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

|
|

| | SECURITIES AND EXCHANGE COMMISSION Washington, D.C. | 
| | --------------------------------------------------- | 

|
|

| | [ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the
      Securities Exchange Act of 1934 For the quarterly period ended March 31,
      2005 | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------- | 

|OR
|--

| | [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
      Exchange 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 its
Charter) | 

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

| | (State or Other Jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number) | 
| | -------------------------------------------------------------- |  | --------------------------------------- | 

| | 5555 Hilton Avenue, Suite 207, Baton Rouge, Louisiana 70808 | 
| | ----------------------------------------------------------- | 

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

| | (225) 923-1034 | 
| | -------------- | 

| | (Issuerâ€TMs telephone number, including area code) | 
| | -------------------------------------------------- | 

|
|

|Indicate by check mark whether Registrant (1) has filed all reports
      required to be filed by Section 13 or 15(d) of the Securities Exchange Act
      of 1934 during the preceding 12 months (or for such shorter period that
      Registrant as required to file such reports), and (2) has been subject to
      such filing requirements for the past 90 days: Yes [ X ] No [
]
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Indicate the number of shares outstanding of each of the issuerâ€TMs
      classes of common stock as of the latest practicable date:
|------------------------------------------------------------------------------------------------------------------------------------

| | Class |  | Outstanding as of 5-17-05 | 
| | ----- |  | ------------------------- | 

| | Common Stock, $.001 par value |  | 192,971,383 | 
| | ----------------------------- |  | ----------- | 

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

|
|

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

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

| |  | Page
| |  | ----

| | Balance Sheet as of March 31, 2005 (unaudited) | 3
| | ---------------------------------------------- | -

| | Statement of Revenues and Expenses for the Three Months Ended March 31,
      2005 and 2004, and Period from June 17, 2003 (Inception), Through March
      31, 2004 (unaudited) | 4
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -

| | Statement of Cash Flows for the Three Months Ended March 31, 2005 and
      2004 (unaudited) | 5
| | -------------------------------------------------------------------------------------------- | -

| | Notes to Consolidated Financial Statements | 7
| | ------------------------------------------ | -

| | DIAMOND I, INC. AND SUBSIDIARIES | 
| | -------------------------------- | 

| | (Formerly AirRover Wi-Fi Corp., formerly Air-Q Wi-Fi Corporation and
      formerly Covenant Financial Corporation) (a development stage
    company) | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | CONSOLIDATED BALANCE SHEET | 
| | -------------------------- | 

| | March 31, 2005 (unaudited) | 
| | -------------------------- | 

|ASSETS
|------

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

| | Cash | $25,199 | 
| | ---- | ------- | 

| | Total Current Assets | 25,199 | 
| | -------------------- | ------ | 

|Equipment, net of accumulated depreciation of $56,735 | 44,083 | 
|----------------------------------------------------- | ------ | 

| | Total Assets | $69,282 | 
| | ------------ | ------- | 

|LIABILITIES AND STOCKHOLDERS' EQUITY
|------------------------------------

|Current Liabilities: |  | 
|-------------------- |  | 

| | Accounts payable | $4,849 | 
| | ---------------- | ------ | 

| | Total current liabilities | 4,849 | 
| | ------------------------- | ----- | 

| | Commitments |  | 
| | ----------- |  | 

|Stockholdersâ€TM deficit: |  | 
|------------------------ |  | 

| | Preferred stock, $.001 par value, 50,000,000 shares authorized, 500,000
      Series A shares issued and outstanding | 500 | 
| | -------------------------------------------------------------------------------------------------------------------- | --- | 

| | Common stock, $.001 par value; 700,000,000 shares authorized,
      185,432,525 shares issued and outstanding | 185,433 | 
| | ------------------------------------------------------------------------------------------------------------- | ------- | 

| | Additional paid-in capital | 22,945,885 | 
| | -------------------------- | ---------- | 

| | Deficit accumulated during the development stage | (23,067,385) | 
| | ------------------------------------------------ | ------------ | 

| | Total Stockholders' Equity | 64,433 | 
| | -------------------------- | ------ | 

| | Total Liabilities and Stockholdersâ€TM Equity | $69,282 | 
| | -------------------------------------------- | ------- | 

|
|

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

| | DIAMOND I, INC. AND SUBSIDIARIES | 
| | -------------------------------- | 

| | (Formerly AirRover Wi-Fi Corp., formerly Air-Q Wi-Fi Corporation and
      formerly Covenant Financial Corporation) (a development stage
    company) | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | STATEMENT OF REVENUES AND EXPENSES | 
| | ---------------------------------- | 

| | Three Months Ended March 31, 2005 and 2004, and Period from June 17,
      2003 (Inception), Through March 31, 2004 (Unaudited) | 
| | ------------------------------------------------------------------------------------------------------------------------------- | 

| | Three Months Ended March 31, |  | Inception through
| | ---------------------------- |  | -----------------

| | 2005 |  | 2004 |  | March 31, 2005
| | ---- |  | ---- |  | --------------

|Revenues | $546 |  | $218 |  | $8,640
|-------- | ---- |  | ---- |  | ------

|Internet access costs | (6,182) |  | 0 |  | (32,246)
|--------------------- | ------- |  | - |  | --------

|Gross profit (loss) | (5,636) |  | 218 |  | (23,606)
|------------------- | ------- |  | --- |  | --------

