| U.S. SECURITIES AND EXCHANGE      COMMISSIONWashington,D.C. |
|-------------------------------------------------------------|

| Form 10-Q |
|-----------|

| (Mark one) |
|------------|

| [ X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 for the quarterly period ended June 30,  2008 |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

| OR |
|----|

| [ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 |
|-----|-----------------------------------------------------------------------------------------------|

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

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

|   | Diamond I, Inc.                                             |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in      its charter) |   |

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

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

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

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

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

|   | (Address of principal executive offices,      including zip code) |   |
|--------|-------------------------------------------------------------------|--------|

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

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

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

| Indicate by check mark whether the 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 the registrant was required to file such reports), and (2) has      been subject to such filing requirements for the past 90 days. Yes [X] No      [ ] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a large accelerated      filer, an accelerated filer, a non-accelerated filer, or a smaller      reporting company. See the definitions of "large accelerated filer,"      "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the      Exchange Act. (Check one): |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large accelerated filer [ ] |   | Accelerated filer [ ] |
|-----------------------------|--------|-----------------------|

| Non-accelerated filer [ ] (Do not check if a smaller reporting      company) |   | Smaller reporting company [ X ] |
|------------------------------------------------------------------------------|--------|---------------------------------|

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

| As of August 13, 2008, there were 464,016,707 shares of the issuer’s      common stock outstanding. |
|-----------------------------------------------------------------------------------------------------------|

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

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

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

| INDEX      TO FINANCIAL STATEMENTS |
|------------------------------------|

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

| Diamond I, Inc. |
|-----------------|

| Condensed Consolidated Balance Sheets as of June 30, 2008      (unaudited), and December 31, 2007 (audited) | 3 |
|-------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Operations for the Three Months      and Six Months Ended June 30, 2008 (unaudited) and 2007 (unaudited), and      the Period from June 17, 2003 (Inception), Through June 30, 2008      (unaudited) | 4 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statement of Stockholders’ Equity for the Six      Months Ended June 30, 2008 (unaudited) | 5 |
|------------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Cash Flows for the Six Months      Ended June 30, 2008 (unaudited) and 2007 (unaudited), and the Period from      June 17, 2003 (Inception), Through June 30, 2008 (unaudited) | 6 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Notes to Condensed Consolidated Financial Statements | 8 |
|------------------------------------------------------|---|

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

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

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

|   | CONDENSED CONSOLIDATED BALANCE    SHEETS |   |
|--------|------------------------------------------|--------|

|   | June 30, 2008, and December 31,    2007 |   |
|--------|-----------------------------------------|--------|

|   | 6/30/08unaudited |   | 12/31/07 |
|--------|------------------|--------|----------|

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

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

|   | Cash | $--- |   | $294 |
|--------|------|------|--------|------|

|   | Total current assets | --- |   | 294 |
|--------|----------------------|-----|--------|-----|

| Equipment - net of accumulated depreciation of $102,115 and $100,911,      respectively | --- |   | 1,204 |
|-----------------------------------------------------------------------------------------|-----|--------|-------|

|   | Total assets | $--- |   | $1,498 |
|--------|--------------|------|--------|--------|

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

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

|   | Accounts payable | $7,496 |   | $4,500 |
|--------|------------------|--------|--------|--------|

|   | Accrued expenses | 443,032 |   | 293,032 |
|--------|------------------|---------|--------|---------|

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

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

|   | Accrued interest - shareholders | 9,256 |   | 7,582 |
|--------|---------------------------------|-------|--------|-------|

|   | Dividend payable on preferred stock | 127,500 |   | 112,500 |
|--------|-------------------------------------|---------|--------|---------|

|   | Total current liabilities | 659,324 |   | 489,654 |
|--------|---------------------------|---------|--------|---------|

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

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

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

|   | Common stock, $.001 par value; 700,000,000 shares authorized,      342,016,707 and 354,016,707 shares issued and outstanding, at June 30,      2008, and December 31, 2007, respectively | 354,017 |   | 342,017 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|---------|

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

|   | Additional paid-in capital | 29,870,158 |   | 29,873,158 |
|--------|----------------------------|------------|--------|------------|

|   | Deficit accumulated during the development stage | (30,755,999) |   | (30,575,831) |
|--------|--------------------------------------------------|--------------|--------|--------------|

|   | Total stockholders’ (deficit) | (659,324) |   | (488,156) |
|--------|-------------------------------------|-----------|--------|-----------|

|   | Total liabilities and stockholders’ equity (deficit) | $--- |   | $1,498 |
|--------|------------------------------------------------------------|------|--------|--------|

