Dci Usa, Inc - The accompanying un-audited interim consolidated...

Dci Usa, Inc - Recent Material Event

Item 1. Financial Statements

Item 2. Management’s Discussion and Analysis or Plan of Operation

Item 3. Controls and Procedures

PART II - Other Information

Item 1. Legal Proceedings

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

Item 3. Defaults Upon Senior Securities

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

Item 5. Other Information

Item 6. Exhibits

SIGNATURES

PART 1

FINANCIAL INFORMATION

Item 1. Financial Statements.

DCI USA, INC.

For the quarterly period ended September 30, 2007

DCI USA, INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page(s)

Consolidated Balance Sheets as of September 30, 2007 (unaudited) and
December 31, 2006 (audited)	F-2 - F-3

Consolidated Statements of Operations for the three and nine months ended
September 30, 2007 (unaudited) and 2006 (unaudited)	F-4

Consolidated Statements of Cash Flows for the nine months ended September 30, 2007
(unaudited) and 2006 (unaudited)	F-5

Notes to Consolidated Financial Statements	F-6 - F-13

F-1

DCI USA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30,		December 31,
	2007		2006
	(unaudited)		(audited)
ASSETS
Current Assets:
Cash	$	10,123	$	74,755
Prepaid expense		-		8,002
Interest receivable -related party		11,920		8,798
Interest receivable		2,449		-
Loan receivable- related party		324,297		55,000
Loan receivable - Gunther		-		630,000
Note receivable - net of discount		-		142,485
Loan receivable - Senergy		100,000		-
Total current assets		448,789		919,040

Fixed assets, net		2,707		3,225

Investment in 231 NAPD		1,294,197		1,355,998
Investment in ARI, Ltd.		2,346,228		-
Goodwill		219,589		-
Noncurrent notes receivable		-		70,000

Total assets	$	4,311,510	$	2,348,263

See accompanying notes to consolidated financial statements.

F-2

DCI USA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - (CONTINUED)

	September 30,			December 31,
	2007			2006
	(unaudited)			(audited)
LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Short-term bank credit	$	13,410		$	-
Loan payable - Hypothicators		334,875			400,000
Loan payable - officer		913,963			-
Accounts payable and accrued expenses		123,367			63,200
Accrued interest		84,512			20,620
Due to ARI, Ltd.		144,292			-
Amount due on option to repurchase common
stock, current		-			81,768
Convertible notes		465,000			465,000
Convertible debentures		600,000			600,000
Current maturities of long term bank loan		155,418			-
Total current liabilities		2,834,837			1,630,588

Commitments and contingencies

Long term bank loan		1,270,461			-
Amount due on option to repurchase common stock, net
of current		-			30,732

Total liabilities	$	4,105,298		$	1,661,320

Stockholders' equity
Preferred Stock, par value $.001, authorized 1,000,000
shares Series A Preferred, 200,000 shares
authorized none issued and outstanding		-			-
Common Stock, par value $.001,authorized 100,000,000
shares; 53,917,681 shares issued, and
53,554,801 shares outstanding as of September 30,
2007; 53,292,681 shares issued and outstanding as of
December 31, 2006		53,917			53,292
Additional paid-in-capital		2,852,802			2,526,671
Accumulated deficit		(2,618,859	)		(1,893,020	)
Treasury stock, at per - 362,880 common stock shares		(81,648	)
Total stockholders' equity		206,212			686,943

Total liabilities and stockholders' equity	$	4,311,510		$	2,348,263

See accompanying notes to consolidated financial statements.

F-3

DCI USA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months ended September 30,

Three Months ended September 30,

2007

2006

2007

2006