|OPERATING EXPENSES |  |  |  |  | 
|------------------ |  |  |  |  | 

| | Consulting fees | 29,225 |  | 0 |  | 1,561,975
| | --------------- | ------ |  | - |  | ---------

| | Salaries and commissions | 631,710 |  | 0 |  | 1,017,672
| | ------------------------ | ------- |  | - |  | ---------

| | Legal and professional | 241,063 |  | 0 |  | 315,761
| | ---------------------- | ------- |  | - |  | -------

| | Depreciation | 4,228 |  | 0 |  | 43,285
| | ------------ | ----- |  | - |  | ------

| | Rent | 14,386 |  | 0 |  | 60,313
| | ---- | ------ |  | - |  | ------

| | Impairment loss | 16,306,527 |  | 0 |  | 16,808,527
| | --------------- | ---------- |  | - |  | ----------

| | Other general and administrative | 42,906 |  | 766,265 |  | 3,237,339
| | -------------------------------- | ------ |  | ------- |  | ---------

| | Total Operating Expenses | 17,270,045 |  | 766,265 |  | 23,044,872
| | ------------------------ | ---------- |  | ------- |  | ----------

|LOSS FROM OPERATIONS | (17,275,681) |  | (766,047) |  | (23,068,478)
|-------------------- | ------------ |  | --------- |  | ------------

|OTHER INCOME (EXPENSE) | 0 |  | 0 |  | 1,099
|---------------------- | - |  | - |  | -----

|NET LOSS | $(17,275,681) |  | $(766,047) |  | $(23,067,379)
|-------- | ------------- |  | ---------- |  | -------------

|Deemed Dividend on Preferred Stock | 0 |  | (165,442) |  | (165,442)
|---------------------------------- | - |  | --------- |  | ---------

|Net Loss Available to Common Shareholders | (17,275,681) |  | (931,489) |  | (23,232,821)
|----------------------------------------- | ------------ |  | --------- |  | ------------

|Net loss applicable to common shareholders |  |  |  |  | 
|------------------------------------------ |  |  |  |  | 

| | Basic and diluted | (0.105) |  | (0.011) |  | 
| | ----------------- | ------- |  | ------- |  | 

|Weighted average number of shares outstanding |  |  |  |  | 
|--------------------------------------------- |  |  |  |  | 

| | Basic and diluted | 165,087,614 |  | 81,577,168 |  | 
| | ----------------- | ----------- |  | ---------- |  | 

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

| | DIAMOND I, INC. AND SUBSIDIARIES | 
| | -------------------------------- | 

| | (Formerly AirRover Wi-Fi Corp., formerly Air-Q Wi-Fi Corporation and
      formerly Covenant Financial Corporation) (a development stage
    company) | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | STATEMENT OF CASH FLOWS | 
| | ----------------------- | 

| | Three Months Ended March 31, 2005 and 2004, and Period from June 17,
      2003 (Inception), Through March 31, 2004 (Unaudited) | 
| | ------------------------------------------------------------------------------------------------------------------------------- | 

| | Three Months Ended March 31, |  | 
| | ---------------------------- |  | 

| | 2005 |  | 2004 |  | 
| | ---- |  | ---- |  | 

|CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  | 
|------------------------------------ |  |  |  |  | 

|Net loss | $(17,275,681) |  | $(766,047) |  | 
|-------- | ------------- |  | ---------- |  | 

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

| | Depreciation | 4,228 |  | 4,322 |  | 
| | ------------ | ----- |  | ----- |  | 

| | Stock issued for services and salary | 780,679 |  | 617,850 |  | 
| | ------------------------------------ | ------- |  | ------- |  | 

| | Impairment loss and write-down of assets | 16,306,527 |  | 0 |  | 
| | ---------------------------------------- | ---------- |  | - |  | 

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

| | Accrued expenses | 0 |  | 0 |  | 
| | ---------------- | - |  | - |  | 

| | Accounts payable | 4,849 |  | 3 |  | 
| | ---------------- | ----- |  | - |  | 

|CASH FLOWS USED IN OPERATING ACTIVITIES | (230,356) |  | (143,872) |  | 
|--------------------------------------- | --------- |  | --------- |  | 

|
|

|CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  | 
|------------------------------------ |  |  |  |  | 

| | Purchase of equipment | (4,060) |  | 0 |  | 
| | --------------------- | ------- |  | - |  | 

|
|

|CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  | 
|------------------------------------ |  |  |  |  | 

| | Issuance of note payable | 0 |  | 0 |  | 
| | ------------------------ | - |  | - |  | 

| | Payment on note payable | (61,557) |  | 0 |  | 
| | ----------------------- | -------- |  | - |  | 

| | Issuance of preferred shares | 0 |  | 209,558 |  | 
| | ---------------------------- | - |  | ------- |  | 

| | Issuance of warrants | 0 |  | 290,442 |  | 
| | -------------------- | - |  | ------- |  | 

| | Sale of common stock, net | 310,000 |  | 0 |  | 
| | ------------------------- | ------- |  | - |  | 

|CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 248,423 |  | 500,000 |  | 
|------------------------------------------- | ------- |  | ------- |  | 

|
|

|NET INCREASE IN CASH | 14,007 |  | 356,128 |  | 
|-------------------- | ------ |  | ------- |  | 

|Cash, beginning of period | 11,192 |  | 98,907 |  | 
|------------------------- | ------ |  | ------ |  | 

