computer-related products.  Our Cablety wire management system was released
to  the  marketplace  fourth  quarter  2003.   The  Breeze power supply and
VersaCase (Viking Chassis)  computer  enclosure system will follow in 2007.
Our  VersaCase  computer  enclosure  system  allows users to quickly access
computer  components   by  incorporating  a   pull-drawer  design  of  high
modularity,  thus  reducing  downtime  and  extending  the  service life of
information technology.

We are a development stage company that commenced operations  in April 1996
and has incurred significant losses since that date.   In 1998, we acquired
Server  Systems  Technology, Inc. (SSTI), a related Ohio corporation formed
September 27, 1994.   SSTI  held  the  patent  on technology crucial to the
VersaCase line of products. We acquired SSTI in a stock-for-stock exchange.
Also in 1998,  we incorporated Osborne Manufacturing Inc.  (OMI) as an Ohio
Corporation to function  as the business entity for a joint venture between
our Company and one of our employees.   In  2002  OMI was dissolved because
management  believed that  it could save time and money  by entering into a
contract  with  New  Product  Innovations, Inc.  (NPI)  to  provide turnkey
manufacturing of its product line.   To date,  we have had minimal revenues
from sales  of our patented and patent pending products, but have relied on
private financing and loans from our founder.  Furthermore, we have not yet
been  profitable  since  our  inception  and  expect  to  incur  additional
operating  losses  in  2006  as  we ramp up for production and sales of our
entire product line. As of December 31, 2005, we had an accumulated deficit
in the development stage of approximately $14,163,000. At December 31, 2005
we  had  available  net operating loss carry forwards of approximately $8.7
million  for  federal income tax reporting purposes that begin to expire in
2011.  Due to uncertainty as to the ability of the Company to be utilizing,
the net operating loss has been fully reserved. To date our operations have
consisted  predominately  of  sales  of the Cablety and incidental sales of
computer   components  while  we  have  principally   concentrated  on  the
progression of the VersaCase enclosure and related products.   We  have not
achieved  profitability  on  a  quarterly or an annual basis and anticipate
that we will continue to incur net losses through 2006.   Expenses incurred
have  been primarily for development of the Cablety wire management system,
Stable   power  supply   and   VersaCase  enclosure  system,   tooling  and
administrative  support.   We expect to incur significant engineering, pre-
production, sales, general and administrative expenses, and as a result, we
will  need  to  generate  significant  revenue  to  achieve  profitability.
Additionally,  our lack  of  operating history makes it difficult for us to
predict  future  operating  results  and,  accordingly,  there  can  be  no
assurance  that  we will sustain revenue growth or achieve profitability in
future quarters.  Although our core management team has worked together for
several  years,  none  of  the  present members of management has extensive
experience  in  managing  a large public business in the computer industry.
We  intend  to  hire accomplished individuals in the industry to supplement
our current management team.   However,  we  cannot  assure that we will be
able to attract and retain such persons.

The  Company  has  conducted  extensive research and development activities
since its inception at a variety of levels.  Such activities have primarily
focused  on  acquiring  patent,  market  research,   marketing,  sales  and
distribution,  current  technologies, emerging technologies, manufacturing,
tool  production  and  analysis,  engineering  (structural, mechanical, and
electronic/electrical)  and  product  development.  The Company has engaged
various  consultants  to  assist  in  some  of  these matters.  The Company
initially  had a two to three year time line for developing and placing its
initial products into the market.  However early in 1998, toward the end of
the  initial  product  development  cycle,  the computer industry announced
sweeping  changes  to its 20-year old standard  in internal design layouts.
These  changes  caused  the  computer  industry  to  adopt  a new standard.
Substantial changes  in the future are not to be expected for at least five
years,  but this is not a certainty.   These  changes caused the Company to
redesign  its  products prior to commencement of the development of tooling
and  dies.  The changes  caused  delays  and  deviations  from  the initial
timeline.   An additional delay was caused by the Company's underestimation
of the complications involved in developing the tools and dies necessary to
produce the Company's products (up to six months may be required per tool).
Additionally,   a  significant  number  of  these  tools  cannot  be  built
concurrently  with  one another because the parts produced by the core tool
must  be compared and checked against industry standards before other tools
based  upon  tha part may be engineered.   The VersaCase product line alone
has more than 200 parts, with most of those components having been invented
by  the  Company.   To  build  the  VersaCase more than 40 tools have to be
designed,  machined  and  built.   The  total  cost  for tooling to date is
$1,535,757 with an additional $1,000,000 needed  to replace and/or modify a
portion of our tools on an expedited basis.   Approximately $4,211,000 will
also  be  needed  to complete tooling, and for various marketing activities
provided  by  New Product Innovations, Inc.  including  but  not limited to
developing   a  selling  proposition,  conduct  naming   and  nomenclature,
developing  branding  elements and  launch material formats, design a trade
show  exhibit  booth,  and further develop the web site prior to full-scale
production of the Stable power supply and VersaCase. In 2005, we spent zero
on tooling but in 2004 we spent $28,600 on two production quality tools for
the  Cablety  wire  management  system.  In  2003, we spent $37,728 on pre-
production  tooling for the Cablety.   Nothing was spent on tooling for any
of our products in 2002 or 2001.  We believe tooling costs will increase as
we  move  forward  with  changes  to  our  current  product  line  and  the
development of new products.

The Company has applied for twenty six patents with respect to its products
of  which  nine  have  been  granted to date.  Patent prosecution is also a
source  of  delay  and  considerable  expense  for  the  Company.  To fully
prosecute a patent may take several years,  depending on the type of patent
and  the  number  of  competing  or similar patents.   However, the Company
believes  that patenting its products is key to protecting the value of its
ideas  and  its  business  plans.   In addition to hiring patent attorneys,
engineers  and  designers  as  consultants  to  help  develop the Company's
products, the Company has also hired consultants to help with the marketing
of its products.   In  2003, the  design of  the Cablety was finalized, the
initial  production tool was completed and production of the Cablety began.
At the present time, the re-design of the VersaCase and Stable power supply
are  near  completion  and  the  Company has produced several VersaCase and
Stable prototypes.   The  tools  and  dies  necessary  to manufacture these
products  have  been  designed  and  engineered  and "soft" tools have been
produced in order to enable the Company  to produce the  prototypes.  Funds
are  still  required  in  order to finish product development, position the
product, develop manufacturing and assembly operations and purchase the raw
materials which will enable the Company to go into full-scale production of
the VersaCase and Breeze power supply.   Obviously, Breeze power supply and
VersaCase products near completion, it will be necessary for the Company to
hire  additional  staff  in  orderto ramp up its ability to produce, market
and  distribute  this  product.   The  Company  expects to continue to hire
additional  staff  to  meet  its  business challenges, as it gets closer to
full-scale operations.

