U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB  x
        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended June 30, 2006  OR  [
        ]
        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934  For the transition period from __________ to __________  Commission File Number 000-30440  VIVA INTERNATIONAL, INC. (Exact name of small business issuer as specified in its charter)  NEVADA
        22-3537927(State or other jurisdiction of
        (IRS Employer Identification No.)incorporation or organization)  954 Business Park Drive Traverse City, MI 49686 (Address of Principal Executive Offices)  (231) 946-4343 (Issuers telephone number)  Check whether the Issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: YesxNoo.  Indicate by check mark whether the Issuer is a shell company (as defined by Rule 12b-2 of the Exchange Act). YesoNox.  Indicate the number of shares outstanding of each of the Issuers classes of common stock as of the latest practicable date: 66,824,912 shares of common stock, $0.001 par value, as of August 16, 2006.       VIVA INTERNATIONAL, INC.



FORM 10-QSB



FOR THE QUARTER ENDED June 30, 2006



TABLE OF CONTENTS






PART I.
        FINANCIAL INFORMATION


Page


Item 1.
        Financial Statements


Condensed Consolidated Financial Statements


Condensed Consolidated Balance SheetJune 30, 2006
        3Condensed Consolidated Statements of OperationsThree and six months ended June 30, 2006 and 2005
        4Condensed Consolidated Statements of Cash FlowsSix months ended June 30, 2006 and 2005
        5Notes to Condensed Consolidated Financial Statements
        6-7




Item 2.
        Managements Discussion and Analysis or Plan of Operation


Item 3.
        Controls and Procedures


PART II.
        OTHER INFORMATION


Item 1.
        Legal Proceedings


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


Item 3.
        Defaults upon Senior Securities


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


Item 5.
        Other Information


Item 6.
        Exhibits


Signatures1







PART I



FINANCIAL INFORMATION






ITEM 1.
        FINANCIAL STATEMENTS

The consolidated financial statements of Viva International, Inc. and subsidiaries (collectively, the Company), included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company as included in the Companys Form 10-KSB for the year ended December 31, 2005.



2











VIVA INTERNATIONAL, INC.CONSOLIDATED BALANCE SHEETJune 30,2,006ASSETSCurrent AssetsCash
        
        
        
        
        
        $
        992Other receivables
        
        
        
        
        
        6,476Prepaid expenses
        
        
        
        
        
        3,283Total Current Assets
        
        
        
        
        
        10,751Fixed Assets, net of depreciation
        
        
        
        
        
        18,540Other AssetsSecurity deposit
        
        
        
        
        
        84,175Operating License
        
        
        
        
        
        224,185Other assets
        
        
        
        
        
        
        17,651Total Assets
        
        
        
        
        $
        496,288LIABILITIES AND CAPITALCurrent LiabilitiesAccounts payable and accrued expenses
        
        
        $
        3,020,672Payroll taxes payable
        
        
        
        
        
        57,830Notes payable
        
        
        
        
        
        585,543Notes payable-shareholders
        
        
        
        
        
        1,000,231Total Current Liabilities
        
        
        
        
        
        4,664,276Commitments and contingenciesStockholders' EquityPreferred stock 25,000,000 shares authorized at$.001 par value; -0- shares outstanding atDecember 31, 2004
        
        
        
        
        
        -Common stock, 1,000,000,000 shares authorized at $.001par value; issued and outstanding 66,824,912 atJune 30, 2006
        
        
        
        
        
        
        66,825Additional paid-in capital
        
        
        
        
        
        15,190,813Accumulated deficit
        
        
        
        
        
        (19,425,626)Stockholders' Equity
        
        
        
        
        
        (4,167,988)Total Liabilities and Capital$
        496,288See Notes to Financial Statements



3





VIVA INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF OPERATIONSThree months ended June 30,
        Six months ended June 30,2006
        2005
        2006
        2005(unaudited)
        (unaudited)
        (unaudited)
        (unaudited)$
        $
        $
        $Sales revenues
        