|Cash, end of period | $25,199 |  | $455,035 |  | 
|------------------- | ------- |  | -------- |  | 

|
|

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

| | Income taxes paid | $0 |  | $0 |  | 
| | ----------------- | -- |  | -- |  | 

| | Interest paid | $0 |  | $0 |  | 
| | ------------- | -- |  | -- |  | 

|
|

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

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

| | (Formerly AirRover Wi-Fi Corp., formerly Air-Q Wi-Fi Corporation and
      formerly Covenant Financial Corporation) (a development stage
    company) | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 
| | ------------------------------------------ | 

| | March 31, 2005 (Unaudited) | 
| | -------------------------- | 

|
|

|NOTE 1 - BASIS OF PRESENTATION | 
|------------------------------ | 

|The consolidated balance sheet as of March 31, 2005, the statement of
      revenues and expenses and the statement of cash flows for the three months
      ended March 31, 2005 and 2004, have been prepared by Diamond I, Inc.
      (together with its subsidiaries, â€œDiamond Iâ€) without audit. In the
      opinion of management, all adjustments necessary to present fairly the
      financial position, results of operations and cash flows of Diamond I at
      March 31, 2005, and for all other periods presented, have been made. The
      results of operations for interim periods are not necessarily indicative
      of the results to be expected for the full year. Certain information and
      disclosures normally included in financial statements prepared in
      accordance with generally accepted accounting principles have been omitted
      in accordance with the Securities and Exchange Commissionâ€TMs rules for
      interim reporting. Accordingly, these financial statements should be read
      in conjunction with the financial statements and accompanying notes
      thereto in Diamond Iâ€TMs Annual Report on Form 10-KSB for the fiscal year
      ended December 31, 2004.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 2 - CRITICAL ACCOUNTING POLICIES | 
|------------------------------------- | 

|Consolidation | 
|------------- | 

|As of March 31, 2005, Diamond I had two wholly owned subsidiaries,
      Diamond I Technologies, Inc. (formerly Air-Q Corp.) and AirRover Networks,
      Inc. All material inter-company balances and inter-company transactions
      have been eliminated for the purpose of presenting the accompanying
      consolidated financial statements.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Equipment | 
|--------- | 

|Equipment consists of computer equipment stated at cost. Depreciation
      is computed using the straight-line method over the estimated economic
      lives of three years. Impairment losses are recorded on long-lived assets
      used in operations when indicators of impairment are present and the
      undiscounted cash flows estimated to be generated by those assets are less
      than the assets' carrying amount. No impairment losses have been recorded
      since inception.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Goodwill and Other Intangible Assets | 
|------------------------------------ | 

|Goodwill and other intangible assets are stated on the basis of cost
      and are amortized, principally on a straight-line basis, over the
      estimated future periods to be benefitted (generally three years).
      Goodwill and other intangible assets are periodically reviewed for
      impairment to ensure they are appropriately valued. Conditions which may
      indicate an impairment issue exists include a negative economic downturn
      or a change in the assessment of future operations. In the event that a
      condition is identified which may indicate an impairment issue exists, an
      assessment is performed using a variety of methodologies, including cash
      flow analysis, estimates of sales proceeds and independent
    appraisals.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the three months ended March 31, 2005, the entire value of
      associated with the acquisition of Diamond I Technologies, Inc. was
      written-down in the amount of $16,306,527 (unaudited).
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Basic Loss Per Share | 
|-------------------- | 

|Diamond I is required to provide basic and dilutive earnings (loss) per
      common share information.
      The basic net loss per common share is computed by dividing the net
      loss applicable to common stockholders by the weighted average number of
      common shares outstanding.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Diluted net loss per common share is computed by dividing the net loss
      applicable to common stockholders, adjusted on an "as if converted" basis,
      by the weighted average number of common shares outstanding plus potential
      dilutive securities. For the interim periods of 2004 and 2005, potential
      dilutive securities had an anti-dilutive effect and were not included in
      the calculation of diluted net loss per common share.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Basic loss per share has been calculated based on the weighted average
      number of shares of common stock outstanding during the period, as
      adjusted to reflect a four-for-one forward common stock
split.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Forward Stock Split | 
|------------------- | 

|In September 2004, Diamond I completed a four-for-one forward split of
      its outstanding common stock. The financial statements, including per
      share amounts, for the period ended March 31, 2005, have been adjusted to
      reflect this forward common stock split.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Recent Accounting Pronouncements | 
|-------------------------------- | 

|In December 2004, the FASB issued SFAS No.123 (revised 2004),
      "Share-Based Payment" ("SFAS 123(R)"). SFAS 123(R) will provide investors
      and other users of financial statements with more complete and neutral
      financial information by requiring that the compensation cost relating to
      share-based payment transactions be recognized in financial statements.
      That cost will be measured based on the fair value of the equity or
      liability instruments issued. SFAS 123(R) covers a wide range of
      share-based compensation arrangements including share options, restricted
      share plans, performance-based awards, share appreciation rights, and
      employee share purchase plans. SFAS 123(R) replaces SFAS No. 123,
      "Accounting for Stock-Based Compensation", and supersedes APB Opinion No.
      25, "Accounting for Stock Issued to Employees". SFAS 123, as originally
      issued in 1995, established as preferable a fair-value-based method of
      accounting for share-based payment transactions with employees. However,
      that Statement permitted entities the option of continuing to apply the
      guidance in Opinion 25, as long as the footnotes to financial statements
      disclosed what net income would have been had the preferable
      fair-value-based method been used. Public entities (other than those
      filing as small business issuers) will be required to apply SFAS 123(R) as
      of the first interim or annual reporting period that begins after June 15,
      2005. Diamond I has evaluated the impact of the adoption of SFAS 123(R),
      and believes that it could have an impact to Diamond Iâ€TMs overall results
      of operations depending on the number of stock options granted in a given
      year.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 3 - GOING CONCERN | 
|---------------------- | 

