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

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

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

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

|   | [ X ]  Quarterly Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934 For the quarterly period ended June 30, 2005 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|

| OR |
|----|

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

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

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

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

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

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

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

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

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

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

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

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

| Indicate by check mark whether Registrant (1) has filed all reports required to be filed bySection 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 beensubject to such filing requirements for the past 90 days: Yes [ X ]     No [   ] |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Class |   | Outstanding as of 8-18-05 |   |
|--------|-------|--------|---------------------------|--------|

|   | Common Stock, $.001 par value |   | 201,971,383 |   |
|--------|-------------------------------|--------|-------------|--------|

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

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

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

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

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

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

|   | Consolidated Balance Sheet as of June 30, 2005 (unaudited) | 3 |
|--------|------------------------------------------------------------|---|

|   | Consolidated Statement of Revenues and Expenses for the Three Months and SixMonths Ended June 30, 2005 and 2004, and Period from June 17, 2003(Inception), Through June 30, 2005 (unaudited) | 4 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

|   | Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2005and 2004, and Period from June 17, 2003 (Inception), Through June 30, 2005(unaudited) | 5 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

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

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

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

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

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

|   | June 30, 2005(unaudited) |   |
|--------|--------------------------|--------|

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

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

|   | Cash | $0 |   |
|--------|------|----|--------|

|   | Total Current Assets | 0 |   |
|--------|----------------------|---|--------|

| Equipment, net of accumulated depreciation of $60,963 | 39,855 |   |
|-------------------------------------------------------|--------|--------|

|   | Total Assets | $39,855 |   |
|--------|--------------|---------|--------|

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

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

|   | Disbursements in excess of cash balances | $9,791 |   |
|--------|------------------------------------------|--------|--------|

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

|   | Accrued liabilities | 11,997 |   |
|--------|---------------------|--------|--------|

|   | Total current liabilities | 26,637 |   |
|--------|---------------------------|--------|--------|

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

| Stockholders’ Equity: |   |   |
|-----------------------------|--------|--------|

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

|   | Common stock, $.001 par value; 700,000,000 sharesauthorized, 196,262,772 shares issued andoutstanding | 196,264 |   |
|--------|-------------------------------------------------------------------------------------------------------|---------|--------|

|   | Additional paid-in capital | 25,051,734 |   |
|--------|----------------------------|------------|--------|

|   | Deficit accumulated during the development stage | (25,288,317) |   |
|--------|--------------------------------------------------|--------------|--------|

|   | Subscription receivable | 26,400 |   |
|--------|-------------------------|--------|--------|

|   | Total Stockholders' Equity | 11,218 |   |
|--------|----------------------------|--------|--------|

|   | Total Liabilities and Stockholders’ Equity | $39,855 |   |
|--------|--------------------------------------------------|---------|--------|

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

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

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

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

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

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

|   | Three Months and Six Months Ended June 30, 2005 and 2004,and Period from June 17, 2003 (Inception), Through June 30,2005 (Unaudited) |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   | Three MonthsEnded June 30, |   |   |   | Six MonthsEnded June 30, |   |   | Inceptionthrough |
|--------|--------|----------------------------|--------|--------|--------|--------------------------|--------|--------|------------------|

|   | 2005 |   | 2004 |   | 2005 |   | 2004 |   | 6/30/05 |
|--------|------|--------|------|--------|------|--------|------|--------|---------|

| Revenues | 1,454 |   | $1,407 |   | $2,166 |   | $1,625 |   | $10,260 |
|----------|-------|--------|--------|--------|--------|--------|--------|--------|---------|

| Internet access costs | (522) |   | 0 |   | (6,704) |   | 0 |   | (32,768) |
|-----------------------|-------|--------|---|--------|---------|--------|---|--------|----------|

| Gross profit (loss) | 932 |   | 1,407 |   | (4,538) |   | 1,625 |   | (22,508) |
|---------------------|-----|--------|-------|--------|---------|--------|-------|--------|----------|

