**U.S.
      Securities and Exchange Commission**


**Washington,
      D.C. 20549**







**FORM
      10-QSB**













[X]
            Quarterly
                Report Under Section 13 or 15(d) of The Securities Exchange Act of
                1934
                for the Quarterly Period Ended June 30**,
                2005**





[
                ]
            Transition
                Report Under Section 13 or 15(d) of The Securities Exchange Act of
                1934
                for the Transition Period from _______ to
                _______





Commission
      File Number: 000-17303








**DARK
      DYNAMITE, INC.**


(Exact
      name of small business issuer as specified in its charter)





**Nevada**
              **65-1021346**(State
                  or other jurisdiction of
              (IRS
                  Employer Identification No.)incorporation
                  or organization)




**63
      West 100 South, 2nd FL Studio, Salt Lake City, Utah
      84101**


(Address
      of principal executive offices)





**(801)
      746-3435**


(Issuer's
      telephone number)








Check
        whether the issuer (1) filed all reports required to be filed by Section
        13 or
        15(d) of the Exchange Act during the past 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
                  [ ]
 
 Number
        of
        shares of common stock outstanding as of August 22, 2005: 1,860,839
 Number
        of
        shares of preferred stock outstanding as of August 22, 2005:
        5,000,000.










**TABLE
                    OF CONTENTS****PART
                    I. FINANCIAL INFORMATION**ITEM
                    1. FINANCIAL STATEMENTS
                3ITEM
                    2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
                    OPERATION
                12ITEM
                    3 CONTROLS AND PROCEDURES
                16**PART
                    II. OTHER INFORMATION**ITEM
                    1. LEGAL PROCEEDINGS
                17ITEM
                    2. CHANGES IN SECURITIES AND USE OF
                    PROCEEDS
                18ITEM
                    5. OTHER INFORMATION
                18ITEM
                    6. EXHIBITS AND REPORTS ON FORM 8-K
                18SIGNATURES
                19INDEX
                    TO EXHIBITS
                20




2
 *Table
          of Contents*
  **ITEM
        1.**  **FINANCIAL
        STATEMENTS**


As
        used
        herein, the term “DDI”, or the “Company” refers to Dark Dynamite, Inc., a Nevada
        corporation, its subsidiary corporations and predecessors unless otherwise
        indicated. Unaudited, consolidated financial statements including a balance
        sheet for DDI for the period ended June 30, 2005, and statement of operations
        and statement of cash flows for the interim period up to date of such balance
        sheet and the comparable periods of the preceding year are attached hereto
        as
        Pages F-1 through F-14 and are incorporated herein by this reference.






THIS
      SPACE HAS BEEN INTENTIONALLY LEFT
      BLANK






3
 *Table
          of Contents*




**INDEX
                  TO INTERIM FINANCIAL STATEMENTS****Page**Consolidated
                  Unaudited Condensed Balance Sheet June 30,
                  2005
              F-5Consolidated
                  Unaudited Condensed Consolidated Statements of
                  Operations - For the Three
                  Months and Six Months Ended June 30, 2005 and
                  2004
              F-6Consolidated
                      Statement of StockholdersDeficit
                      - For the Six Months Ended June 30, 2004
              F-7Consolidated
                  Statement of StockholdersDeficit
                  - For the Six Months Ended June 30, 2005
              F-8Consolidated
                        Unaudited Condensed Statements of Cash Flows - For theSix
                        Months Ended June 30, 2005 and 2004
              F-9Notes
                  to Unaudited Condensed Consolidated Financial
                  Statements
              F-10-11






4
 *Table
          of Contents*




**DARK
                  DYNAMITE, INC. AND SUBSIDARY****(FKA
                  NCI HOLDINGS, INC)****Consolidated
                  Balance Sheets****As
                  of June 30, 2005 and June 30, 2004****June
                  30**
              
              **June
                  30,****2005**
              
              **2004**(Unaudited)CURRENT
                  ASSETSCash
                  and cash equivalents
              
              $
              2,356
              
              $
              86,085Accounts
                  receivable
              
              
              267
              
              
              -Inventory
              
              
              37,965
              
              
              1,000Pre-paid
                  Expenses
              
              
              2,973
              
              
              2,429TOTAL
                  CURRENT ASSETS
              
              
              43,561
              
              
              89,514FIXED
                  ASSETSFurniture
                  and fixtures
              
              
              169,176
              
              
              23,043TOTAL
                  FIXED ASSETS
              
              
              169,176
              
              
              23,043Accumulated
                  Depreciation
              
              
              (19,372
              )
              
              (410
              )NET
                  FIXED ASSETS
              
              
              149,804
              
              
              22,633DEPOSITSDeposits
              
              
              1,798
              
              
              -TOTAL
                  DEPOSITS
              
              
              1,798
              
              
              -INTANGABLE
                  ASSETSTrademarks
              
              
              1,380
              
              
              1,005TOTAL
                  INTANGABLE ASSETS
              
              
              1,380
              
              
              1,005TOTAL
                  ASSETS
              
              $
              196,543
              
              
              113,152


CURRENT
                  LIABILITIESAccounts
                  payable
              
              $
              73,395
              
              $
              95,089Note
                  payable
              
              
              9,261
              
              
              1,103Other
                  payable and accrued expenses
              
              
              293,290
              
              
              -TOTAL
                  CURRENT LIABILITIES
              
              
              375,946
              
              
              96,192STOCKHOLDERS'
                  (DEFICIT)Preferred
                  Series A stock ($0.01 par value, 5,000,000 shares authorized; 5,000,000
                  shares issued and outstanding
              
              
              50,000
              
              
              125,486Common
                  stock $0.001 par value, 5,000,000 shares authorized; 1,860,839
                  and 101,472,675 shares outstanding at June 30, 2005 and
                  June 30, 2004
                  respectively (post reverse splits through March 28, 2005)
              
              
              186
              
              
              101,473Additional
                  paid in capital
              
              
              13,511,989
              
              
              12,156,035Stock
                  Subscriptions Receivable
              
              
              (20,659
              )
              
