----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-QSB**

**QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE **

**SECURITIES        EXCHANGE ACT OF 1934**

**For          the period ended January 31, 2007**

**: 333-83231**

**GLOBAL      DIVERSIFIED INDUSTRIES, INC.**

**(Exact      Name of Registrant as specified in its charter)**

| **                                NEVADA               ** | **                                      95-4741485                       ** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State                of                incorporation)                                                                                                                                                               | (IRS                Employer Identification                No.)                                                                                                                                                                                                                                              |

|  **1200 Airport                Drive, Chowchilla, CA** |     **93610      ** |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
|  (Address                of principal executive offices)         |  (Zip                Code)                                       |

**(559)        665-5800**

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Table          of Contents

| **TABLE                OF CONTENTS** |
|--------------------------------------|
|                                 |   |   |
|                                 |   |   |
|                                 |   |   |
| PART                I                | FINANCIAL                INFORMATION |   |
|                                 |   |   |
| ITEM                I                | FINANCIAL                STATEMENTS (UNAUDITED) | 2 |
|                                 |   |   |
|                                 | CONDENSED                CONSOLIDATED BALANCE SHEET:  JANUARY 31, 2007 | 2 |
|                                 |   |   |
|                                 | CONDENSED                CONSOLIDATED STATEMENTS OF OPERATIONS: FOR THE THREE                MONTHS |   |
|                                 | AND                NINE MONTHS ENDED JANUARY 31, 2007 AND                2006 | 4 |
|                                 |   |   |
|                                 | CONDENSED                CONSOLIDATED STATEMENTS OF CASH                FLOWS: |   |
|                                 | FOR                THE NINE MONTHS ENDED JANUARY 31, 2007 AND 2006 | 5 |
|                                 |   |   |
|                                 | NOTES                TO UNAUDITED CONSOLIDATED FINANCIAL INFORMATION: JANUARY                31, 2007 | 6 |
|                                 |   |   |
| ITEM                2                | MANAGEMENT'S                DISCUSSION AND ANALYSIS OF                FINANCIAL |   |
|                                 | CONDITION                AND RESULTS OF OPERATIONS | 18 |
|                                 |   |   |
| ITEM                3                | CONTROLS                AND PROCEDURES | 25 |
|                                 |   |   |
| PART                II               | OTHER                INFORMATION | 25 |
|                                 |   |   |
| ITEM                1                | LEGAL                PROCEEDINGS | 25 |
|                                 |   |   |
| ITEM                2                | UNREGISTERED                SALE OF EQUITY SECURITIES AND USE OF PROCEEDS | 25 |
|                                 |   |   |
| ITEM                3                | DEFAULTS                UPON SENIOR SECURITIES | 25 |
|                                 |   |   |
| ITEM                4                | SUBMISSION                OF MATTERS TO VOTE OF SECURITY HOLDERS | 25 |
|                                 |   |   |
| ITEM                5                | OTHER                INFORMATION | 26 |
|                                 |   |   |
| ITEM                6                | EXHIBITS | 26 |

----

Table          of Contents

**PART      I FINANCIAL INFORMATION**

**ITEM      I. FINANCIAL STATEMENTS (UNAUDITED)**

| **GLOBAL                  DIVERSIFIED INDUSTRIES,                  INC.**                                              |
|------------------------------------------------------------------------------------------------------------------------|
| **CONDENSED                  CONSOLIDATED BALANCE SHEET**                                                              |
|                                                                                                                   |   |   |   |
|                                                                                                                   |   |   |   |
|                                                                                                                   |   |   |   |
|                                                                                                                   |   | **(Unaudited)** |   |
|                                                                                                                   |   | **January                  31, 2007** |   |
|                                                                                                                   |   |   |   |
| **ASSETS**:                                                                                                            |   |   |   |
| Current                  assets:                                                                                       |   |   |   |
|                                                                                                                   |   |   |   |
| Cash                  and cash equivalents                                                                             |   | $ | 132,721 |   |
| Accounts                  receivable, net of allowance for doubtful                                                    |   |   |   |   |
| accounts                  of $0 at January 31, 2007                                                                    |   |   | 269,453 |   |
| Inventories                                                                                                            |   |   | 3,890,525 |   |
| Advance                  to employees                                                                                  |   |   | 77,912 |   |
| Prepaid                  expenses and other                                                                            |   |   | 228,915 |   |
|                                                                                                                   |   |   |   |   |
| Total                  current assets                                                                                  |   | $ | 4,599,526 |   |
|                                                                                                                   |   |   |   |   |
| Property,                  plant and equipment:                                                                        |   |   |   |   |
| Property,                  plant and equipment, at cost                                                                |   |   | 3,081,437 |   |
| Less:                  Accumulated depreciation                                                                        |   |   | (975,647 | ) |
|                                                                                                                   |   |   |   |   |
| Total                  property, plant and equipment, net                                                              |   |   | 2,105,790 |   |
|                                                                                                                   |   |   |   |   |
| Other                  assets:                                                                                         |   |   |   |   |
| Deposit                  and others                                                                                    |   |   | 28,579 |   |
| Non                  current deferred tax asset (Note H)                                                          |   |   | 280,000 |   |
| Intellectual                  properties, net of accumulated amortization                                              |   |   |   |   |
| of                  $175,003 at January 31, 2007 (Note F)                                                              |   |   | 987,614 |   |
|                                                                                                                   |   |   |   |   |
| Total                  other assets                                                                                    |   |   | 1,296,193 |   |
|                                                                                                                   |   |   |   |   |
| **Total                  Assets**                                                                                      |   | $ | 8,001,509 |   |
|                                                                                                                   |   |   |   |   |
|                                                                                                                   |   |   |   |   |
|                                                                                                                   |   |   |   |   |
| See                  accompanying notes to the unaudited condensed consolidated financial                  information |

