|   | Form 10-QSB |   |
|--------|-------------|--------|

|   |
|--------|

|   | SECURITIES AND EXCHANGECOMMISSION Washington, D.C. |   |
|--------|----------------------------------------------------|--------|

|   |
|--------|

|   | [ X ]  Quarterly Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934 For the quarterly period ended September 30, 2007 |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| OR |
|----|

|   | [   ]  Transition Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934 For the transition period from _______ to _______. |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Commission File No. 33-19961 |   |
|--------|------------------------------|--------|

|   |
|--------|

|   | Diamond I, Inc.                                                  |   |
|--------|------------------------------------------------------------------|--------|
|   | (Exact Name of Small Business Issuer as Specified in itsCharter) |   |

|   |
|--------|

|   | DELAWARE |   | 01-0623010 |   |
|--------|----------|--------|------------|--------|

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. Employer IdentificationNumber) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

|   | 8733 Siegen Lane, Suite 309, Baton Rouge, LA 70810 |   |
|--------|----------------------------------------------------|--------|

|   | (Address of Principal Executive Offices, including Zip Code) |   |
|--------|--------------------------------------------------------------|--------|

|   | (225) 341-4004 |   |
|--------|----------------|--------|

|   | (Issuer’s telephone number, including area code) |   |
|--------|--------------------------------------------------------|--------|

|   |
|--------|

| Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for suchshorter period that Registrant is required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days: Yes [ X ]   No [   ] |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act). Yes [  ] No [ X ] |
|-----------------------------------------------------------------------------------------------------------------------------------|

| Indicate the number of shares outstanding of each of the issuer’s classes of common stock asof the latest practicable date: |
|-----------------------------------------------------------------------------------------------------------------------------------|

|   | Class |   | Outstanding as of 11-16-07 |   |
|--------|-------|--------|----------------------------|--------|

|   | Common Stock, $.001 par value |   | 328,516,707 |   |
|--------|-------------------------------|--------|-------------|--------|

|         |
|--------------|
| <PAGE> |
|         |

| PART I - FINANCIAL INFORMATION |
|--------------------------------|

|   |
|--------|

| Item 1.  Financial Statements. |   |
|--------------------------------|--------|

| INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
|------------------------------------------------------|
| Diamond I, Inc.                                      |

|   |   | Page |
|--------|--------|------|

|   | Condensed Consolidated Balance Sheet as of September 30, 2007 (unaudited),and December 31, 2006 | 3 |
|--------|-------------------------------------------------------------------------------------------------|---|

|   | Condensed Consolidated Statements of Revenues and Expenses for the ThreeMonths and Nine Months Ended September 30, 2007 and 2006, and Period fromJune 17, 2003 (Inception), Through September 30, 2007 (unaudited) | 4 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

|   | Condensed Consolidated Statement of Stockholders’ Equity for the Nine MonthsEnded September 30, 2007 (unaudited) | 5 |
|--------|------------------------------------------------------------------------------------------------------------------------|---|

|   | Condensed Consolidated Statements of Cash Flows for the Nine Months EndedSeptember 30, 2007 and 2006, and Period from June 17, 2003 (Inception),Through September 30, 2006 (unaudited) | 7 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

|   | Notes to Condensed Consolidated Financial Statements | 9 |
|--------|------------------------------------------------------|---|

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED BALANCESHEETS |   |
|--------|--------------------------------------|--------|

|   | September 30, 2007,and December 31, 2006 |   |
|--------|------------------------------------------|--------|

|   | 9/30/07(unaudited) |   | 12/31/06 |
|--------|--------------------|--------|----------|

| ASSETS |
|--------|

| Current assets: |   |   |
|-----------------|--------|--------|

|   | Cash | $1,102 |   | $         35 |
|--------|------|--------|--------|--------------|

|   | Total current assets | 1,102 |   | 35 |
|--------|----------------------|-------|--------|----|

| Equipment, net of accumulated depreciation of $100,871and $92,870 | 1,244 |   | 9,245 |
|-------------------------------------------------------------------|-------|--------|-------|

| Intangible assets - Pending patent, net of accumulatedamortization of $196,564 and $94,479 | 664,569 |   | 766,654 |
|--------------------------------------------------------------------------------------------|---------|--------|---------|

|   | Total Assets | $666,915 |   | $775,934 |
|--------|--------------|----------|--------|----------|

| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|------------------------------------------------|

| Current liabilities: |   |   |
|----------------------|--------|--------|

|   | Accounts payable | $1,500 |   | $1,500 |
|--------|------------------|--------|--------|--------|

|   | Accrued expenses | 181,932 |   | 336,586 |
|--------|------------------|---------|--------|---------|

|   | Short-term account payable - third party | 30,400 |   | --- |
|--------|------------------------------------------|--------|--------|-----|

|   | Short-term note payable - related party | 41,640 |   | 41,640 |
|--------|-----------------------------------------|--------|--------|--------|

|   | Accrued interest - shareholders | 5,071 |   | --- |
|--------|---------------------------------|-------|--------|-----|

|   | Dividend payable on preferred stock | 105,000 |   | 82,500 |
|--------|-------------------------------------|---------|--------|--------|

|   | Total current liabilities | 365,543 |   | 462,226 |
|--------|---------------------------|---------|--------|---------|

| Stockholders’ equity (deficit): |   |   |
|---------------------------------------|--------|--------|