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

|   | Consulting fees | 345,336 |   | 0 |   | 374,561 |   | 0 |   | 1,907,311 |
|--------|-----------------|---------|--------|---|--------|---------|--------|---|--------|-----------|

|   | Salaries and commissions | 119,065 |   | 0 |   | 939,177 |   | 0 |   | 1,325,139 |
|--------|--------------------------|---------|--------|---|--------|---------|--------|---|--------|-----------|

|   | Legal and professional | 13,682 |   | 0 |   | 254,745 |   | 0 |   | 329,443 |
|--------|------------------------|--------|--------|---|--------|---------|--------|---|--------|---------|

|   | Depreciation | 4,228 |   | 0 |   | 8,456 |   | 0 |   | 47,513 |
|--------|--------------|-------|--------|---|--------|-------|--------|---|--------|--------|

|   | Rent | 3,621 |   | 0 |   | 18,007 |   | 0 |   | 63,934 |
|--------|------|-------|--------|---|--------|--------|--------|---|--------|--------|

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

|   | Other general and administrative | 779,929 |   | 1,004,583 |   | 1,590,607 |   | 1,770,849 |   | 4,785,040 |
|--------|----------------------------------|---------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|

|   | Total Operating Expenses | 1,265,861 |   | 1,004,583 |   | 19,492,080 |   | 1,770,849 |   | 25,266,907 |
|--------|--------------------------|-----------|--------|-----------|--------|------------|--------|-----------|--------|------------|

| LOSS FROM OPERATIONS | (1,264,929) |   | (1,003,177) |   | (19,496,618) |   | (1,769,224) |   | 25,289,415 |
|----------------------|-------------|--------|-------------|--------|--------------|--------|-------------|--------|------------|

| OTHER INCOME (EXPENSE) | 0 |   | 0 |   | 45 |   | 0 |   | 1,144 |
|------------------------|---|--------|---|--------|----|--------|---|--------|-------|

| NET LOSS | (1,264,929) |   | (1,003,177) |   | (19,496,573) |   | (1,769,224) |   | (25,288,271) |
|----------|-------------|--------|-------------|--------|--------------|--------|-------------|--------|--------------|

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

| Net Loss Available to Common Shareholders | $(1,264,929) |   | $(1,003,177) |   | $(19,496,573) |   | $(1,934,666) |   | $(25,453,713) |
|-------------------------------------------|--------------|--------|--------------|--------|---------------|--------|--------------|--------|---------------|

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

|   | Basic and diluted | $(0.007) |   | $(0.01) |   | $(0.109) |   | $(0.02) |   |   |
|--------|-------------------|----------|--------|---------|--------|----------|--------|---------|--------|--------|

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

|   | Basic and diluted | 190,248,337 |   | 81,752,880 |   | 177,668,037 |   | 82,154,144 |   |   |
|--------|-------------------|-------------|--------|------------|--------|-------------|--------|------------|--------|--------|

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

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

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

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

|   | Six Months Ended June 30, 2005 and 2004, andPeriod from June 17, 2003 (Inception), ThroughJune 30, 2005 (Unaudited) |   |
|--------|---------------------------------------------------------------------------------------------------------------------|--------|

|   | Six Months Ended June 30, |   | Inceptionthrough |
|--------|---------------------------|--------|------------------|

|   | 2005 |   | 2004 |   | June 30, 2005 |
|--------|------|--------|------|--------|---------------|

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

| Net loss | $(19,496,573) |   | $(1,934,666) |   | $(25,288,271) |
|----------|---------------|--------|--------------|--------|---------------|

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

|   | Depreciation | 8,456 |   | 9,473 |   | 60,963 |
|--------|--------------|-------|--------|-------|--------|--------|

|   | Stock issued for services and salary | 1,307,266 |   | 1,503,899 |   | 5,465,756 |
|--------|--------------------------------------|-----------|--------|-----------|--------|-----------|

|   | Impairment expense and write-down of assets | 16,306,527 |   | 0 |   | 16,808,527 |
|--------|---------------------------------------------|------------|--------|---|--------|------------|

|   | Stock option expense | 1,535,214 |   | 0 |   | 1,535,214 |
|--------|----------------------|-----------|--------|---|--------|-----------|

