UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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 ~~April~~October 3031, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _________ to _________

Commission file number: 333-192135

DIAMOND TECHNOLOGY ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)






Delaware		46-2076629
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

37 West 47^th Street, #1301

New York, New York 10036

(Address of principal executive offices) (zip code)

(212) 382-2104

(Registrant’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 ¨ ~~Nox~~

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ~~Yesx No~~Yes ¨ No x

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.





Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x
(Do not check if a smaller reporting company)

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 ~~June~~January 154, ~~2015~~2016, there were 68,815,000 shares of registrant’s common stock outstanding.

DIAMOND TECHNOLOGY ENTERPRISES, INC.

INDEX

PART I.	FINANCIAL INFORMATION
	ITEM 1	~~Financial Statements~~	Financial Statements
		Condensed balance sheets as of April 30, 2015 (unaudited) and July 31, 2014	3
			Condensed balance sheets as of October 31, 2015 (unaudited) and July 31, 2015	1
		Condensed statements of operations for the three and nine months ended April 30, 2015 and 2014 (unaudited)	4
			Condensed statements of operations for the three months ended October 31, 2015 and 2014 (unaudited)	2
		Condensed statements of cash flows for the nine months ended April 30, 2015 and 2014 (unaudited)	5
			Condensed statements of cash flows for the three months ended October 31, 2015 and 2014 (unaudited)	3
		~~Notes to condensed financial statements (unaudited)~~	~~6-10~~Notes to condensed financial statements (unaudited)	4-8
	ITEM 2.	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~	~~10-16~~Management’s Discussion and Analysis of Financial Condition and Results of Operations	9-13
	ITEM 3.	~~Quantitative and Qualitative Disclosures about Market Risk~~	16Quantitative and Qualitative Disclosures about Market Risk	14
	ITEM 4.	~~Controls and Procedures~~	16Controls and Procedures	14
PART II.	OTHER INFORMATION
	ITEM 1.	~~Legal Proceedings~~	17Legal Proceedings	15
	ITEM 1A.	~~Risk Factors~~	17Risk Factors	15
	ITEM 2.	~~Unregistered Sales of Equity Securities and Use of Proceeds~~	17Unregistered Sales of Equity Securities and Use of Proceeds	15
	ITEM 3.	~~Defaults Upon Senior Securities~~	17Defaults Upon Senior Securities	15
	ITEM 4.	~~Mine Safety Disclosures~~	17Mine Safety Disclosures	15
	ITEM 5.	~~Other Information~~	17Other Information	15
	ITEM 6.	~~Exhibits~~	18Exhibits	15
	SIGNATURES		19	16

DIAMOND TECHNOLOGY ENTERPRISES, INC.
CONDENSED BALANCE SHEETS
	April 30,	July 31,
	2015	2014
	(unaudited)
ASSETS
Current assets:
Cash	$ 211,560	$ 38,777
Prepaid supplies and expenses	4,746	5,199
Total current assets	216,306	43,976
Property and equipment, net	756,749	867,875
Deposits	23,262	23,262
Total assets	$ 996,317	$ 935,113
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable and accrued expenses, $534,067 and $5,061 related party	$ 675,993	$ 186,693
Joint venture obligation (Note 3)	225,000	-
Stock based payable	-	200,000
Advances, related party	-	51,566
Total current liabilities	900,993	438,259
Long term liabilities
Deferred rent, long term	12,448	11,554
Long term debt	193,283	136,376
Long term debt, related party	642,747	315,765
Total long term liabilities	848,478	463,695
Total liabilities	1,749,471	901,954
Stockholders' (deficit) equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized
Series A Convertible Preferred stock, 1,000,000 shares designated, 1,000,000 shares issued and outstanding as of April 30, 2015 and July 31, 2014	100	100
Common stock, $0.0001 par value; 240,000,000 shares authorized, 69,575,000 and 67,575,000 shares issued and 68,815,000 and 66,815,000 shares outstanding as of April 30, 2015 and July 31, 2014, respectively	6,958	6,758
Common stock subscription	400	400
Additional paid in capital	1,778,511	1,578,711
Treasury stock (760,000 shares)	(76)	(76)
Accumulated deficit	(2,539,047)	(1,552,734)
Total stockholders' (deficit) equity	(753,154)	33,159
Total liabilities and stockholders' (deficit) equity	$ 996,317	$ 935,113
The accompanying notes are an integral part of these unaudited condensed financial statements

PART I – FINANCIAL INFORMATION

DIAMOND TECHNOLOGY ENTERPRISES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
	Three months ended April 30,		Nine months ended April 30,
	2015	2014	2015	2014
OPERATING EXPENSES:
Selling, general and administrative expenses	$ 223,979	$ 151,122	$ 825,512	$ 407,834
Depreciation	46,949	1,112	141,382	1,112
Total operating expenses	270,928	152,234	966,894	408,946
Loss from Operations	(270,928)	(152,234)	(966,894)	(408,946)
Other expenses:
Interest expense	(7,207)	(2,250)	(19,420)	(2,924)
Loss before income taxes	(278,134)	(154,484)	(986,313)	(411,870)
Income taxes (benefit)	-	-	-	-
Net loss	$ (278,134)	$ (154,484)	$ (986,313)	$ (411,870)
Loss per common share, basic and diluted
	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.01)
Weighted average number of common shares outstanding, basic and diluted	68,815,000	67,575,000	68,771,044	42,775,326
The accompanying notes are an integral part of these unaudited condensed financial statements