----

Table          of Contents

| **GLOBAL                  DIVERSIFIED INDUSTRIES, INC.**                                                               |
|------------------------------------------------------------------------------------------------------------------------|
| **CONDENSED                  CONSOLIDATED BALANCE SHEET (Continued)**                                                  |   |
|                                                                                                                   |   |   |   |
|                                                                                                                   |   |   |   |
|                                                                                                                   |   | (**Unaudited)** |   |
|                                                                                                                   |   | **January                  31, 2007** |   |
|                                                                                                                   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                              |   |   |   |
| Current                  liabilities:                                                                                  |   |   |   |
| Accounts                  payable and accrued liabilities                                                              |   | $ | 1,136,520 |   |
|                                                                                                                   |   |   |   |   |
| Notes                  payable to related parties,                                                                     |   |   |   |   |
| current                  portion (Note B)                                                                              |   |   | 251,500 |   |
| Notes                  payable, current portion (Note B)                                                               |   |   | 454,416 |   |
|                                                                                                                   |   |   |   |   |
| Total                  current liabilities                                                                             |   |   | 1,842,436 |   |
|                                                                                                                   |   |   |   |   |
| Long-term                  liabilities:                                                                                |   |   |   |   |
| Notes                  payable, long term portion,                                                                     |   |   | 222,485 |   |
| net                  of debt discount (Note B)                                                                         |   |   |   |   |
| Notes                  payable, long term portion (Note B)                                                             |   |   | 33,574 |   |
| Notes                  payable to related parties,                                                                     |   |   |   |   |
| long-term                  portion (Note B)                                                                            |   |   | 588,815 |   |
| Deferred                    tax liabilities (Note H)                                                                   |   |   | 79,000 |   |
|                                                                                                                   |   |   |   |   |
| Total                  long-term liabilities                                                                           |   |   | 923,874 |   |
|                                                                                                                   |   |   |   |   |
|                                                                                                                   |   |   |   |   |
| Commitment                  and contingencies                                                                          |   |   | -- |   |
|                                                                                                                   |   |   |   |   |
| Stockholders'                  equity:                                                                                 |   |   |   |   |
| Series                  A Preferred stock, par value $.001                                                             |   |   |   |   |
| per                  share; 10,000,000 shares authorized; 413,093                                                      |   |   |   |   |
| shares                  issued and outstanding at January 31, 2007 (Note C)                                            |   |   | 414 |   |
|                                                                                                                   |   |   |   |   |
| Common                  stock, par value $ .001 per share;                                                             |   |   |   |   |
| 400,000,000                  shares authorized; 163,460,811 shares issued                                              |   |   |   |   |
| and                  outstanding at January 31, 2007 (Note C)                                                          |   |   | 163,460 |   |
|                                                                                                                   |   |   |   |   |
| Additional                  paid-in capital                                                                            |   |   | 6,267,251 |   |
|                                                                                                                   |   |   |   |   |
| Preferred                  stock subscription                                                                          |   |   | 733,374 |   |
| Common                  stock subscription                                                                             |   |   | 1,066,536 |   |
| Treasury                  stock (Note C)                                                                               |   |   | (50 | ) |
| Accumulated                  deficit                                                                                   |   |   | (2,995,786 | ) |
|                                                                                                                   |   |   |   |   |
| Total                  stockholders' equity                                                                            |   |   | 5,235,199 |   |
|                                                                                                                   |   |   |   |   |
| **Total                  liabilities and stockholders' equity**                                                        |   | $ | 8,001,509 |   |
|                                                                                                                   |   |   |   |   |
|                                                                                                                   |   |   |   |   |
|                                                                                                                   |   |   |   |   |
| See                  accompanying notes to the unaudited condensed consolidated financial                  information |