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

|   | Disbursements in excess of cashbalances | (9,791) |   | 0 |   | (9,791) |
|--------|-----------------------------------------|---------|--------|---|--------|---------|

|   | Accounts payable | (8,991) |   | 0 |   | 4,849 |
|--------|------------------|---------|--------|---|--------|-------|

|   | Accrued expenses | (5,820) |   | 0 |   | 11,997 |
|--------|------------------|---------|--------|---|--------|--------|

| CASH FLOWS USED IN OPERATINGACTIVITIES | (363,712) |   | (410,571) |   | (1,410,756) |
|----------------------------------------|-----------|--------|-----------|--------|-------------|

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

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

|   | Purchase of equipment | (6,062) |   | 0 |   | (102,826) |
|--------|-----------------------|---------|--------|---|--------|-----------|

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

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

|   | Issuance of note payable | 0 |   | 0 |   | 55,000 |
|--------|--------------------------|---|--------|---|--------|--------|

|   | Payment on note payable | (55,000) |   | 512 |   | (55,000) |
|--------|-------------------------|----------|--------|-----|--------|----------|

|   | Disbursements in excess of cashbalances | 9,791 |   | 0 |   | 9,791 |
|--------|-----------------------------------------|-------|--------|---|--------|-------|

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

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

|   | Sale of common stock, net | 394,000 |   | 0 |   | 994,000 |
|--------|---------------------------|---------|--------|---|--------|---------|

| CASH FLOWS PROVIDED BYFINANCING ACTIVITIES | 348,791 |   | 499,488 |   | 1,503,791 |
|--------------------------------------------|---------|--------|---------|--------|-----------|

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

| NET CHANGE IN CASH | (20,983) |   | 38,589 |   | (9,791) |
|--------------------|----------|--------|--------|--------|---------|

| Cash, beginning of period | 11,192 |   | 98,709 |   | 0 |
|---------------------------|--------|--------|--------|--------|---|

| Cash, end of period | $(9,791) |   | $17,298 |   | $(9,791) |
|---------------------|----------|--------|---------|--------|----------|

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

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

|   | Interest paid | $6,600 |   | $0 |   | $6,600 |
|--------|---------------|--------|--------|----|--------|--------|

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

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

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

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

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

|   | June 30, 2005(Unaudited) |   |
|--------|--------------------------|--------|

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

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

| The consolidated balance sheet as of June 30, 2005, the statement of revenues and expensesfor the three months and six months and the statement of cash flows for the six months endedJune 30, 2005 and 2004, have been prepared by Diamond I, Inc. (together with its subsidiaries,“Diamond I”) without audit.  In the opinion of management, all adjustments necessary topresent fairly the financial position, results of operations and cash flows of Diamond I at June30, 2005, and for all other periods presented, have been made.  The results of operations forinterim 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 inaccordance with generally accepted accounting principles have been omitted in accordancewith the Securities and Exchange Commission’s rules for interim reporting.  Accordingly,these financial statements should be read in conjunction with the financial statements andaccompanying notes thereto in Diamond I’s Annual Report on Form 10-KSB for the fiscal yearended December 31, 2004. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| As of June 30, 2005, Diamond I had two wholly owned subsidiaries, Diamond I Technologies,Inc. (formerly Air-Q Corp.) and AirRover Networks, Inc.  All material inter-company balancesand inter-company transactions have been eliminated for the purpose of presenting theaccompanying consolidated financial statements. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 (generallythree years).  Goodwill and other intangible assets are periodically reviewed for impairment toensure they are appropriately valued. Conditions which may indicate an impairment issueexists include a negative economic downturn or a change in the assessment of futureoperations.  In the event that a condition is identified which may indicate an impairment issueexists, an assessment is performed using a variety of methodologies, including cash flowanalysis, estimates of sales proceeds and independent appraisals. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For the six months ended June 30, 2005, the entire value of associated with the acquisition ofDiamond I Technologies, Inc. was impaired in the amount of $16,306,527. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 3 - ACQUISITION |   |
|----------------------|--------|