ITEM 1. FINANCIAL STATEMENTS

DIAMOND TECHNOLOGY ENTERPRISES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
CONDENSED BALANCE SHEETS
(unaudited)
	October 31,	July 31,
	Nine months ended April 30,
	2015	2015
	2015	2014
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
ASSETS
Net loss	$ (986,313)	$ (411,870)
Current assets:
Adjustments to reconcile net loss to net cash used in operating activities:
Cash	$ 1,925	$ 102,181
Depreciation	141,382	1,112
Inventory	219,217	106,560
Preferred and common stock issued to founders	-	360
Prepaid supplies and expenses	8,408	2,319
Common stock to be issued for services	-	66,100
Total current assets	229,550	211,060
Operating expenses incurred by related party on behalf of Company	4,354	-
Property and equipment, net	663,650	710,627
Changes in operating assets and liabilities:
Deposits	23,262	23,262
Prepaid expenses and supplies	453	(60,000)
Total assets	$ 916,462	$ 944,949
Accounts payable and accrued expenses	489,300	81,529
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Stock based payable	-	158,356
Current liabilities:
Joint venture obligation	225,000	-
Accounts payable and accrued expenses, $724,097 and $629,922 related party	$ 847,915	$ 740,109
Deferred rent	894	5,625
Notes payable, short term portion	59,687	58,187
Net cash used in operating activities	(124,930)	(158,788)
Joint venture obligation (Note 3)	250,000	250,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances, related party	29,174	18,946
Payment of long term deposit	-	(23,262)
Total current liabilities	1,186,776	1,067,242
Purchase of property and equipment	(18,256)	(47,910)
Long term liabilities
Net cash used in investing activities	(18,256)	(71,172)
Deferred rent, long term	12,400	12,424
CASH FLOWS FROM FINANCING ACTIVITIES:
Notes payable, long term portion	136,376	136,376
Proceeds from sale of common stock	-	5,100
Notes payable-related party, long term portion	741,788	692,947
Proceeds from related party advances	-	5,313
Total long term liabilities	890,564	841,747
Proceeds from notes payable	56,907	83,936
Total liabilities	2,077,340	1,908,989
Proceeds from related party notes payable	259,062	145,750
Stockholders’ deficit:
Net cash provided by financing activities	315,969	240,099
Preferred stock, $0.0001 par value; 10,000,000 shares authorized
Net increase in cash	172,783	10,139
Series A Convertible Preferred stock, 1,000,000 shares designated, 1,000,000 shares issued and outstanding as of October 31, 2015 and July 31, 2015	100	100
Cash, beginning of period	38,777	10,586
Common stock, $0.0001 par value; 240,000,000 shares authorized, 69,575,000 shares issued and 68,815,000 shares outstanding as of October 31, 2015 and July 31, 2015	6,958	6,958
Cash, end of period	$ 211,560	$ 20,725
Common stock subscription	400	400
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Additional paid in capital	1,778,511	1,778,511
Interest paid	$ -	$ -
Treasury stock (760,000 shares)	(76)	(76)
Income taxes paid	$ -	$ -
Accumulated deficit	(2,946,771)	(2,749,933)
Non-cash investing and financing activities:
Total stockholders’ deficit	(1,160,878)	(964,040)
Common stock issued for services rendered in prior year	$ 200,000	$ -
Total liabilities and stockholders’ deficit	$ 916,462	$ 944,949
Equipment acquired by related party on behalf of Company	$ 12,000	$ -
Note payable, related party issued to acquire prepaid supplies and expenses	$ -	$ 136,015
The accompanying notes are an integral part of these unaudited condensed financial statements

~~NOTE~~ 1 ~~– SIGNIFICANT ACCOUNTING POLICIES~~

A summary of the significant accounting policies applied in the presentation of the accompanying unaudited financial statements follows:


DIAMOND TECHNOLOGY ENTERPRISES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)

	Three months ended October 31,
	2015	2014
REVENUE:
Sales	$ 119,500	$ -
Cost of sales	125,818	51,725

Gross loss	(6,318)	(51,725)

OPERATING EXPENSES:
Selling, general and administrative expenses	175,883	187,721
Depreciation	4,167	4,264

Total operating expenses	180,050	191,985

Loss from Operations	(186,368)	(243,710)

Other expenses:
Interest expense	(10,469)	(6,005)

Loss before income taxes	(196,838)	(249,715)

Income taxes (benefit)	-	-

Net loss	$ (196,838)	$ (249,715)

Loss per common share, basic and diluted
	$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding, basic and diluted	68,815,000	68,684,565

The accompanying notes are an integral part of these unaudited condensed financial statements

~~General~~2

The following (a) balance sheets as of April 30, 2015 (unaudited) and July 31, 2014, which have been derived from audited financial statements, and (b) the unaudited interim statements of operations and cash flows of Diamond Technology Enterprises, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended April 30, 2015 are not necessarily indicative of results that may be expected for the year ending July 31, 2015. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended July 31, 2014 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on November 13, 2014.