|Diamond I has incurred losses totaling $8,119,729 (unaudited) through
      March 31, 2005, and had limited working capital at March 31, 2005. Because
      of these conditions, Diamond I will require additional working capital to
      develop business operations. Diamond I intends to raise additional working
      capital either through private placements, public offerings and/or bank
      financing.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|There are no assurances that Diamond I will be able to achieve a level
      of revenues adequate to generate sufficient cash flow from operations or
      obtain additional financing through private placements, public offerings
      and/or bank financing necessary to support Diamond Iâ€TMs working capital
      requirements. To the extent that funds generated from any private
      placements, public offerings and/or bank financing are insufficient,
      Diamond I will have to raise additional working capital. No assurance can
      be given that additional financing will be available, or if available,
      will be on terms acceptable to Diamond I. If adequate working capital is
      not available Diamond I may not increase its operations.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 and classification of asset
      carrying amounts or the amount and classification of liabilities that
      might be necessary should Diamond I be unable to continue as a going
      concern.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 4 - ACQUISITION | 
|-------------------- | 

|On January 18, 2005, pursuant to an agreement and plan of
      reorganization, Diamond I acquired all of the outstanding capital stock of
      Diamond I Technologies, Inc., a Nevada corporation (â€œDITechâ€), by issuing
      a total of 70,591,026 shares of its common stock to the shareholders of
      DITech. The reorganization agreement provides for further issuances of
      shares of Diamond Iâ€TMs common stock, upon DITechâ€TMs satisfying certain
      performance standards, as follows: (a) an additional 35,295,513 shares to
      the shareholders of DITech, if, on or before the date which is two years
      from the consummation of the reorganization agreement, DITech shall have
      completed the design and installation of a hand-held Wi-Fi-based gaming
      system in a first-class hotel/casino with no fewer than 400 guest rooms
      located in the State of Nevada (the â€œTarget Systemâ€), to the effect that
      the Target System is 100% operational and ready for use by guests of the
      host hotel/casino, which readiness shall include the approval of the
      Nevada Gaming Commission; and (b) an additional 35,295,513 shares to the
      shareholders of DITech, if, on or before the date which is five years from
      the consummation of the reorganization agreement, the Target System shall
      have operated at a profit, as determined by generally accepted accounting
      principles, for a period of three consecutive months. In addition, Diamond
      I is required to provide to DITech a total of $3,000,000 as operating
      capital, as follows: (i) within one month of the consummation of the
      reorganization agreement, the sum of $100,000; (ii) within six months of
      the consummation of the reorganization agreement, the additional sum of
      $400,000; (iii) within nine months of the consummation of the
      reorganization agreement, the additional sum of $500,000; and (iv) within
      one year of the consummation of the reorganization agreement, the
      additional sum of $2,000,000. Diamond Iâ€TMs failure to provide any portion
      of these funds on or before the required dates will cause Diamond I to
      return to the shareholders of DITech 100% of the then-outstanding shares
      of common stock of DITech. Should this occur, Diamond I would no longer
      have any interest in DITech or its business. Diamond I satisfied the first
      payment obligation and expects to be able to satisfy the second payment
      obligation when it become due. However, Diamond I does not presently
      possess adequate funds with which to satisfy its future funding
      obligations to DITech.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In determining the number of shares of our common stock to be issued to
      the shareholders of DITech, Diamond Iâ€TMs board of directors did not employ
      any standard valuation formula or any other standard measure of value.
      Rather, the number shares issued to the shareholders of Diamond I was
      determined through armâ€TMs-length negotiations.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The following represents the allocation of the purchase price over the
      historical net book values of Diamond I Technologies, Inc. on the date of
      the acquisition. The allocation made is as follows:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Tangible assets acquired at fair value | $0 | 
| | -------------------------------------- | -- | 

| | Cost in excess of net tangible assets | 16,306,527 | 
| | ------------------------------------- | ---------- | 

| | Total purchase price | $16,306,527 | 
| | -------------------- | ----------- | 

|For the three months ended March 31, 2005, the entire value of
      associated with the acquisition of Diamond I Technologies, Inc. was
      written-down in the amount of $16,306,527 (unaudited).
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DITech has developed a hand-held Wi-Fi-based gaming system for
      on-premises use by casinos/resorts. DITechâ€TMs gaming system, based on a
      patent-pending security system, would permit casino patrons to secure a
      PDA device from the casino that would enable the patrons to enjoy in-room
      and pool-side gaming action, as well as other casino services. Diamond I
      has previewed the system for private audiences in
      client-and-regulatory-specific presentations (where necessary, DITech
      intends to seek regulatory approval of its gaming system).
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 5 - NOTE PAYABLE | 
|--------------------- | 