        
        
        0
        10,730
        0
        21,796Cost of sales and operations
        
        
        
        49,614
        103,553
        100,862
        107,783Gross profit (loss)
        
        
        
        (49,614)
        (92,823)
        (100,862)
        (85,987)General and administrative expenses
        
        267,546
        464,504
        898,300
        886,125Interest expense
        
        
        
        35,781
        41,232
        71,893
        75,307303,327
        505,736
        970,193
        961,432(352,941)
        (598,559)
        (1,071,055)
        (1,047,419)Other income and expensesInterest income
        
        
        
        0
        0
        0
        10Losses from writedown ofassets pursuant to spin-offs
        
        
        
        0
        (386,639)
        0
        (386,639)Net loss
        
        
        
        
        (352,941)
        (985,198)
        (1,071,055)
        (1,434,048)Net loss per common share
        
        
        
        (0.01)
        (0.02)
        (0.02)
        (0.03)Weighted average shares outstanding
        
        60,924,906
        45,703,410
        57,318,942
        45,658,880







4











VIVA INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSSix Months Ended June 30,2006
        
        2005Operating Activities
        
        
        
        
        
        Unaudited
        
        UnauditedNet loss from continuing operations
        
        
        $
        (1,071,055)
        $
        (1,434,048)Adjustments to reconcile net loss to net cashused by operating activities:Depreciation
        
        
        
        
        
        1,790
        
        1,023Payment for services in company stock
        
        
        
        330,000
        
        35,100(Gain) or loss adjustment on sale of subsidiaries
        
        
        
        -
        
        386,639Changes in operating assets and liabilities:(Increase) decrease in receivables
        
        
        
        -
        
        (2,402)(Increase) decrease in inventory
        
        
        
        
        -
        
        (5,392)(Increase) decrease in prepaid expenses and other assets
        
        (2,783)
        
        (79,915)Increase (decrease) in accounts payable and accrued expenses
        
        467,378
        
        335,330Increase (decrease) in taxes payable
        
        
        
        3,329
        
        (42,286)Net cash (used) by operating activities
        
        
        
        (271,341)
        
        (805,951)Investing ActivitiesAcquisition of fixed assets
        
        
        
        
        
        (1,045)
        
        (17,344)Acquisition of Cool Tours, Inc.
        
        
        
        
        -
        
        -Security deposit
        
        
        
        
        
        -
        
        (23,685)Net cash provided (used) by investing activities
        
        
        
        (1,045)
        
        (41,029)Financing ActivitiesPayment of bank loan
        
        
        
        
        
        -
        
        (1,890)Payments on short and long-term debt
        
        
        
        -
        
        (7,627)Notes payable
        
        
        
        
        
        50,000
        
        -Loans payable related parties and shareholders
        
        
        
        219,534
        
        883,235Net cash provided by financing activities
        
        
        
        269,534
        
        873,718(Decrease) in cash
        
        
        
        
        
        (2,852)
        
        26,738Cash at beginning of period
        
        
        
        
        
        3,844
        
        12,148Cash at end of period
        
        
        
        
        $
        992
        $
        38,886Supplemental Disclosures of Cash Flow Information:Cash paid during year for:Interest
        
        
        
        
        
        $
        -
        $
        -Income taxes (benefits)
        
        
        
        
        $
        -
        $
        -See Notes to Financial Statements.



5





VIVA INTERNATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2006




Note 1-
        Basis of Financial Statements
The accompanying consolidated financial statements contain all adjustments necessary to present fairly the financial position of Viva International, Inc. and subsidiaries (collectively, the Company) as of June 30, 2006 and their results of operations for the three month and six month periods ended June 30, 2006 and 2005 and the statement of cash flows for the six month periods ended June 30, 2006 and 2005. Results of operations for the three month and six month periods ended June 30, 2006 are not necessarily indicative of the results that may be expected for the year ending December 31,2006. All material inter-company balances and transactions have been eliminated in consolidation.