              (5,363
              )Retained
                  (deficit)
              
              
              (13,720,919
              )
              
              (12,360,671
              )TOTAL
                  STOCKHOLDERS' (DEFICIT)
              
              
              (179,403
              )
              
              16,960TOTAL
                  LIABILITIES AND STOCKHOLDERS'EQUITY
              
              $
              196,543
              
              $
              113,152






5
 *Table
          of Contents*




**DARK
                  DYNAMITE, INC. AND SUBSIDARY****(FKA
                  NCI HOLDINGS, INC)****Consolidated
                  Statements of Operations and****Other
                  Comprehensive Income (Loss)****For
                  The Three Months and Six Months Ended June 30, 2005 and
                  2004**Three
                  Months Ended June 30,
              
              Six
                  Months Ended June 30,2005
              
              2004
              
              2005
              
              2004(Unaudited)
              
              (Unaudited)
              
              (Unaudited)
              
              (Unaudited)REVENUESales
              
              $
              45,371
              
              $
              -
              
              $
              84,857
              
              $
              -Consulting
              
              
              -
              
              
              -
              
              
              -
              
              
              -TOTAL
                  REVENUE
              
              
              45,371
              
              
              -
              
              
              84,857
              
              
              -COST
                  OF REVENUECost
                  of Sales
              
              
              26,587
              
              
              -
              
              
              41,540
              
              
              -Coupons
              
              
              375
              
              
              -
              
              
              1,820
              
              
              -Discounts
              
              
              120
              
              
              -
              
              
              268
              
              
              -TOTAL
                  COST OF REVENUE
              
              
              27,082
              
              
              -
              
              
              43,628
              
              
              -GROSS
                  PROFIT
              
              
              18,289
              
              
              -
              
              
              41,229
              
              
              -EXPENSESSelling,
                  general and administrative
              
              
              130,081
              
              
              203,002
              
              
              545,832
              
              
              239,144Selling,
                  general and administrative
                From
                  discontinued operations
              
              
              
              
              
              -
              
              
              
              
              
              -TOTAL
                  EXPENSES
              
              
              130,081
              
              
              203,002
              
              
              545,832
              
              
              239,144OPERATING
                  LOSS
              
              $
              (111,792
              )
              $
              (203,002
              )
              $
              (504,603
              )
              $
              (239,144
              )OTHER
                  INCOME (EXPENSE)Interest
                  expense
              
              
              -
              
              
              -
              
              
              (4
              )
              
              -Interest
                  Income
              
              
              -
              
              
              -
              
              
              7
              
              
              -Miscellaneous
                  Income
              
              
              (516
              )
              
              -
              
              
              17,853
              
              
              -Gain
                  on early forgiveness of accountspayable
                  to governmental authority
              
              
              
              
              
              106,500
              
              
              
              
              
              106,500Gain
                  (loss) from impairment of goodwill
              
              
              -
              
              
              -
              
              
              -
              
              
              (3,490,000
              )Gain
                  / Loss on Securities
              
              
              -
              
              
              -
              
              
              -
              
              
              -Loss
                  on company stock
              
              
              -
              
              
              -
              
              
              -
              
              
              -Income
                  tax - state
              
              
              -
              
              
              -
              
              
              -
              
              
              -TOTAL
                  OTHER INCOME
              
              
              (516
              )
              
              -
              
              
              17,856
              
              
              -NET
                  LOSS
              
              $
              (112,308
              )
              $
              (96,502
              )
              $
              (486,747
              )
              $
              (3,622,644
              )Net
                  loss per weighted average
                common
                  shares outstanding
              
              $
              (0.0675
              )
              $
              (0.0012
              )
              $
              (0.2904
              )
              $
              (0.0814
              )Weighted
                  average shares outstanding -
                basic
                  and diluted
              
              
              1,663,061
              
              
              80,575,083
              
              
              1,675,838
              
              
              44,505,346(Weighted
                  average shares outstanding have been adjusted
                  retroactivelyto
                  reflect reverse stock split on March 28, 2005 for quarter
                  endedMarch
                  31, 2005 and November 17, 2004 and March 28, 2005 for quarter
                  endedMarch
                  31, 2004)




6
 *Table
          of Contents*




**DARK
                  DYNAMITE, INC. AND SUBSIDARY****(FKA
                  NCI HOLDINGS, INC)****STATEMENT
                  OF STOCKHOLDERS' EQUITY (DEFICIT)****FOR
                  THE SIX MONTHS ENDED JUNE 30, 2004**AdditionalPaid-in
              
              RetainedPreferred
                  Stock
              
              Common
                  Stock
              
              Capital
              
              DeficitShares
              
              Amount
              
              Shares
              
              Amount
              
              Amount
              
              AmountBalances,
                  January 1, 2004
              
              
              1,254,857
              
              $
              125,486
              
              
              2,419,775
              
              $
              2,420
              
              $
              8,427,800
              
              $
              (8,738,027
              )Common
                  stock issuances for past services
              
              
              
              
              
              
              
              
              5,444,300
              
              
              5,444
              
              
              24,698Common
                  stock issuances for acquisition
              
              
              
              
              
              
              
              
              70,000,000
              
              
              70,000
              
              
              3,430,000Common
                  stock issuance to former officer
              
              
              
              
              
              
              
              
              250,000
              
              
              250Issuance
                  of options to former officer for services
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              9,808Issuance
                  of options to outside consultants
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              21,913Issuance
                  of common shares to outside consultants
              
              
              
              
              
              
              
              
              23,358,600
              
              
              23,359
              
              
              241,816Net
                  loss for the period
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (3,622,644
              )1,254,857
              
              $
              125,486
              
              
              101,472,675
              
              $
              101,473
              
              $
              12,156,035
              
              $
              (12,360,671
              )






7


**DARK
                  DYNAMITE, INC. ANDSUBSIDARY****(FKA
                  NCI HOLDINGS, INC)****STATEMENT
                  OF STOCKHOLDERS' EQUITY (DEFICIT)****FOR
                  THE SIX MONTHS ENDED JUNE 30, 2005**Additional
              