|During the three months ended March 31, 2005, Diamond I paid in full
      its note payable in the principal amount of $55,000, plus all accrued and
      unpaid interest of approximately $6,600.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 6 - CAPITAL STOCK | 
|---------------------- | 

|Amended and Restated Certificate of Incorporation | 
|------------------------------------------------- | 

|On September 23, 2003, Diamond I amended and restated its certificate
      of incorporation to increase the number of authorized shares of stock to
      250,000,000: 200,000,000 shares of common and 50,000,000 shares of
      preferred. Shares of preferred stock may be issued from time to time in
      one or more series, at the discretion of Diamond Iâ€TMs board of
      directors.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|On January 18, 2005, Diamond I amended its Amended and Restated
      Certificate of Incorporation to increase the authorized number of shares
      of common stock to 700,000,000.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Series A Preferred Stock | 
|------------------------ | 

|On March 2, 2004, Diamond I issued 500,000 shares of a newly created
      Series A convertible preferred stock and warrants for cash proceeds of
      $500,000. The shares of Series A preferred stock are convertible at any
      time into 400,000 shares of Diamond I common stock. The shares of common
      stock underlying the Series A preferred stock and the warrants possesses
      certain demand registration rights. In addition, the Series A preferred
      stock bears a cash dividend at the rate of 6% per annum, with cumulative
      rights.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Each holder of outstanding shares of Series A preferred stock is
      entitled to the number of votes equal to the number of whole shares of
      common stock into which the shares of Series A preferred stock held by
      such holder are then convertible at each meeting of shareholders with
      respect to any and all matters presented to the shareholders for their
      action or consideration.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Stock for Services and Bonuses | 
|------------------------------ | 

|During the first three months of 2004, Diamond I issued a total of
      131,500 shares of common stock to third-party consultants for services,
      resulting in $617,850 (unaudited) in non-cash compensation expense
      included in general and administrative expense in the accompanying
      statement of revenues and expenses. During the first three months of 2005,
      Diamond I issued a total of 2,702,667 shares of common stock to
      third-party consultants for services, resulting in $227,200 (unaudited) in
      non-cash compensation expense included in professional and legal expenses
      and consulting fees in the accompanying statement of revenues and
      expenses.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During the first three months of 2004, Diamond I issued no shares of
      common stock as a bonus to any of its officers and directors. During the
      first three months of 2005, Diamond I issued, as bonuses to certain of its
      officers and directors, a total of 4,200,000 shares of common stock,
      valued at $336,000 (unaudited).
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|NOTE 7 - WARRANTS | 
|----------------- | 

|In June 2003, Diamond I issued, in conjunction with the sale of shares
      of its common stock, a total of 20,000,000 warrants to purchase a total of
      20,000,000 shares of common stock, with an average exercise price of $.35
      per share. In April 2004, Diamond I reached an agreement to restructure
      the 20,000,000 warrants. Under the agreement, these warrants were
      cancelled and new warrants to purchase a total of 5,000,000 shares at an
      average exercise price of $1.00 per share were issued. The 5,000,000
      warrants will expire on April 22, 2008. The warrants were valued using
      Black-Scholes and charged against equity as a financing cost, resulting in
      no change in net equity. As a result of Diamond Iâ€TMs four-for-one forward
      stock split, these warrants increased in number to 20,000,000 to purchase
      a like number of shares of common stock at an average exercise price of
      $.25 per share.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In March 2004, Diamond I issued, in conjunction with the sale of shares
      of its Series A Preferred Stock, 250,000 warrants to purchase 250,000
      shares of its common stock at an exercise price of $3.50 per share and
      250,000 warrants to purchase 250,000 shares of its common stock at an
      exercise price of $4.50 per share. These warrants will expire in March
      2007. The warrants were valued using Black-Scholes and charged against
      equity as a financing cost, resulting in no change in net equity. As a
      result of Diamond Iâ€TMs four-for-one forward stock split, these warrants
      increased in number to 2,000,000 to purchase a like number of shares of
      common stock at an average exercise price of $1.00 per
share.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The warrants issued to the holder of the Series A preferred stock were
      assigned a value of $290,442, which decreased the carrying value of the
      Series A preferred stock. These warrants were valued using the
      Black-Scholes method with the following assumptions: a risk-free interest
      rate of 3.5%, and expiration date of March 1, 2007, a volatility factor of
      53% and a dividend yield of 0%. In connection with the issuance of the
      Series A preferred stock and warrants, Diamond I recorded $165,442 related
      to the beneficial conversion feature on the Series A preferred stock as a
      deemed dividend, which is reflected in the income or loss applicable to
      common stockholders in the calculation of basic and diluted net loss per
      share. A beneficial conversion feature is present because the effective
      conversion price of the Series A preferred stock was less that the fair
      value of the common stock on the commitment date.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In connection with certain sales of securities, Diamond I paid a
      finderâ€TMs fee. For its efforts, the finder received 10% of the cash
      proceeds and common stock purchase warrants, as follows: (1) 1,000,000
      warrants to purchase a like number of shares at an exercise price of $.20
      per share; (2) 1,000,000 warrants to purchase a like number of shares at
      an exercise price of $.30 per share; (3) 1,000,000 warrants to purchase a
      like number of shares at an exercise price of $.40 per share; and (4)
      1,000,000 warrants to purchase a like number of shares at an exercise
      price of $.50 per share. As a result of Diamond Iâ€TMs four-for-one forward
      stock split, this finder now holds (A) 4,000,000 warrants to purchase a
      like number of shares at an exercise price of $.05 per share; (B)
      4,000,000 warrants to purchase a like number of shares at an exercise
      price of $.075 per share; (C) 4,000,000 warrants to purchase a like number
      of shares at an exercise price of $.10 per share; and (D) 4,000,000
      warrants to purchase a like number of shares at an exercise price of $.15
      per share.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|As of March 31, 2005, no warrants have been exercised.
|------------------------------------------------------