Note 2-
        Going Concern
The accompanying financial statements have been prepared on a going concern basis which
Contemplates the realization of assets and the satisfaction of liabilities in the normal course of
 business.  The Company has incurred $19,425,626 of net losses through June 30, 2006 and has
 had limited revenues and operations during the immediate past fifteen months.  These factors
 indicate that the Company's continuation as a going concern is dependent upon its ability to
 obtain adequate financing.

Note 3-
        Earnings Per Share
Basic earnings (loss) per common share (EPS) is computed as net
earnings (loss) divided by the weighted-average number of common shares
outstanding for the period. Diluted EPS representing the potential dilution that
could occur from common shares issuable through stock-based compensation
including stock options, restricted stock awards, warrants and other convertible
securities is not presented for the three and six month periods ended June 30,
2006 and 2005 since there was no dilutive effect of potential common
shares.


Note 4-
        Advances to Employees
Through June 30, 2006, payments of $140,986 have been paid to employees of the Company as advances against earned compensation. The Company has accrued compensation expense due to the employees as earned.


Note 5-
        Eastern Caribbean Airlines Corporation/Cool tours, Inc.
On February 9, 2005, the Company formed Eastern Caribbean Airlines Corporation under the laws of Puerto Rico and was granted corporate charter approval on March 18, 2005.

Additionally, on February 9, 2005, Eastern Caribbean entered into a purchase agreement with Cool Tours, Inc. d/b/a San Juan Aviation. The agreement provided immediate access and control over all licensing rights, utilization of aviation equipment, control of files, data base, customer lists, goodwill and any and all other related assets. The Company and Eastern Caribbean have assumed $304,812 of indebtedness as total consideration for this transaction.



As of December 31, 2005, Eastern Caribbean Airlines had obtained its own licensing rights and terminated its acquisition of Cool Tours, Inc. transferring back to the owners of Cool Tours, Inc. the licensing rights held in its name, any rights or authority to utilize aviation equipment, any files, data bases, customer lists, goodwill and other related assets as well any then existing debts related to the Cool Tours, Inc. acquisition. The owner of Cool Tours, Inc. has sued Viva International, Inc. and Eastern Caribbean Airlines. In the opinion of management, this litigation is expected to be settled outside the jurisdiction of the courts.




Note 6-
        Common Stock Issuances to Retire Debt Obligations
On March 3, 2006, in response to a previously held Company Board of Directors authorization, 4,943,925 shares of its common stock were issued in retirement of $288,277 of debt and $28,401 of accrued interest.

On June 26, 2006, the Company Board of Directors authorized the issuance of 5,965,562 shares of its common  stock as considerations for the cancellation of $278,924 of debt and $22,934 of accrued interest.



6











VIVA INTERNATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2006






Note 7-
        On March 9, 2006, Viva International announced that Rodolfo  Dominguez has joined the Company full time and assumed the roles of
President and Chief Operating Officer and that Robert Scott will assume the role of Chief Executive Officer in addition to his role
as Chief Financial Officer. Former Chief Executive Officer and President Syed Hasan has left the Company to pursue other interests.
At the time of Mr. Hasan's departure from the Company he had not assigned a corporate share interest evidencing 22 1⁄2% shareholder
interest in Viva Air Dominicana, S.A. Mr. Scott also holds a 22 1⁄2% interest in Viva Air Dominicana, S.A. which has been assigned to
the Viva International, Inc. In management's opinion, the lack of Mr. Hasan's assignment of the shareholder interest to Viva
International, Inc. does not impair the ability of the Company to control the activity of the subsidiary corporation nor does it
entitle Mr. Hasan to sell, transfer or assign the shareholder interest to a 3rd party. By Dominincan law, foreign ownership of a
Dominican corporation is limited to 49% of the outstanding ownership interest in the corporation. Mr. Hasan's unassigned interest can
by appropriate corporate procedure, as mandated by Dominican law, and a vote of the remaining shareholders by reduced and/or
eliminated since he no longer has any role in the organization. Mr. Scott and the Company intend to require appropriate corporate
procedure, meeting and resolution adjusting the ownership of Viva Air Dominicana, S.A. as was always intended and to correct and
amend the shareholder positions accordingly.