|   | Preferred stock, $.001 par value, 50,000,000 sharesauthorized, 500,000 Series A shares issued andoutstanding | 500 |   | 500 |
|--------|--------------------------------------------------------------------------------------------------------------|-----|--------|-----|

|   | Common stock, $.001 par value; 700,000,000 sharesauthorized, 328,516,707 and 288,513,756 sharesissued and outstanding | 328,517 |   | 288,514 |
|--------|-----------------------------------------------------------------------------------------------------------------------|---------|--------|---------|

|   | Subscription receivable | (128,000) |   | (128,000) |
|--------|-------------------------|-----------|--------|-----------|

|   | Additional paid-in capital | 29,797,158 |   | 29,219,021 |
|--------|----------------------------|------------|--------|------------|

|   | Deficit accumulated during the development stage | (29,696,803) |   | (29,066,327) |
|--------|--------------------------------------------------|--------------|--------|--------------|

|   | Total stockholders' equity | 301,372 |   | 313,708 |
|--------|----------------------------|---------|--------|---------|

|   | Total liabilities and stockholders’ equity | $666,915 |   | $775,934 |
|--------|--------------------------------------------------|----------|--------|----------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF REVENUES ANDEXPENSES |   |
|--------|-----------------------------------------------------------|--------|

|   | For the Three Months and Nine Months Ended September 30, 2007 and 2006, andthe Period from June 17, 2003 (Inception), Through September 30, 2007(unaudited) |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   | Three Months EndedSeptember 30, |   | Nine Months EndedSeptember 30, |   |
|--------|--------|---------------------------------|--------|--------------------------------|--------|

|   | 2007 |   | 2006 |   | 2007 |   | 2006 |   | Inceptionthrough9/30/2007 |
|--------|------|--------|------|--------|------|--------|------|--------|---------------------------|

| Revenues | $--- |   | $--- |   | $--- |   | $--- |   | 10,784 |
|----------|------|--------|------|--------|------|--------|------|--------|--------|

| Internet access costs | --- |   | --- |   | --- |   | --- |   | (32,850) |
|-----------------------|-----|--------|-----|--------|-----|--------|-----|--------|----------|

| Gross profit (loss) | --- |   | --- |   | --- |   | --- |   | (22,066) |
|---------------------|-----|--------|-----|--------|-----|--------|-----|--------|----------|

| OPERATINGEXPENSES |   |   |   |   |   |   |   |   |   |
|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Professional andconsulting fees | 36,100 |   | 190,659 |   | 285,300 |   | 413,670 |   | 4,047,388 |
|--------|---------------------------------|--------|--------|---------|--------|---------|--------|---------|--------|-----------|

|   | Compensation expense | 75,000 |   | 245,456 |   | 232,200 |   | 975,186 |   | 5,107,776 |
|--------|----------------------|--------|--------|---------|--------|---------|--------|---------|--------|-----------|

|   | Depreciation andamortization | 31,455 |   | 51,273 |   | 110,086 |   | 68,435 |   | 297,436 |
|--------|------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|---------|

|   | Impairment loss | --- |   | --- |   | --- |   | --- |   | 16,808,527 |
|--------|-----------------|-----|--------|-----|--------|-----|--------|-----|--------|------------|

|   | General andadministrative(excluding professionaland consulting fees,compensation expense,depreciation andimpairment loss) | 1,808 |   | 6,738 |   | 2,053 |   | 35,636 |   | 3,386,681 |
|--------|---------------------------------------------------------------------------------------------------------------------------|-------|--------|-------|--------|-------|--------|--------|--------|-----------|

|   | Total OperatingExpenses | 144,363 |   | 494,126 |   | 629,639 |   | 1,492,927 |   | 29,647,808 |
|--------|-------------------------|---------|--------|---------|--------|---------|--------|-----------|--------|------------|

| LOSS FROMOPERATIONS | (144,363) |   | (494,126) |   | (629,639) |   | (1,492,927) |   | (29,669,874) |
|---------------------|-----------|--------|-----------|--------|-----------|--------|-------------|--------|--------------|

| OTHER INCOME(EXPENSE) | --- |   | (23,831) |   | (837) |   | (26,397) |   | (26,929) |
|-----------------------|-----|--------|----------|--------|-------|--------|----------|--------|----------|

| NET LOSS | $(144,363) |   | $(517,957) |   | $(630,476) |   | $(1,519,324) |   | $(29,696,803) |
|----------|------------|--------|------------|--------|------------|--------|--------------|--------|---------------|

| Deemed Dividend onPreferred stock | --- |   | --- |   | --- |   | --- |   | (165,442) |
|-----------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|

| Cumulative PreferredDividends | (7,500) |   | (7,500) |   | (22,500) |   | (22,500) |   | (105,000) |
|-------------------------------|---------|--------|---------|--------|----------|--------|----------|--------|-----------|

| Net Loss Charged toCommon Shareholders | $(151,863) |   | $(525,457) |   | $(652,976) |   | $(1,541,824) |   | $(29,967,245) |
|----------------------------------------|------------|--------|------------|--------|------------|--------|--------------|--------|---------------|

| Net Loss Applicable to CommonShareholders |   |   |   |   |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted | $(0.00) |   | $(0.00) |   | $(0.00) |   | $(0.01) |   |   |
|--------|-------------------|---------|--------|---------|--------|---------|--------|---------|--------|--------|