We expect that  our  initial revenues will primarily be derived from direct
sales  of  our  Cablety wire management system  to major original equipment
manufacturers (OEMs).   We expect  that  substantially  all  of our revenue
through the fourth quarter of 2006 will be derived from customers based  in
the  United States. We expect that revenue from customers based outside the
United States  will  increase  in  future periods.  In  addition to revenue
derived  from  direct  sales,  we  expect  that  revenue  through  indirect
distribution channels will increase in future periods.  Where strategically
beneficial,  we  believe  that  we  will  be  able  to enter into strategic
alliances   with  companies   focusing  on   the  development  of  computer
peripherals, logic boards and power supplies.  To date, we have not entered
into  any  such  alliances, and  the  creation  of such alliances cannot be
guaranteed.

The  Cablety  wire management system is the first product we have marketed.
Sales of the Cablety began via our website in the fourth quarter 2003.  The
Cablety  has  been  marketed  through  various  channels including, but not
limited   to,  value  added  re-sellers  (VARs),  and   original  equipment
manufacturers (OEMs).   We  intend  to  target  organizations  such  as the
government  and the military.   VersaCase and Stable power supplies will be
marketed to, and sold for, two specific PC applications: high-end PC users,
such  as  automated  manufacturing  functions, and entry-level servers.  We
intend  to  market  and  sell  our  products  to  non-profit and commercial
organizations,  individuals,  and  OEMs.   OEM  sales  and licensing, large
corporate  and  government  accounts,  and  large-volume  VAR sales will be
managed  by  Unitrend's  direct sales organization.   Sales  to  all  other
organizations will be through distributors.   We plan to establish a multi-
channel   distribution   network   that  will  allow  us  to  leverage  the
distributors who are strategically focused on offering value added products
and  services  to  the  computer  industry.   However,  we  will modify our
distribution plans as demanded by the markets we serve in order to maximize
efficiency  throughout all channels of distribution.   We intend to promote
end-user  demand,  and will support our sales efforts through  a variety of
marketing  programs  including  but  not  limited  to:  trade  and consumer
advertising, public relations, and trade shows.

While  our initial focus is the North American market, we plan to expand to
Europe,  Asia/Pacific, and  Latin America as  opportunity arises.  The data
presented at the beginning of the  business section illustrates the size of
these market segments.

RESULTS OF OPERATIONS

Year Ended December 31, 2005 compared to Year Ended December 31, 2004

Unitrend  had  no significant  revenues in the year ended December 31, 2005
("2005") or  in  the  year  ended December 31, 2004 ("2004"). In the fourth
quarter  2003,  Unitrend  began  to  produce  and  sell  the  Cablety  wire
management  system.   Revenues  were modest in 2004 because during the year
Unitrend had developed a  new marketing program and just began to implement
it  during  the  last half of 2004.  This program includes, but will not be
limited  to, trade  and  consumer  advertising,  public relations and trade
shows.  Unitrend  anticipates  not  being classified as a development stage
enterprise sometime during 2007.

Unitrend  incurred  an  operating  loss of $537,905 in 2005, compared to an
operating  loss  of $624,263 in 2004, a  decrease of $86,358.   The primary
reasons  behind  the decrease in our operating loss for 2005 as compared to
2004  was a decrease  in  litigation expense, salaried wages and trade show
expense.  The Company incurred additional fees and interest on a settlement
in 2004 as compared to nothing on this settlement in 2005.

The  Company  had  $43,713  in research and development expenses during the
year ended December 31, 2005  as  compared  to  zero  for  the  year  ended
December 31,  2004.   Mr. Jelinger  performs  many  internal  research  and
development functions for Unitrend of which he does not collect or accrue a
salary.   We  believe  that  research and development expenses with outside
firms will increase as we go forward due to the contract entered  into with
NPI to provide turnkey manufacturing of our product line.  NPI  along  with
Fitch, Inc. will  complete  product  development,  obtain agency approvals,
engage in product positioning and manufacturing development.  We anticipate
this  spending  to  continue  to  increase  as  we  continue to produce the
Cablety, our  first  product  that  was made available to the market in the
fourth quarter of 2003 and for the final product development and production
of the VersaCase and Breeze power supply.   There was zero spent on tooling
in 2005 as compared to $28,600 spent on tooling in 2004, we anticipate this
to increase as we move forward.

Selling, general and administrative expenses consist primarily  of salaries
and  related  costs  of  marketing  and  customer support activities, legal
services,   and  accounting  services,   information  technologies,   human
resources,  and executive expenses,  as well as costs associated with trade
shows,  promotional activities,  advertising and  public relations.   Legal
services  for  the  company consisted  of salaries,  filing fees,  dues and
subscriptions  and  new  and  ongoing  patent  and  trademark  filings  and
prosecution  costs.   Prosecution  costs  include those legal fees directly
associated  with the process of obtaining patents  on  inventions under the
control of or otherwise originating from the Company.  Finance, information
technologies,  human resources and executive expenses consisted of expenses
relating  to  salaries, information  systems  expansion, professional fees,
facilities  expenses  and  other  general corporate expenses.  Our selling,
general  and  administrative  expenses  decreased  to $493,299 in 2005 from
$621,078 in 2004,  a decrease of 20.58%.   This change was due primarily to
decreases  in  litigation  expense and payroll and related employee benefit
costs of approximately $219,500 during the year ended December 31, 2005  as
compared  to  the  year  ended  December 31, 2004.   The  Company  incurred
additional fees and interest on a settlement in 2004 as compared to nothing
on this settlement in 2005.  There was a significant increase in repair and
maintenance  expense  of  approximately  $78,000  which  can   be  directly
attributed to repairs on the Company's building. There was also an increase
of  approximately  $13,500  for  consulting  expense  which relates to work
dealing  with  the  Company's  computer systems and website. We expect that
selling, general and administrative expenses will to increase in the future
as  we  hire  additional  personnel, expand  our  operations  domestically,
initiate  additional  marketing programs, establish sales relationships and
incur  additional  costs  related  to  the  growth  of our business and our
operations as a public company.