              StockCommon
                  Stock
              
              
              
              Preferred
                  Stock
              
              
              
              Paid-in
              
              Subscriptions
              
              RetainedShares
              
              Amount
              
              Shares
              
              Amount
              
              Capital
              
              Receivable
              
              DeficitBalances,
                  January 1, 2005
              
              
              52,339
              
              $
              5
              
              
              5,000,000
              
              $
              50,000
              
              $
              13,174,084
              
              $
              (39,750
              )
              $
              (13,234,323
              )Common
                  stock issuances for past services (Unaudited)
              
              
              279,500
              
              
              28
              
              
              -
              
              
              -
              
              
              58,268
              
              
              -
              
              
              -Receipt
                  of cash on subscriptions receivable (Unaudited)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              34,441
              
              
              -Issue
                  common stock for option exercise (Unaudited)
              
              
              715,000
              
              
              72
              
              
              -
              
              
              -
              
              
              59,644
              
              
              (350
              )
              
              -Fair
                  value of options issued for past services (Unaudited)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              53,058
              
              
              -
              
              
              -Intrinsic
                  value of options issued to employees (Unaudited)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              145,776
              
              
              -
              
              
              -Proceeds
                  from option stock applied to A/P - T Hall (Unaudited)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              2,238
              
              
              -
              
              
              -Issue
                  common stock for option exercise, depository shares at Finance
                  500 as of
                  March 31, 2005 (Unaudited)
              
              
              614,000
              
              
              61
              
              
              -
              
              
              -
              
              
              14,939
              
              
              (15,000
              )
              
              -Adjust
                  for error in Financial Statements at 12/31/2004 to bring into agreement
                  with the books (Unaudited)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              150Common
                  stock issued to WJREH (a Nexia Holdings company) for cash -
                  restricted
              
              
              200,000
              
              
              20
              
              
              
              
              
              
              
              
              3,982Net
                  consolidated loss for the six months ended June 30, 2005
                  (Unaudited)
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (486,747
              )Balances,
                  June 30, 2005
              
              
              1,860,839
              
              $
              186
              
              
              5,000,000
              
              $
              50,000
              
              $
              13,511,989
              
              $
              (20,659
              )
              $
              (13,720,920
              )






8
 *Table
          of Contents*




**DARK
                  DYNAMITE, INC. ANDSUBSIDARY****(FKA
                  NCI HOLDINGS, INC)****STATEMENTS
                  OF CASH FLOWS****For
                  The Six Months Ended June 30, 2005 and 2004**For
                  The Six
              
              For
                  The SixMonths
                  Ended
              
              Months
                  EndedJune
                  30,
              
              June
                  30,2005
              
              2004(Unaudited)
              
              (Unaudited)CASH
                  FLOWS FROM (USED IN) OPERATING ACTIVITIES:Net
                  loss
              
              $
              (486,747
              )
              $
              (3,622,644
              )Adjustments
                  to reconcile net loss to net cash (use in) operating
                  activities:Issuance
                  of options for shares and services of outside consultants
              
              
              -
              
              
              311,430Depreciation
              
              
              13,061
              
              
              410Loss
                  - Impairment of Goodwill
              
              
              -
              
              
              3,490,000Issuance
                  of options for services of former officer
              
              
              -
              
              
              9,808Common
                  stock issued for services
              
              
              39,400
              
              
              -Intrinsic
                  value of options issued to employees
              
              
              153,276
              
              
              -Fair
                  value of options issued to consultants
              
              
              45,558
              
              
              -Common
                  stock issued to apply on vendor Accounts Payable
              
              
              21,134
              
              
              -(Increase)
                  decrease in operating assets:Accounts
                  receivable
              
              
              (267
              )
              
              -Inventory
              
              
              (16,268
              )
              
              -Prepaid
                  expenses
              
              
              (768
              )
              
              (2,429
              )Deposit
              
              
              (1,798
              )
              
              -Increase
                  (decrease) in operating liabilities:Accounts
                  payable and accrued expenses
              
              
              (221,397
              )
              
              (87,795
              )Note
                  payable
              
              
              9,261
              
              
              -Other
                  payable
              
              
              293,290
              
              
              -Shareholder
                  payable
              
              
              -
              
              
              1,103NET
                  CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
              
              
              (152,265
              )
              
              99,883CASH
                  FLOWS FROM (USED IN) INVESTING ACTIVITIES:Cash
                  paid for trademarks
              
              
              -
              
              
              (1,005
              )Purchases
                  of fixed assets
              
              
              (15,087
              )
              
              (13,043
              )NET
                  CASH (USED IN) INVESTING ACTIVITIES
              
              
              (15,087
              )
              
              (14,048
              )CASH
                  FLOWS FROM (USED IN) FINANCING ACTIVITIES:Common
                  stock issuance to former officer
              
              
              -
              
              
              250Receipt
                  of stock subscriptions receivable
              
              
              38,443
              
              
              -Common
                  stock issuance for stock option exercise
              
              
              59,366
              
              
              -NET
                  CASH PROVIDED BY FINANCING ACTIVITIES
              
              
              97,809
              
              
              250NET
                  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
              
              
              (69,543
              )
              
              86,085CASH
                  AND CASH EQUIVALENTS,BEGINNING
                  OF THE PERIOD
              
              
              71,899
              
              
              -END
                  OF THE PERIOD
              
              $
              2,356
              
              $
              86,085SUPPLEMENTARY
                  CASH FLOW INFORMATION OF NON-CASH FINANCING:Common
                  stock issued for purchase of fixed assets and inventory
              
              
              -
              
              $
              10,000Common
                  stock issued for purchase of goodwill
              
              
              -
              
              $
              3,490,000Common
                  stock issued for past services to pay down accounts
                  payable
              
              
              -
              
              $
              5,800Common
                  stock issued for services
              
              $
              334,084
              
              $
              -Issuance
                  of options for services of outside consultants
              
              
              -
              
              $
              311,430Issuance
                  of options to former officer
              
              
              -
              
              $
              9,808






9
 *Table
          of Contents*




**DARK
      DYNAMITE, INC. AND SUBSIDIARY**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**AS
      OF JUNE 30, 2005**





NOTE
      1 -
      MANAGEMENT’S USE OF ESTIMATES





The
      preparation of financial statements in conformity with accounting principles
      accepted in the United States of America required management to make estimates
      and assumptions that affect the reported amounts of assets and liabilities
      at
      the date of the financial statements and the reported amounts of revenues and
      expenses during the reporting periods. Actual results could differ from those
      estimates.