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

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

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

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

|   | CONDENSED CONSOLIDATED STATEMENTS OF      OPERATIONS |   |
|--------|------------------------------------------------------|--------|

|   | For the Three Months and Six Months Ended      June 30, 2008 and 2007, and the Period from June 17, 2003 (Inception),      Through June 30, 2008 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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

|   | (2008)(unaudited) |   | 2007(unaudited) |   | 2008(unaudited) |   | 2007(unaudited) |   | Inceptionthrough6/30/2008(unaudited) |
|--------|-------------------|--------|-----------------|--------|-----------------|--------|-----------------|--------|--------------------------------------|

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

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

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

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

|   | Professional and consulting fees | 21,000 |   | 47,100 |   | 21,000 |   | 249,200 |   | 4,204,672 |
|--------|----------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|-----------|

|   | Compensation expense | 81,000 |   | 79,200 |   | 156,000 |   | 157,200 |   | 5,338,776 |
|--------|----------------------|--------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Depreciation and amortization | --- |   | 35,156 |   | 1,204 |   | 78,631 |   | 298,680 |
|--------|-------------------------------|-----|--------|--------|--------|-------|--------|--------|--------|---------|

|   | Impairment loss | --- |   | --- |   | --- |   | --- |   | 17,473,096 |
|--------|-----------------|-----|--------|-----|--------|-----|--------|-----|--------|------------|

|   | General and administrative (excluding professional and consulting      fees, compensation expense, depreciation and impairment loss) | 66 |   | 32 |   | 290 |   | 245 |   | 3,387,595 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|----|--------|----|--------|-----|--------|-----|--------|-----------|

|   | Total operating expenses | 102,066 |   | 161,488 |   | 178,494 |   | 485,276 |   | 30,702,819 |
|--------|--------------------------|---------|--------|---------|--------|---------|--------|---------|--------|------------|

| LOSS FROM OPERATIONS | (102,066) |   | (161,488) |   | (178,494) |   | (485,276) |   | (30,724,885) |
|----------------------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|--------------|

| OTHER INCOME (EXPENSE) | (837) |   | --- |   | (1,674) |   | (837) |   | (31,114) |
|------------------------|-------|--------|-----|--------|---------|--------|-------|--------|----------|

| NET LOSS | $(102,903) |   | $(161,488) |   | (180,168) |   | (486,113) |   | $(30,755,999) |
|----------|------------|--------|------------|--------|-----------|--------|-----------|--------|---------------|

| Deemed dividend on preferred stock | $--- |   | $--- |   | $--- |   | $--- |   | $(165,442) |
|------------------------------------|------|--------|------|--------|------|--------|------|--------|------------|

| Cumulative preferred dividends | (7,500) |   | (7,500) |   | (15,000) |   | (15,000) |   | (127,500) |
|--------------------------------|---------|--------|---------|--------|----------|--------|----------|--------|-----------|

| Net Loss Charged to Common Shareholders | $(110,403) |   | $(168,988) |   | $(195,168) |   | $(501,113) |   | $(31,048,941) |
|-----------------------------------------|------------|--------|------------|--------|------------|--------|------------|--------|---------------|

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

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

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

|   | Basic and diluted | 344,016,706 |   | 316,153,416 |   | 343,016,706 |   | 303,027,808 |   |   |
|--------|-------------------|-------------|--------|-------------|--------|-------------|--------|-------------|--------|--------|

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

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

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

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

|   | CONDENSED CONSOLIDATED STATEMENT OFSTOCKHOLDERS’ EQUITY (DEFICIT) |   |
|--------|-------------------------------------------------------------------------|--------|

|   | For the Six Months Ended June 30, 2008      (unaudited) |   |
|--------|---------------------------------------------------------|--------|