| Weighted average number of sharesoutstanding |   |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted | 324,883,374 |   | 261,811,545 |   | 310,385,439 |   | 245,400,765 |   |   |
|--------|-------------------|-------------|--------|-------------|--------|-------------|--------|-------------|--------|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

|   | CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY(DEFICIT) |   |
|--------|-------------------------------------------------------------------------|--------|

|   |  For the Nine Months Ended September 30, 2007(unaudited) |   |
|--------|---------------------------------------------------------------|--------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | AdditionalPaid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulatedDuring theDevelopmentStage |   | Total |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------|--------|------------------------|--------|----------------------------------------------|--------|-------|--------|--------|

| Balance,December 31,2006 | 500,000 |   | $500 |   | 288,513,756 |   | $288,514 |   | $29,219,021 |   | $(128,000) |   | $(29,066,327) |   | $313,708 |   |   |
|--------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|----------|--------|--------|

| Stock issuedfor services: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| February2007 | --- |   | --- |   | 2,040,000 |   | 2,040 |   | 35,658 |   | --- |   | --- |   | 37,698 |   |   |
|--------------|-----|--------|-----|--------|-----------|--------|-------|--------|--------|--------|-----|--------|-----|--------|--------|--------|--------|

| March 2007 | --- |   | --- |   | 7,600,000 |   | 7,600 |   | 163,400 |   | --- |   | --- |   | 171,000 |   |   |
|------------|-----|--------|-----|--------|-----------|--------|-------|--------|---------|--------|-----|--------|-----|--------|---------|--------|--------|

| Contributionto capitalfromshareholder | --- |   | --- |   | --- |   | --- |   | 2,220 |   | --- |   | --- |   | 2,220 |   |   |
|---------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|-------|--------|-----|--------|-----|--------|-------|--------|--------|

| Contributionto capitalfrom contractparty | --- |   | --- |   | --- |   | --- |   | 25,200 |   | --- |   | --- |   | 25,200 |   |   |
|------------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|--------|--------|-----|--------|-----|--------|--------|--------|--------|

| Dividendpayable onpreferredstock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |   |   |
|----------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|--------|--------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (324,625) |   | (324,625) |   |   |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|-----------|--------|--------|

| Balance,March 31,2007 | 500,000 |   | 500 |   | 298,153,756 |   | $298,154 |   | $29,437,999 |   | $(128,000) |   | $(29,390,952) |   | $217,701 |   |   |
|-----------------------|---------|--------|-----|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|----------|--------|--------|

| Stock issuedfor services: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| May 2007 | --- |   | --- |   | 8,000,000 |   | 8,000 |   | 32,000 |   | --- |   | --- |   | 40,000 |   |   |
|----------|-----|--------|-----|--------|-----------|--------|-------|--------|--------|--------|-----|--------|-----|--------|--------|--------|--------|

| Stock issuedfor salary | --- |   | --- |   | 16,162,951 |   | 16,163 |   | 323,259 |   | --- |   | --- |   | 339,422 |   |   |
|------------------------|-----|--------|-----|--------|------------|--------|--------|--------|---------|--------|-----|--------|-----|--------|---------|--------|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

| Stock issuedfor bonuses | --- |   | --- |   | 200,000 |   | 200 |   | 4,000 |   | --- |   | --- |   | 4,200 |   |   |
|-------------------------|-----|--------|-----|--------|---------|--------|-----|--------|-------|--------|-----|--------|-----|--------|-------|--------|--------|

| Contributionto capitalfrom contractparty | --- |   | --- |   | --- |   | --- |   | 5,200 |   | --- |   | --- |   | 5,200 |   |   |
|------------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|-------|--------|-----|--------|-----|--------|-------|--------|--------|

| Conversion ofcontributionto capitalfrom contractparty to loanproceeds | --- |   | --- |   | --- |   | --- |   | (30,400) |   | --- |   | --- |   | (30,400) |   |   |
|-----------------------------------------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|----------|--------|-----|--------|-----|--------|----------|--------|--------|

| Stock issuedfor cash | --- |   | --- |   | 1,000,000 |   | 1,000 |   | 9,000 |   | --- |   | --- |   | 10,000 |   |   |
|----------------------|-----|--------|-----|--------|-----------|--------|-------|--------|-------|--------|-----|--------|-----|--------|--------|--------|--------|

| Dividendpayable onpreferredstock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |   |   |
|----------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|--------|--------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (161,488) |   | (161,488) |   |   |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|-----------|--------|--------|

| Balance, June30, 2007 | 500,000 |   | $500 |   | 323,516,707 |   | $323,517 |   | $29,773,558 |   | $(128,000) |   | $(29,552,440) |   | $417,135 |   |   |
|-----------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|----------|--------|--------|

| Stock issuedfor services: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| August 2007 | --- |   | --- |   | 1,000,000 |   | 1,000 |   | 3,500 |   | --- |   | --- |   | 4,500 |   |   |
|-------------|-----|--------|-----|--------|-----------|--------|-------|--------|-------|--------|-----|--------|-----|--------|-------|--------|--------|

| September2007 | --- |   | --- |   | 4,000,000 |   | 4,000 |   | 27,600 |   | --- |   | --- |   | 31,600 |   |   |
|---------------|-----|--------|-----|--------|-----------|--------|-------|--------|--------|--------|-----|--------|-----|--------|--------|--------|--------|

| Dividendpayable onpreferredstock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |   |   |
|----------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|--------|--------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (144,363) |   | (144,363) |   |   |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|-----------|--------|--------|