NOTE
      2 -
      REVENUE RECOGNITION





Revenue
      for the operations is recognized when services are performed. Revenue for
      services is recognized when the services are rendered. Revenue for products
      is
      recognized when the retail products are sold.





NOTE
      3 -
      LOSS PER SHARE





Loss
      per
      share is reported in accordance with Statement of Financial Accounting Standard
      (SFAS) No. 128. This statement required dual presentation of basic and diluted
      earnings (loss) with a reconciliation of the numerator and denominator of the
      loss per share computations. Basic earnings per share amounts are based n the
      weighted average shares of common outstanding. If applicable, diluted earnings
      per share would assume the conversion, exercise or issuance of all potential
      common stock instruments such as options, warrants and convertible securities,
      unless the effect is to reduce a loss or increase earnings per share. There
      were
      no adjustments required to net loss for the period presented in the computation
      of diluted loss per share.





NOTE
      4 -
      COMMON STOCK





During
        the six months ended June 30, 2005, The Company issued 1,608,500 shares of
        its
        post reverse split common stock pursuant to the Company’s S-8 Registration
        Statement.
 
 During
        the quarter ended June 30, 2005, the Company issued 200,000 shares of its
        post
        reverse split common stock pursuant to the Company’s 8-K Statement. The shares
        are restricted, and they were issued in a private transaction pursuant to
        Section 4(2) of the Securities Act of 1933.


NOTE
      5 -
      GOING CONCERN AND UNCERTAINTY





The
      Company has experienced losses every quarter from its inception. In addition,
      the Company has negative net working capital, negative book value and negative
      cash flow. These factors raise substantial doubt about the ability of the
      Company to continue as a going concern.





Management’s
      plans with regard to these matters include the following:


·
            Obtain
                funding from new investors to alleviate the Company’s working capital
                deficiency.


·
            Apply
                for a bank credit line and an SBA
                loan.


·
            Implement
                plans to increase sales.


·
            Management
                is reducing payroll and other incidental
                expenses.





10
 *Table
          of Contents*




**DARK
      DYNAMITE, INC. AND SUBSIDIARY**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**AS
      OF JUNE 30, 2005**





The
      outcome of management’s plans cannot be ascertained with any degree of
      certainty. The accompanying financial statements do not include any adjustments
      that might result from the outcome of these risks and
      uncertainties.








NOTE
      6 -
      REVERSE STOCK SPLIT




A
        common
        stock reverse split of 1,000 for 1 was effective March 28, 2005. All common
        stock amounts in the accompanying financial statements, issued on or before
        the
        date of the reverse stock split, have been restated retroactively to reflect
        these capitalization changes.
  NOTE
          7 -
          SUBSEQUENT EVENTS
  On
          August
          1, 2005, the Company filed an information schedule with the Securities
          and
          Exchange Commission reporting that 99% of the authorized votes of the common
          and
          preferred stock of the Company had approved an amendment to the Articles
          of
          Incorporation of Dark Dynamite, Inc. to increase the number of authorized
          common
          shares, par value $0.0001, from five million (5,000,000) to one billion
          (1,000,000,000). The Certificate of Amendment to carry the authorized increase
          in the number of common shares has not yet been filed with the Nevada Secretary
          of State.
 
 On
          August
          15, 2005, the Company and its majority shareholder, Richard Surber, entered
          into
          a binding Letter of Intent (“LOI”) with Shanxi Kai Da Lv You Gu Wen You Xian
          Gong Si (“Kai Da”) a corporation formed according to the laws of the Peoples
          Republic of China. The LOI sets for the terms and conditions upon which
          control
          of the Company will be acquired by the shareholders of Kai Da through the
          purchase of 4,990,000 shares of the preferred stock of the Company from
          Surber
          or companies under his control.
 
 The
          LOI
          sets forth the parties intention to complete a Plan of Exchange on or about
          August 29, 2005, at which time the shares of preferred stock will be deposited
          into escrow in exchange for a total cash payment of $495,000 and making
          Kai Da a
          wholly owned subsidiary of the Registrant. Final closing of the exchange
          is
          planned on or about the 28 th of
          September, 2005. At the conclusion of the planned exchange the shareholders
          of
          Kai Da would hold approximately 98% of the voting control of the
          Company.


11
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          of Contents*
  **ITEM
        2.**  **MANAGEMENT'S
        DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
        OPERATION**





As
      used
      in this Quarterly Report, the terms "we", "us", "our" and the "Company" mean
      Dark Dynamite Inc., (“DDI”) a Nevada corporation.





**General**





Dark
      Dynamite is a lifestyle company that produces clothing, candles, skateboards,
      and active wear. The mission of our business is to offer products designed
      with
      deliberateness and wild inspiration that indulge an individual’s innate drive to
      be unique. The overarching concept is to provide the consumer with an affordable
      alternative to “mass-market” offerings by extending a product that conveys a
      sense of eccentricity that stands apart in quality, style and price, from most
      of the homogenous fare being offered consumers by the mainstream apparel market.





The
      Jared
      Gold brand name contributes to financially sustaining the Black Chandelier
      collection, which in turn will allow for the diversification of further products
      associated with the Jared Gold name. Future collections to be released include
      The Genevieve (new name pending) which will feature, housewares, confections,
      and candles, Life-of-the-Knife (Black Chandelier Skate),skate and snowboard
      apparel), Black Chandelier 365 (T-Shirt-of-the-day available only by
      e-procurement), and Black Chandelier Tweens (teenplus sizes for girls). All
      of
      these products will strengthen and underscore the Company’s brand identity.