Note 8-
        Subsequent Events
On August 3, 2006, Viva International announced that Rodolfo Dominguez had
accepted appointment as the Companys Chief Executive Officer and that
Robert J. Scott would continue his employment as the Companys Chief
Financial Officer. This change did not change the configuration of the
Companys management team or its control but is essence realigned various
duties and responsibilities and is intended as a precursor to allow for the
addition of additional management talent as may be required.









7







Item 2. Managements Discussion and Analysis or Plan of Operation



The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes thereto contained elsewhere in this Form 10-QSB.



Forward-Looking Statements



This report contains certain forward-looking statements and information relating to us that are based on the beliefs and assumptions made by our management as well as information currently available to the management. When used in this document, the words anticipate, believe, estimate, and expect and similar expressions, are intended to identify forward-looking statements. Such statements reflect our current views  with respect to future events and are subject to certain risks, uncertainties and assumptions. Factors that could cause differences include, but are not limited to, continued reliance on external sources on financing, expected market demand for our products and services, fluctuations in pricing for the products and services and competition, as well as general conditions of the aviation marketplace. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. We do  not intend to update these forward-looking statements.



Introduction



Viva International, Inc. (referred to herein as the Company, we, us and our) is a holding company that consists of (2) two wholly owned subsidiaries: Viva Airlines, Inc. and Eastern Caribbean Airlines Corporation and a 49% controlling interest in Viva Air Dominicana, S.A. The holding company also consists of the following inactive subsidiaries: CT Industries, Inc., Hardyston Distributors, Inc. (doing business as The Mechanics Depot), and Universal Filtration Industries, Inc. At present, no plans exist to return any of the inactive subsidiaries to operations. Viva Airlines, Inc. and Viva Air Dominicana, S.A. are development stage companies that are expected to provide passenger and cargo services to various destinations from a commercial hub in Santo Domingo, Dominican Republic. Eastern Caribbean Airlines Corporation is based in San Juan, Puerto Rico. Eastern has
previously operated as a provider of chartered airline services and expected to return to operations during June or July of 2006. However, due to delays that have been encountered with aircraft registration and other mandated requirements by aviation regulatory agencies management has revised the expected plan to return to operations to September 2006.  Eastern will maintain a commercial hub in Puerto Rico.



Results of Operations for the Three and Six Months  Ended June 30, 2006 and 2005.



Sales



We had sales of $0 for the three months ended June 30, 2006 as compared to sales of $10,750 for the three months ended June 30, 2005.  We  had sales of $0 for the six months ended June 30, 2006 as compared to sales of $21,796 for the six months ended June 30, 2006.  The acquisition of Cool Tours, Inc. through Eastern Caribbean Airlines, Inc., our wholly owned subsidiary, resulted in the sales activity from charter flights in 2005. During the quarter ended December 31, 2005, we temporarily discontinued operations as the aircraft we had been using under various agreements was unable to continue to be used until various FAA mandated maintenance checks and procedures were performed. The owner of the aircraft and the Company were unable to agree on the allocation of any costs and expenses in connection with the scheduled maintenance checks as well as any other required procedures to certify the air worthiness of
the aircraft. Accordingly, operations were curtailed until replacement aircraft could be added to the Companys airline operating certificate.  Management is planning for the resumption of aviation services through Eastern Caribbean Airlines, Inc. during September  2006.











Net Losses



We had net losses of $352,941 for the three months ended June 30, 2006 as compared to net losses of $985,198 for the three months ended June 30, 2005. The decrease in losses is primarily due to managements cost cutting efforts that reflect its repositioning to resume operations through our Eastern Caribbean Airlines subsidiary while continuing the development and support of our Viva Air Dominicana S.A. subsidiary interest. In addition, the losses for the three months ended June 30, 2005 included a write off of $386,639 of  assets pursuant to spin offs which did not materialize.