| Balance,September30, 2007 | 500,000 |   | $500 |   | 328,516,707 |   | $328,517 |   | $29,797,158 |   | $(128,000) |   | $(29,696,803) |   | $301,372 |   |   |
|---------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|----------|--------|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |   |
|--------|-------------------------------------------------|--------|

|   | For the Nine Months Ended September 30 2007 and 2006,and the Period from June 17, 2003 (Inception), Through September 30, 2007(unaudited) |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Nine Months EndedSeptember 30, |   |   |
|--------|--------------------------------|--------|--------|

|   | 2007 |   | 2006 |   | Inceptionthrough9/30/2007 |
|--------|------|--------|------|--------|---------------------------|

| CASH FLOWS FROM OPERATINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(630,476) |   | $(1,519,324) |   | $(29,696,803) |
|----------|------------|--------|--------------|--------|---------------|

|   | Adjustments to reconcile net loss tocash used in operating activities: |   |   |   |   |   |
|--------|------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation and amortization | 110,086 |   | 68,435 |   | 297,436 |
|--------|-------------------------------|---------|--------|--------|--------|---------|

|   | Stock issued for services andbonuses | 288,998 |   | 769,905 |   | 7,843,276 |
|--------|--------------------------------------|---------|--------|---------|--------|-----------|

|   | Impairment loss and write-down ofassets | --- |   | --- |   | 16,808,527 |
|--------|-----------------------------------------|-----|--------|-----|--------|------------|

|   | Warrant expense | --- |   | 127,786 |   | 2,200,389 |
|--------|-----------------|-----|--------|---------|--------|-----------|

|   | Donated capital, officers’ salaries | --- |   | --- |   | 279,808 |
|--------|-------------------------------------------|-----|--------|-----|--------|---------|

|   | Loss on debt extinguishment | --- |   | 23,000 |   | 23,000 |
|--------|-----------------------------|-----|--------|--------|--------|--------|

|   | Changes in assets and liabilities: |   |   |   |   |   |
|--------|------------------------------------|--------|--------|--------|--------|--------|

|   | Stock payable | --- |   | 146,400 |   | --- |
|--------|---------------|-----|--------|---------|--------|-----|

|   | Accrued expenses | 189,839 |   | 233,860 |   | 526,425 |
|--------|------------------|---------|--------|---------|--------|---------|

|   | Accounts payable | 30,400 |   | (8,768) |   | 31,900 |
|--------|------------------|--------|--------|---------|--------|--------|

| CASH FLOWS USED IN OPERATINGACTIVITIES | (11,153) |   | (132,100) |   | (1,686,042) |
|----------------------------------------|----------|--------|-----------|--------|-------------|

|   |
|--------|

| CASH FLOWS FROM INVESTINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of equipment | --- |   | --- |   | (102,116) |
|--------|-----------------------|-----|--------|-----|--------|-----------|

| CASH FLOWS USED IN INVESTINGACTIVITIES | --- |   | --- |   | (102,116) |
|----------------------------------------|-----|--------|-----|--------|-----------|

|   |
|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

| CASH FLOWS FROM FINANCINGACTIVITIES |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|

|   | Repayment of related partyadvances | --- |   | (4,000) |   | (59,000) |
|--------|------------------------------------|-----|--------|---------|--------|----------|

|   | Proceeds from related partyadvances | --- |   | 9,740 |   | 100,640 |
|--------|-------------------------------------|-----|--------|-------|--------|---------|

|   | Sale of preferred stock andwarrants | --- |   | --- |   | 500,000 |
|--------|-------------------------------------|-----|--------|-----|--------|---------|

|   | Proceeds from exercise of warrants | --- |   | 83,400 |   | 742,400 |
|--------|------------------------------------|-----|--------|--------|--------|---------|

|   | Shareholder contributions to capital | 2,220 |   | --- |   | 2,220 |
|--------|--------------------------------------|-------|--------|-----|--------|-------|

|   | Proceeds from short-term debt | --- |   | 25,000 |   | 25,000 |
|--------|-------------------------------|-----|--------|--------|--------|--------|

|   | Subscription receivable | --- |   | --- |   | --- |
|--------|-------------------------|-----|--------|-----|--------|-----|

|   | Sale of common stock, net | 10,000 |   | 18,000 |   | 478,000 |
|--------|---------------------------|--------|--------|--------|--------|---------|

| CASH FLOWS PROVIDED BYFINANCING ACTIVITIES | 12,220 |   | 132,140 |   | $1,789,260 |
|--------------------------------------------|--------|--------|---------|--------|------------|

|   |
|--------|

| NET CHANGE IN CASH | 1,067 |   | 40 |   | 1,102 |
|--------------------|-------|--------|----|--------|-------|

| Cash, beginning of period | 35 |   | --- |   | --- |
|---------------------------|----|--------|-----|--------|-----|

| Cash, end of period | $1,102 |   | $40 |   | $1,102 |
|---------------------|--------|--------|-----|--------|--------|

|   |
|--------|

| Supplemental information: |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|

|   | Income taxes paid | $ --- |   | $ --- |   | $ --- |
|--------|-------------------|-------|--------|-------|--------|-------|

|   | Interest paid | $ --- |   | $ --- |   | $6,600 |
|--------|---------------|-------|--------|-------|--------|--------|

|   |
|--------|

| Non-cash Investing and FinancingActivities: |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|