During 2005 and 2004,  there were no stock options granted to non-employees
under our 1999 Stock Option Plan.     As of December 31, 2005, zero options
remain  exercisable by non-employee consultants  at a strike price of $0.50
each.  During 2005, 14,472 options  expired  and no options were exercised.

Accrued payroll and  related taxes  increased to $1,010,514 at December 31,
2005 as compared to $863,160 at December 31, 2004,  respectively.  Unitrend
notified all Unitrend employees on January 1, 2001 that due to insufficient
funding, payment  of wages  would  cease for an undetermined amount of time
and employees could remain, if they should choose to, on a voluntary basis.
In 2002, Unitrend decided that payroll expense would resume and has accrued
wages since then.

Year Ended December 31, 2004 compared to Year Ended December 31, 2003

Unitrend had no significant  revenues in  the year  ended December 31, 2004
("2004") or  in the year  ended  December 31, 2003 ("2003").  In the fourth
quarter  2003,  Unitrend  began  to  produce  and  sell  the  Cablety  wire
management  system.   Revenues  were modest in 2004 because during the year
Unitrend  had developed a new marketing program and just began to implement
it during the last half of 2004.   This program includes,  but  will not be
limited to,  trade and consumer advertising,  public  relations  and  trade
shows.   Unitrend  anticipates not being  classified as a development stage
enterprise sometime during 2005.

Unitrend  incurred  an operating  loss of $624,263 in 2004,  compared to an
operating  loss of $256,140 in 2003, an increase of $368,123.   The Company
incurred  additional  fees and interest  on a previous settlement agreement
and recorded marketing and trade show expense  in 2004 where there was zero
recorded in 2003; these are the primary reasons  behind the increase in our
operating loss for 2004 as compared to 2003.

The  Company had zero in research and development  expenses during the year
ended December 31, 2004 as compared to $36,572 for the year  ended December
31, 2003.   Mr. Jelinger  performs many internal  research and  development
functions for Unitrend of which he does not collect or accrue a salary.  We
believe  that  research  and  development  expenses with outside firms will
increase  as we go  forward  due to the contract  entered into  with NPI to
provide turnkey  manufacturing of our product line.   NPI along with Fitch,
Inc. will  complete product development, obtain agency approvals, engage in
product positioning and  manufacturing  development.   We  anticipate  this
spending to continue to increase as we continue to produce the Cablety, our
first  product that was  made available to the market in the fourth quarter
of 2003 and for the final product development and  production of the Stable
power supply,  VersaCase and Breeze power supply.   There was $28,600 spent
on tooling in 2004 and $37,728 spent on tooling in 2003, we anticipate this
to  continue  to  increase  as we move forward.   The total  future tooling
commitments  that  has been  contracted  as  of  December  31, 2004 totaled
$316,420.

Selling,  general and administrative expenses consist primarily of salaries
and related costs of  marketing  and  customer  support  activities,  legal
services,  and   accounting  services,  information   technologies,   human
resources,  and executive expenses,  as well as costs associated with trade
shows,  promotional  activities,  advertising and public relations.   Legal
services  for  the  company consisted  of salaries,  filing fees,  dues and
subscriptions  and  new  and  ongoing  patent  and  trademark  filings  and
prosecution costs.   Prosecution  costs  include  those legal fees directly
associated with the process  of obtaining patents  on inventions  under the
control of or otherwise originating from the Company. Finance,  information
technologies, human resources and executive expenses  consisted of expenses
relating  to  salaries,  information systems expansion,  professional fees,
facilities  expenses and  other general  corporate expenses.   Our selling,
general  and  administrative  expenses  increased  to $621,078 in 2004 from
$218,641 in 2003, an increase of 184%.   This change  was due  primarily to
increases in professional fees,  litigation expense and payroll and related
employee  benefit costs of  approximately  $318,000  during  the year ended
December 31, 2004  as  compared  to  the  year  ended  December  31,  2003.
Professional  fees and litigation expense increased during 2004 compared to
2003 because of an  increase in the use of Unitrend's outside attorneys for
patent  related matters,  reviewing  contracts and general legal work.  The
Company  saw  additional increases in trade show expense, marketing expense
and stock  registration fees  of approximately $27,400, $22,500 and $11,100
respectively.   The Company  did not experience  many significant decreases
other than in repair and maintenance expense of  approximately $7,700.   We
expect that selling,  general and  administrative expenses will continue to
increase  in  the  future  as  we  hire  additional  personnel,  expand our
operations domestically, initiate additional marketing programs,  establish
sales relationships and incur additional costs related to the growth of our
business and our operations as a public company.

During 2004 and 2003,  there were no stock options granted to non-employees
under our 1999  Stock Option Plan.    As of December 31, 2004, 14,472 total
options remain exercisable by non-employee consultants at a strike price of
$0.50 each. Options to non-employee consultants were recorded as consulting
expenses  and disclosed as selling,  general and administrative expenses in
the Company's accompanying financial statement, using the fair market value
of  the services  rendered or the options  granted on the date of issuance.
During 2004, 200,000 options expired and 19,000 options were exercised.

Accrued  payroll and  related taxes increased  to $863,160 at  December 31,
2004  as  compared  to  $749,310 at  December 31, 2003, respectively.   The
primary reason behind this increase is Mr. Jelinger forgiving approximately
$199,000  of his  accrued salary  in 2003,  this did  not happen  in  2004.
Unitrend  notified all  Unitrend employees  on January 1, 2001  that due to
insufficient funding,  payment of wages  would cease  for  an  undetermined
amount  of time and employees could remain,  if they should choose to, on a
voluntary basis.   In 2002,  Unitrend  decided  that  payroll expense would
resume  and has accrued wages since then.   Interest  expense  decreased to
$14,541  in 2004  compared  to $24,798  in 2003,  a decrease  of 41%.   The
decrease  in interest expense  can be attributed to  Mr. Jelinger no longer
accruing interest on funds he personally loaned the Company in 2004.

Year Ended December 31, 2003 compared to Year Ended December 31, 2002

We  had  no  significant  revenues  in  the year  ended  December  31, 2003
("2003") or in  the year ended  December 31, 2002 ("2002").   In the fourth
quarter 2003, we  began  to produce and  sell the Cablety  wire  management
system.    We  anticipate  not  being  classified  as  a  development stage
enterprise sometime during 2004.