|NOTE 8 - OPTIONS | 
|---------------- | 

|In January 2005, Diamond I entered into a consulting agreement with a
      third party. Pursuant to this consulting agreement, the consultant has the
      right to purchase up to $150,000 worth of Diamond Iâ€TMs common stock each
      month, at a purchase price equal to 70% of the market price for Diamond
      Iâ€TMs common stock, at the time of issue. During the first three months of
      2005, Diamond I issued a total of 3,935,500 shares upon the exercise of
      these options, for cash in the amount of $310,000.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

|- | 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 business plan; and
|- | -----------------------------------------------------------------------------------------------------

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

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

|
|

|Item 2. Managementâ€TMs Discussion and Analysis of Financial Condition and
      Results of Operations. | 
|------------------------------------------------------------------------------------------------------ | 

|As of the date of this Quarterly Report on Form 10-QSB, our independent
      auditor had not yet completed its review of the financial statements
      included herein.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Recent Acquisition; Change in Business Plan | 
|------------------------------------------- | 

|During the last half of 2004, our Wi-Fi (wireless fidelity) Internet
      access, or â€œhotspotâ€, business did not expand as we had expected. This
      lack of growth was in line with the rest of the hotspot industry. To date,
      Wi-Fi hotspot use by consumers has not met, by a wide margin, forecasts
      made during 2002 and 2003, with several well-known telecommunications
      companies abandoning their efforts to develop a hotspot
business.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During the last quarter of 2004, our management determined to change
      the direction of our company, to focus on the development of products that
      embody Wi-Fi technologies rather than on the provision of hotspot Internet
      access. In conjunction with this determination, we began a search for
      Wi-Fi-related products that offered growth potential and were available
      for acquisition.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|As a result, on January 18, 2005, pursuant to an agreement and plan of
      reorganization, we acquired all of the outstanding capital stock of
      Diamond I Technologies, Inc., a Nevada corporation
(DITech).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DITech has developed a hand-held Wi-Fi-based gaming system for
      on-premises use by casinos/resorts, known as â€œWiFiCasino
GSâ€(TM).
|------------------------------------------------------------------------------------------------------------------------------------------

|Our management has determined to focus all of our available resources,
      financial and otherwise, on the exploitation of this wireless gaming
      system and will not pursue additional Wi-Fi hotspot locations, unless that
      industry regains its pervious vitality.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Sales of Equity | 
|--------------- | 

|In March 2004, we entered into a securities purchase agreement. Under
      this agreement, we issued securities for cash in the amount of $500,000,
      as follows: 500,000 shares of our Series A preferred stock, convertible
      into 100,000 shares of our common stock after September 2, 2004, 250,000
      common stock purchase warrants to purchase a like number of shares at an
      exercise price of $3.50 per share and 250,000 common stock purchase
      warrants to purchase a like number of shares at an exercise price of $4.50
      per share. These warrants expire March 1, 2007.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During 2004, we obtained $150,000 from the exercise of certain options,
      which funds were used for operating expenses.
|---------------------------------------------------------------------------------------------------------------------------

|During the first quarter of 2005, we obtained a total of $310,000
      (unaudited) from the exercise of certain options, which funds have been
      used to pay costs associated with our wireless gaming business and for
      operating expenses. We are actively seeking capital for use in our
      business. We can make no assurance that we will obtain enough to continue
      our business operations.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|There were no material changes to our critical accounting policies
      during the period ended March 31, 2005.
|----------------------------------------------------------------------------------------------------------------