----

Table          of Contents

| **GLOBAL                  DIVERSIFIED INDUSTRIES,                  INC.**                                              |
|------------------------------------------------------------------------------------------------------------------------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF OPERATIONS**                                                   |
| **(UNAUDITED)**                                                                                                        |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| ** **                                                                                                             | ** ** | **For                  The Three Months Ended** | ** ** | **For                  the Nine Months Ended** | ** ** |
| ** **                                                                                                             | ** ** | **January                  31,** | ** ** | **January                  31** |   |
|                                                                                                                   |   | 2007 |   | 2006 |   | 2007 |   | 2006 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                                               |   | $ | 509,898 |   | $ | 2,072,623 |   | $ | 5,093,974 |   | $ | 10,445,463 |   |
| Cost                  of goods sold                                                                                    |   |   | 394,067 |   |   | 1,403,442 |   |   | 3,971,325 |   |   | 6,942,194 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                  profit                                                                                          |   |   | 115,831 |   |   | 669,181 |   |   | 1,122,649 |   |   | 3,503,269 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                  general and                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| administrative                  expenses                                                                               |   |   | 342,734 |   |   | 344,966 |   |   | 1,485,254 |   |   | 1,584,811 |   |
| Depreciation                  and                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization                                                                                                           |   |   | 79,419 |   |   | 110,937 |   |   | 232,107 |   |   | 208,103 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  operating expense                                                                               |   |   | 422,153 |   |   | 455,903 |   |   | 1,717,361 |   |   | 1,792,914 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                                                                                             |   |   | (306,322 | ) |   | 213,278 |   |   | (594,712 | ) |   | 1,710,355 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense, net                                                                                 |   |   | (                  70,361 | ) |   | (                  69,935 | ) |   | (334,719 | ) |   | (376,888 | ) |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations,                  before income                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| taxes                  and discontinued                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                                                                                             |   |   | (376,683 | ) |   | 143,343 |   |   | (929,430 | ) |   | 1,333,467 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes benefit  (expenses)                                                                 |   |   | - |   |   | - |   |   | 179,200 |   |   | (800 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain/(Loss)                  from continuing                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations,                  before                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations                                                                               |   |   | - |   |   | 143,343 |   |   | (750,230 | ) |   | 1,332,667 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from discontinued                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                                                                                             |   |   | - |   |   | (48,622 | ) |   | (29,543 | ) |   | (838,833 | ) |
| Gain                  from disposal of                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                  operations                                                                               |   |   | - |   |   | -- |   |   | 328,286 |   |   | -- |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                                                                     |   | $ | (376,683 | ) | $ | 94,721 |   | $ | (451,487 | ) | $ | 493,834 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  (losses) per common share:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                  |   | $ | (0.00 | ) | $ | 0.00 |   | $ | (0.00 | ) | $ | 0.00 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                  operations                                                                                 |   |   | (0.00 | ) |   | 0.00 |   |   | (0.00 | ) |   | 0.01 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                  operations                                                                               |   |   | 0.00 |   |   | (0.00 | ) |   | 0.00 |   |   | (0.01 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                |   | $ | (0.00 | ) | $ | 0.00 |   | $ | (0.00 | ) | $ | 0.00 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                  operations                                                                                 |   |   | (0.00 | ) |   | 0.00 |   |   | (0.00 | ) |   | 0.01 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                  operations                                                                               |   |   | 0.00 |   |   | (0.00 | ) |   | 0.00 |   |   | (0.01 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding used in earnings (losses) per                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| share                  calculation:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                  |   |   | 172,379,808 |   |   | 148,858,825 |   |   | 156,980,382 |   |   | 141,044,884 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                |   |   | 172,379,808 |   |   | 158,303,273 |   |   | 156,980,382 |   |   | 150,984,282 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  accompanying notes to the unaudited condensed consolidated financial                  information |