DIAMOND TECHNOLOGY ENTERPRISES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)

	Three months ended October 31,
	2015	2014


CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (196,838)	$ (249,715)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	46,977	46,989
Operating expenses incurred by related party on behalf of Company	10,228	4,354
Changes in operating assets and liabilities:
Inventory	(112,657)	-
Prepaid expenses and supplies	(6,089)	151
Accounts payable and accrued expenses	107,806	80,135
Deferred rent	(24)	303
Net cash used in operating activities	(150,597)	(117,783)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	-	(14,890)
Net cash used in investing activities	-	(14,890)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	1,500	-
Proceeds from related party notes payable	48,841	103,400
Net cash provided by financing activities	50,341	103,400

Net decrease in cash	(100,256)	(29,273)
Cash, beginning of period	102,181	38,777

Cash, end of period	$ 1,925	$ 9,504

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Interest paid	$ -	$ -
Income taxes paid	$ -	$ -

Non-cash investing and financing activities:
Common stock issued for services rendered in prior year	$ -	$ 200,000
Equipment acquired by related party on behalf of Company	$ -	$ 12,000

The accompanying notes are an integral part of these unaudited condensed financial statements

~~Basis of presentation~~3

~~The~~DIAMOND ~~Company~~TECHNOLOGY ~~was incorporated on January 14~~ENTERPRISES, ~~2013 under the laws of the State of Delaware~~INC. The Company is headquartered in New York and was organized for the purpose of producing higher quality diamonds via the use of proprietary high pressure high temperature (HPHT) heat pressure processes.

~~Liquidity~~NOTES ~~and~~TO ~~Going~~CONDENSED ~~Concern~~FINANCIAL STATEMENTS

AsOCTOBER ~~the Company is devoting substantially all of its efforts to establishing a new business~~31, ~~and planned principal operations have not yet commenced. There has been no revenue generated from sales, license fees or royalties.~~2015

The Company's primary efforts are devoted to establishing operations and developing customer relationships. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. In addition, the Company will require additional financing to fund future operations. The Company intends to raise additional capital to complete the development and commercialization of its current product through equity or debt financing; however the Company does not have any commitments or definitive or binding arrangements for such funds. There can be no assurance that such funds, if available at all, can be obtained on terms reasonable to the Company. If the Company is unsuccessful in raising additional capital it will need to reduce costs and operations substantially. (unaudited)

~~The~~NOTE ~~above~~1 ~~factors~~– ~~raise~~SIGNIFICANT ~~substantial~~ACCOUNTING doubt as to the Company's ability to continue as a going concern. The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that may result from the outcome of this uncertainty.POLICIES

~~Use~~A summary of ~~estimates~~the significant accounting policies applied in the presentation of the accompanying unaudited financial statements follows:

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the useful life of fixed assets and assumptions used in the fair value of stock-based compensation.General

~~Cash~~The following (a) balance sheets as of October 31, 2015 (unaudited) and ~~Cash~~July ~~Equivalents~~31, 2015, which have been derived from audited financial statements, and (b) the unaudited interim statements of operations and cash flows of Diamond Technology Enterprises, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 2015 are not necessarily indicative of results that may be expected for the year ending July 31, 2016. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended July 31, 2015 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on December 22, 2015.

~~The~~Basis ~~Company considers financial instruments with an original maturity date~~ of ~~three months or less to be cash equivalents.~~presentation

~~Research~~The Company was incorporated on January 14, 2013 under the laws of the State of Delaware. The Company is headquartered in New York and ~~Development~~was ~~Cost~~organized for the purpose of producing higher quality diamonds via the use of proprietary high pressure high temperature (“HPHT”) processes.

~~The~~Liquidity ~~Company accounts for research~~ and ~~development~~Going ~~cost~~Concern in accordance with the Accounting Standard Codification subtopic 730-10, Research and Development (“ASC730-10”).Under ASC 730-10, all research and development costs must be charged to expenses as incurred. Accordingly, internal research and development costs are expensed as incurred. Third party research and development cost are expenses when constructed work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company did not incur research and development expenses for the three and nine months ended April 30, 2015 and 2014.

~~Property,~~As ~~plant~~the Company is devoting substantially all of its efforts to establishing a new business, and ~~equipment~~planned principal operations has just recently commenced. There has been minimal revenue generated from sales, license fees or royalties.