|   | Cumulative dividends on preferredstock | $22,500 |   | $22,500 |   | $105,000 |
|--------|----------------------------------------|---------|--------|---------|--------|----------|

|   | Stock issued in acquisition | $ --- |   | $ --- |   | $16,687,627 |
|--------|-----------------------------|-------|--------|-------|--------|-------------|

|   | Stock issued for wi-fi hotspots | $ --- |   | $ --- |   | $120,900 |
|--------|---------------------------------|-------|--------|-------|--------|----------|

|   | Warrants issued for patent | $ --- |   | $485,133 |   | $485,133 |
|--------|----------------------------|-------|--------|----------|--------|----------|

|   | Stock issued for software | $ --- |   | $376,000 |   | $376,000 |
|--------|---------------------------|-------|--------|----------|--------|----------|

|   | Stock issued for payment of notepayable | $ --- |   | $25,000 |   | $25,000 |
|--------|-----------------------------------------|-------|--------|---------|--------|---------|

|   |
|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | NOTES TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |   |
|--------|-----------------------------------------------------|--------|

|   | September 30,2007 (unaudited) |   |
|--------|-------------------------------|--------|

|   |
|--------|

| Note 1 | Basis of Presentation |
|--------|-----------------------|

| The condensed consolidated balance sheet as of September 30, 2007, the statement of revenuesand expenses and the statement of cash flows for the three months and nine months endedSeptember 30, 2007 and 2006, and the period from inception (June 17, 2003) through September30, 2007, have been prepared by Diamond I, Inc. (together with its subsidiaries, “Diamond I”)without audit.  In the opinion of management, all adjustments necessary to present fairly thefinancial position, results of operations and cash flows of Diamond I at September 30, 2007, andfor all other periods presented, have been made.  The results of operations for interim periods arenot necessarily indicative of the results to be expected for the full year.  Certain information anddisclosures normally included in financial statements prepared in accordance with generallyaccepted accounting principles have been omitted in accordance with the Securities and ExchangeCommission’s rules for interim reporting.  Accordingly, these financial statements should be readin conjunction with the financial statements and accompanying notes thereto in Diamond I’sAnnual Report on Form 10-KSB for the fiscal year ended December 31, 2006. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2 | Going Concern |
|--------|---------------|

| Diamond I has incurred losses totaling $29,696,803 through September 30, 2007, and had limitedworking capital at September 30, 2007.  Because of these conditions, Diamond I will requireadditional working capital to continue operations and develop the business.  Diamond I intendsto raise additional working capital either through private placements, public offerings and/or bankfinancing. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There are no assurances that Diamond I will be able to achieve a level of revenues adequate togenerate sufficient cash flow from operations or obtain additional financing through privateplacements, public offerings and/or bank financing necessary to support Diamond I’s workingcapital requirements.  To the extent that funds generated from any private placements, publicofferings and/or bank financing are insufficient, Diamond I will have to raise additional workingcapital.  No assurance can be given that additional financing will be available, or if available, willbe on terms acceptable to Diamond I.  If adequate working capital is not available Diamond I maynot continue its operations or execute its business plan. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These conditions raise substantial doubt about Diamond I's ability to continue as a going concern.The financial statements do not include any adjustments relating to the recoverability andclassification of asset carrying amounts or the amount and classification of liabilities that mightbe necessary should Diamond I be unable to continue as a going concern. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3 | Intangible Assets |
|--------|-------------------|

| In March 2006, Diamond I purchased pending patent rights from Larson Tech Ventures, LLC andLarry Shultz related to: |
|---------------------------------------------------------------------------------------------------------------------|

| 1. | Methods and apparatus for pari-mutuel, sports book and electronic casino gaming usingspeech recognition and concomitant video. |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| 2. | Biometrically-secured portable wireless entertainment, shopping and gaming system. |
|----|------------------------------------------------------------------------------------|

| As consideration, Diamond I issued 6,500,000 warrants to purchase common stock exercisableat $0.35 per share and expiring March 31, 2011.  The fair value of these warrants was calculatedusing the Black-Scholes Model and used as the value of the patent at $485,133.  The model wasbased on a term of five years, a volatility rate of 236.74% and a discount rate of 4.83%. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In May 2006, Diamond I acquired all of the capital stock of Touchdev Limited for 8,000,000shares of Diamond I common stock.  Diamond I analyzed the accounting treatment of thistransaction under SFAS 141, “Business Combinations and EITF 98-3, “Determining WhetherNonmonetary Transaction Involves Receipt of Productive Assets or of a Business”.  Thistransaction was accounted for as an asset purchase and not a business combination based onTouchdev Limited’s never having engaged in active business operations.  The only material assetheld by Touchdev Limited at the date of the agreement was proprietary software and thecopyrights, documentation and internet domains related to this software. The software wasrecorded at $376,000, which was estimated to be equal to the fair value of the stock issued to theoriginal shareholders of Touchdev Limited based on the market price at the date of the agreementand will be amortized over 3 years. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 4 | Capital Stock |
|--------|---------------|

| Stock for Services, Salary and Bonuses |
|----------------------------------------|