In
      addition to strengthening the brand name and capitalizing on the reputation
      of
      Jared Gold, the Company has established a global public relations network that
      focuses on establishing goodwill towards the Company within the apparel market.
      There is will be a corporate communications staff at the Company’s headquarters
      that will communicate with PR companies abroad as well as using contracts PR
      companies to and also receive market feedback so as to effectively implement
      appropriate marketing and distribution strategies. The ultimate objective is
      expanding our consumer base by targeting boutiques and higher-end department
      stores.





The
      Company currently operates retail stores in Salt Lake City, Utah and Seattle,
      Washington. There are plans to open other retail stores in select major
      metropolitan areas such as Los Angeles, California and New York City. The
      company is accordingly seeking additional funds to meet its needs over the
      next
      12 months.





**RESULTS
      OF OPERATIONS**




**Revenues**





Gross
      revenues for the three-month and six-month periods ended June 30, 2005, were
      $45,371 and $84,857, respectively, as compared to **** $0
      for
      the same periods ended June 30, 2004. The changes in 2005 revenues were due
      to
      the operations of the two retail outlets of the Company, both of which were
      operating since first quarter of 2005.





12
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**Losses**





DDI
      recorded operating losses of $111,792 and $504,603 for the three-month and
      six-month periods ended June 30, 2005, respectively, compared to operating
      losses of $203,002 and $239,144 for the comparable periods ended June 30, 2004.
      The increase in operating losses resulted from the higher level of operations
      for the Company in the first half of 2005 as compared to the same period in
      2004. The operating losses of $504,603 for the six months ended June 30, 2005
      were due primarily to the account and audit fees of $25,907, legal fees of
      $55,710 and salaries and wages of $299,979.





DDI
      recorded net losses of $112,308, or $.0675 per common share outstanding, and
      $486,747, or $.2904 per common share outstanding, for the three months and
      six
      months ended June 30, 2005, respectively, as compared to net losses of $96,502
      and $3,622,644 for the same periods ended June 30, 2004. The decrease in losses
      was attributable primarily to the loss from impairment of goodwill recorded
      in
      the first quarter of 2004 in the amount of $3,490,000 which was not repeated
      in
      2005.





DDI
      does
      not expect to operate at a profit through fiscal 2005. Since DDI’s activities
      are dependent upon its ability to sell its products in the fashion and life
      style areas, future profitability or DDI’s ability to generate revenue and
      revenue growth tends to follow changes in the fashion market place. There can
      be
      no guarantee that profitability or revenue growth can be realized in the
      future.





**Expenses**





Selling,
      general and administrative expenses for the three months and six months ended
      June 30, 2005, were $130,081 and $545,832, respectively, compared to $203,002
      and $239,144 for the same periods in 2004. The increase of $306,688 in expenses
      in the first half of 2005 was due primarily to the start up expenses of creating
      and marketing the product lines of the Company.





**Capital
      Resources and Liquidity**





On
      June
      30, 2005, DDI had current assets of $43,561 and $196,543 in total assets. DDI
      had a net working capital deficit of $332,385 at June 30, 2005, as compared
      to a
      net working capital deficit of $6,678 at the same period ended June
      30, 2004, an increase in the deficit of $325,707. The working capital
      deficit was due primarily to outstanding other payable and accrued expenses
      that
      were considered as current liabilities and the increase in those amounts during
      the first half of 2005 lead to the increase over the year end
      amount





Net
      cash
      used in operating activities was $152,265 for the six months ended June 30,
      2005, compared to net cash provided by operating activities of $99,883 for
      the
      six months ended June 30, 2004. The increase in cash used in operations in
      the
      first half of 2005 reflected the increased operational level of the Company
      during the first six months of 2005 as compared to the prior year’s
      operations.





Net
      cash
      used in investing activities was $15,087 for the six months ended June 30,
      2005,
      compared to net cash used in investing activities was $14,048 for the same
      period ended June 30, 2004. Cash flow used in investing activities in the first
      half of 2005 was due primarily to the purchase of fixed assets, the same as
      the
      previous year, except that there was $1,005 in cash paid for trademarks in
      2004.





Cash
      from
      financing activities was $97,809 for the six months ended June 30, 2005,
      compared to cash flow from financing activities of $250 for the six months
      ended
      June 30, 2004. The bulk of these funds represent the receipt of stock
      subscriptions from the exercise of stock options by employees and consultants
      of
      the Company.





DDI
      is
      currently experiencing significant cash flow shortages. Current efforts to
      meet
      the cash flow needs of the operations of the Company are not sufficient at
      this
      time to meet the needs of the Company’s operations. To cover these ongoing
      shortages we may need to sell securities from time to time at a loss. We are
      looking at several options to improve this situation, including the private
      placement of DDI common stock or other avenues to obtain additional
      investments.





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  **Stock
        and Options To Employees** **and Contractors**
  During
        the quarter ended June 30, 2005, the board of directors of DDI has not issued
        any stock or options to employees of contractors of common stock registered
        under the Company's S-8 Registration Statement.


**Off
      Balance Sheet Arrangements**




We
      do not
      have any off-balance sheet financing arrangements




**ABILITY
      TO CONTINUE AS A GOING CONCERN**





As
      shown
      in the consolidated financial statements for the six months ended June 30,
      2005,
      the Company had incurred recurring losses from operations, had a deficit book
      value, was the subject of numerous law suits, had all of its assets fully
      pledged, had a negative cash flow from operations that created substantial
      doubt
      as to whether the Company can continue as a going concern. The ability of the
      Company to continue as a going concern is dependent on resolving the business
      and liquidity problems, principally through developing operations, increasing
      revenues, and obtaining new capital through either debt or equity.