|Management's Discussion and Analysis discusses the results of
      operations and financial condition as reflected in our financial
      statements, which have been prepared in accordance with accounting
      principles generally accepted in the United States of America. The
      preparation of financial statements in conformity with accounting
      principles generally accepted in the United States of America requires
      management to make estimates and assumptions that affect the reported
      amounts of assets and liabilities, disclosure of contingent assets and
      liabilities at the date of the financial statements and reported amounts
      of revenues and expenses during the reporting period. On an ongoing basis,
      management evaluates its estimates and judgments, including those related
      to accounts receivable, inventory valuation, amortization and
      recoverability of long-lived assets, including goodwill, litigation
      accruals and revenue recognition. Management bases its estimates and
      judgments on our historical experience and other relevant factors, the
      results of which form the basis for making judgments about the carrying
      values of assets and liabilities that are not readily apparent from other
      sources.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|While we believe that the historical experience and other factors
      considered provide a meaningful basis for the accounting policies applied
      in the preparation of our consolidated financial statements, we cannot
      guarantee that our estimates and assumptions will be accurate. If such
      estimates and assumptions prove to be inaccurate, we may be required to
      make adjustments to these estimates in future periods.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|During the three months ended March 31, 2005 and 2004, we generated
      $546 (unaudited) and $218 (unaudited), respectively, in revenues from our
      business operations. It is likely that our revenues for the remainder of
      2005 will be less than for 2004, due to our determination to develop our
      wireless gaming products rather than to pursue further development of our
      hotspot business. We currently lack the capital necessary to pursue
      aggressively our business objectives, and we may never possess enough
      capital with which to do so. In this circumstance, it is likely that we
      would never earn a profit.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the three months ended March 31, 2005, the entire value of
      associated with the acquisition of Diamond I Technologies, Inc. was
      written-down in the amount of $16,306,527 (unaudited) and is included in
      our operating expenses for the period then ended.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Due to our severe lack of capital during both interim periods, we
      issued shares of our common stock to consultants. During the first three
      months of 2004, we issued a total of 131,500 shares of common stock to
      third-party consultants for services, resulting in $617,850 (unaudited) in
      non-cash compensation expense included in general and administrative
      expense in the accompanying statement of revenues and expenses. During the
      first three months of 2005, we issued a total of 2,702,667 shares of
      common stock to third-party consultants for services, resulting in
      $227,200 (unaudited) in non-cash compensation expense included in
      professional and legal expenses and consulting fees in the accompanying
      statement of revenues and expenses. Issuing shares of our common stock was
      the only means by which we could obtain the consultants' services. The
      full value of the consulting services received by us under each agreement
      has been expensed.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|We do not expect to incur significant consulting expenses during the
      remainder 2005. However, our management may, if necessary, hire
      consultants and pay them in cash, shares of our common stock or a
      combination thereof, should our circumstances change.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During the first three months of 2004, we issued no shares of common
      stock as a bonus to any of our officers and directors. During the first
      three months of 2005, we issued, as bonuses to certain of its officers and
      directors, a total of 4,200,000 shares of common stock, valued at $336,000
      (unaudited).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|We measured the foregoing stock transactions at the respective dates of
      issuance at the then-quoted market price. There are no performance
      commitments or penalties for non-performance, therefore, we recorded the
      expense at the date of issuance.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|Since our inception, we have lacked adequate capital with which to
      accomplish our business objectives. Currently, we are not in a
      significantly liquid position, with working capital of only $20,350
      (unaudited), although we are able to pay our operating expenses as they
      are incurred. Following our acquisition of DITech, we have focused on the
      development of our wireless gaming products.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During 2004, we obtained $500,000 from the sale of preferred stock, the
      proceeds of which equity sale were used to develop our hotspot business
      and for working capital. We also obtained $150,000 from the exercise of
      certain options, which funds were used for operating
expenses.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During the first three months of 2005, we obtained a total of $310,000
      (unaudited) from the exercise of certain options, which funds have been
      used to pay costs associated with our wireless gaming business and for
      operating expenses. We are actively seeking capital for use in our
      business. We can make no assurance that we will obtain enough to continue
      our business operations.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Our management has made this determination because of its desire not to
      over-commit our resources. Our managementâ€TMs philosophy is to make capital
      and related commitments only to the extent our available capital permits.
      Our managementâ€TMs philosophy may, in the future, prove to have been flawed,
      to the extreme detriment to our business and, ultimately, our
      shareholders.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Our Capital Needs | 
|----------------- | 

|Our current level of operations can be maintained for the next six
      months. However, to begin the aggressive pursuit of our wireless gaming
      business objectives, we will require approximately $2
million.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In addition, we are obligated to provide funding to DITech, as follows:
      (i) within one month of the consummation of the reorganization agreement,
      we must provide to DITech the sum of $100,000; (ii) within six months of
      the consummation of the reorganization agreement, we must provide to
      DITech the additional sum of $400,000; (iii) within nine months of the
      consummation of the reorganization agreement, we must provide to DITech
      the additional sum of $500,000; and (iv) within one year of the
      consummation of the reorganization agreement, we must provide to DITech
      the additional sum of $2,000,000. Should we fail to provide any portion of
      these funds on or before the required dates, we are required to deliver to
      the former owners of DITech 100% of the then-outstanding shares of common
      stock of DITech. Should this occur, we would no longer have any interest
      in DITech or its business. We made the first required payment to DITech in
      a timely manner and expect to meet all future obligations to DITech.
      However, currently, we do not currently possess adequate funds with which
      to satisfy our other funding obligations to DITech. While management
      expects to be able to secure the necessary funds, there is no assurance
      that we will be able to do so.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Currently, we do not possess enough capital to pursue aggressively our
      business objectives.
|-------------------------------------------------------------------------------------------------

|Management's Plans Relating to Future Liquidity | 
|----------------------------------------------- | 

|We will be able to sustain our current level of operations for the next
      six months, due to expected exercise of certain options. However, this
      level of funding will not be adequate for us to aggressively pursue the
      exploitation of our wireless gaming products. We continue to seek capital
      for these purposes.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|For the three months ended March 31, 2005, we made only small
      expenditures for needed equipment. We currently have limited capital with
      which to make any significant capital expenditures. Should we obtain
      significant funding, of which there is no assurance, we would be able to
      make significant expenditures on equipment. The amount of these equipment
      purchases cannot be predicted due to the uncertainty of funding levels and
      timing. However, without additional capital, we will make no significant
      capital expenditures.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