We had net losses of $1,071,055 for the six months ended June 30, 2006 as compared to net losses of $1,434,048 for the six months ended June 30, 2005. The decrease in losses is primarily attributable to a non-recurring write off of assets pursuant to spin offs that failed to be completed.




General and Administrative

We had general and administrative expenses of $267,546 for the three months ended June 30, 2006 as compared to general administrative expenses of $464,504 for the three months ended June 30, 2005.  The decrease is primarily attributable to managements cost cutting efforts and attempts to conserve capital during our efforts to return Eastern Caribbean Airlines to operation and prepare Viva Air Dominicana S.A. for its eventual commencement of services.



We had general and administrative expenses of $898, 300 for the six months ended June 30, 2006 as compared to general and administrative expenses of $886,125 for the six months ended June 30, 2005. Although general and administrative expenses are slightly higher for the six months ended June 30, 2006, $330,000 of expenses for services were paid via the issuance of our common stock and accordingly, available capital was utilized in support of the Companys efforts through Eastern Caribbean Airlines and Viva Air Dominicana S.A..



Interest Expense



We had interest expenses of $35,781 for the three months ended June 30, 2006 as compared to $41,252 for the three months ended June 30, 2005.  We had interest expenses of $71,893 for the six months ended June 30, 2006 as compared to $75,307 for the six months ended June 30, 2005.



For each of the above periods, the decrease in expenses is the result of reducing overall indebtedness via the issuance of our common stock combined with limiting the amount of new borrowings necessary to support our operations through our Eastern Caribbean Airlines and Viva Air Dominicana S.A. subsidiaries.



Additional Information



As previously mentioned, our Eastern Caribbean Airlines Corporation, Inc. subsidiary is preparing to return to active operations that is now expected to occur in September of 2006. Operations will resume through the usage of a Cessna 402 having a capacity of 8 to 9 passengers. At present, 1 aircraft is under lease and a 2ndis being considered through the same supplier. Currently, we are  completing the final phases of our plan to resume operations by satisfaction of certain FAA requirements as pertaining to our present aviation equipment.



Eastern Caribbean Airlines Corporation, Inc. possesses a FAA 135 airline operating certificate.

As such, Eastern is authorized to operate chartered flight services.



The Companys subsidiary operation in the Dominican Republic has not yet generated revenues as it continues through its developmental stages. At June 30, 2006 and August 16, 2006, we plan to integrate the capabilities of our Puerto Rico and Dominican Republic subsidiaries upon the resumption of chartered and scheduled charter passenger operations.







The Companys Puerto Rico licensing is for chartered flight services only and as such is limited in scope and subject to various restrictions on items such as number of flights. The Companys Dominican Republic licensing will be more comprehensive and comparable to that granted to major airlines. As such, the Companys Dominican Republic subsidiary will primarily offer scheduled flight services but will also provide scheduled charter services. We continue to believe that our present business plan which stipulates the utilization of smaller commuter type aircraft to conduct our operations is the most economically advantageous and profitable way to operate within the Caribbean. However, management is also focusing our future route and operational development on points in South and Central America and accordingly, may modify our business plan to include various joint venture arrangements or to
adjust for other types of aviation equipment necessary to successfully service these locations.



We acknowledge that the implementation of our business plan has been delayed for numerous reasons that include inadequate capitalization, governmental delays and compliance issues, inadequate human and consultant resources, and our failure to procure sufficient aviation equipment as previously promulgated. However, despite the delays, we have continued to pursue our development and have leveraged our available capital as well as our human resources and business relationships to the execution of our business plan.



Through the prudent management of our available resources, Management believes that it has kept our costs and expenses under control and has avoided obligating us for significant financial obligations normally associated with the purchase or lease of aviation aircraft. Accordingly, despite the lengthy development of our operating subsidiaries, management believes that we are positioned favorably to resume and expand operations.