----

Table            of Contents

| **GLOBAL                  DIVERSIFIED INDUSTRIES,                  INC.**                                              |
|------------------------------------------------------------------------------------------------------------------------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF CASH FLOWS**                                                   |
| **(UNAUDITED)**                                                                                                        |
|                                                                                                                   |   |   |   |   |   |
|                                                                                                                   |   |   | ** ** | ** ** | ** ** |
| ** **                                                                                                             | ** ** | **For                  the Nine months ended** | ** ** |
| ** **                                                                                                             | ** ** | **January                  31,** |   |
|                                                                                                                   |   | 2007 |   | 2006 |   |
|                                                                                                                        |   |   |   |   |   |
| Cash                  flows from operating activities:                                                                 |   |   |   |   |   |
| Net                  income (loss)                                                                                     |   | $ | (451,487 | ) | $ | 493,834 |   |
| Add                  (deduct):                                                                                         |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Loss                  from discontinued operations                                                                     |   |   | 29,543 |   |   | 838,833 |   |
| Gain                  from disposal of discontinued operation                                                          |   |   | (328,286 | ) |   | -- |   |
|                                                                                                                        |   |   |   |   |   |   |   |
| Income                  (loss) from continuing operations                                                              |   |   | (750,230 | ) |   | 1,332,667 |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Adjustment                  to reconcile net income to net cash:                                                       |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                         |   |   | 232,107 |   |   | 212,988 |   |
| Deferred                  Taxes                                                                                        |   |   | (180,000 | ) |   | -- |   |
| Common                  stock issued in exchange for services rendered                                                 |   |   | 20,889 |   |   | 27,670 |   |
| Common                  stock subscription in exchange for services rendered                                           |   |   | 149,936 |   |   | -- |   |
| Amortization                  and write-off of debt discount                                                           |   |   | 76,001 |   |   | 50,856 |   |
| Common                  stock issued in exchange for compensation                                                      |   |   | 3,000 |   |   | 16,470 |   |
| Change                  in assets and liabilities:                                                                     |   |   |   |   |   |   |   |
| (Increase)/decrease                  in accounts receivable                                                            |   |   | 2,830,587 |   |   | (933,750 | ) |
| (Increase)/decrease                  in inventory                                                                      |   |   | (776,721 | ) |   | (850,997 | ) |
| (Increase)/decrease                  in prepaid expense and others                                                     |   |   | (143,031 | ) |   | 39,791 |   |
| (Increase)/decrease                  in employee advances                                                              |   |   | (62,831 | ) |   | 4,567 |   |
| Increase/(decrease)                  in accounts payable and accrued liabilities                                       |   |   | (25,317 | ) |   | (200,208 | ) |
| Increase/(decrease)                  in deferred revenue                                                               |   |   | -- |   |   | (71,228 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |
| Net                  cash provided by (used in) continuing operations                                                  |   |   | 1,374,390 |   |   | (371,174 | ) |
| Net                  cash provided by (used in) discontinue operations                                                 |   |   | 25,243 |   |   | (520,876 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |
| Net                  cash provided by (used in) operating activities:                                                  |   |   | 1,399,633 |   |   | (892,050 | ) |
|                                                                                                                   |   |   |   |   |   |   |   |
| Cash                  flows from investing activities:                                                                 |   |   |   |   |   |   |   |
| Cash                  receivable in connection with disposition of MBS (Note G)                                        |   |   | (1,000 | ) |   | -- |   |
| Capital                  expenditure                                                                                   |   |   | (322,775 | ) |   | (338,448 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |
| Net                  cash (used in) investing activities                                                               |   |   | (323,775 | ) |   | (338,448 | ) |
|                                                                                                                   |   |   |   |   |   |   |   |
| Cash                  flows from financing activities:                                                                 |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock and stock subscription,                                            |   |   |   |   |   |   |   |
| net                  of costs and fees                                                                                 |   |   | -- |   |   | 50,000 |   |
| Proceeds                  from (repayments of) notes payable, net                                                      |   |   | (1,611,237 | ) |   | 850,558 |   |
| Proceeds                  from (repayments of) related party notes payable, net                                        |   |   | 111,000 |   |   | (8,500 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |
| Net                  cash (used in) financing activities                                                               |   |   | (1,500,237 | ) |   | 892,058 |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Net                  decrease in cash and cash equivalents                                                             |   | $ | (424,379 | ) |   | (338,440 | ) |
| Cash                  and cash equivalents at beginning of period                                                      |   |   | 557,100 |   |   | 446,082 |   |
|                                                                                                                        |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                            |   | $ | 132,721 |   | $ | 107,642 |   |
|                                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Supplemental                  Disclosures of Cash Flow Information:                                                    |   |   |   |   |   |   |   |
| Cash                  paid during the period for interest                                                              |   | $ | 251,699 |   | $ | 219,024 |   |
| Common                  stock issued to employees for compensation                                                     |   |   | 3,000 |   |   | 16,470 |   |
| Common                  stock issued in exchange for services rendered                                                 |   |   | 20,889 |   |   | 27,670 |   |
| Common                  stock subscription in exchange for services rendered                                           |   |   | 149,936 |   |   | -- |   |
| Common                  stock issued in exchange for conversion of notes payable                                       |   |   | -- |   |   | 400,000 |   |
| Common                  stock subscribed in exchange for notes payable                                                 |   |   | 200,000 |   |   | -- |   |
| Beneficial                  conversion feature of convertible notes                                                    |   |   | -- |   |   | 166,667 |   |
| Preferred                  stock issued in exchange for accrued interest                                               |   |   | 53,449 |   |   | -- |   |
|                                                                                                                   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| See                  accompanying notes to the unaudited condensed consolidated financial                  information |

----

Table          of Contents

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**January        31, 2007**

**(Unaudited)**

**NOTE        A - SUMMARY OF ACCOUNTING POLICIES**

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Table            of Contents

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Table            of Contents

| **Nine                      months ended:**                           |       |   |                             | **January                      31,** | ** ** |
|-----------------------------------------------------------------------|------------|--------|----------------------------------|--------------------------------------|------------|
|                                                                  | ** ** |   | ** **                       | **2006**                             |       |
|                                                                  |       |   |                             |                                 |       |
| Net                      income                                       |       |   | As                      reported |                                 | $          | 493,834 |   |
| Less:                      Total stock-based employee compensation    |       |   |                             |                                 |       |   |   |
| expense                      determined under fair value based method |       |   |                             |                                 |       |   |   |
| for                      all awards, net of related tax effects       |       |   |                             |                                 |       | -- |   |
|                                                                  |       |   |                             |                                 |       |   |   |
| Net                      income attributable to common shareholders   |       |   | Pro                      forma   |                                 | $          | 493,834 |   |
|                                                                  |       |   |                             |                                 |       |   |   |
|                                                                  |       |   |                             |                                 |       |   |   |
| Basic                      and diluted net income per share:          |       |   | As                      reported |                                 | $          | 0.00 |   |
|                                                                  |       |   | Pro                      forma   |                                 | $          | 0.00 |   |