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

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulatedDuring theDevelopmentStage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------|--------|------------------------|--------|----------------------------------------------|--------|-------|

| Balance, December 31, 2007 | 500,000 |   | $500 |   | 342,016,707 |   | $342,017 |   | $29,873,158 |   | $(128,000) |   | $(30,575,831) |   | $(488,156) |
|----------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| Dividend payable on preferred stock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |
|-------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (77,265) |   | (77,265) |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|----------|--------|----------|

| Balance, March 31, 2008 | 500,000 |   | 500 |   | 342,016,707 |   | 342,017 |   | 29,865,658 |   | (128,000) |   | (30,653,096) |   | (572,921) |
|-------------------------|---------|--------|-----|--------|-------------|--------|---------|--------|------------|--------|-----------|--------|--------------|--------|-----------|

| Stock issued for bonuses | --- |   | --- |   | 3,000,000 |   | 3,000 |   | 3,000 |   | --- |   | --- |   | 6,000 |
|--------------------------|-----|--------|-----|--------|-----------|--------|-------|--------|-------|--------|-----|--------|-----|--------|-------|

| Stock issued for services | --- |   | --- |   | 9,000,000 |   | 9,000 |   | 9,000 |   | --- |   | --- |   | 18,000 |
|---------------------------|-----|--------|-----|--------|-----------|--------|-------|--------|-------|--------|-----|--------|-----|--------|--------|

| Dividend payable on preferred stock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |
|-------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (102,903) |   | (102,903) |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|-----------|

| Balance, June 30, 2008 | 500,000 |   | $500 |   | 354,016,707 |   | $354,017 |   | $29,870,158 |   | $(128,000) |   | $(30,755,999) |   | $(659,324) |
|------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

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

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

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

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

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

|   | For the Six Months Ended June 30, 2008 and      2007, and the Period from June 17, 2003 (Inception), Through June 30,      2008 |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|

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

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inception Through 6/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|

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

| Net loss | $(180,168) |   | $(486,113) |   | $(30,755,999) |
|----------|------------|--------|------------|--------|---------------|

|   | Adjustments to reconcile net loss to cash used foroperating activities: |   |   |   |   |   |
|--------|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation and amortization | 1,204 |   | 78,631 |   | 298,680 |
|--------|-------------------------------|-------|--------|--------|--------|---------|

|   | Stock issued for services and bonuses | 24,000 |   | 252,898 |   | 8,300,698 |
|--------|---------------------------------------|--------|--------|---------|--------|-----------|

|   | Impairment loss and write-down of assets | --- |   | --- |   | 17,473,096 |
|--------|------------------------------------------|-----|--------|-----|--------|------------|

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

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

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

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

|   | Accrued expenses | 150,000 |   | 114,839 |   | 443,032 |
|--------|------------------|---------|--------|---------|--------|---------|

|   | Accrued interest | 1,674 |   | --- |   | 9,256 |
|--------|------------------|-------|--------|-----|--------|-------|

|   | Accounts payable | 2,996 |   | 30,400 |   | 7,496 |
|--------|------------------|-------|--------|--------|--------|-------|

| CASH FLOWS USED IN OPERATING ACTIVITIES | (294) |   | (9,345) |   | (1,720,544) |
|-----------------------------------------|-------|--------|---------|--------|-------------|

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

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

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

| CASH FLOWS USED IN INVESTING ACTIVITIES | --- |   | --- |   | (102,116) |
|-----------------------------------------|-----|--------|-----|--------|-----------|

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

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

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

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inception Through 6/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|

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

|   | Repayment of related party advances | (14,000) |   | --- |   | (73,000) |
|--------|-------------------------------------|----------|--------|-----|--------|----------|

|   | Proceeds from related party advances | 2,000 |   | --- |   | 102,640 |
|--------|--------------------------------------|-------|--------|-----|--------|---------|

|   | Sale of preferred stock and warrants | --- |   | --- |   | 500,000 |
|--------|--------------------------------------|-----|--------|-----|--------|---------|

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

|   | Shareholder contributions to capital | --- |   | 2,220 |   | 5,220 |
|--------|--------------------------------------|-----|--------|-------|--------|-------|

|   | Contract party contributions to capital | --- |   | --- |   | --- |
|--------|-----------------------------------------|-----|--------|-----|--------|-----|

|   | Proceeds from short term payable | 12,000 |   | --- |   | 67,400 |
|--------|----------------------------------|--------|--------|-----|--------|--------|

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

| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | --- |   | 12,220 |   | 1,822,660 |
|---------------------------------------------|-----|--------|--------|--------|-----------|