~~Property,~~The ~~plant~~Company’s ~~and~~primary ~~equipment~~efforts are ~~carried~~devoted atto ~~cost~~establishing ~~less~~operations ~~accumulated~~and ~~depreciation~~developing ~~and~~customer ~~amortization~~relationships. ~~Depreciation~~The Company has experienced net losses and ~~amortization~~negative ~~are~~cash ~~calculated~~flows ~~using~~from ~~the~~operations ~~straight-line~~since ~~method~~inception ~~over~~and expects these conditions to continue for the ~~estimated~~foreseeable ~~useful~~future. ~~lives~~In ofaddition, the ~~assets~~Company will require additional financing to fund future operations. ~~Gains~~The ~~and~~Company ~~losses~~intends ~~from~~to raise additional capital to complete the ~~retirement~~development orand ~~disposition~~commercialization of ~~property~~its ~~and~~current ~~equipment~~product ~~are~~through ~~included~~equity inor ~~operations~~debt infinancing; however the ~~period~~Company ~~incurred~~does not have any commitments or definitive or binding arrangements for such funds. ~~Maintenance~~There ~~and~~can ~~repairs~~be ~~are~~no ~~expensed~~assurance asthat ~~incurred~~such funds, if available at all, can be obtained on terms reasonable to the Company. If the Company is unsuccessful in raising additional capital it will need to reduce costs and operations substantially.

~~Income~~The ~~taxes~~above factors raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that may result from the outcome of this uncertainty.

~~Deferred~~Use ~~income tax assets and liabilities are determined based on the estimated future tax effects~~ of net operating loss and credit carry-forwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.estimates

The ~~Company~~preparation ~~recognizes~~of afinancial ~~tax~~statements ~~benefit~~in ~~from~~accordance anwith ~~uncertain~~accounting ~~tax~~principles ~~position~~generally ~~only~~accepted ifin itthe isUnited ~~more~~States ~~likely~~requires ~~than~~management ~~not~~to ~~that~~make ~~the~~estimates ~~tax~~and ~~position~~assumptions ~~will~~that beaffect ~~sustained~~the onreported ~~examination~~amounts byof ~~taxing~~assets ~~authorities,~~and ~~based~~liabilities onand ~~the~~disclosures ~~technical merits~~ of ~~the~~contingent ~~position.~~assets ~~The~~and ~~tax~~liabilities ~~benefits~~at ~~recognized~~the indate of the financial statements, ~~from~~and ~~such~~the areported ~~position~~amounts ~~are~~of ~~measured~~revenues ~~based~~and onexpenses during the ~~largest~~reporting ~~benefit~~period. ~~that~~Actual ~~has~~results acould ~~greater~~differ ~~than~~from ~~50%~~those ~~likelihood~~estimates. ofSignificant ~~being~~estimates ~~realized~~include ~~upon~~the ~~ultimate~~useful ~~settlement.~~life As of ~~April~~fixed ~~30,~~assets ~~2015~~ and ~~July~~assumptions ~~31,~~used ~~2014,~~in the ~~Company~~fair ~~has~~value ~~not~~of ~~recorded~~stock-based ~~any unrecognized tax benefits~~compensation.

~~Stock Based Compensation~~4

~~All~~Cash ~~stock-based payments to employees~~ and toCash nonemployee directors for their services as directors, including any grants of restricted stock and stock options, are measured at fair value on the grant date and recognized in the statements of operations as compensation or other expense over the relevant service period. Stock-based payments to nonemployees are recognized as an expense over the period of performance. Such payments are measured at fair value at the earlier of the date a performance commitment is reached or the date performance is completed. In addition, for awards that vest immediately and are non-forfeitable the measurement date is the date the award is issued. Equivalents

~~Revenue~~The ~~Recognition~~Company considers financial instruments with an original maturity date of three months or less to be cash equivalents.

~~The Company will recognize revenue in accordance with Accounting Standards Codification subtopic 605-10,~~ Revenue Recognition (“ASC 605-10”) which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts.

~~Net~~The ~~Income~~Company will recognize revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition (~~loss~~“ASC 605-10”) ~~Per~~which ~~Common~~requires ~~Share~~that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts.

~~The~~During ~~Company computes earnings (loss) per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net loss per common share is computed by dividing net loss by~~ the ~~weighted~~three ~~average~~months ~~number~~ended ofOctober shares of common stock outstanding during the year. Diluted net income (loss) per share is computed using the weighted average number of common and common stock equivalent shares outstanding during the period. As of April 3031, 2015 ~~and 2014~~, ~~shares~~sales ~~issuable~~were ~~upon~~comprised ~~conversion~~ of ~~preferred~~higher ~~stock~~quality ~~were~~diamonds ~~excluded~~processed asthrough ~~common stock equivalents in~~ the ~~diluted~~Company’s ~~loss~~HPHT ~~per~~manufacturing ~~share~~process ~~because~~and ~~their~~rough ~~effect~~white isdiamond ~~anti-dilutive~~stones.

~~Fair~~Inventory ~~Value of Financial Instruments~~

~~Accounting~~The ~~Standards~~Company ~~Codification~~maintains ~~subtopic~~an ~~825-10~~inventory, ~~Financial~~which ~~Instruments~~consists ~~(“ASC~~primarily ~~825-10”) requires disclosure~~ of ~~the~~uncut ~~fair~~lower ~~value~~grade ofraw ~~certain~~diamonds ~~financial~~to ~~instruments.~~be ~~The~~used ~~carrying value of cash and cash equivalents, accounts payable and accrued liabilities, and short-term borrowings,~~ as ~~reflected~~raw materials in the ~~balance~~production ~~sheets,~~process ~~approximate~~and ~~fair~~rough ~~value~~white ~~because~~stone ~~of the short-term maturity of these instruments~~diamonds. ~~All~~The ~~other~~average ~~significant~~cost ~~financial~~method ~~assets,~~is ~~financial~~utilized ~~liabilities~~in ~~and~~valuing ~~equity instruments of~~ the ~~Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows~~inventory, ~~interest rate risk~~ and ~~credit~~is ~~risk.~~stated ~~Where~~at ~~practicable~~ the ~~fair~~lower ~~values~~ of ~~financial~~cost ~~assets~~or ~~and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed~~market.