**Forward
      Looking Statements**





The
      information herein contains certain forward looking statements within the
      meaning of §27A of the Securities Act of 1933, as amended and § 21E of the
      Securities Exchange Act of 1934, as amended, which are intended to be covered
      by
      the safe harbors created thereby. Investors are cautioned that all forward
      looking statements involve risks and uncertainty, including without limitation,
      the ability of the Company to continue its current expansion strategy, changes
      in the fashion and clothing markets, labor and employee benefits, as well as
      general market conditions, competition and pricing. Although the Company
      believes that the assumptions underlying the forward looking statements
      contained herein are reasonable, any of the assumptions could be inaccurate,
      and
      therefore, there can be no assurance that the forward look statements included
      in this Form 10-QSB will prove to be accurate. In view of the significant
      uncertainties inherent in the forward looking statements included herein, the
      inclusion of such information should not be regarded as a representation by
      the
      company or any other person that the objectives and plans of the Company will
      be
      achieved.





**Risk
      Factors**





**The
      success of our business depends in large part on our ability to identify fashion
      trends as well as to react to changing customer demand in a timely
      manner.** Consequently, we depend in part upon the continuing favorable market response
      to
      the creative efforts of our purchasing, design and marketing teams’ ability to
      anticipate trends and fashions that will appeal to our consumer
      base.





14
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          of Contents*




**Failure
      on our part to anticipate, identify, and respond effectively to changing
      consumer demands and fashion trends will adversely affect our sales.** If
      we are
      unable to obtain raw materials or find manufacturing facilities, our financial
      condition may be harmed. Outside of a small sample room, we do not own any
      manufacturing facilities, and therefore depend on a limited number of third
      parties to manufacture our products. We place all of our orders for production
      of merchandise and raw materials by purchase order and do not have any long-term
      contracts with any manufacturer or supplier. If we fail to obtain sufficient
      quantities of raw materials, it could have a harmful effect on the results
      of
      our operations. Furthermore, we may receive shipments of products from
      manufacturers that fail to conform to our quality control standards. In such
      events, unless we are able to obtain replacement products in a timely manner,
      we
      may lose sales. If we fail to maintain favorable relationships with these
      production facilities or fail to obtain an adequate supply of quality raw
      materials on commercially reasonable terms, it could harm our business and
      results of operations.





**We
      will be dependent on third party manufacturers for production, and our sales
      may
      be negatively affected if the manufacturers do not perform acceptably, or if
      design changes are communicated after the production has
      begun** .
      We will
      develop a significant portion of our merchandise in conjunction with third-party
      apparel manufacturers. In some cases, we select merchandise directly from these
      manufacturers’ lines. We do not have long-term contracts with any third party
      manufacturers and will purchase all of the merchandise from such manufacturers
      by purchase order. Furthermore, we may receive in the future, shipments of
      products from third-party apparel manufacturers that fail to conform to our
      quality control standards. In such events, unless we are able to obtain
      replacement products in a timely manner, we may lose sales. We cannot assure
      you
      that third party manufacturers (1) will not supply similar products to our
      competitors, (2) will not stop supplying products to us completely or, 3) will
      supply products that satisfy our quality control standards. In addition, certain
      of our third party manufacturers will store our raw materials. In the event
      our
      inventory was damaged or destroyed and we were unable to obtain replacement
      raw
      materials, our ability to generate earnings may be negatively impacted. In
      addition, if we decide to change a key element of the design after the
      manufacturing process has begun we may negatively impact the manufacturer's
      ability to deliver the products on a timely basis, which could impact our
      ability to generate earnings.





**Our
      success depends on our ability to attract and retain key employees in order
      to
      support our existing business and future expansion** .
      We are
      actively recruiting qualified candidates to fill key executive positions within
      the Company. There is substantial competition for experienced personnel, which
      we expect to continue. We will compete for experienced personnel with companies
      who have substantially greater financial resources than we do. If we fail to
      attract, motivate and retain qualified personnel, it could harm our business
      and
      limit our ability to expand. In addition, we depend upon the expertise and
      execution of our key employees, particularly Jared Gold, the founder, Chairman
      of the Board, and Chief Executive Officer of Dark Dynamite, Inc. We do not
      maintain insurance policies on any of our employees. If we lose the services
      of
      Mr. Gold, or any key officers or employees, it could harm our business and
      results of operations.





**We
      face significant competition in the retail and apparel industry, which could
      harm our sales and profitability.** The
      retail and apparel industries are highly competitive and are characterized
      by
      low barriers to entry. We expect competition in our markets to increase. The
      primary competitive factors in our markets are: brand name recognition, sourcing
      strategies, product styling, quality, presentation and pricing, timeliness
      of
      product development and delivery, customer service, and convenience. We compete
      with specialty store retailers, business to consumer websites, off-price
      retailers and direct marketers for, among other things, raw materials, market
      share, finished goods, sourcing and personnel. Because many of these competitors
      are larger and have substantially greater financial, distribution and marketing
      resources than we do, we may lack the resources to adequately compete with
      them.
      If we fail to compete in any way, it could harm our business, financial
      condition, and future results of operations.





15
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          of Contents*





**Purchases
      of the merchandise we sell are generally discretionary and are therefore
      particularly susceptible to economic slowdowns.** If
      current economic conditions do not improve, our business, financial condition,
      and results of operations could be adversely affected. Consumers are generally
      more willing to make discretionary purchases, including purchases of fashion
      products and high-end home products, during periods in which favorable economic
      conditions prevail.





**If
      we are not able to successfully protect our intellectual property, our ability
      to capitalize on the value of our brand name may be
      impaired.** Even
      though we intend to take actions to establish, register and protect our
      trademarks and other proprietary rights, we cannot assure you that we will
      be
      successful, or that others will not imitate our products or infringe upon our
      intellectual property rights. In addition, we cannot assure you that others
      will
      not resist or seek to block the sale of our products as infringements of their
      trademark and proprietary rights. We are seeking to register our trademarks
      in
      targeted markets. In some of these markets, obstacles exist that may prevent
      us
      from obtaining a trademark for the Black Chandelier or Dark Dynamite names
      or
      related names. Furthermore, in some jurisdictions, despite successful
      registration of our trademarks, third parties may allege infringement and bring
      actions against us.