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

| NET CHANGE IN CASH | (294) |   | 2,875 |   | --- |
|--------------------|-------|--------|-------|--------|-----|

| Cash, beginning of period | 294 |   | 35 |   | --- |
|---------------------------|-----|--------|----|--------|-----|

| Cash, end of period | $--- |   | $2,910 |   | $--- |
|---------------------|------|--------|--------|--------|------|

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

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

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

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

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

|   | Cumulative dividends on preferred stock | $15,000 |   | $15,000 |   | $127,500 |
|--------|-----------------------------------------|---------|--------|---------|--------|----------|

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

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

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

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

|   | Stock issued for payment of note payable | $--- |   | $25,000 |   | $25,000 |
|--------|------------------------------------------|------|--------|---------|--------|---------|

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

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

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

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

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

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

|   | June 30, 2008(unaudited) |   |
|--------|--------------------------|--------|

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

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

| The condensed consolidated balance sheet as of June 30, 2008, the      statement of revenues and expenses for the six months ended June 30, 2008      and 2007, and the period from inception (June 17, 2003) through June 30,      2008, the statement of stockholders’ equity (deficit) for the six months      ended June 30, 2008, and the statement of cash flows for the three months      and six months ended June 30, 2008 and 2007, and the period from inception      (June 17, 2003) through June 30, 2008, have been prepared by Diamond I,      Inc. (together with its subsidiaries, “Diamond I”) without audit. In the      opinion of management, all adjustments necessary to present fairly the      financial position, results of operations and cash flows of Diamond I at      June 30, 2008, 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 Commission’s rules for      interim reporting. Accordingly, these financial statements should be read      in conjunction with the financial statements and accompanying notes      thereto in Diamond I’s Annual Report on Form 10-KSB for the fiscal year      ended December 31, 2007. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Diamond I has incurred losses totaling $30,755,999 through June 30,      2008, and had no working capital at June 30, 2008. Because of these      conditions, Diamond I will require additional working capital to continue      operations and develop the business. 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 I’s      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 continue its operations or      execute its business plan. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These conditions raise substantial doubt about Diamond I's ability to      continue as a going concern. The financial statements do not include any      adjustments relating to the recoverability 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 3. Capital Stock |
|-----------------------|

| Stock for Services, Salary andBonuses |
|---------------------------------------|

| During the first six months of 2008, Diamond I issued a total of      9,000,000 shares of common stock to consultants, 8,000,000 shares to a      director of Diamond I and 1,000,000 shares to a third party, for services,      resulting in $18,000 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 six months of 2008, Diamond I issued a total of      3,000,000 shares of common stock valued at $6,000 as bonuses to certain of      its directors. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 4. Subsequent Events |
|---------------------------|

| Since June 30, 2008, Diamond I has issued shares of its common stock,      as follows: |
|----------------------------------------------------------------------------------------|

| - | 35,000,000 shares in payment of consulting services provided by third      parties, which shares were valued, in the aggregate, at  $140,000; |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

| - | 30,000,000 shares in payment of $375,000 in accrued salary of two      officers; |
|---|----------------------------------------------------------------------------------|

| - | 25,000,000 shares in payment of Diamond I’s acquisition of its      outstanding shares of preferred stock, the value of which preferred stock      was $500,000; and |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | 20,000,000 shares were issued for a total of $50,000 in  cash. |
|---|----------------------------------------------------------------|

| 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. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| General |
|---------|

| References to “us”, “we” and “our” include our subsidiaries, Diamond      I Technology, Inc. and U.S. BioFuels Exchange, LLC, unless otherwise      indicated. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain statements contained herein are not based on historical facts      and are "forward-looking statements" within the meaning of Section 21A of      the Securities Exchange Act of 1934. Forward-looking statements which are      based on various assumptions (some of which are beyond the Company's      control), may be identified by reference to a future period or periods, or      by the use of forward-looking terminology, such as "may," "will,"      "believe," "expect," "estimate," "anticipate," "continue," or similar      terms or variations on those terms, or the negative of these terms. Actual      results could differ materially from those set forth in forward-looking      statements, due to a variety of factors, including, but not limited to,      events that deprive us of the services of our president and largest      shareholder, David Loflin, 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 undertake, and specifically disclaim any obligation, to      publicly release the result of any revisions which may be made to any      forward-looking statements to reflect the occurrence of anticipated or      unanticipated events or circumstances after the date of such      statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Current Business Activities |
|-----------------------------|