We incurred an operating loss of $256,140 in 2003, compared to an operating
loss of $998,755 in 2002,  a decrease  of $742,615.   The Company reached a
settlement agreement  in a  lawsuit  and recorded  a significant  amount of
accrued payroll expense in 2002 where a modest amount was recorded in 2003;
these are the primary reasons behind the decrease in our operating loss for
2003 as compared to 2002.

The  Company  had  $36,572 in research  and development expenses during the
year ended  December  31, 2003  as  compared  to  zero for  the year  ended
December 31, 2002.   We believe that research and development expenses will
increase  as  we go  forward  due  to the contract entered into with NPI to
provide turnkey manufacturing of our product line.   NPI  along with Fitch,
Inc. will complete product development, obtain agency approvals,  engage in
product positioning and  manufacturing  development.   We  anticipate  this
spending to continue to increase as we continue to produce the Cablety, our
first product that has now been  made available to the market in the fourth
quarter of 2003 and for the final product development and production of the
Stable power supply and VersaCase.   There  was $37,728 spent on tooling in
2003  and nothing  spent on tooling and dies in 2002, we anticipate this to
continue  to  increase  as  we  move  forward.   The  total  future tooling
commitments that has been  contracted  as  of  December  31,  2003  totaled
$365,295.

Selling,  general and administrative expenses consist primarily of salaries
and  related  costs  of  marketing  and customer  support activities, legal
services,   and   accounting  services,  information  technologies,   human
resources,  and  executive expenses, as well as costs associated with trade
shows, promotional activities, advertising  and  public  relations.   Legal
services  for  the  company  consisted  of  salaries, filing fees, dues and
subscriptions  and  new  and  ongoing  patent  and  trademark  filings  and
prosecution costs. Prosecution costs  include  those  legal  fees  directly
associated  with  the  process of obtaining patents on inventions under the
control of or otherwise originating from the Company.  Finance, information
technologies,  human resources and executive expenses consisted of expenses
relating  to  salaries,  information  systems expansion, professional fees,
facilities expenses and other general  corporate  expenses.   Our  selling,
general  and  administrative  expenses  decreased  to $218,641 in 2003 from
$998,755 in 2002, a decrease of 78%.   This  change  was due primarily to a
decrease  in  payroll  and  related employee benefit costs of approximately
$424,000 during the year ended December 31, 2003  as  compared  to the year
ended December 31, 2002.   In 2003, Mr. Jelinger decided that it was in the
Company's  best interests  if he no longer accrued a salary and forgave his
prior years' accrued wages.   Another significant decrease in 2003 compared
to 2002  was in  litigation  settlement expense.   This expense was zero in
2003 as compared to  approximately  $307,500  in  2002.   The  Company  saw
increases  in key man insurance expense, repair and maintenance expense and
membership  fees  of approximately $14,860, $7,900 and $2,040 respectively.
The  Company  saw significant decreases in consulting expense, professional
fees,  telephone  expense  and  contract  labor  expense  of  approximately
$40,000,  $7,000,  $4,000 and $2,200, respectively as the Company continued
its efforts to cut costs to decrease the Company's need for cash. We expect
that  selling,  general  and  administrative  expenses will increase in the
future as we hire additional personnel, expand our operations domestically,
initiate  additional  marketing programs, establish sales relationships and
incur  additional  costs  related  to  the  growth  of our business and our
operations as a public company.

During 2003 and 2002,  there were no stock options granted to non-employees
under our 1999 Stock Option Plan.    As of December 31, 2003, 214,472 total
options remain exercisable by non-employee consultants at a strike price of
$0.50 each. Options to non-employee consultants were recorded as consulting
expenses  and disclosed as  selling, general and administrative expenses in
the Company's accompanying financial statement, using the fair market value
of  the  services rendered  or the options granted on the date of issuance.
During 2003, 4,895,033 options expired and no options were exercised.

Accrued  payroll  and  related  taxes decreased to $749,310 at December 31,
2003 as compared to $982,808  at  December  31,  2002,  respectively.   The
primary reason behind this decrease is Mr. Jelinger forgiving approximately
$199,000  of  his accrued salary.  Interest expense decreased to $24,798 in
2003  compared to $52,182 in 2002, a decrease of 52%.   A  portion  of  our
decrease  in interest  expense can  be attributed to Mr. Jelinger forgiving
approximately $7,800 of interest incurred on funds he personally loaned the
Company in 2003.


Year Ended December 31, 2002 compared to Year Ended December 31, 2001

We had no net revenues  in the year ended December 31, 2002  ("2002") or in
the year ended December 31, 2001 ("2001").  Consequently, there was no cost
of revenues or gross profit in 2002 or 2001.

We incurred an operating loss of $998,775 in 2002, compared to an operating
loss of $396,542 in 2001, an increase  of $602,233.   The Company reached a
settlement agreement  in a  lawsuit and accrued payroll expense;  these are
the primary  reasons behind  the increase in our operating loss for 2002 as
compared to 2001.

The Company did not have research and development expenses  during 2002  or
2001.   We believe that  research and development expenses will increase as
we go forward due to a contract entered into with  New Product Innovations,
Inc. (NPI) to provide turnkey manufacturing of our product line.  NPI along
with  Fitch,  Inc.   will  complete  product  development,  obtain   agency
approvals, engage in product positioning and manufacturing development.  We
anticipate this spending to increase beginning in the first quarter of 2003
as we prepare  for the  final  product  development  and  production of the
Cablety, our first product due to reach the market in the second quarter of
2003.   There was no monies spent on tooling and dies in 2002 and 2001,  we
anticipate this to  increase as we move forward.   The total future tooling
commitments remaining as of December 31, 2002 totaled $365,295.