~~Recent~~As ~~Accounting~~of ~~Pronouncements~~October 31, 2015 and July 31, 2015, the Company’s inventory, comprised of lower grade raw diamonds, was $219,217 and $106,560, respectively.

~~There~~Cost ~~are various updates recently issued, most~~ of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.sales

~~NOTE~~Cost 2-of ~~PROPERTY~~sales ~~AND~~is ~~EQUIPMENT~~comprised of cost of raw materials sold, factory supplies, rent, other costs and manufacturing equipment depreciation.

~~Property, plant and equipment at April 30, 2015 and July 31, 2014 are as follows:~~ Concentrations

	April 30, 2015			July 31, 2014
Machinery and equipment	$	856,166		$	854,496
Office furniture		14,070			14,070
Office equipment		10,668			9,511
Computers		4,094			2,023
Leasehold improvements		60,067			34,709
		945,065			914,809
Less: accumulated depreciation		(188,316	)		(46,934	)
	$	756,749		$	867,875

The Company's revenues earned from sales of products for the three months ended October 31, 2015 included an aggregate of 100% of the Company's total revenues from one customer. The Company purchased 100% of its cost of goods sold from one vendor during the three months ended October 31, 2015.

~~During the three months and nine months ended April 30~~Property, ~~2015,~~plant ~~depreciation expense charged to operations was $46,949~~ and ~~$141,382, respectively.During the three months and nine months ended April 30, 2014, depreciation expense charged to operations was $1,112 and $1,112, respectively.~~equipment

~~NOTE~~Property, 3plant ~~–JOINT~~and ~~VENTURE~~equipment ~~OBLIGATION~~are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Gains and losses from the retirement or disposition of property and equipment are included in operations in the period incurred. Maintenance and repairs are expensed as incurred.

OnIncome March 12, 2015, the Company entered a Joint Venture agreement to provide working capital for the purchase of rough brown vs+ diamonds, cut and polishing services and related expenses in exchange for net 25% of the gross profit realized from the sale of the final product. The minimum term of the agreement is for processing a minimum of 24,160 carats. In connection with Joint Venture agreement, the Company received $225,000 in working capital through April 30, 2015 and an additional $25,000 in May 2015 (aggregate total of $250,000) and is required to i) purchase or lease a portable diamond analyzer machine, ii) acquire rough or polished brown, vs+ diamond stones, iii) incur costs of cutting and polishing and iv) pay costs of insurance for stones while in transit.taxes

~~The~~Deferred ~~Joint~~income ~~Venture~~tax ~~agreement~~assets ~~provides~~and ~~for~~liabilities ~~the~~are ~~investing~~determined ~~partner~~based toon ~~reinvest~~the ~~their~~estimated ~~pro~~future ~~rata~~tax ~~share~~effects of net operating loss and credit carry-forwards and temporary differences between the ~~sales~~tax ~~proceeds~~basis toof ~~acquire~~assets ~~additional~~and ~~carats~~liabilities ~~until~~and their respective financial reporting amounts measured at athe ~~minimum~~current ofenacted ~~24,160~~tax ~~carats~~rates. ~~are~~The ~~processed~~Company ~~and~~records ~~sold~~an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.

~~NOTE~~The 4–Company ~~ACCOUNTS~~recognizes ~~PAYABLE~~a ~~AND~~tax ~~ACCRUED~~benefit ~~LIABILITIES~~from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of October 31, 2015 and July 31, 2015, the Company has not recorded any unrecognized tax benefits.

~~As of April 30, 2015 accounts payable and accrued liabilities for the period ending are comprised primarily of accrued professional fees and accrued compensation.~~5

~~NOTE~~Stock 5–Based ~~NOTES PAYABLE, RELATED PARTY~~Compensation

~~From~~All ~~October~~stock-based ~~25,~~payments ~~2013~~to ~~through~~employees ~~April~~and 27to nonemployee directors for their services as directors, ~~2015~~including any grants of restricted stock and stock options, are measured at fair value on the ~~Company~~grant ~~issued~~date anand ~~aggregate~~recognized in the statements of ~~$542,747~~operations ~~unsecured~~as ~~notes~~compensation ~~payable~~or toother ~~Eduard~~expense ~~Musheyev,~~over the ~~Company’s~~relevant ~~Chief~~service ~~Executive~~period. ~~Officer~~Stock-based ~~for~~payments ~~cash~~to ~~advances~~nonemployees ~~and~~are ~~purchases~~recognized onas an expense over the ~~Company’s~~period ~~behalf~~of performance. ~~The~~ ~~notes~~Such ~~bear~~payments 4%are ~~per~~measured ~~annum~~at ~~interest~~fair value at the earlier of the date a performance commitment is reached or the date performance is completed. In addition, ~~payable~~for ~~monthly~~awards inthat ~~arrears~~vest immediately and are ~~due~~non-forfeitable ~~five~~the ~~years~~measurement ~~from~~date is the date ofthe ~~issuance~~award is issued.