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**NOTE        B - NOTES PAYABLE**

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | January                    31, |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2007                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   | Note                    payable to Company shareholder in monthly installments of interest                    only at                    10.0% per annum; unsecured; maturity date was in November 30,                    2003. The                    Company amended the note with the shareholder in April 2004,                    extending the                    maturity date to May 1, 2009; the noteholder has an option to                    convert the                    unpaid principal balance of the loan, together with any accrued                    and unpaid                    interest to the Company's preferred stock. (a) |   | $                    389,465   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   | Note                    payable to Company shareholders in monthly installments of interest                    only                    at 8.0% per annum; unsecured; maturity dated extended to May                    15, 2007.                    Noteholder has the option to convert the principal balance of                    the loan to                    the Company's preferred stock. (a)                                                                                                                                                                                                                                                  |   | 78,500                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   | Note                    payable to Company shareholders in monthly installments of interest                    only                    at 8.0% per annum; unsecured; maturity dated August 2007. Noteholder                    has                    the option to convert the principal balance of the loan to the                    Company's                    preferred stock. (a)                                                                                                                                                                                                                                                               |   | 56,000                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   | Note                    payable to Company shareholders in monthly installments of interest                    only                    at 6.0% per annum; unsecured; maturity date is on May 1, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 199,350                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   | Note                    payable to Company shareholders in monthly installments of interest                    only                    at 5.0% per annum; unsecured; maturity date was extended to August                    2007.                    Noteholder has the option to convert the principal balance of                    the loan to                    the Company's preferred stock. (a)                                                                                                                                                                                                                                                |   | 6,000                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |
|   | Note                    payable in 24 installments beginning March 15, 2006; with interest                    at 6%;                    unsecured; maturity date is on March 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 39,447                         |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|
|   | Note                    payable in 24 monthly installments beginning December 27, 2004,                    with                    interest at 8% per annum beginning January 28, 2005, secured                    by company                    stock; maturity date is January 31, 2007. The Company is currently                    in                    default under the terms of the note agreement (b)                                                                                                                                                                                                                                                                                                                                 |   | 14,009                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Note                    payable in 12 installments beginning April 15, 2006 with interest                    at 9%                    annum, unsecured, maturity date is March 15, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 17,987                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Note                    Payable in 24 monthly installments beginning January 28, 2007,                    interest                    only first six months at 7.5 % per annum, unsecured, maturity                    is December                    27, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 40,000                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Note                    Payable in monthly installments beginning December 14, 2006 with                    interest                    at 8% per annum, unsecured, maturity date is April 30,                    2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 43,000                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Note                    payable to Company shareholder in monthly installments of interest                    only at                    8% per annum, unsecured, maturity date was extended to January                    31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 111,000                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Note                    payable revolving agreement secured by receivable and property                    with                    interest and administrative fees payable monthly; interest rate                    is at                    2.75% per annum over and above the Prime Rate or Deemed Prime                    Rate                    whichever is higher; maturity date is on November 1, 2007.maximum                    borrowing capacity of $3,000,000.                                                                                                                                                                                                                                                                  |   | 333,547                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Note                    payable in 5 annual payments beginning December 31, 2006, with                    interest                    payable monthly at 10% per annum, Lender has an option at the                    end each                    twelve months ("anniversary date") to receive restricted shares                    of the                    Company's common stock in lieu of the annual cash payment of                    $100,000. The                    conversion price is equal to 75% of the closing price for the                    day that is                    twelve months prior to each anniversary date. The minimum conversion                    price                    shall be $0.05 per share (c) |   | 222,485                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 1,550,790                     |
|   | Less:                    current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (                    705,916) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          |
|   | Total                    - notes payable - long term                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                    844,874  |

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**NOTE        C - CAPITAL STOCK**

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Table            of Contents

**NOTE        D - STOCK OPTIONS AND WARRANTS**

|                                               |   |                                    |       | **Weighted                    Average** |
|----------------------------------------------------|--------|-----------------------------------------|------------|-----------------------------------------|
|                                               |   | **Number                    of Shares** |       | **Price                    Per Share**  |
|                                                    |   |                                    |       |                                    |
| Outstanding                    at April 30, 2004   |   |                                    | 5,500,000  |                                    | $ | 1.40 |
|                                                    |   |                                    |       |                                    |   |   |
| Granted                                            |   |                                    | -          |                                    |   | - |
| Exercised                                          |   |                                    | -          |                                    |   | - |
| Canceled                    or expired             |   |                                    | -          |                                    |   | - |
|                                                    |   |                                    |       |                                    |   |   |
| Outstanding                    at April 30, 2005   |   |                                    | 5,500,000  |                                    | $ | 1.40 |
|                                                    |   |                                    |       |                                    |   |   |
| Granted                                            |   |                                    | -          |                                    |   | - |
| Exercised                                          |   |                                    | -          |                                    |   | - |
| Canceled                    or expired             |   |                                    | (1,500,000 | )                                       |   | 5.00 |
|                                                    |   |                                    |       |                                    |   |   |
| Outstanding                    at April 30, 2006   |   |                                    | 4,000,000  |                                    | $ | 0.05 |
|                                                    |   |                                    |       |                                    |   |   |
| Granted                                            |   |                                    | -          |                                    |   | - |
| Exercised                                          |   |                                    | -          |                                    |   | - |
| Canceled                    or expired             |   |                                    | (4,000,000 | )                                       |   | 0.05 |
|                                                    |   |                                    |       |                                    |   |   |
| Outstanding                    at January 31, 2007 |   |                                    | -          |                                    |   | - |
|                                                    |   |                                    |       |                                    |   |   |