Selling, general and administrative expenses consist primarily of  salaries
and  related  costs  of  marketing  and  customer support activities, legal
services,   and  accounting  services,   information  technologies,   human
resources,  and executive expenses,  as well as costs associated with trade
shows, promotional activities,  advertising  and  public relations.   Legal
services  for  the  company  consisted  of  outside  attorney costs, filing
fees, dues and subscriptions and  new  and  ongoing  patent  and  trademark
filings  and prosecution costs.  Prosecution costs include those legal fees
directly associated  with the  process of obtaining patents  on  inventions
under the  control of  or  otherwise originating from the Company. Finance,
information technologies, human resources and  executive expenses consisted
of  expenses  relating  to   salaries,   information   systems   expansion,
professional  fees,   facilities   expenses  and  other  general  corporate
expenses.   Our  selling,  general and administrative expenses increased to
$998,755 in 2002 from $396,542 in 2001, an increase of 152%.    This change
was due primarily to an increase in payroll and  related  employee  benefit
costs of approximately $526,000 during the year  ended December 31, 2002 as
compared  to the  year ended  December 31, 2001.   The Company notified its
employees  on  January 1, 2001 that due to its financial condition, payroll
would  cease for an undetermined  amount  of time.    In 2002, the  Company
decided  that  payroll would   resume.    Another  increase   in  2002   of
approximately $307,500 in litigation settlement expense as compared to zero
in 2001 contributed to the increase in  selling, general and administrative
expenses.  The Company saw an increase in consulting expense of $25,000 due
to a contract the Company  entered into with an  outside firm that will use
its best efforts to  secure  necessary funding needed to meet the Company's
future financial obligations.    The  Company saw  significant decreases in
contract  labor,  professional  fees,  advertising  expense, rent  expense,
utilities expense and telephone expense of approximately  $88,000, $54,200,
$50,300, $57,600, $10,100 and $8,500, respectively as the Company continued
its efforts to cut costs to decrease the Company's need for cash. We expect
that selling,  general  and  administrative  expenses will increase in  the
future as we hire additional personnel, expand our operations domestically,
initiate  additional  marketing programs,  establish  sales offices in  new
locations and incur additional costs related to the growth of our  business
and our operations as a public company.

During 2002 and 2001, there were no stock options granted to  non-employees
under our 1999 Stock Option Plan.  As of December 31, 2002, 3,792,102 total
options remain exercisable by non-employee consultants at a strike price of
$0.50 each. Options to non-employee consultants were recorded as consulting
expenses and disclosed as selling,  general and administrative  expenses in
the Company's accompanying consolidated financial statement, using the fair
market value of the services rendered or the options granted on the date of
issuance.

Accrued payroll and related taxes  increased to  $982,808  at December  31,
2002  as compared to  $492,911 at December 31,  2001,  respectively.    The
Company notified its employees on January 1, 2001 that due to its financial
condition, payroll would cease for an undetermined amount of time. In 2002,
the Company decided that payroll would  resume.  Interest expense increased
to $52,182 in 2002 compared  to  $35,447 in 2001, an increase of 47%.   Our
increase  in  interest  expense  can  be attributed to interest incurred on
accounts payable.

LIQUIDITY AND CAPITAL RESOURCES

From inception,  we  have financed our operations primarily through private
placements  of equity securities,  which provided aggregate net proceeds of
approximately $2,630,000 and net loans from founder received from inception
of $3,566,000.  At December 31, 2004, our cash balance was $427. Since that
date,  we have  received  additional proceeds from  founder's loans and the
Company's cash position fluctuates.  The Company expects founder's loans to
continue  funding the Company's  operations  until the time that such loans
are not necessary.   In 2004, Mr. Jelinger, our  founder,  forgave debt  of
$373,909.   The cash  requirement  needed  to complete  production tooling,
infrastructure, manufacturing development  and marketing of the  VersaCase,
Stable power supply and Breeze power supply is approximately $4,200,000, of
which $316,420  is contractual committed  to as of December 31, 2004.   The
cash   requirement   needed  for   another  round  of  production  tooling,
infrastructure,  manufacturing  development and marketing of the Cablety is
approximately $112,000.   Final product development of the Cablety began in
January 2003 and production began in the fourth  quarter 2003.   Production
of  the Stable  power supply  and VersaCase could feasibly start  in mid to
late 2005  and would  require approximately  $5,000,000  to  begin  initial
ramp-up production for a 90 day period.

Net cash used in operating activities for the years ended 2004 and 2003 was
$443,122 and  $266,028, respectively.   Our net cash flow used in investing
activities was $28,600 in  2004 and relates to the launch of two production
tools for the Cablety.   In 2003,  our  net  cash  flow  used  in investing
activities was $37,958 and is attributed to the initial pre-production tool
for the Cablety. Net cash inflow from financing activities was $468,972  in
2004 and $307,112 in 2003 and relates primarily to funds contributed to the
Company by Mr. Jelinger.

Our  future  capital  requirements  will  depend  upon  numerous   factors,
including the amount of revenues generated from operations, the cost of our
sales  and  marketing  activities  and  the  progress  of  our research and
development activities, none of which can be predicted with certainty.   In
December, 2000, the Company filed an SB-2  registration statement with  the
Securities  and Exchange  Commission to register 4,000,000 shares of common
stock,  at  $10.00 per share in a "Best Efforts" offering.   The filing was
declared effective on December 28, 2000.   The  purpose of the offering was
to  raise  sufficient funds to enable the Company to commence manufacturing
of  its  VersaCase  product.   Ultimately,  the  Company  did  not  receive
sufficient subscriptions to enable to commence manufacturing operations and
the offering terminated with all funds returned to subscribers.  Currently,
the  Company  plans  to  raise  sufficient funds through the advancement of
monies by its founder  and/or through  a private  placement.   While  funds
advanced  and  raised  from the  founder may enable the Company to continue
product development  and commence out-source manufacturing,  we  cannot  be
certain  that  the  founder  will  continue  to  fund  our  capital  needs.
Consequently,  we may  seek  additional  funding during  the next 24 months
through  a post effective  amendment  to the  SB-2 registration  statement.
There can be no assurance that any additional  financing will be  available
on acceptable terms, if required. Moreover,  if additional financing is not
available,  we could be required to reduce or  suspend our operations, seek
an  acquisition  partner  or  sell securities  on terms  that may be highly
dilutive or otherwise  disadvantageous to existing investors,  or investors
purchasing  stock  offered  in the  anticipated secondary offering.  In the
event that neither of the capital-raising mechanisms described above result
in timely  usable proceeds to the Company,  we may have a serious shortfall
of working capital.   We have experienced  in the past, and may continue to
experience, operational difficulties and delays in product  development due
to working capital constraints. Any such difficulties  or delays could have
a material adverse effect on our business,  financial condition and results
of operations.