| During the first nine months of 2007, Diamond I issued a total of 22,640,000 shares of commonstock to third-party consultants for services, resulting in $284,798 in non-cash compensationexpense included in professional and legal expenses and consulting fees in the accompanyingstatement of revenues and expenses. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2006, Diamond I issued a total of 11,023,314 shares of commonstock to third-party consultants for services, resulting in $260,866 in non-cash compensationexpense included in professional and legal expenses and consulting fees in the accompanyingstatement of revenues and expenses. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2007, Diamond I issued a total of 16,162,951 shares of commonstock in payment of $339,422 in accrued and unpaid salaries of two of its officers and a total of200,000 shares of common stock valued at $4,200 as bonuses to certain of its directors |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2006, Diamond I issued, as salary to certain of its officers andbonuses to certain of its officers and directors, a total of 17,966,600 shares of common stock,valued at $536,038. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Diamond I measured the transactions at the respective dates of issuance at the then-quoted marketprice.  There are no performance commitments or penalties for non-performance, thereforeDiamond I recorded the expense at the date of issuance. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Sale of Common Stock |
|----------------------|

| In May 2007, Diamond I sold 1,000,000 shares of its common stock to an unrelated third partyfor $10,000 in cash. |
|------------------------------------------------------------------------------------------------------------------|

| Note 5 | Agreement with NewMarket Technology, Inc. |
|--------|-------------------------------------------|

| In March 2007, Diamond I entered into a securities purchase agreement (the “PurchaseAgreement”) with Diamond I Technologies, Inc., a Nevada corporation wholly owned byDiamond I, NewMarket Technology, Inc., a Nevada corporation (“NMKT”), and NewMarketTechnology Acquisition Subsidiary, a Nevada corporation, pursuant to which NewMarketTechnology Acquisition Subsidiary was to purchase 2,000,000 shares of a new series of DiamondI’s preferred stock, to be designated “Series B”.  The closing under the Purchase Agreement wasto occur on or before June 7, 2007.   Following an extensive period of good faith negotiationsbetween Diamond I and NMKT, the following conditions remained unresolved: |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | the terms relating to an investment commitment for an additional $750,000 for DiamondI’s gaming subsidiary, Diamond I Technologies, Inc.; and |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | the terms relating to an investment commitment for an additional $1,000,000 for DiamondI’s revived WIFI division. |
|---|-------------------------------------------------------------------------------------------------------------------------|

| Because the closing under the Purchase Agreement did not occur on or prior to June 7, 2007, thePurchase Agreement expired. |
|----------------------------------------------------------------------------------------------------------------------------|

| Due to the expiration of the Purchase Agreement, the $25,200 in cash received by Diamond I fromNMKT under the Purchase Agreement previously accounted for as a contribution to capital by acontract party has been reclassified as a short-term account payable - third party in theaccompanying financial statements. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

| FORWARD-LOOKING STATEMENTS |
|----------------------------|

| This report by Diamond I, Inc. contains forward-looking statements. These are statementsregarding financial and operating performance and results and other statements that are nothistorical facts. The words "expect", "project", "estimate", "believe", "anticipate", "intend", "plan","forecast" and similar expressions are intended to identify forward-looking statements. Certainimportant risks could cause results to differ materially from those anticipated by some of theforward-looking statements. Some, but not all, of the important risks that could cause actualresults to differ materially from those suggested by the forward-looking statements include, amongother things: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Events that deprive us of the services of our president and largest shareholder, DavidLoflin; |
|---|-----------------------------------------------------------------------------------------------|

| - | Whether or not we can successfully establish a market for our wireless gaming products; |
|---|-----------------------------------------------------------------------------------------|

| - | Whether we are able to obtain adequate capital with which to pursue our full businessplan; and |
|---|------------------------------------------------------------------------------------------------|

| - | Other uncertainties, all of which are difficult to predict and many of which are beyond ourcontrol. |
|---|-----------------------------------------------------------------------------------------------------|

| We do not intend to update forward-looking statements. |
|--------------------------------------------------------|

|   |
|--------|

| Item 2. | Plan of Operations. |
|---------|---------------------|

| In March 2007, Diamond I entered into a securities purchase agreement (the “PurchaseAgreement”) with Diamond I Technologies, Inc., a Nevada corporation wholly owned byDiamond I, NewMarket Technology, Inc., a Nevada corporation (“NMKT”), and NewMarketTechnology Acquisition Subsidiary, a Nevada corporation, pursuant to which NewMarketTechnology Acquisition Subsidiary was to purchase 2,000,000 shares of a new series of DiamondI’s preferred stock, to be designated “Series B”.  The closing under the Purchase Agreement wasto occur on or before June 7, 2007.   Following an extensive period of good faith negotiationsbetween Diamond I and NMKT, the following conditions remained unresolved: |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | the terms relating to an investment commitment for an additional $750,000 for DiamondI’s gaming subsidiary, Diamond I Technologies, Inc.; and |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | the terms relating to an investment commitment for an additional $1,000,000 for DiamondI’s revived WIFI division. |
|---|-------------------------------------------------------------------------------------------------------------------------|

| Because the closing under the Purchase Agreement did not occur on or prior to June 7, 2007, thePurchase Agreement expired. |
|----------------------------------------------------------------------------------------------------------------------------|