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| **Warrants                    Outstanding** | ** ** | **Warrants                    Exercisable** |
|---------------------------------------------|------------|---------------------------------------------|
| ** **                                  | ** ** | ** **                                  | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
|                                        |       |                                        |   | **Weighted                    Average** |   | **Weighed** |   |   |   | **Weighted** |
|                                        |       | **Number**                                  |   | **Remaining                    Contractual** |   | **Average** |   | **Number** |   | **Average** |
| **Exercise                    Prices**      |       | **Outstanding**                             |   | **Life                    (Years)** |   | **Exercise                    Price** |   | **Exercisable** |   | **Exercise                    Price** |
|                                        |       |                                        |   |   |   |   |   |   |   |   |
| $                    0.03                   |       |                                        | 750,000 |   |   | 0.25 |   | $ | 0.03 |   |   | 750,000 |   | $ | 0.03 |

|                                               | ** ** |                                    |      | **Weighted                    Average** |
|----------------------------------------------------|------------|-----------------------------------------|-----------|-----------------------------------------|
|                                               |       | **Number                    of Shares** |      | **Price                    Per Share**  |
|                                               |       |                                    |      |                                    |
| Outstanding                    at April 30, 2004   |       |                                    | 1,500,000 |                                    | $ | 0.03 |
|                                               |       |                                    |      |                                    |   |   |
| Granted                                            |       |                                    | -         |                                    |   | - |
| Exercised                                          |       |                                    | -         |                                    |   | - |
| Canceled                    or expired             |       |                                    | -         |                                    |   | - |
|                                                    |       |                                    |      |                                    |   |   |
| Outstanding                    at April 30, 2005   |       |                                    | 1,500,000 |                                    | $ | 0.03 |
|                                               |       |                                    |      |                                    |   |   |
| Granted                                            |       |                                    | -         |                                    |   | - |
| Exercised                                          |       |                                    | -         |                                    |   | - |
| Canceled                    or expired             |       |                                    | -         |                                    |   | - |
|                                                    |       |                                    |      |                                    |   |   |
| Outstanding                    at April 30, 2006   |       |                                    | 1,500,000 |                                    | $ | 0.03 |
|                                               |       |                                    |      |                                    |   |   |
| Granted                                            |       |                                    | -         |                                    |   | - |
| Exercised                                          |       |                                    | -         |                                    |   | - |
| Canceled                    or expired             |       |                                    | (750,000  | )                                       |   | 0.03 |
|                                                    |       |                                    |      |                                    |   |   |
| Outstanding                    at January 31, 2007 |       |                                    | 750,000   |                                    | $ | 0.03 |
|                                               |       |                                    |      |                                    |   |   |

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**NOTE        E - EMPLOYEE STOCK INCENTIVE PLAN**

**NOTE        F- ACQUISITION OF INTANGIBLE ASSETS**

| Trade                    name                                   |   | $      | 350,000 |
|-----------------------------------------------------------------|--------|--------|---------|
| Building                    engineering and architectural plans |   |   | 150,000 |
|                                                            |   |   |    |
| Total                                                           |   | $      | 500,000 |
|                                                            |   |   |    |

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|                                                  |   | **Gross**    |      |             |   |     |   |         |    | **Weighted                    Average** |
|-------------------------------------------------------|--------|--------------|-----------|------------------|--------|----------|--------|--------------|---------|-----------------------------------------|
|                                                  |   | **Carrying** |      | **Accumulated**  |   |     |   | **Residual** |    | **Amortization**                        |
|                                                  |   | **Amount**   |      | **Amortization** |   | **Net**  |   | **Value**    |    | **Period                    (Years)**   |
|                                                       |   |         |      |             |   |     |   |         |    |                                    |
| **Amortized                    Identifiable**         |   |         |      |             |   |     |   |         |    |                                    |
| Intangible                    Assets:                 |   |         |      |             |   |     |   |         |    |                                    |
|                                                  |   |         |      |             |   |     |   |         |    |                                    |
| Building                    engineering and           |   |         |      |             |   |     |   |         |    |                                    |
| architectural                    plans                |   | $            | 812,617   |             | $      | (175,003 | )      | $            | 637,614 |                                    | $ | - |   |   | 10.0 |
|                                                       |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| **Total                    Amortized Identifiable**   |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| Intangible                    Assets                  |   |         | 812,617   |             |   | (175,003 | )      |         | 637,614 |                                    | $ | - |   |   | 10.0 |
|                                                  |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| **Unamortized                    Identifiable**       |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| Intangible                    Assets:                 |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
|                                                  |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| Trade                    Name                         |   |         | 350,000   |             |   | -        |   |         | 350,000 |                                    |   | 350,000 |   |   |   |
|                                                       |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| **Total                    Unamortized Identifiable** |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| Intangible                    Assets                  |   |         | 350,000   |             |   | -        |   |         | 350,000 |                                    |   | 350,000 |   |   |   |
|                                                       |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
|                                                  |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
|                                                  |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |
| Total                                                 |   | $            | 1,162,617 |             | $      | (175,003 | )      | $            | 987,614 |                                    | $ | 350,000 |   |   |   |
|                                                       |   |         |      |             |   |     |   |         |    |                                    |   |   |   |   |   |