| Until June 2008, we actively pursued the development of our online      casinos that we designed to produce revenues by click-through advertising.      We also had conducted, until June 2008, wireless gaming and oil and gas      business development activities. Our wireless gaming and oil and gas      endeavors lacked needed capital and we had determined to pursue these      business opportunities only at such time as we obtain the capital      necessary to do so. Our strategy to derive click-through advertising      revenues from our online casinos appears to have been capable of success,      following the launch of IslandBlueCasino.net and VegasBetLive.com.      However, following the addition of Thomas Gray to our board of directors,      it was determined that we would pursue Mr. Gray’s vision of an online      biofuels exchange, rather than to continue to pursue our other business      interests. In June 2008, we announced that our company would pursue the      establishment of the U.S. BioFuels Exchange (the  “US-BX”). |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The US-BX |
|-----------|

| We have established an Internet site, www.USBiofuelsExchange.com, on      which we intend to establish the US-BX, a new biofuels marketplace. The      US-BX is the brainchild of Mr. Gray, our newest director. Mr. Gray’s      vision would bring to the presently chaotic biofuels marketplace an      orderly and efficient matching of producers and other sellers with buyers,      using the Internet, in a manner similar to the model currently employed by      eBay.com. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We are currently designing the US-BX web site and completing the      software engineering required for the launch of the US-BX. It is expected      that we will open the US-BX web site for beta testing during September      2008. Shortly thereafter, we intend to open the US-BX for trading. Because      the US-BX is a new venture, there is no assurance that it will be      successful. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The US-BX is to be the first and only Internet marketplace for all      current and future biofuels and biofuel products, which include biodiesel      (in all of its forms) and ethanol. Biofuel producers and other sellers      will list their biofuel quantities and desired pricing directly on the      US-BX web site. Then, buyers will buy or bid on these listed biofuel      quantities. It is intended that the US-BX will charge a fee on every      transaction between sellers and buyers. The US-BX expects that it will, in      the long-term, assist in bringing market order to a large, fast-growing      and chaotic marketplace, by offering a venue that will facilitate national      pricing, among other things, for biofuels and biofuel products. The US-BX      will be dynamic. Biofuels producers and other sellers will be able to      update, in real time, their available quantities, as well as pricing, as      often as desired. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Through a private offering of securities, we were able to obtain      $40,000 for the establishment of the US-BX, which amount is adequate to      complete the design and software engineering of the US-BX web site and to      begin the marketing of the online biofuelsexchange. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| While we believe that the factors considered provide a meaningful      basis for the accounting policies applied in the preparation of the      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. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Revenue Recognition. We charge our customers service fees for      Internet access and recognize the revenue in the month the services are      provided. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation and Tax Assessments. Should we become involved in      lawsuits, we intend to assess the likelihood of any adverse judgments or      outcomes of any of these matters as well as the potential range of      probable losses. A determination of the amount of accrual required, if      any, for these contingencies will be made after careful analysis of each      matter. The required accrual may change from time to time, due to new      developments in any matter or changes in approach (such as a change in      settlement strategy) in dealing with thesematters. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax      audits by federal and state governmental authorities incidental to our      business activities. We anticipate that we will record reserves for any      estimated probable losses for any suchproceeding. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock-Based Compensation. We account for stock-based compensation      based on the provisions of Statement of Financial Accounting Standards No.      123. In December 2004, the Financial Accounting Standards Board issued      Statement of Financial Accounting Standards No. 123 (Revised 2004),      Share-Based Payment, (FAS-123R). This statement replaces FAS-123,      Accounting for Stock-Based Compensation, supersedes APB Opinion No. 25,      Accounting for Stock Issued to Employees, and amends FAS-95, Statement of      Cash Flows. FAS-123R requires companies to apply a fair-value-based      measurement method in accounting for share-based payment transactions with      employees and to record compensation cost for all stock awards granted      after the required effective date and for awards modified, repurchased or      cancelled after that date. The scope of FAS-123R encompasses 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. FAS-123R was effective for us on      January 1, 2006. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| New Accounting Pronouncements. In September 2006, the Financial      Accounting Standards Board (“FASB”) issued Statement of Financial      Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS      157”). SFAS 157 defines fair value, establishes a framework for measuring      fair value in accordance with generally accepted accounting principles,      and expands disclosures about fair value measurements. SFAS 157 is      effective January 1, 2008. We do not believe this statement will adversely      impact our financial statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In February 2007, the FASB issued SFAS No. 159, The Fair Value Option      for Financial Assets and Financial Liabilities, which permits entities to      choose to measure many financial instruments and certain other items at      fair value. The objective is to improve financial reporting by providing      entities with the opportunity to mitigate volatility in reported earnings      caused by measuring related assets and liabilities differently without      having to apply complex hedge accounting provisions. SFAS No. 159 applies      to all entities and is effective for fiscal years beginning after November      15, 2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In December 2007, the FASB issued SFAS No. 141 (revised 2007),      “Business Combinations” (“SFAS No. 141R”), which establishes principles      and requirements for how the acquirer shall recognize and measure in its      financial statements the identifiable assets acquired, liabilities      assumed, any noncontrolling interest in the acquiree and goodwill acquired      in a business combination. SFAS No. 141(R) is effective for business      combinations for which the acquisition date is on or after the beginning      of the first annual reporting period beginning on or after December 15,      2008. The Company is currently assessing the potential impact that the      adoption of SFAS No. 141(R) will have on its financial position and      results of operations. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations - First Six Months 2008 vs. First Six Months      2007 |
|------------------------------------------------------------------------------|