**If
      an independent manufacturer violates labor or other laws, or is accused of
      violating any such laws, or if their labor practices diverge from those
      generally accepted as ethical, it could harm our business and brand
      image.** While
      all manufacturers are contractually required to comply with such labor
      practices, we cannot control the actions or public perception of such
      manufacturers, nor can we assure that these manufacturers will conduct their
      businesses using ethical or legal labor practices. Apparel companies can be
      held
      jointly liable for the wrongdoings of the manufacturers of their products.
      While
      we do not control their employee's employment conditions or the manufacturer's
      business practices, and the manufacturers act in their own interest, they may
      act in a manner that results in a negative public perception of us and/or
      employee allegations or court determinations that we are jointly liable for
      such
      improper practices.





**The
      issuance of additional shares under S-8 may impair the value of the Company’s
      stock because of significant dilution.** The most
      significant risk relating to our business is the dilution of the Company’s
      common stock, as the Company at this time is relying heavily on the issuance
      of
      S-8 shares of its common stock to pay its advisors and employees.





**ITEM
      3. CONTROLS AND PROCEDURES**




On
      June
      30, 2005, DDI’s Chief Executive Officer and Chief Financial Officer made an
      evaluation of DDI’s disclosure controls and procedures. In that
      person's opinion, the disclosure controls and procedures are effective
      and adequate because the systems of controls and procedures are designed
      to
      assure, among other items, that 1) recorded transactions are valid; 2) valid
      transactions are recorded; and 3) transactions are recorded in the proper period
      in a timely manner to produce financial statements which present fairly the
      financial condition, results of operations and cash flows for the respective
      periods being presented. Moreover, the evaluation did not reveal any significant
      deficiencies or material weaknesses in DDI’s disclosure controls and
      procedures.





There
      have been no significant changes in DDI’s internal controls or in other factors
      that could significantly affect these controls since the last
      evaluation.





16
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          of Contents*




**PART
      II. OTHER INFORMATION**





**ITEM
      1. LEGAL PROCEEDINGS**





Securities
      and Exchange Commission v. David M. Wolfson, et al. On
      October 16, 2004 a civil complaint was filed by the Securities and Exchange
      Commission in which Dark Dynamite, Inc. was named as a respondent. The Company’s
      former president Gino Carlucci was also named as a respondent. The suit was
      filed in the United States District Court for the District of Utah and bears
      the
      docket number 2:03CV00914DAK and the style of the case is: “Securities and
      Exchange Commission v. David M. Wolfson; NuWay Holdings, Inc., a Nevada
      corporation; Momentous Group, LLC, a Utah limited liability company; Leeward
      Consulting Group, LLC, a Utah limited liability company; Sukumo Limited, a
      company incorporated in the British Virgin Islands (a.k.a. Sukumo Group, Ltd.,
      Fujiwara Group, First Chartered Capital Corporation, First Colonial Trust,
      First
      China Capital and International Investment Holding); Michael Sydney Newman
      (A.K.A. Marcus Wiseman); Stem Genetics, Inc., a Utah corporation; Howard H.
      Robertson; Gino Carlucci; G & G Capital, LLC an Arizona and Utah limited
      liability company; F10 Oil and Gas Properties, Inc.; Jon H. Marple; Mary E.
      Blake; Jon R. Marple; Grateful Internet Associates, LLC, a Colorado limited
      liability company; Diversified Financial Resources Corporation, a Delaware
      corporation; John Chapman; Valesc Holdings, Inc., a New Jersey corporation;
      Jeremy D. Kraus; Samuel Cohen; Dark Dynamite, Inc., a Nevada corporation. The
      complaint alleges that the Company failed to accurately and fully disclose
      the
      nature of its relationship to The Sukumo Group, Inc., including the failure
      of
      Sukumo to complete the purchase of the shares and alleges that Sukumo acted
      as a
      selling agent for NCIH. The complaint also faults The Sukumo Group Inc.’s
      actions with regard to the sale of common stock to off shore purchasers for
      failing to disclose the interest that Sukumo had in each sale, reporting that
      it
      was taking a 1-2% commission on the sale rather than keeping 70% or more of
      the
      proceeds of each transaction. The Company has agreed to terms of settlement
      with
      the SEC, subject to final approval by the full Commission, providing for a
      cash
      payment in the sum of $30,000 to the SEC and the entry of consent decree
      prohibiting any future violations of the securities laws and regulations.
      Additional financial information in support of the settlement has been requested
      by the SEC and is expected to be supplied shortly after the filing of this
      quarterly report.




Allen
      E. Weintraub vs. Dark Dynamite, Inc. f/k/a Vector Holdings Corporation, a Nevada
      Corporation, Jared D. Gold, Richard D. Surber and Greentree Financial Group,
      Inc., a Florida Corporation d/b/a Bongiovanni & Associates .
      This
      case was filed in the United States District Court, Southern District of
      Florida, and bears the Case No: 05-20384.


Allen
      E.
      Weintraub sold control of the Corporation to Diversified Holdings, Inc., and
      thereafter, falsely claimed he had a secured interest in the unissued stock
      of
      the Company, arising out of contractual obligations pursuant to the Stock
      Exchange Agreement whereby he transferred control.  This
      Complaint is based upon fraudulent documents that Mr. Weintraub alleges create
      additional debts and obligations which have been made the subject of both this
      case and the following litigation pending in the state of Utah. This case also
      raises the same issues filed in a prior state suit in Florida that was dismissed
      by Mr. Weintraub immediately prior to a hearing on the Company’s motion to
      dismiss the claims. Plaintiffs have filed a Motion to Dismiss this suit. A
      hearing date on the Motion is pending.