NEW ACCOUNTING PRONOUNCEMENTS

None


Item 7.   Financial Statements

                                UNITREND, INC.
                         (A Development Stage Company)

                                BALANCE SHEETS
                          December 31, 2005 and 2004


                                   ASSETS
<TABLE>
<CAPTION>

                                                      (unaudited)
(unaudited)
                                                         2005             2004
<S>                                                  <C>              <C>
CURRENT ASSETS
  Cash                                                  $    291         $
427
  Accounts Receivable                                        569
384
  Inventory - Finished Goods                              13,168
3,763
                                                      ----------       ---------
-
    Total Current Assets                                  14,028
4,574

PROPERTY AND EQUIPMENT, at cost
  Land                                                    67,485
67,485
  Building and improvements                              351,168
351,168
  Furniture and fixtures                                  65,496
65,496
  Computer equipment                                     151,055
151,055
  Computer software                                       46,719
46,719
  Automobiles                                             15,937
15,937
  Tooling and dies under construction                    940,007
940,007
                                                      ----------       ---------
-
                                                       1,637,867
1,637,867
  Less accumulated depreciation                         (328,540)
(312,035)
                                                      ----------       ---------
-
    Net property and equipment                         1,309,327
1,325,831
                                                      ----------       ---------
-
OTHER ASSETS
  Patent licensing costs,
    net of accumulated amortization                       18,598
20,713
                                                      ----------       ---------
-

       TOTAL ASSETS                                   $1,341,953
$1,351,118
                                                      ==========
==========


                      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


CURRENT LIABILITES
  Accounts payable                                      $510,176
$707,201
  Current portion of note payable                              -
171,047
  Accrued expenses                                     1,006,477       1,209,271
                                                      ----------       ---------
-
    Total current liabilities                          1,516,653
2,087,519
                                                      ----------       ---------
-
NOTES PAYABLE - RELATED PARTIES                          850,068
99,846
                                                      ----------       ---------
-
STOCKHOLDERS' EQUITY (DEFICIT)
  Common stock, no par value                           3,805,098
3,805,098
  Additional paid-in capital                           9,332,592
8,975,592
  Deficit accumulated in the development stage       (14,162,458)
(13,616,938)
                                                      ----------       ---------
-
     Total stockholders' equity (deficit)             (1,024,769)
(836,248)
                                                      ----------       ---------
-
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY(DEFICIT)   $1,341,953
$1,351,118
                                                      ==========
==========
</TABLE>



                                 UNITREND, INC.
                          (A Development Stage Company)

                             STATEMENTS OF OPERATIONS
    For the Years Ended December 31, 2005, 2004, 2003 and for the period from
          the inception date of September 27, 1994 to December 31, 2005

<TABLE>
<CAPTION>
                                           (unaudited)      (unaudited)
(unaudited)         (unaudited)
                                           Year Ended       Year Ended
Year Ended       September 27, 1994
                                           December 31,     December 31,
December 31,    (Date of Inception)
                                               2005            2004
2003         to December 31, 2005
                                          --------------   --------------   ----
----------   --------------------
<S>                                       <C>              <C>              <C>
<C>
Sales                                     $         185    $       5,853    $
84    $             6,725

Cost of Sales                                     (1033)          (9,038)
(1,010)               (11,082)
                                          --------------   --------------   ----
----------   --------------------

Gross Loss                                         (848)          (3,185)
(927)                (3,357)

Research and
  development expenses                          (43,713)               -
(36,572)              (566,515)

Selling, general
  and administrative expenses                  (493,344)        (621,078)
(218,641)           (12,152,988)
                                          --------------   --------------   ----
----------   --------------------
Operating loss                                 (537,905)        (624,263)
(256,140)           (13,260,917)

Other income                                          -         (546,875)
-               (546,875)

Interest income                                       -                -
-                  1,546

Interest expense                                 (7,615)         (14,541)
(24,798)              (322,244)
                                          --------------   --------------   ----
----------   --------------------
Net loss before cumulative
  effect of change in
  accounting principle                         (545,520)      (1,185,679)
(280,938)           (14,162,458)

Cumulative effect of change
  in accounting principle                             -                -
-                (23,968)
                                          --------------   --------------   ----
----------   --------------------
Net loss                                  $  (1,185,679)   $    (280,938)   $
(1,050,937)   $       (13,616,938)
                                          ==============   ==============
==============   ====================
Basic and diluted loss per share:

Before cumulative effect of
  change in accounting
  principle                               $       (0.01)   $       (0.02)   $
(0.00)   $             (0.21)

Cumulative effect of change in
  accounting principle                                -                -
-                      -
                                          --------------   --------------   ----
----------   --------------------
Net loss                                  $       (0.01)   $       (0.02)   $
(0.00)   $             (0.21)
                                          ==============   ==============
==============   ====================
Weighted average shares
 outstanding used to compute
 basic and diluted loss
 per share                                   70,390,770       70,390,770
70,371,770             68,496,113
                                          ==============   ==============
==============   ====================
</TABLE>



                               UNITREND, INC.
                        (A Development Stage Company)

                 STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
               For the Years Ended December 31, 2005, 2004 and 2003
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                  Deficit
                                                                Accumulated
                            Common Stock         Additional    During  the
                         ------------------       Paid-in      Development
                        Shares       Amount       Capital         Stage
Total
                      ----------   ----------    ----------   -------------   --
--------
<S>                   <C>          <C>           <C>          <C>
<C>
BALANCE -
DECEMBER 31, 2002     70,371,770   $3,795,598    $8,023,695    (12,150,321)
$(331,028)

Majority stockholder
  forgives loans and
  accrued salary on
  December 31, 2003            -            -      577,988              -
577,988

Net loss - 2003                -            -            -       (280,938)
(280,938)
                      ----------   ----------   ----------   -------------   ---
--------
BALANCE -
DECEMBER 31, 2003     70,371,770   $3,795,598   $8,601,683    (12,431,259)    $
(33,978)

Exercise of stock
  options at $0.50
  per share on
  January 14,2004         19,000        9,500
9,500

Majority stockholder
  forgives loans on
  March 31, 2004                                   136,832
136,832

Majority stockholder
  forgives loans on
  June 30, 2004                                    237,077
237,077

Net loss - 2004                                                (1,185,679)
(1,185,679)
                      ----------   ----------   ----------   -------------   ---
--------
BALANCE -
DECEMBER 31, 2004     70,390,770   $3,805,098   $8,975,592   $(13,616,938)
$(836,248)
                      ==========   ==========   ==========   =============
===========