| Our Company Now |
|-----------------|

| Due to an increasing number of inquiries regarding our company’s previous Wi-Fi (wirelessfidelity) Internet access business, during the fourth quarter of 2006, our management determinedto reinstate this previously dormant segment of our company.  Following this determination, webegan discussions with a third party, which eventually led to our entering into an agreement withthat company, which agreement expired by its terms on June 7, 2007.  We have begun the finalstages of the development of our GS2(TM) wireless hand-held gaming unit and theWifiCasino(TM) wireless gaming system.  Our business activities remain focused on theseactivities. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recently, we opened a web site, www.islandbluecasino.net, that offers for-entertainment-onlypoker, which is legal for users in the United States.  We designed this poker web site to create arevenue stream, through the use of click-through advertising program, including GoogleAdsense(TM), Commission Junction, AdBright and LinkShare.  We expect to begin to derivenominal revenues from these efforts beginning in the fourth quarter of 2007 or early in the firstquarter of 2008. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| It is expected that our company will not begin its full-scale efforts with respect to our Wi-FiInternet access business, unless and until we obtain necessary funding, of which there is noassurance. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Business Development |
|----------------------|

| Wireless Gaming. |
|------------------|

| We have not generated any revenues from this line of business since acquiring DiTech. |
|---------------------------------------------------------------------------------------|

| The development of our business has been significantly impaired by our lack of adequate capital.However, we have been able to begin the final stages of our product development activities.  Weexpect that our product development will be greatly enhanced by our relationship with QuestEntertainment, a Houston, Texas-based provider of superior-quality, fast-playing, innovativegaming devices.  We recently executed a development agreement with Quest, whereby ourcompanies have joined forces to bring our WifiCasino (and the GS2) to the gaming industry. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our business prospects in the State of Nevada were greatly enhanced in March 2006, with theadoption of final regulations implementing Nevada Law AB471, which authorizes the use ofmobile communication devices, such as our WifiCasino GS wireless gaming system, for gamingin public areas in Nevada casinos. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In furtherance of our plan to develop the business potential of our WifiCasino GS products, wehave, to the extent permitted by our capital position, taken the following actions: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | completed final design and three-dimensional model of the first generation of ourWifiCasino GS that embodies our finger-print security technology; |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | begun preparation of the application for a license from the Nevada Gaming Commissionwith respect our WifiCasino GS; |
|---|---------------------------------------------------------------------------------------------------------------------|

| - | signed a letter of intent with The Palms Resort and Casino, a premier Las Vegas property,wherein The Palms has agreed to continue to develop our working relationship relating toour WifiCasino GS wireless gaming system; |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | signed a development agreement with Quest Entertainment (as described above); |
|---|-------------------------------------------------------------------------------|

| - | pursued numerous potential opportunities to install and operate one of our WifiCasino GSsystems on a cruise ship; |
|---|-------------------------------------------------------------------------------------------------------------------|

| - | pursued numerous potential opportunities with the owners of certain horse racingfacilities, with respect to our installing and operating one of our WifiCasino GS systemson such a facility; and |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | acquired Touchdev Limited, a developer of an array of internally-derived and copyrightedgaming software products, with wireless PDA and cellular-phone-based capabilities.Touchdev has created 12 different games, including Texas Hold’em Poker. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In March 2006, we acquired the rights to pending patents relating to voice-recognition, or “voice-print” security technology.  Our board of directors, with the recommendation of management,determined to acquire these patent rights, due to its belief that the security provided by our “voice-print” technology, when coupled with our patent-pending finger-print security technology, wouldbe a significant point in our favor, as we solicit venues.  We will be able to assure venues (and thelocal government) that those who cannot game legally will not be able to do so. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We believe our acquisition of Touchdev and its proprietary software products will allow us tofurther enhance our WifiCasino GS products.  We believe that these features will provide acompetitive advantage, when we begin our full-scale WifiCasino GS as we implement ourmarketing strategy. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our marketing plan in Nevada revolves around establishing a greater physical presence of ourpersonnel, who are to conduct our marketing activities on a face-to-face basis with the owners oftarget venues, i.e., casinos.  The success of our WifiCasino GS marketing efforts in Nevada will,like other gaming sales efforts, be largely dependent on our ability to establish positive personalrelationships with appropriate decision-makers.  Our management believes that it has alreadyestablished a positive relationship with a number of such persons. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| To accomplish any of our business plan, we must obtain substantial capital.  Without capital, wewill not be successful in doing so. |
|-------------------------------------------------------------------------------------------------------------------------------------|

| Also, we cannot make any assurance  that we will be able to achieve a level of revenues adequateto generate sufficient cash flow from operations or obtain additional financing through privateplacements, public offerings and/or bank financing necessary to support our working capitalrequirements. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For-Entertainment-Only Online Gaming |
|--------------------------------------|

| Recently, we opened a web site, www.islandbluecasino.net, that offers for-entertainment-onlypoker, which is legal for users in the United States.  We designed this poker web site to create arevenue stream, through the use of click-through advertising program, including GoogleAdsense(TM), Commission Junction, AdBright and LinkShare.  We expect to begin to derivenominal revenues from these efforts beginning in the fourth quarter of 2007 or early in the firstquarter of 2008.  Because these activities require nominal capital, we will continue to develop thisfacet of our business, until such time as we have secured sufficient capital with which to pursueour other line of business. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Wi-Fi Internet Access. |
|------------------------|

| Only if we are able to obtain necessary capital will we be able to re-establish our Wi-Fi Internetaccess services business.  We cannot assure you that we will ever obtain the necessary capital forthis part of our business. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| There were no material changes to our critical accounting policies during the period endedJune 30, 2007. |
|----------------------------------------------------------------------------------------------------------|

| Results of Operations |
|-----------------------|

| During the nine months ended September 30 2007 and 2006, we had no revenues from operationsand we do not expect to generate any revenues from our operations for the remainder of 2007,unless we are able to obtain the capital needed to accelerate our wireless gaming business. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Liquidity and Capital Resources |
|---------------------------------|