Dark
      Dynamite, Inc., a Nevada corporation, and Diversified Holdings, Inc.(“DHI”), a
      Utah corporation vs. Allen E. Weintraub, an individual, and Miami Venture
      Capital, Inc., a Florida corporation. This
      case was filed in the Third District Court of Salt Lake County, Utah, and bears
      the Case Number: 050905249 The Company has filed suit against Mr. Weintraub
      for
      breach of contract with respect to matters incidental to the sale of Dark
      Dynamite, including fraud for failure to disclose numerous liabilities of the
      Company prior to its sale to DHI, and his tortuous interference in the Company’s
      business operations. The Company also is seeking an injunction against Weintraub
      and all related entities in an effort to put a stop to this tortuous
      interference and claims based upon his fraudulent actions.





17
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          of Contents*





**ITEM
      2. CHANGES IN SECURITIES AND USE OF PROCEEDS**




Subsequent
        Event:
 
 On
        July
        22, 2005 200,000 restricted shares of the Company’s common stock was issued to
        Diversified Holdings I, Inc. in exchange for a cash investment of $4,002.
        The
        shares were issued in a private transaction pursuant to Section 4(2) of the
        Securities Act of 1933. Richard Surber is the President of Diversified Holdings
        I, Inc. he is the holder or beneficial owner of 5,000,000 shares of the
        Company’s preferred stock.


**ITEM
      5. OTHER INFORMATION**





During
        the quarter ended June 30, 2005 the company has not issued any shares or
        options
        to purchase shares pursuant to its’ S-8 Registration Statement to any
        person.
 
 **Subsequent
        Events**
 
 On
        August
        1, 2005, the Company filed an information schedule with the Securities and
        Exchange Commission reporting that 99% of the authorized votes of the common
        and
        preferred stock of the Company had approved an amendment to the Articles
        of
        Incorporation of Dark Dynamite, Inc. to increase the number of authorized
        common
        shares, par value $0.0001, from five million (5,000,000) to one billion
        (1,000,000,000). The Certificate of Amendment to carry the authorized increase
        in the number of common shares has not yet been filed with the Nevada Secretary
        of State.
 
 On
        August
        15, 2005, the Company and its majority shareholder, Richard Surber, entered
        into
        a binding Letter of Intent (“LOI”) with Shanxi Kai Da Lv You Gu Wen You Xian
        Gong Si (“Kai Da”) a corporation formed according to the laws of the Peoples
        Republic of China. The LOI sets for the terms and conditions upon which control
        of the Company will be acquired by the shareholders of Kai Da through the
        purchase of 4,990,000 shares of the preferred stock of the Company from Surber
        or companies under his control.
 
 The
        LOI
        sets forth the parties intention to complete a Plan of Exchange on or about
        August 29, 2005, at which time the shares of preferred stock will be deposited
        into escrow in exchange for a total cash payment of $495,000 and making Kai
        Da a
        wholly owned subsidiary of the Registrant. Final closing of the exchange
        is
        planned on or about the 28 th of
        September, 2005. At the conclusion of the planned exchange the shareholders
        of
        Kai Da would hold approximately 98% of the voting control of the
        Company.




**ITEM
      6. EXHIBITS AND REPORTS ON FORM 8-K**





(1)
            Exhibits:
                Exhibits required to be attached by Item 601 of Regulation S-B are
                listed
                in the Index to Exhibits Beginning on page 8 of this Form 10-QSB,
                which is
                incorporated herein by reference.




Reports
      on Form 8-K filed subsequent to the end of the quarter




(1)
              On
                  July 29, 2005 the Company filed an 8-K report under Item 3.02,
                  Unregistered Sales of Equity Securities reporting that the company
                  had
                  issued 200,000 restricted shares of the Company’s common stock to
                  Diversified Holdings I, Inc. in exchange for a cash investment
                  in the sum
                  of $4,002. The restricted shares were issued in a private transaction
                  pursuant to Section 4(2) of the Securities Act of
                  1933.
   (2)
              On
                  August 17, 2005, the Company filed an 8-K report under Item 1.01,
                  Entry
                  into a Material Definitive Agreement reporting that the Company
                  and its
                  majority shareholder had entered into a binding Letter of Intent
                  to
                  transfer 4,990,000 shares of the Company’s preferred
                  stock.


18
 *Table
          of Contents*
  **SIGNATURES**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned, there
      unto duly authorized.








DARK
      DYNAMITE, INC.





Date:
      August 22,
      2005                                        /s/
      Jared Gold


Jared
      Gold


CEO,
      CFO and Director







19
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          of Contents*


**INDEX
        TO EXHIBITS**




**Exhibit**  **Page**





No.
            No.
            Description3(i)
            *
            Articles
                of Incorporation of the Company as amended and bylaws are herein
                incorporated by reference from the Company’s Form S-3 filed December 22,
                1995.3(i)
            *
            Articles
                of Incorporation of the Company as amended and incorporated by reference
                from the Company’s Form 8-K filed May 7, 2004.3(i)
            *
            Articles
                of Incorporation of the Company as amended and incorporated by reference
                from the Company’s Schedule 14C filed May 27, 2004.**Material
                Contracts**10
                (x)
            *
            Commercial
                Lease10(xi)
            *
            Sales
                Agreement between Black Chandelier and Belle Sales dated March 11,
                2005,
                for the Los Angeles showroom market, participation fee is $300 per
                month.
                Incorporated by reference from the 10-KSB of DDI for the period ended
                December 31, 2004.10(xii)
            *
            Letter
                of Agreement between Dark Dynamite and MAO Public Relations dated
                April 1,
                2005. Monthly compensation fee is $1,200. Incorporated by reference
                from
                the 10-KSB of DDI for the period ended December 31, 2004.10(xiii)
            15
            Letter
                of Intent, Dated August 15, 2005 between Dark
                Dynamite, Inc. Richard Surber, Shanxi Kai Da Lv You Gu Wen You Xian
                Gong
                Si, Xian Yan Ke and Wei Ping Lei for the sale of 4,990,000 shares
                of the
                preferred stock of Dark Dynamite, Inc.31.1
            16
            Certification
                of Chief Executive Officer and Chief
                Financial Officer.32.1
            17
            Statement
                required by 18 U.S.C. Section 1350, as adopted
                pursuant to section 906 of the Sarbanes-Oxley Act of
                2002.







20