Majority stockholder
  forgives loans on
  June 30, 2005                                    357,000
357,000

Net loss - 2005                                                  (545,520)
(545,520)
                      ----------   ----------   ----------   -------------   ---
--------
BALANCE -
DECEMBER 31, 2005     70,390,770   $3,805,098   $9,332,592   $(14,162,458)
$(1,024,769)

</TABLE>



                                  UNITREND, INC.
                           (A Development Stage Company)

                              STATEMENT OF CASH FLOWS
   For the Years Ended December 31, 2005, 2004, 2003 and for the period from the
            inception date of September 27, 1994 to December 31, 2005

<TABLE>
<CAPTION>
                                          (unaudited)   (unaudited)    (audited)
(unaudited)

September 27, 1994
                                          Year Ended    Year Ended    Year Ended
(Date Of Inception)
                                          December 31,  December 31,  December
31,     December 31,
                                             2005          2004          2003
2005
                                        ------------  -------------  -----------
--    --------------
<S>                                     <C>           <C>            <C>
<C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                              $   (545,520)   $(1,185,679)  $
(280,938)    $ (14,162,458)
                                        ------------  -------------  -----------
--    --------------

Adjustments to reconcile net loss to
   net cash used in operating activities:
    Change in accounting principle                 -              -
-            23,968
    Options issued for services                    -              -
-         5,326,989
    Depreciation & amortization               18,619         19,890
22,996           372,866
    Loss on disposal of property
     and equipment                                          595,750
-           608,643
    Bad debt                                       -              -
-            42,157
    Accrued interest income                        -              -
-            (3,091)
    Common stock issued for services               -              -
-            10,000
  Increase in operating assets:
    Accounts receivable                         (185)          (384)
-              (569)
    Inventory                                 (9,405)         6,888
(10,651)          (13,168)
    Prepaid expenses                               -              -
-                 -
  Increase in operating liabilities:
    Accounts payable                        (197,025)        83,575
(1,328)          510,176
    Accrued expenses                        (202,794)        36,838
3,893         1,222,167
                                         ------------  -------------  ----------
---     -------------
    Total adjustments                       (390,790)       742,557
14,910         8,100,158
                                         ------------  -------------  ----------
---     -------------
  Net cash used in operating activities     (936,310)      (443,122)
(266,028)       (6,062,300)
                                         ------------  -------------  ----------
---     -------------


CASH FLOWS FROM INVESTING ACTIVITIES
  Payment for patent licensing costs               -              -
-           (31,723)
  Purchase of property and equipment               -        (28,600)
(37,958)       (2,277,022)
  Proceeds from sale of property and
   equipment                                       -              -
-            10,941
  Loans to related parties                         -              -
-           (18,191)
  Loans to other entities                          -              -
-           (23,916)
  Repayment from employee                          -              -
-             3,041
  Payment of organizational cost                   -              -
-           (30,168)
                                         ------------  -------------  ----------
---     -------------
  Net cash provided by (used in )
   investing activities                            -        (28,600)
(37,958)       (2,367,038)
                                         ------------  -------------  ----------
---     -------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Payment of loan costs                            -              -
-            (5,448)
  Loans from stockholder                   1,107,221        473,755
333,095         4,673,164
  Proceeds from note payable                       -              -
-           290,000
  Payment on note payable                   (171,047)       (14,283)
(25,983)         (290,000)
  Proceeds from sale of common stock
   and exercise of stock options                              9,500
-         2,629,063
  Payments for stock recissions                    -              -
-          (134,170)
  Sale of stock subject to recission
   for cash                                        -              -
-         1,267,020
                                         ------------  -------------  ----------
---     -------------
  Net cash provided by financing
   activities                                936,174        468,972
307,112         8,429,629
                                         ------------  -------------  ----------
---     -------------

    Net increase (decrease) in cash             (136)        (2,751)
3,126               291

Cash - beginning of period                       427          3,178
52                 -
                                         ------------  -------------  ----------
---     -------------
Cash - end of period                     $       291   $        427   $
3,178      $        291
                                         ============  =============
=============     =============
SUPPLEMENTAL DISCLOSURE OF CASH
 FLOW INFORMATION:
    Cash paid during the period
     Interest                            $     6,113   $      7,069   $
24,798      $    173,682

</TABLE>

SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:

The  President/Majority  Stockholder forgave debt of $357,000 during the
year  ended   December  31, 2005.   The  President/Majority  Stockholder
forgave  debt of $373,909 during  the  year  ended   December  31, 2004.
The  President/Majority  Stockholder forgave  debt of $432,240,  accrued
interest of $22,280 and accrued salary of $199,352 during the year ended
December 31, 2003.

Item 8.   Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

None

                                 PART III
Item 9.   Directors, Executive Officers and Key Employees

            Name            Age     Position with the Company

    Conrad  A.H. Jelinger   53      President, Chief Executive Officer,
                                    Chairman, interim CFO and Director
    Robert J. Hayes         50      Director
    Martha A. Moloney       68      Director


Conrad A. H. Jelinger.

Conrad  A.H.  Jelinger is the founder of Unitrend and  has  been  Chairman,
President and CEO of the Company since its inception in 1996.  Mr. Jelinger
has  over  35  years of experience in the technical and computer  industry.
This  includes serving as President and CEO of Server Systems  Technologies
from September 1994 to April 1996.  Mr. Jelinger attended the University of
Toledo, where he studied Business Administration and International Finance.
He  also completed technical and electronics training while serving in  the
United States Navy.  Mr. Jelinger is one of our executive officers.

Robert J. Hayes.

Robert  J.  Hayes became a member of the Board of Directors in March  2000.
Mr. Hayes joined NPI in 2002 to enhance design efforts by ensuring seamless
integrations  of capabilities, expertise and resources with  manufacturers.
He  is  involved  in all phases of the NPI Process - from conceptualization
through   production  -  contributing  a  unique,  creative   approach   to
engineering  alternatives and solutions.  Prior to joining NPI,  Mr.  Hayes
directed  the  Product  Development  Group  including  Industrial   Design,
Mechanical  and  Electrical Engineering, for Fitch USA  where  his  project
involvement  included work for such companies as Amway, BioImage  (a  Kodak
company),  Ciba  Corning Diagnostics Corp., Compaq, Diebold,  Lear  Siegler
Seymour, Rubbermaid and Lionel.  He is named on numerous design and utility
patents.   Mr. Hayes holds a B.S. in Mechanical Engineering from  Cleveland
State University.