| We have incurred losses from inception of $29,696,803 and we have lacked adequate capital withwhich to accomplish our business objectives.  At September 30, 2007, we had a working capitaldeficit of $364,441. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Under the terminated agreement with a third party, we obtained $30,400 in cash with which wepaid certain operating expenses and product development costs.  This amount has been accountedfor as a short-term account payable in the accompanying financial statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our Capital Needs.  Our current level of operations can be maintained for the next twelve months.We anticipate our capital needs will be met through the exercise of options and issuance of sharesfor services.  However, to begin the aggressive  pursuit of our wireless gaming businessobjectives, we will require approximately $500,000. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| During the nine months ended September 30, 2007, we made no capital expenditure.  During the2006 period, we purchased $861,133 in patents, equipment and software, by issuance shares ofour common stock.  We currently have limited capital with which to make any significant capitalexpenditures.  Without additional capital, we intend to make no capital expenditures. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Item 3. | Controls and Procedures. |
|---------|--------------------------|

| Our Chief Executive Officer and Acting Chief Financial Officer has reviewed and evaluated theeffectiveness of our disclosure controls and procedures (as defined in the Securities Exchange Actof 1934 Rules 240.13a-14(c) and 15d-14(c)) as of the end of the period covered by this report andhas concluded that such disclosure controls and procedures are not effective in timely alerting himand other members of management to material information about our company required to bedisclosed by us in our periodic reports that we file or submit under the Securities Exchange Actof 1934.  The deficiencies in our disclosure controls and procedures are a result of our lack ofaccounting personnel, due to our limited financial resources.  We are seeking additional financingthat would allow us to obtain the necessary resources to execute our business plan, includingpersonnel and other resources to improve our disclosure controls and procedures. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There have not been any significant changes in our internal controls over financial reporting (assuch term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934)during the fiscal quarter to which this report relates that have materially affected, or are reasonablylikely to materially affect, our internal control over financial reporting. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| PART II - OTHER INFORMATION |
|-----------------------------|

| Item 1. | Legal Proceedings. |
|---------|--------------------|

| We are not currently involved in any legal proceeding. |
|--------------------------------------------------------|

|   |
|--------|

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

| During the three months ended September 30, 2007, we issued restricted securities as follows: |
|-----------------------------------------------------------------------------------------------|

| 1.     | (a) | Securities Sold. In August 2007, 1,000,000 shares of our common stock were issued.                                                                                                                                                                                                                                                                           |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toBradley Thomas.                                                                                                                                                                                                                                                                   |
|   | (c) | Consideration. Such shares of common stock were issued in payment of consultingservices and were valued at $4,500.                                                                                                                                                                                                                                           |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.These purchasers were sophisticated investors capable of evaluating an investmentin our company. |

| 2.     | (a) | Securities Sold. In September 2007, 1,000,000 shares of our common stock wereissued.                                                                                                                                                                                                                                                                         |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued to JimmyR. Carter.                                                                                                                                                                                                                                                                  |
|   | (c) | Consideration. Such shares of common stock were issued in payment of consultingservices and were valued at $7,900.                                                                                                                                                                                                                                           |
|   | (d) | Exemption from Registration Claimed. These securities are exempt from registrationunder the Securities Act of 1933, as amended, pursuant to the provisions of Section4(2) thereof and Rule 506 thereunder, as a transaction not involving a public offering.These purchasers were sophisticated investors capable of evaluating an investmentin our company. |

|   |
|--------|

| Item 3. | Defaults upon Senior Securities. |
|---------|----------------------------------|

| None. |
|-------|

|   |
|--------|

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

| None. |
|-------|

|   |
|--------|

| Item 5. | Other Information. |
|---------|--------------------|

| None. |
|-------|

|   |
|--------|

| Item 6. | Exhibits and Reports on Form 8-K. |
|---------|-----------------------------------|

| (a) Exhibits |
|--------------|

| ExhibitNo. |   | Description |
|------------|--------|-------------|

| 31.1 |   | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule15d-14(b) |
|------|--------|--------------------------------------------------------------------------------------|

| 31.2 |   | Certification of Chief Accounting Officer required by Rule 13a-14(a) or Rule15d-14(b) |
|------|--------|---------------------------------------------------------------------------------------|

| 32.1 |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 |
|------|--------|-----------------------------------------------------------------------------|

| 32.2 |   | Certification of Chief Accounting Officer Pursuant to 18 U.S.C. Section 1350 |
|------|--------|------------------------------------------------------------------------------|

| (b) Reports on Form 8-K |
|-------------------------|

| During the three months ended September 30, 2007, we did not file a Current Report on Form8-K. |
|------------------------------------------------------------------------------------------------|

|   |
|--------|

| SIGNATURES |
|------------|

| In accordance with the requirements of the Securities Exchange Act of 1934, Registrant hasduly caused this report to be signed on its behalf by the undersigned, thereunto dulyauthorized. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Date: November 19, 2007 | DIAMOND I, INC. |
|-------------------------|-----------------|

|   |
|--------|

|   |   | By: | /s/ DAVID LOFLIN |   |
|--------|--------|-----|------------------|--------|

|   | David Loflin, President andActing Chief Financial Officer[Principal Accounting Officer] |   |
|--------|-----------------------------------------------------------------------------------------|--------|