| For                    the period from February 1, 2007 through January 31, 2008 |   | $      | 80,940  |
|----------------------------------------------------------------------------------|--------|--------|---------|
| For                    the period from February 1, 2008 through January 31, 2009 |   |   | 80,940  |
| For                    the period from February 1, 2009 through January 31, 2010 |   |   | 80,940  |
| For                    the period from February 1, 2010 through January 31, 2011 |   |   | 80,940  |
| February                    1, 2011 and after                                    |   |   | 313,854 |
|                                                                             |   |   |    |
| Total                                                                            |   | $      | 637,614 |

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**NOTE        G - DIVESTITURES AND DISCONTINUED OPERATIONS**

| Cash                  consideration          |   | $      | 1,000   |   |
|----------------------------------------------|--------|--------|---------|--------|
| Debts                  assumed by PMI        |   |   | 372,819 |   |
| Net                  assets disposed of      |   |   | (45,533 | )      |
|                                              |   |   |    |   |
| Net                  gain on disposal of MBS |   | $      | 328,286 |   |
|                                         |   |   |    |   |

|                                                     |   | **2007** |    | **2006** |   |
|----------------------------------------------------------|--------|----------|---------|----------|--------|
|                                                          |   |     |    |     |   |
| Revenues                                                 |   | $        | --      |     | $      | 1,070,700 |   |
| Costs                  and Expenses                      |   |     | 29,543  |     |   | 1,909,533 |   |
|                                                          |   |     |    |     |   |   |   |
| Net                  loss before tax                     |   |     | (29,543 | )        |   | (838,833 | ) |
| Income                  tax provision (benefit)          |   |     | --      |     |   | -- |   |
|                                                          |   |     |    |     |   |   |   |
| Net                  loss                                |   |     | (29,543 | )        |   | (838,833 | ) |
|                                                     |   |     |    |     |   |   |   |
| Net                  gain on sale of MBS, before tax     |   |     | 328,286 |     |   | -- |   |
| Income                  tax provision (benefit)          |   |     | --      |     |   | -- |   |
|                                                          |   |     |    |     |   |   |   |
| Gain                  on sale, net of tax                |   |     | 328,286 |     |   | -- |   |
|                                                          |   |     |    |     |   |   |   |
| Gain                  (Loss) on discontinued operations, |   |     |    |     |   |   |   |
| net                  of tax                              |   | $        | 298,743 |     | $      | (838,833 | ) |
|                                                          |   |     |    |     |   |   |   |

**NOTE      H - INCOME TAXES**

** **

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|                                             |   | **January                31, 2007** |     | **January                31, 2006** |
|--------------------------------------------------|--------|-------------------------------------|----------|-------------------------------------|
|  Continuing                Operations  |   |                                |     |                                |
| Current                                          |   |                                |     |                                |
| Federal                                          |   | $                                   | --       |                                | $ | -- |
| State                                            |   |                                | 800      |                                |   | 800 |
|                                             |   |                                | 800      |                                |   | 800 |
|                                             |   |                                |          |                                |   |  |
| Deferred                                         |   |                                |          |                                |   |  |
| Federal                                          |   |                                | (152,000 | )                                   |   | -- |
| State                                            |   |                                | (38,000  | )                                   |   | -- |
|                                             |   |                                | (190,000 | )                                   |   | -- |
|                                             |   |                                |          |                                |   |  |
|                                             |   |                                | (189,200 | )                                   | $ | 800 |

| Federal     |   |   | 10,000   |   |   | --     |
|-------------|--------|--------|----------|--------|--------|--------|
| State       |   |   | --       |   |   | --     |
|        |   |   | 10,000   |   |   | --     |
|        |   |   |     |   |   |   |
|  Total |   | $      | (179,200 | )      | $      | 800    |

|                                                                                                 |   | **January                31, 2007** |     | **January                31, 2006** |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------|----------|-------------------------------------|--------|
|                                                                                                 |   |                                |     |                                |   |
| Computed                “expected” income tax expense atapproximately                34% |   | $                                   | (154,000 | )                                   | $      | 170,000 |   |
|                                                                                                 |   |                                |          |                                |   |  |   |
| Increase                (decrease) in NOL carryforwards                                              |   |                                | 117,000  |                                |   | (169,200 | ) |
|                                                                                                 |   |                                |          |                                |   |  |   |
| Discretionary                change in valuation allowances of deferred income taxes                 |   |                                | (150,000 | )                                   |   | -- |   |
|  Various                other                                                                   |   |                                | (2,200   | )                                   |   | -- |   |
|                                                                                                 |   | $                                   | (189,200 | )                                   | $      | 800 |   |