| On January 18, 2005, pursuant to an agreement and plan of reorganization, Diamond Iacquired all of the outstanding capital stock of Diamond I Technologies, Inc., a Nevadacorporation (“DITech”), by issuing a total of 70,591,026 shares of its common stock to theshareholders of DITech.  The reorganization agreement provides for further issuances of sharesof Diamond I’s common stock, upon DITech’s satisfying certain performance standards, asfollows:  (a) an additional 35,295,513 shares to the shareholders of DITech, if, on or before thedate which is two years from the consummation of the reorganization agreement, DITech shallhave completed the design and installation of a hand-held Wi-Fi-based gaming system in afirst-class hotel/casino with no fewer than 400 guest rooms located in the State of Nevada (the“Target System”), to the effect that the Target System is 100% operational and ready for useby guests of the host hotel/casino, which readiness shall include the approval of the NevadaGaming 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 reorganizationagreement, the Target System shall have operated at a profit, as determined by generallyaccepted accounting principles, for a period of three consecutive months. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In determining the number of shares of our common stock to be issued to the shareholders ofDITech, Diamond I’s board of directors did not employ any standard valuation formula or anyother standard measure of value.  Rather, the number shares issued to the shareholders ofDiamond I was determined through arm’s-length negotiations. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The following represents the allocation of the purchase price over the historical net bookvalues of Diamond I Technologies, Inc. on the date of the acquisition.  The allocation made isas 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 six months ended June 30, 2005, the entire value of associated with the acquisition ofDiamond I Technologies, Inc. was written-down in the amount of $16,306,527. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| NOTE 4 - NOTE PAYABLE |   |
|-----------------------|--------|

| During the six months ended June 30, 2005, Diamond I paid in full its note payable in theprincipal amount of $55,000, plus all accrued and unpaid interest of approximately $6,600. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 5 - CAPITAL STOCK |   |
|------------------------|--------|

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

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

| During the first six months of 2005, Diamond I issued a total of 6,420,704 shares of commonstock to third-party consultants for services, resulting in $621,904 in non-cash compensationexpense included in professional and legal expenses and consulting fees in the accompanyingstatement of revenues and expenses. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first six months of 2005, Diamond I issued, as bonuses to certain of its officers anddirectors, a total of 4,200,000 shares of common stock, valued at $462,000. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE 6 - OPTIONS |   |
|------------------|--------|

| In January 2005, Diamond I entered into a consulting agreement with a third party.  Pursuantto this consulting agreement, the consultant has the right to purchase up to $150,000 worth ofDiamond I’s common stock each month, at a purchase price equal to 70% of the market pricefor Diamond I’s common stock, at the time of issue.  During the first six months of 2005,Diamond I issued a total of 7,445,500 shares upon the exercise of these options, for cash in theamount of $394,000 and a subscription receivable in the amount of $26,400.  A stock optionexpense of $1,535,214 was recorded as of June 30, 2005. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

| Item 2. Management’s Discussion and Analysis of Financial Condition and Results ofOperations. |   |
|-----------------------------------------------------------------------------------------------------|--------|

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

| During the last half of 2004, our Wi-Fi (wireless fidelity) Internet access, or “hotspot”,business did not expand as we had expected.  This lack of growth was in line with the rest ofthe 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 telecommunicationscompanies abandoning their efforts to develop a hotspot business. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| DITech has developed a hand-held Wi-Fi-based gaming system for on-premises use bycasinos/resorts, known as “WiFiCasino GS”(TM). |
|---------------------------------------------------------------------------------------------------------------------------------------------|

| Our management has determined to focus all of our available resources, financial andotherwise, on the exploitation of this wireless gaming system and will not pursue additionalWi-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, weissued securities for cash in the amount of $500,000, as follows: 500,000 shares of our SeriesA 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 anexercise price of $3.50 per share and 250,000 common stock purchase warrants to purchase alike 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 wereused for operating expenses. |
|----------------------------------------------------------------------------------------------------------------------|

| During the first half of 2005, we obtained a total of $394,000 from the exercise of certainoptions, which funds were used to pay costs associated with our wireless gaming business andfor operating expenses.   Since June 30, 2005, we have obtained a total of approximately$51,400 from the exercise of certain options, which funds have been used to pay costsassociated with the development of our wireless gaming business and for operating expenses.We are actively seeking capital for use in our business.  We can make no assurance that wewill obtain enough to continue our business operations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| There were no material changes to our critical accounting policies during the period endedJune 30, 2005. |
|----------------------------------------------------------------------------------------------------------|