| Revenues. We generated no revenues during the First Six Months 2008.      We did not have any revenue during the First Quarter 2007. We expect that      the US-BX will begin to derive revenues from operations during the fourth      quarter of 2008. However, there is no assurance that this will be the      case. Further, if the US-BX does begin to produce revenues from      operations, we cannot predict the amount ofrevenues. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Expenses. Our operating expenses during the First Six Months 2008      were $178,494 compared to $485,276 for the First Six Months 2007. Our      non-cash operating expenses, which include stock issued for services,      accrued salaries and depreciation and amortization, totalled $175,204 for      the First Six Months 2008 compared to $446,368 for the First Six Months      2007. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Until we obtain sufficient operating capital, it can be expected that      we will issue shares of our common stock to third-parties in payment of      services rendered on our behalf. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial Condition |
|---------------------|

| We have incurred losses from inception of $30,755,999 and we have      lacked adequate capital with which to accomplish our business objectives.      At June 30, 2008, we had a working capital deficit of $659,324 and we      remain substantially illiquid. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Subsequent to June 30, 2008, in August 2008, we obtained $50,000,      pursuant to a private offering. $40,000 of these funds will be applied to      the establishment of the US-BX, while the remaining $10,000 will be used      for working capital. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| We believe that our current level of operations can be maintained for      the next twelve months. We anticipate our capital needs will be met      through the sale of shares for cash, exercise of options and issuance of      shares for services. However, to achieve our complete business plan for      the US-BX, we must obtain an additional $200,000. To date, we have not      received a commitment for additional capital in any amount and we cannot      assure you that we will be able to obtain any additional capital. Should      we fail to obtain such financing, our plan of business would likely be      unsuccessful and we may be forced to ceaseoperations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| During the First Six Months 2008 and the First Six Months 2007, we      made no our capital expenditures. |
|-----------------------------------------------------------------------------------------------------------|

| Item 3. Quantitative and Qualitative Disclosures About Market      Risk. |
|--------------------------------------------------------------------------|

| Not applicable. |
|-----------------|

| Item 4T. Controls and Procedures. |
|-----------------------------------|

| Evaluation of Controls and Procedures |
|---------------------------------------|

| As of June 30, 2008, an evaluation was performed by our President and      Acting Chief Financial Officer of the effectiveness of the design and      operation of our disclosure controls and procedures. Based on that      evaluation, our management, including our President and Acting Chief      Financial Officer, concluded that our disclosure controls and procedures      were not effective as of June 30, 2008. Our evaluation identified      deficiencies related to the accuracy and completeness of our accounting      records and disclosures resulting in substantial adjustments identified by      our independent auditors. These deficiencies are due to the limited      resources currently available to the company. Management is making efforts      to utilize its resources more effectively to eliminate these deficiencies      until the company is able to obtain sufficient funds for business      development, including improvements in internal controls and procedures.      There have been no significant changes in our internal controls or in      other factors that could significantly affect internal controls subsequent      to June 30, 2008. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management’s Assessment of Internal Controls Over Financial      Reporting |
|----------------------------------------------------------------------------------|