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|                                                                           |   | **January                  31, 2007** |     | **January                  31, 2006** |   |
|--------------------------------------------------------------------------------|--------|---------------------------------------|----------|---------------------------------------|--------|
| Deferred                  tax assets:                                          |   |                                  |     |                                  |   |
| Federal                  and state net operating loss                          |   | $                                     | 748,000  |                                  | $      | 606,000 |   |
| Allowance                  and accruals not recognized for income tax purposes |   |                                  | -        |                                  |   | 8,000 |   |
| Total                  gross deferred tax assets                               |   |                                  | 748,000  |                                  |   | 614,000 |   |
| Less                  : Valuation allowance                                    |   |                                  | (468,000 | )                                     |   | (539,000 | ) |
| Net                  deferred tax assets                                       |   | $                                     | 280,000  |                                  | $      | 75,000 |   |
|                                                                           |   |                                  |          |                                  |   |  |   |
| Deferred                  tax liabilities:                                     |   |                                  |          |                                  |   |  |   |
|                                                                           |   |                                  |          |                                  |   |  |   |
| Total                  gross deferred tax liabilities:                         |   |                                  |          |                                  |   |  |   |
| Depreciation                  and amortization, net                            |   |                                  | (75,000  | )                                     |   | (53,000 | ) |
| Deferred                  state tax liability                                  |   |                                  | (4,000   | )                                     |   | (1,000 | ) |
| Total                  net deferred tax liabilities                            |   | $                                     | (79,000  | )                                     | $      | (54,000 | ) |

|                                                |   | **January                  31, 2007** |    | **January                  31, 2006** |
|-----------------------------------------------------|--------|---------------------------------------|---------|---------------------------------------|
| Current                  deferred tax asset         |   | $                                     | -       |                                  | $ | 8,000 |
| Non                  current deferred tax asset     |   |                                  | 201,000 |                                  |   | 13,000 |
| Non                  current deferred tax liability |   |                                  | -       |                                  |   | - |
| Total                  net deferred tax asset       |   | $                                     | 201,000 |                                  | $ | 21,000 |
|                                                |   |                                  |         |                                  |   |  |

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED JANUARY 31,      2007**

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**COMPARISON      OF THE THREE MONTHS ENDED JANUARY 31, 2007 TO THE THREE MONTHS ENDED**
**JANUARY      31, 2006**

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**COMPARISON      OF THE NINE MONTHS ENDED JANUARY 31, 2007 TO THE NINE MONTHS ENDED**
**JANUARY      31, 2006**

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**LIMITED      OPERATING HISTORY; ANTICIPATED LOSSES; UNCERTAINTY OF FUTURE      RESULTS.**

**POTENTIAL      FLUCTUATIONS IN ANNUAL OPERATING RESULTS.**

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**LIMITED      PUBLIC MARKET, POSSIBLE VOLATILITY OF SHARE PRICE.**

**MANAGEMENT      OF GROWTH**

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**RISKS      ASSOCIATED WITH ACQUISITIONS.**

**ITEM      3. CONTROLS AND PROCEDURES**

**PART      II. OTHER INFORMATION**

****ITEM      1.****LEGAL      PROCEEDINGS****

**None.**

**ITEM      2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES**

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

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**ITEM      5. OTHER INFORMATION**

**ITEM      6. EXHIBITS**

| **No.** | **Description**                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                            |
| 31.1    | Certification                  of Phillip Hamilton Pursuant to Section 302 of the Sarbanes-Oxley                  Act of                  2002. |
|    |                                                                                                                                            |
| 31.2    | Certification                  of E. Adam DeBard to Section 302 of the Sarbanes-Oxley Act of                  2002.                             |
|    |                                                                                                                                            |
| 32.1    | Certification                  of Phillip Hamilton Pursuant to Section 906 of the Sarbanes-Oxley                  Act of                  2002. |
|    |                                                                                                                                            |
| 32.2    | Certification                  of E. Adam DeBard Pursuant to Section 906 of the Sarbanes-Oxley                  Act of                  2002.   |

----

**SIGNATURES**

|                                   |                                                                                             |                                   |
|----------------------------------------|--------------------------------------------------------------------------------------------------|----------------------------------------|
|                                   | **GLOBAL              DIVERSIFIED INDUSTRIES, INC.**                                             |
|                              |                                                                                        |                              |
| Date: March              26, 2007 | By:                                                                                    | /s/ Phillip              Hamilton |
|                                   | Phillip              Hamilton                                                                    |
|                                   | President                and Chief Executive Officer(Principal                Executive Officer) |

|                                   |                                                                                              |                              |
|----------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------|
| Date: March              26, 2007 | By:                                                                                     | /s/ Adam              DeBard |
|                                   | Adam              DeBard                                                                          |
|                                   | Chief                Operating Officer (PrincipalAccounting                and Financial Officer) |

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