| Management's Discussion and Analysis discusses the results of operations and financialcondition as reflected in our financial statements, which have been prepared in accordancewith accounting principles generally accepted in the United States of America. The preparationof financial statements in conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities,  disclosure of contingent assets and liabilities atthe date of the financial statements and reported amounts of revenues and expenses during thereporting period. On an ongoing basis, management evaluates its estimates and judgments,including those related to accounts receivable, inventory valuation, amortization andrecoverability of long-lived assets,  including  goodwill,  litigation accruals and revenuerecognition. Management bases its estimates and judgments on our historical experience andother relevant factors, the results of which form the basis for making judgments about thecarrying 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 ameaningful basis for the accounting  policies applied in the preparation of our consolidatedfinancial 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 makeadjustments to these estimates in future periods. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| During the six months ended June 30, 2005 and 2004, we generated $2,166 and $1,625,respectively, in revenues from our business operations.  It is likely that our revenues for theremainder of 2005 will be less than for 2004, due to our determination to develop our wirelessgaming products rather than to pursue further development of our hotspot business.  Wecurrently lack the capital necessary to pursue aggressively our business objectives, and we maynever possess enough capital with which to do so.  In this circumstance, it is likely that wewould never earn a profit. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For the six months ended June 30, 2005, the entire value of associated with the acquisition ofDiamond I Technologies, Inc. was written-down in the amount of $16,306,527 and is includedin our operating expenses for the period then ended. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| As an additional non-cash expense during the first half of 2005, we recorded a stock optionexpense of $1,535,214.  This option expense relates to a consulting agreement pursuant towhich the consultant has the right to purchase up to $150,000 worth of our common stock eachmonth, at a purchase price equal to 70% of the market price for Diamond I’s common stock, atthe time of issue.  During the first six months of 2005, we issued a total of 7,445,500 sharesupon the exercise of these options, for cash in the amount of $394,000 and a subscriptionreceivable in the amount of $26,400. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Due to our severe lack of capital during both interim periods, we issued shares of our commonstock to consultants.  During the first six months of 2004, we issued shares of common stockto third-party consultants for services, resulting in $1,503,900 in non-cash compensationexpense included in general and administrative expense in the accompanying statement ofrevenues and expenses.  During the first six months of 2005, we issued a total of 6,552,204shares of common stock to third-party consultants for services, resulting in $645,060 innon-cash compensation expense included in professional and legal expenses and consultingfees in the accompanying statement of revenues and expenses.  Issuing shares of our commonstock was the only means by which we could obtain the consultants' services.  The full value ofthe consulting services received by us under each agreement has been expensed. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| It is possible that we will incur significant consulting expenses during the remainder 2005.Our management may, if necessary, hire consultants and pay them in cash, shares of ourcommon stock or a combination thereof. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first six months of 2004, we issued no shares of common stock as a bonus to any ofour officers and directors.  During the first six months of 2005, we issued, as bonuses tocertain of its officers and directors, a total of 4,200,000 shares of common stock, valued at$462,000. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| You should note that we measured the foregoing stock transactions at the respective dates ofissuance at the then-quoted market price.  There are no performance commitments or penaltiesfor non-performance, therefore, we recorded the expense at the date of issuance.  You shouldfurther note that, as of the date of this Form 10-QSB, our independent auditor had not yetcompleted its review of the financial statements included herein. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Since our inception, we have lacked adequate capital with which to accomplish our businessobjectives.  Currently, we are in a substantially illiquid position, with a working capital deficitof$26,637.  In general, 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 wirelessgaming products and its related business. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| During the first half of 2005, we obtained a total of $394,000 from the exercise of certainoptions, which funds were used to pay costs associated with our wireless gaming business andfor operating expenses.   Since June 30, 2005, we have obtained a total of approximately$51,400 from the exercise of certain options, which funds have been used to pay costsassociated with the development of our wireless gaming business and for operating expenses.We are actively seeking capital for use in our business.  We can make no assurance that wewill obtain enough to continue our business operations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 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 toexpected exercise of certain options.  However, this level of funding will not be adequate forus to aggressively pursue the exploitation of our wireless gaming products.  We continue toseek capital for these purposes. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| For the six months ended June 30, 2005, we made only small expenditures for neededequipment. We currently have limited capital with which to make any significant capitalexpenditures. Should we obtain significant funding, of which there is no assurance, we wouldbe able to make significant expenditures on equipment. The amount of these equipmentpurchases 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 evaluatedthe effectiveness of our disclosure controls and procedures (as defined in the SecuritiesExchange Act of 1934 Rules 240.13a-14(c) and 15d-14(c)) as of the end of the period coveredby this report and has concluded that such disclosure controls and procedures are effective intimely alerting him and other members of management to material information about ourcompany required to be disclosed by us in our periodic reports that we file or submit under theSecurities 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 of1934) during the fiscal quarter to which this report relates that have materially affected, or arereasonably 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 June 30, 2005, we issued restricted securities as follows: |
|------------------------------------------------------------------------------------------|