Martha A. Moloney.

Martha A. Moloney became a member of the Board of Directors in March  2000.
From  1972  to  1977, Ms. Moloney was Vice President and  Board  member  at
Steger Schowel, a restaurant supply distribution company.  Since 1990,  Ms.
Moloney  has  been  in  private practice while concurrently  serving  as  a
Counselor with Catholic Charities at numerous area hospitals.  Ms.  Moloney
holds  a B.A. in Psychology from Maryville University and a M.SW. From  St.
Louis University.

Item 10.  Executive Compensation

The following table shows compensation for each person who served in the
capacity of Chief Executive Officer during the years set forth and any
other executive who earned a total of more than $100,000 in compensation in
such years.

                                                     Number
                                                 of shares
Name and                                         Underlying  Other Annual
Principal Position        Year   Salary   Bonus   Options    Compensation
- ------------------------------------------------------------------------
Conrad A.H. Jelinger      2005   $    --  $ --       --         $  --
CEO, President,           2004        --    --       --            --
Chairman, interim CFO     2003        --    --       --            --
                          2002        --    --   23,810            --


Item 11.  Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information regarding the ownership
of the Company's shares of common stock as of November 31, 2005, by (i)all
those known by  the Company to be beneficial owners of more than 5% of its
common stock; (ii) all Directors; and (iii)  all Officers and Directors of
the  Company  as  a  group.   Unless  otherwise  indicated,  each  of  the
stockholders  has  sole  voting  and  investment power with respect to the
common stock beneficially owned.

                                            Beneficial Ownership
                                            --------------------
Stockholder                           Number of shares       Percent (1)
- -----------                           ----------------       -----------

Conrad A.H. Jelinger                    43,333,045(2)           58.5%
 4665 West Bancroft St.
 Toledo, OH  43615

Eric V. Jelinger                         7,750,000              10.5%
 4665 West Bancroft
 Toledo, OH  43615

Martha Moloney                              95,800               0.1%
 4665 West Bancroft
 Toledo, OH  43615

Total for Beneficial Owners
 and Management                         51,178,845              69.1%

   (1)  Percentages are calculated to include all outstanding securities
        and securities deemed outstanding pursuant to Rule 13d-3 (d)(1)
        under the Securities Exchange Act of 1934.

   (2)  Total includes 23,810 options that are fully vested and subject
        to exercise.


Item 12.  Certain Relationships and Related Transactions

None

Item 13.  Exhibits and Reports on Form 8-K

     (a)  List of Exhibits
          99.  Additional Exhibits
          Exhibit 99.1  Certification Under Section 906 of Sarbanes-Oxley
                        Act of 2002

Exhibit
Number                                Document
- ---------------------------------------------------------------------
2.1     Articles of Merger for the Merger of Unitrend, Inc., and Server
        Systems Technologies, Inc.  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)
2.2     Articles of Merger for the Merger of Unitrend, Inc., an Ohio
        corporation, and Unitrend, Inc., a Nevada corporation.
        (incorporated by reference from the Company's Form 10-12B filed
        March 30, 2000)
3.1     Articles of Incorporation of Unitrend, Inc. and Amendments.
        (incorporated by reference from the Company's Form 10-12B filed
        March 30, 2000)
3.2     By-Laws of Unitrend, Inc..  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)
4.1     Lock-up Agreement between Unitrend, Inc. and Eric Jelinger.
        (incorporated by reference from the Company's Form 10-12B filed
        March 30, 2000)
10.1    1999 Equity Incentive Plan.  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)
10.2    Form Stock Option Agreement (Employee).  (incorporated by
        reference from the Company's Form 10-12B filed March 30, 2000)
10.3    Form Stock Option Agreement (Non-Employee/Non-Qualified).
        (incorporated by reference from the Company's Form 10-12B filed
        March 30, 2000)
10.4    Cash Incentive Plan.  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)
10.5    Employment Agreement, Non-compete Agreement and Trade Secret
        Agreement  between the Company and Conrad A.H. Jelinger
        (incorporated by reference from the Company's Form 10-12B filed
        March 30, 2000)
10.10   Option Agreements between the Company and Martha Moloney
        (incorporated by reference from the Company's Form 10-12B filed
        March 30, 2000)
10.11   Promissory Note for the purchase of the property located at 4665
        W. Bancroft, Toledo, Ohio  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)
10.12   Mortgage for the property located at 4665 W. Bancroft, Toledo,
        Ohio  (incorporated by reference from the Company's Form 10-12B
        filed March 30, 2000)
10.13   Promissory Note from the Company given to Conrad Jelinger for the
        year ending 1998  (incorporated by reference from the Company's
        Form 10-12B filed March 30, 2000)
10.14   Promissory Note from the Company given to Conrad Jelinger for the
        year ending 1999  (incorporated by reference from the Company's
        Form 10-12B filed March 30, 2000)
10.15   Joint Venture Agreement between Unitrend, Inc., and Jon
        Osborne(incorporated by reference from the Company's Form 10-12B
        filed March 30, 2000)
10.16   Promissory Note given to the Company from Osborne Manufacturing,
        for the year ending 1998  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)
10.17   Promissory Note given to the Company from Osborne Manufacturing,
        for the year ending 1999  (incorporated by reference from the
        Company's Form 10-12B filed March 30, 2000)


                                SIGNATURES

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



                              UNITREND, INC.


Date: November 15, 2006        By:   /s/ Conrad A.H. Jelinger
                               ________________________________________
                               Conrad A.H. Jelinger, President,
                               Chief Executive Officer, Chairman,
                               interim CFO and Director
                              (Duly Authorized representative)

Pursuant to the requirements of the Securities Exchange Act of 1934,this
report has been signed  below by the following persons in the capacities
and on the dates indicated.


/s/ Conrad A.H. Jelinger
_____________________________
Conrad A.H. Jelinger,
President, Chief Executive Officer,
Chairman, interim CFO and Director
(Principal Executive and Financial Officer)

Date: April 13, 2005





/s/ Martha A. Moloney
_____________________________        _____________________________
Martha A. Moloney,                   Robert J. Hayes,
Director                             Director

Date: November 15, 2006