Liquidity and Capital Resources



At June 30, 2006, we had $992 in cash. Since inception we have accumulated a deficit of approximately $19,426,000.



Our principal source of funding for the three month period ending June 30, 2006 was $219,534 of loans from shareholders that were provided for working capital purposes and continuing development of our airline projects and $50,000 of loans from private investors not having any known relationship to the Company.  As of June 30, 2006, $1,050,231 in working capital loans from these sources remains payable.



Management has previously estimated that we will require a minimum of $3,000,000 of working capital to complete our subsidiaries transition from a development stage company to full operation. Air services commenced in 2005 on a very limited basis but were interrupted during October of 2005 when the aircraft we were was using was scheduled for FAA mandated maintenance. Due to an ingoing dispute with the aircrafts owner, we were unable to agree to the amount of cost and expense that we would absorb pursuant to the maintenance check. Accordingly, operations were temporarily suspended. Operations are planned to resume through our Eastern Caribbean Airlines Corporation during September 2006.



We believe that we can incrementally raise capital on a project by project basis by utilizing  convertible debentures via private placement. Under this method of financing, we could conceivably break our projects (or acquisitions) into funding requests of as little as $150,000 Capital funding increments. As of August 17, 2006, we have utilized this methodology to obtain approval on a $200,000 project for which we have  received $75,000 to date with an additional $125,000 expected to be received prior to September 15, 2006. In addition a project funding request of $350,000 has been approved by our investment bankers and is expected to close on or before September 15, 2006.  No assurance can be given, however, that such financings will be completed. The above two projects coincide with the resumption of our charter services through Eastern Caribbean and an offer to expand the scope of our charter services via a
U.S. based 121 carrier already servicing various destinations within the Caribbean.



However, we do not currently have the funds necessary to provide working and expansion capital to our aviation subsidiaries. We will only be able to provide the needed capital by raising additional funds. We have been able to obtain support from some of our shareholders and related parties and additional support has been promised. However, there can be no guarantee that the promised amounts will be available when needed and in sufficient amounts. Management remains optimistic that we can raise sufficient capital to fund various projects and acquisitions and that combined with the resumption of operations at our Eastern Caribbean Airlines Corporation will generate enough cash flows so as to be less reliant on borrowings to survive and grow.







We have previously announced the retention of S. G. Martin Securities, LLC to provide investment banking services. Notwithstanding the engagement of S. G. Martin, we have continued negotiations with other firms and/or individuals capable of providing various needed financial and capital services and availability. We  believe that the engagement of Martin as well as the renewed interest in our airline project will allow us access to the capital we  need to implement our strategic business plan.



However, should we continue to be unable to raise adequate funds, we may not be able to complete needed acquisitions of certain aviation assets or payment of certain related expenses that would delay or prevent the further development and growth of Eastern Caribbean Airlines Corporation and Viva Air Dominicana, S.A.



We are optimistic, however,  that we will be able to borrow sufficient capital to operate our aviation subsidiaries as contemplated in our business plan.



Off-Balance Sheet Arrangements



We do not have any off balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, results of operations, liquidity or capital expenditures.



Item 3. Controls and Procedures



The Companys Principal Executive Officer and Principal Financial Officer have reviewed the Companys disclosure controls and procedures as of the end of the period covered by this report. Based upon this review, such officers have concluded  that the Companys disclosure controls and procedures are effective in timely alerting them to material information required to be included in this report. There have been no significant changes in internal control over financial reporting that occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.



PART II - OTHER INFORMATION




Item 1.
        Legal Proceedings.