| 1.     | (a) | Securities Sold. In April 2005, 50,000 shares of our common stock were issued.                                                                                                                                                     |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toYCOM.                                                                                                                                                   |
|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingagreement and were valued, in the aggregate, at $4,500.                                                                                             |
|   | (d) | Exemption from Registration Claimed. These securities were sold to a singlenon-U.S. purchaser and are exempt from registration under the Securities Act of1933, as amended, pursuant to the provisions of Regulation S thereunder. |

| 2.     | (a) | Securities Sold. In April 2005, 500,000 shares of our common stock were issued.                                                                                                                                                                                                                                                                            |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toThe George Miller Company.                                                                                                                                                                                                                                                      |
|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingfee and were valued, in the aggregate, at $27,500.                                                                                                                                                                                                                          |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in our company. |

| 3.     | (a) | Securities Sold. In May 2005, 5,000,000 shares of our common stock were issued.                                                                                                                                                                                                                                                                            |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toU.S. BioDefense, Inc.                                                                                                                                                                                                                                                           |
|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingagreement and were valued, in the aggregate, at $260,000.                                                                                                                                                                                                                   |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in our company. |

| 4.     | (a) | Securities Sold. In May 2005, 500,000 shares of our common stock were issued.                                                                                                                                                                                                                                                                              |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Underwriter or Other Purchasers. Such shares of common stock were issued toVictor Nostas.                                                                                                                                                                                                                                                                  |
|   | (c) | Consideration. Such shares of common stock were issued pursuant to a consultingagreement and were valued, in the aggregate, at $26,500.                                                                                                                                                                                                                    |
|   | (d) | Exemption from Registration Claimed. These securities are exempt fromregistration under the Securities Act of 1933, as amended, pursuant to theprovisions of Section 4(2) thereof and Rule 506 thereunder, as a transaction notinvolving a public offering. This purchaser was a sophisticated investor capable ofevaluating an investment in our company. |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| 31.2 |   | Certification of Chief Accounting Officer required by Rule 13a-14(a) orRule 15d-14(b) |   |
|------|--------|---------------------------------------------------------------------------------------|--------|

| 32.1 |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section1350 |   |
|------|--------|----------------------------------------------------------------------------|--------|

| 32.2 |   | Certification of Chief Accounting Officer Pursuant to 18 U.S.C. Section1350 |   |
|------|--------|-----------------------------------------------------------------------------|--------|

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

| During the three months ended June 30, 2005, we filed one Current Report on Form 8-K, asfollows: |
|--------------------------------------------------------------------------------------------------|

| - | Date of Event: April 29, 2005, wherein we reported a change in our independentauditor; this Current Report on Form 8- K, as amended on June 7, 2005, isincorporated herein by this reference. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Subsequent to June 30, 2005, we have filed one Current Report on Form 8-K, as follows: |
|----------------------------------------------------------------------------------------|

| - | Date of Event: July 13, 2005, wherein we reported our entry into a material contractand information pursuant to Regulation FD; this Current Report on Form 8- K isincorporated herein by this reference. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| Date: August 21, 2005. | DIAMOND I, INC. |
|------------------------|-----------------|

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

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

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