InNet ~~August~~Income ~~2014,~~(loss) ~~the~~Per ~~Company~~Common issued two unsecured notes payable to Alexander Musheyev, a family member of the Company’s Chief Executive Officer for cash advances in aggregate of $100,000. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.Share

The Company ~~accrued~~computes ~~and~~earnings ~~recorded~~(loss) asper ~~current~~share ~~year~~under ~~expenses~~Accounting ~~$5,534~~Standards ~~and~~Codification ~~$14~~subtopic 260-10,~~998~~ asEarnings ~~related~~Per ~~party~~Share ~~interest~~(“ASC ~~for~~260-10”). Net loss per common share is computed by dividing net loss by the ~~three~~weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per share is computed using the weighted average number of common and ~~nine~~common ~~months~~stock ~~ended~~equivalent ~~April~~shares 30outstanding during the period. As of October 31, 2015 and 2014, ~~respectively.~~shares issuable upon conversion of preferred stock were excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive.

~~NOTE~~Fair 6–Value ~~NOTES~~of ~~PAYABLE~~Financial Instruments

~~From~~Accounting ~~February~~Standards 12Codification subtopic 825-10, ~~2014~~Financial ~~through~~Instruments ~~July~~(“ASC ~~29,~~825-10”) ~~2014,~~requires ~~the~~disclosure ~~Company~~of ~~issued~~the anfair ~~aggregate~~value of ~~$136,376~~certain ~~unsecured~~financial ~~notes payable~~instruments. The ~~notes~~carrying ~~bear~~value 4%of ~~per~~cash ~~annum~~and ~~interest~~cash equivalents, accounts payable ~~monthly~~and accrued liabilities, and short-term borrowings, as reflected in ~~arrears~~the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are ~~due~~either ~~five~~recognized ~~years~~or ~~from~~disclosed in the financial ~~date~~statements together with other information relevant for making a reasonable assessment of ~~issuance~~future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

~~From~~Reclassifications December 29, 2014 through April 15, 2015, the Company issued an aggregate of $56,907 unsecured promissory notes payable. The notes bear 4% per annum interest, payable monthly in arrears and are due June 1, 2016.

~~The~~Certain ~~Company~~accounts ~~recorded~~in ~~$1,600~~the ~~and~~prior ~~$4,349~~period asconsolidated ~~interest~~financial ~~expense~~statements have been reclassified for comparison purposes to conform to the ~~three~~presentation ~~and~~of ~~nine~~the ~~months~~current ~~ended~~period ~~April~~consolidated ~~30,~~financial ~~2015~~statements. These reclassifications had no effect on the previously reported net loss.

~~NOTE~~Recent 7–Accounting ~~RELATED PARTY TRANSACTIONS~~Pronouncements

~~The~~There ~~Company’s~~are ~~officers~~various ~~and~~updates ~~shareholders~~recently ~~have~~issued, ~~contributed~~most ~~capital~~of which represented technical corrections to the ~~Company~~accounting ~~for~~literature ~~working~~or ~~capital~~application ~~purposes. As~~to ofspecific ~~April~~industries ~~30,~~and ~~2015~~are ~~and~~not ~~July~~expected ~~31,~~to ~~2014,~~a ~~advances~~have ~~from~~a ~~related~~material ~~party~~impact ~~were~~on ~~$-0-~~the ~~and~~Company’s ~~$51~~financial position,~~566,~~ ~~respectively. These~~results ~~are~~of ~~interest~~operations ~~free~~or ~~advances~~cash flows.

NOTE 82- ~~STOCKHOLDERS~~PROPERTY ~~EQUITY~~AND EQUIPMENT

~~Stock~~Property, ~~based~~plant ~~payable~~and equipment at October 31, 2015 and July 31, 2015 are as follows:

In connection with a service agreement dated August 6, 2013, as amended, the Company is obligated to issue



	October 31, 2015			July 31, 2015
Machinery and equipment	$	857,021		$	857,021
Office furniture		14,070			14,070
Office equipment		10,668			10,668
Computers		4,094			4,094
Leasehold improvements		60,067			60,067
		945,920			945,920
Less: accumulated depreciation		(282,270	)		(235,293	)
	$	663,650		$	710,627

a)During ~~Upon execution,~~ the ~~Company~~three ~~shall~~months ~~issue~~ended toOctober ~~Mortman~~31, or2015 ~~his~~and ~~designee~~2014, ~~that~~depreciation ~~number~~expense ofcharged ~~shares~~to ~~("Equity~~operations ~~Compensation")~~was of$46,977 ~~the~~and ~~Company's~~$46,989, ~~Common~~respectively; ~~Shares~~of ~~representing~~which 2%$42,810 orand ~~Two~~$42,725 ~~Million~~was ~~shares~~included ~~ownership~~as ~~interest~~part ~~(whichever~~of iscost ~~greater)~~of ~~in the Company on a fully diluted basis~~sales.