(1) Trans National Communications vs. Auxer Telecom Inc. dba Auxer Group-Superior Court of New Jersey Law Division, Passaic County - Docket No. L793-02. On April 17, 2002, a judgment in the amount of $339,381.84 was obtained against the defendants. The plaintiff, Trans National Communications attached Auxers bank account even though the responsible party was Auxer Telecom. Auxers litigation counsel successfully separated the defendants in this case and the judgment is only against Auxer Telecom Inc., Auxers inactive subsidiary. The Company does not intend to contest the judgment against Auxer Telecom Inc. since it was dissolved on March 18, 2002.



(2) International Access dba Access International, Inc. v. CT Industries, Inc. -Los Angeles Superior Court, Central District - Case No. BC 282393, filed on September 30, 2002. International Access (IA) claims that CT Industries, Inc., Auxers subsidiary, entered into an agreement (Switch Port Lease and Service Agreement) with IA whereby IA would provide one year of telecommunications services to CT Industries. IA claims it provided the services and was not paid because checks from CT Industries were returned for insufficient funds. IA is requesting payment of $76,095.34 plus 10% interest per annum from March 13, 2002. Auxer does not intend to respond to this lawsuit and will allow a judgment to be entered against CT Industries, its inactive subsidiary.



(3) Mahure, LLC vs. Auxer Group, Inc. - Superior Court of New Jersey, Law Division, Passaic County; Docket No. L-4245-02. Filed August 14, 2002. Mahure, LLC, was Auxers landlord for the premises known as 12 Andrews Drive, West Patterson, New Jersey, Auxers former business address. It is suing Auxer for failure to pay base rent of $7,083.33 from October 2001 through August 2002, plus 50% of real estate taxes, insurance premiums and other fixed charges contained in Auxers lease. Mahure, LLC is requesting $58,465.49 attorneys fees, cost of suit and interest. The Company did not contest this matter and accordingly, as judgment has been entered against it for approximately $98,000.









(4) Colbie Pacific Capital- On April 24, 2002, Auxer entered into a Modification and Restructuring Agreement with Colbie Pacific Capital. The agreement required Auxer to make a $350,000 payment to Colbie by September 28, 2002. Auxer failed to make such payment and the sum of $450,000 plus accrued interest is now due to Colbie. On October 8, 2002, Auxer received a settlement offer from Colbies attorney whereby Colbie agreed to allow Auxer to sell certain assets and make the required payment. Auxer is trying to sell such assets, specifically telecommunications switching equipment. However, the assets have limited value and application and the likelihood of sale appears to be unlikely. Accordingly, the Company hopes to negotiate a settlement for less than the recorded amount of the liability.



(5) Abel Estrada vs. CT Industries, Inc. - Labor Commissioner, State of California - State Case Number 06-67045 JAH - Hearing Date: November 20, 2002 in Los Angeles, California. Abel Estrada, a former employee of Auxers subsidiary, CT Industries, Inc., filed a claim against CT in the amount of $10,376.08 with the Labor Commissioner, State of California, for the following claims: unpaid wages - $1,068; unpaid commissions - $8,000; unpaid vacation time - $861.33; unpaid expenses $43.75; and unauthorized deduction from wages - $403.00. CT Industries does not intend to contest this matter.



(6) Paul R. Lydiate - Labor Claim in California against Auxer Telecom Inc. for $20,192. Auxer did not appear at the hearing on May 6, 2002. Auxer Telecom Inc. was dissolved on March 18, 2002.



(7) Ty Hiither vs. Viva International, Inc.-Small claims action against the Company for unpaid services related to Web Site Development. A court judgment has been entered against the Company for $3,073 as of July 12, 2004. Since the judgment has been entered the plaintiff has refused an offer to settle the claim by issuance of Company stock and has intentionally and maliciously sought to damage the Company through the development of a web site portal and by various links to the Companys web site. Pursuant to the Plaintiffs efforts, she has made various posts and made various references to the Companys plans, its employees, consultants and managers that were damaging or potentially damaging and were made without her attempts to verify or perform other due diligence to determine the accuracy and reliability of the information that she intentionally posted. The Company believes that the
plaintiff may have acted criminally and accordingly, may seek relief or other sanctions and may assess damages at amounts far in excess of the plaintiffs claim.