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

|Our Chief Executive Officer and Acting Chief Financial Officer has
      reviewed and evaluated the effectiveness of our disclosure controls and
      procedures (as defined in the Securities Exchange Act of 1934 Rules
      240.13a-14(c) and 15d-14(c)) as of the end of the period covered by this
      report and has concluded that such disclosure controls and procedures are
      effective in timely alerting him and other members of management to
      material information about our company required to be disclosed by us in
      our periodic reports that we file or submit under the Securities Exchange
      Act of 1934.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|There have not been any significant changes in our internal controls
      over financial reporting (as such 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
      reasonably likely 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. Changes in Securities. | 
|------------------------------ | 

|During the three months ended March 31, 2005, we issued securities as
      follows:
|------------------------------------------------------------------------------------

|1. | (a) | Securities Sold. In January 2005, a total of 70,591,026 shares of our
      common stock were issued.                                                                                                                                                                                                                                                                                         
|-- | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were
      issued to Jason P. Davis (17,647,757 shares), Mike Prasad (14,118,204
      shares), Ryan Hayden (14,118,204 shares), Larry Shultz (14,118,204 shares)
      and Clayton D. Carter (10,588,657 shares).                                                                                                               
|   | (c) | Consideration. Such shares of common stock were issued pursuant to an
      agreement and plan of reorganization and were valued, in the aggregate, at
      $14,824,116.                                                                                                                                                                                                                     
|   | (d) | Exemption from Registration Claimed. These securities are exempt from
      registration under the Securities Act of 1933, as amended, pursuant to the
      provisions of Section 4(2) thereof and Rule 506 thereunder, as a
      transaction not involving a public offering. These purchasers were
      sophisticated investors capable of evaluating an investment in our
      company.

|2. | (a) | Securities Sold. In January 2005, 7,059,103 shares of our common stock
      were issued.                                                                                                                                                                                                                                                                                                   
|-- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were
      issued to Financial Capital Consultants, Inc.                                                                                                                                                                                                                                                                       
|   | (c) | Consideration. Such shares of common stock were issued as a finderâ€TMs
      fee and were valued at $1,482,411.                                                                                                                                                                                                                                                                             
|   | (d) | Exemption from Registration Claimed. These securities are exempt from
      registration under the Securities Act of 1933, as amended, pursuant to the
      provisions of Section 4(2) thereof and Rule 506 thereunder, as a
      transaction not involving a public offering. This purchaser was a
      sophisticated investor capable of evaluating an investment in our
      company.

|3. | (a) | Securities Sold. In March 2005, 1,000,000 shares of our common stock
      were issued.                                                                                                                                                                                                                                                                                                     
|-- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were
      issued to Alex P. Davis.                                                                                                                                                                                                                                                                                            
|   | (c) | Consideration. Such shares of common stock were issued pursuant to an
      employment agreement and were valued at $150,000.                                                                                                                                                                                                                                                               
|   | (d) | Exemption from Registration Claimed. These securities are exempt from
      registration under the Securities Act of 1933, as amended, pursuant to the
      provisions of Section 4(2) thereof and Rule 506 thereunder, as a
      transaction not involving a public offering. This purchaser was a
      sophisticated investor capable of evaluating an investment in our
      company.

|
|

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

|None.
|-----

|
|

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

|On January 3, 2005, a majority of our shareholders, acting by written
      consent in lieu of a meeting, approved an amendment to our amended and
      restated certificate of incorporation, whereby our authorized number of
      shares of common stock was increased from 200,000,000 shares to
      700,000,000 shares.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|On January 20, 2005, a majority of our shareholders, acting by written
      consent in lieu of a meeting, approved a change of our name from AirRover
      Wi-Fi Corp. to Diamond I, Inc.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

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

|None.
|-----

|
|

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

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

|Exhibit No. |  | Description | 
|----------- |  | ----------- | 

|31.1 |  | Certification of Chief Executive Officer required by Rule 13a-14(a) or
      Rule 15d-14(b) | 
|---- |  | ------------------------------------------------------------------------------------------- | 

|31.2 |  | Certification of Chief Accounting Officer required by Rule 13a-14(a) or
      Rule 15d-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 March 31, 2005, we filed four Current
      Reports on Form 8-K, as follows:
|----------------------------------------------------------------------------------------------------------

|- | Date of Event: January 18, 2005, wherein we reported an amendment to
      our amended and restated certificate of incorporation; this Current Report
      on Form 8- K is incorporated herein by this reference.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- | Date of Event: January 18, 2005, wherein we reported the acquisition of
      Diamond I Technologies, Inc.; this Current Report on Form 8- K is
      incorporated herein by this reference.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- | Date of Event: January 24, 2005, wherein we reported an amendment to
      our amended and restated certificate of incorporation and made certain
      Regulation FD disclosure; this Current Report on Form 8- K is incorporated
      herein by this reference.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- | Date of Event: January 27, 2005, wherein we made certain Regulation FD
      disclosure; this Current Report on Form 8- K is incorporated herein by
      this reference.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subsequent to March 31, 2005, we have filed one Current Report on Form
      8-K, as follows:
|---------------------------------------------------------------------------------------------

|- | Date of Event: April 29, 2004, wherein we reported a change in our
      independent auditor; this Current Report on Form 8- K is incorporated
      herein by this reference.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

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

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

|Date: May 23, 2005 | DIAMOND I, INC.
|------------------ | ---------------

|
|

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

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