| Our management is responsible for establishing and maintaining      adequate internal control over financial reporting. Internal control over      financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the      Securities Exchange Act. Our management assessed the effectiveness of our      internal control over financial reporting as of June 30, 2008, using the      framework set forth in Internal Control-Integrated Framework issued by the      Committee of Sponsoring Organizations of the Treadway Commission. Based      upon this assessment, our management concluded that, as of June 30, 2008,      our internal control over financial reporting was not effective. Due to      our lack of capital, our management determined that our control      environment, risk assessment functions, control activities, information      and communication functions and monitoring systems were not      effective. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| In addition to issuances already reported, during the three months      ended June 30, 2008, we issued shares of our common stock, as      follows: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | (a) | Securities Sold. In May 2008, 1,000,000 shares of common stock were      issued. |
|----|-----|----------------------------------------------------------------------------------|

| (b) | Underwriter or Other Purchasers. Such shares of common stock were      issued to Mary Ruffner. |
|-----|------------------------------------------------------------------------------------------------|

| (c) | Consideration. Such shares of common stock were issued pursuant to a      consulting agreement, with an aggregate value of  $2,000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | (a) | Securities Sold. In May 2008, 1,000,000 shares of common stock were      issued. |
|----|-----|----------------------------------------------------------------------------------|

| (b) | Underwriter or Other Purchasers. Such shares of common stock were      issued to two of our directors, Gregory A. Bonner (500,000 shares) and Ira      R. Witkin (500,000 shares). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Consideration. Such shares of common stock were issued as bonuses,      with an aggregate value of $2,000. |
|-----|------------------------------------------------------------------------------------------------------------|

| (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. These purchasers were      sophisticated investors capable of evaluating an investment in our      company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Subsequent to June 30, 2008, we have issued shares of our common      stock, as follows: |
|------------------------------------------------------------------------------------------|

| 3. | (a) | Securities Sold. In July 2008, 35,000,000 shares of common stock were      issued. |
|----|-----|------------------------------------------------------------------------------------|

| (b) | Underwriter or Other Purchasers. Such shares of common stock were      issued to third-party consultants, The George Miller Company (3,000,000      shares), James Kaufman (15,000,000 shares), Newlan & Newlan      (12,000,000 shares) and Shaji Parol (5,000,000shares). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Consideration. Such shares of common stock were issued pursuant to      separate consulting agreements, with an aggregate value of    $108,000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. These purchasers were      sophisticated investors capable of evaluating an investment in our      company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | (a) | Securities Sold. In July 2008, 30,000,000 shares of common stock were      issued. |
|----|-----|------------------------------------------------------------------------------------|

| (b) | Underwriter or Other Purchasers. Such shares of common stock were      issued to two of our officers, David Loflin (25,000,000 shares) and      Waddell D. Loflin (5,000,000 shares). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Consideration. Such shares of common stock were issued in payment of      accrued salary in the aggregate amount of$375,000. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (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. These purchasers were      sophisticated investors capable of evaluating an investment in our      company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | (a) | Securities Sold. In August 2008, 20,000,000 shares of common stock      were issued. |
|----|-----|--------------------------------------------------------------------------------------|

| (b) | Underwriter or Other Purchasers. Such shares of common stock were      issued to five parties in a privateoffering. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (c) | Consideration. Such shares of common stock were sold for cash in the      aggregate amount of $50,000, or $.002 pershare. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 3. Defaults upon SeniorSecurities. |
|-----------------------------------------|

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

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

| No matter was submitted to our shareholders, during the three months      ended June 30 2008. |
|-----------------------------------------------------------------------------------------------|

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

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

| Item 6. 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 |
|--------|--------|--------|----------------------------------------------------------------------------------|

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

|   | * filed herewith. |
|--------|-------------------|

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

| 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, hereunto duly authorized. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Date: August 15, 2008. | DIAMOND I, INC. |
|------------------------|-----------------|

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

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

|   | David Loflin |   |
|--------|--------------|--------|

|   | President and Acting Chief FinancialOfficer |
|--------|---------------------------------------------|