b) One year following the date hereof, as additional consideration for Mortman's performance of the consulting services and executive duties hereunder, the Company shall issue to Mortman or his designee that number of shares of the Company's Common Stock representing an additional 2% or Two Million shares of ownership interest (whichever is greater) in the Company on a fully diluted basis.6

OnNOTE ~~August~~3 6,–JOINT ~~2014,~~VENTURE the Company issued 2,000,000 shares of its common stock in accordance with the term of the service agreement. The fair value of the common stock was previously accrued during the year ended July 31, 2014. OBLIGATION

On March 12, 2015, the Company entered a Joint Venture agreement to provide working capital for the purchase of rough brown VS+ diamonds, cut and polishing services and related expenses in exchange for net 50% of the gross profit realized from the sale of the final product. The minimum term of the agreement is for processing a minimum of 24,160 carats. In connection with Joint Venture agreement, the Company received $250,000 in working capital through October 31, 2015 and is required to i) purchase or lease a portable diamond analyzer machine, ii) acquire rough or polished brown, VS+ diamond stones, iii) incur costs of cutting and polishing and iv) pay costs of insurance for stones while in transit.

The Joint Venture agreement provides for the investing partner to reinvest their pro rata share of the sales proceeds to acquire additional carats until at a minimum of 24,160 carats are processed and sold.

NOTE 4– ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

As of October 31, 2015 and July 31, 2015, accounts payable and accrued liabilities for the period ending are comprised primarily of accrued professional fees and accrued compensation.

NOTE 5– NOTES PAYABLE, RELATED PARTY

From October 25, 2013 through October 28, 2015, the Company issued an aggregate of $636,788 unsecured notes payable to Eduard Musheyev, the Company’s Chief Executive Officer for cash advances and purchases on the Company’s behalf. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.

From August 2014 through July 2015, the Company issued three unsecured notes payable to Alexander Musheyev, a family member of the Company’s Chief Executive Officer for cash advances in aggregate of $105,000. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.

The Company accrued and recorded as current period expenses $7,175 and $4,713 as related party interest for the three months ended October 31, 2015 and 2014, respectively.

NOTE 6– NOTES PAYABLE

From February 12, 2014 through July 29, 2014, the Company issued an aggregate of $136,376 unsecured notes payable. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.

From December 29, 2014 through October 31, 2015, the Company issued an aggregate of $59,687 unsecured promissory notes payable. The notes bear 4% per annum interest, payable monthly in arrears and are due June 1, 2016 through October 23, 2016.

The Company recorded $1,963 and $1,375 as interest expense for the three months ended October 31, 2015 and 2014, respectively.

NOTE 7– RELATED PARTY TRANSACTIONS

The Company’s officers and shareholders have contributed capital to the Company for working capital purposes. As of October 31, 2015 and July 31, 2015, advances from related party were $29,174 and $18,946; respectively. These are interest free advances.

At the formation of the Company agreed to issue to Nikitin Vadim Vladimirovich 34,500,000 shares of common stock upon the fulfillment of his obligations to the Company. His obligations consist of facilitating the acquisition of the additional machines needed to increase production (up to 50 more machines) and to ensure the adaption of the machines for our purposes. Based upon his removal from the Board of Directors, the Company believes that this obligation is terminated.

As of October 31, 2015, an aggregate of $691,067 of accrued consulting fees due to officers for services.

NOTE 8 – SUBSEQUENT EVENTS

On November 2, 2015, the Company issued four convertible debentures in aggregate of $110,109. The debentures accrue interest at 6% per annum with principal and interest due May 2, 2016.

At the note holder’s option, if the Company fails to pay any principal and/or accrued interest on May 2, 2016 (or after acceleration due to default), the note holder may choose to have all or any part of the outstanding principal and accrued interest repaid in shares of the Company’s common stock at a conversion rate of 50% of the closing bid price on the day of conversion.

On December 22, 2015, the Company issued a $3,000 convertible promissory note due June 22, 2016 with interest at 4% per annum, due at maturity.

The promissory note is convertible, holder’s option, should the Company fail to pay any principal or interest when due on June 22, 2016 at a conversion rate of 50% of the closing bid price on the day of conversion.

DIAMOND TECHNOLOGY ENTERPRISES, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

OCTOBER 31, 2015

(unaudited)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management'’s Discussion and Analysis of Financial Condition and Results of Operations includes a number of forward-looking statements that reflect Management'’s current views with respect to future events and financial performance. You can identify these statements by forward-looking words such as “may,”“will,”“expect,”“anticipate,”“believe,”“estimate” and “continue,” or similar words. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission. Important factors currently known to Management could cause actual results to differ materially from those in forward-looking statements. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the future operating results over time. We believe that our assumptions are based upon reasonable data derived from and known about our business and operations. No assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions. Factors that could cause differences include, but are not limited to, expected market demand for our products, fluctuations in pricing for materials, and competition.