(8) Ronald Greene vs. Viva Airlines, Inc.- Mr. Greene previously was engaged as the chief pilot for Viva Airlines, Inc. Mr. Greene has claimed that he is owed approximately $25,000 plus certain expenses for his services during the time he was involved with the Company. Although a formal action has not yet occurred, Mr. Greene has threatened suit as well as indicating he had filed various labor and wage claims with regulatory agencies. Mr. Greene has also indicated that he has filed various complaints with aviation regulatory authorities. The Company has been unable to reach a mutually satisfying resolution of this matter.



(9) Ivan Figueroa vs. Eastern Caribbean Airlines, Inc. and Viva International, Inc-Mr. Figueroa has filed suit against the Company and its subsidiary for as yet unspecified amounts. Mr. Figueroa was previously employed by the Company and was the previous owner of Cool Tours, Inc. d/b/a San Juan Aviation. At issue is amounts allegedly owed to Mr. Figueroa and other unpaid obligations as well as the ownership of the Cool Tours, Inc name. The Company has invested substantially into its Puerto Rico operations through Eastern Caribbean Airlines, Inc. and believes that certain of the debts claimed by Mr. Figueroa as unpaid have been inflated or otherwise not disclosed and would result in a recalculation of any amounts due him. In addition, the Company has various executed documents and agreements that support and defend its investment in Eastern Caribbean and its entitlement to the retention of
the Cool Tours name. The Company will vigorously defend any action arising from the Figueroa litigation and will consider a counter suit if this proceeding is to continue. It is managements belief that that dispute will be short-lived and resolved outside the jurisdiction of the courts.



(10) John D. Hartman vs. Viva International, Inc. and Eastern Caribbean Airlines Corporation. Mr. Hartman has filed a complaint in Michigan claiming that his is owed $4,317.42 for services performed in Puerto Rico during 2005. The Company has previously agreed that Hartman is entitled to the amounts he has claimed but that it would be necessary to pay these amounts off in installments according to its ability. In managements opinion, Hartman has incorrectly filed his complaint and it will respond accordingly to the Court. If the Court agrees and dismisses this action, the Company will renew negotiations with Hartman.





Other than as stated above, we are not currently aware of any other pending, past or present litigation that would be considered to have a material effect on the Company or its subsidiaries. There are no known bankruptcy or receivership issues outstanding and we have no known proceedings in which certain corporate insiders or affiliates of us are in a position that is adverse to us.




Item 2.
        Unregistered Sale of Equity Securities and Use of Proceeds.

On January 13, 2006, restricted common stock of 500,000 shares was issued as consideration for appraisal, valuation and management advisory services to be rendered in connection with a proposed merger and/or joint venture with an on-line travel reservation broker.



On March 3, 2006, restricted common stock of 4,943,925 shares was issued in payment for corporate debts in the amount of $288,277 and accumulated interest of $28401.



On March 9, 2006, restricted common stock of 2,000,000 shares was issued as consideration for financial services, consulting and management advisory services.



On June 30, 2006, restricted common stock of  5,965,562 shares was issued in payment for corporate debts in the amount of $278,924 and accumulated interest of $22,934.



All of such securities were issued in reliance upon the exemption from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended.




Item 3.
        Defaults Upon Senior Securities.


Not Applicable




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


None


Item 5.
        Other Information.


None


Item 6.
        Exhibits.


31.1
        Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rules 13a-14 and 15d-14 of the Exchange Act)31.2
        Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rules 13a-14 and 15d-14 of the Exchange Act)32.1
        Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)







SIGNATURES



In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.






VIVA INTERNATIONAL, INC.


Date: August 16, 2006

By:/s/  Rodolfo J. Dominguez
        By:/s/  Robert J. ScottRodolfo J. Dominguez
        Robert J. ScottChief Executive Officer
        Chief Financial Officer(Principal Executive Officer)
        (Principal Financial Officer)