Business Overview

~~The~~Diamond Technology Enterprises, Inc. (“DTE” or the “Company”) was organized under the laws of the state of Delaware on January 14, 2013., Weand ~~formed~~is ~~our~~headquartered ~~Company~~in New York City. It was formed for the purpose of producing higher quality diamonds ~~from~~through ~~any~~a ~~virtually~~specialized high pressure, high temperature (“HPHT”), manufacturing process utilizing HPHT machines (the “Machines”) which operate with any brown VS+ diamonds to permanently enhance their color to multicolored diamond stones, and thereafter reselling ~~them~~these stones to jewelry manufactures and wholesale or retail sources in the ~~open~~diamond ~~market~~industry. ~~The~~ ~~Company~~In ~~presently~~addition, ~~owns~~the ~~one~~company ~~(1)~~also ~~high~~sources ~~pressure,~~and ~~high~~buys ~~temperature~~white (~~HPHT)~~all ~~Machines~~colors ~~(“Machines”~~including some brown) diamond stones for resales as both rough and polished stones.

The Company’s ~~founding~~was ~~principals~~founded ~~have~~by ~~been~~Eduard ~~involved~~Musheyev, ina ~~the wholesale~~ diamond industry ~~for~~executive with more than 30 years inof ~~New York City and have extensive~~ experience in the ~~field. The~~industry ~~Machines~~as ~~are~~a ~~being~~jewelry ~~imported~~manufacturer, ~~from~~designer ~~Russia~~and ~~where~~operator ~~they~~of ~~were~~jewelry ~~developed~~wholesale ~~prior~~and toretail ~~the~~operations. Through ~~fall~~his ofrelationships ~~the~~in ~~Soviet~~Russia, ~~Union~~he ~~for~~collaborated ~~Super~~with ~~Hard and Novel Carbon Materials~~Mr. ~~The~~ ~~Company~~Vladirmirovich, ~~has~~an ~~revamped~~engineer and ~~modified~~businessman, to acquire the ~~Machine,~~initial ~~replacing~~Machines ~~old~~that ~~parts~~had ~~and~~lain ~~upgrading~~dormant ~~the~~for ~~several~~years ~~components~~due ~~that~~to ~~are~~the ~~proprietary~~collapse toof ~~our~~the ~~Company~~Soviet Union. The initial Machine ~~utilizes~~installed in the ~~HPHT~~U.S. ~~process~~has ~~that~~been ~~takes~~modified ~~any~~and ~~raw,~~updated ~~brown~~by ~~diamond,~~these ~~and~~Company ~~transforms~~founders. The ~~them~~Company’s ~~into~~competitive aedge ~~brilliant,~~comes ~~multicolored~~from ~~range~~its ofability ~~diamonds~~to (~~white,~~a) ~~yellow,~~complete ~~pink,~~the ~~green,~~process ~~red,~~in ~~blue~~2 minutes; and ~~orange~~(b) inutilize avirtually ~~process~~any ~~that~~brown ~~takes~~VS+ ~~only~~raw ~~minutes~~diamonds tothat ~~complete~~are ~~its~~not ~~cycle~~usable ~~per~~by ~~diamond~~our competitors.

~~While~~DTE ~~other~~is ~~processes~~a ~~exist~~domestic ~~that~~manufacturing ~~convert~~company ~~Type~~that ~~IIa~~processes ~~brown~~cut ~~diamonds~~and ~~into~~polished ~~natural~~brown ~~“HPHT”~~VS+ ~~diamonds,~~diamond ~~the~~stones ~~Company’s~~into ~~Machines~~an ~~are~~array ~~capable~~ of ~~doing~~multicolored sodiamonds ~~utilizing~~through ~~any~~HPHT ~~brown~~machines ~~VS+~~owned ~~diamonds~~by inthe ~~approximately~~company ~~2 minutes,~~ and asold ~~complete~~to ~~Machine~~jewelry ~~cycle~~manufacturers ~~time~~and ofthe ~~approximately~~resale ~~three~~market. DTE ~~(3)~~purchase ~~minutes,many~~rough ~~times~~brown ~~faster~~VS+ ~~than~~diamond ~~any~~stones ~~known~~from ~~competitor.~~diamond ~~These~~mining ~~competitors~~regions ~~are~~throughout ~~further~~the ~~limited~~world. DTE byrepresentatives ~~using~~have ~~only~~traveled ~~Type~~to ~~IIa~~Brazil, ~~brown~~Angola ~~diamonds~~and inRussia ~~their~~to ~~process. Those~~create ~~diamonds~~the ~~represent~~relationships adirectly ~~limited~~with ~~supply,~~mine ~~generally~~owners ~~less~~to ~~than~~secure 3%the ofraw ~~brown~~materials ~~stones~~necessary ~~are~~for ~~Type~~its ~~IIa~~production. DTE ~~The~~has ~~Company~~also ~~believes~~traveled ~~that the ability~~ to ~~utilize~~Israel, ~~any~~Belgium ~~brown~~and ~~stone~~other ~~and~~locations anto ~~edge~~create inrelationships ~~production~~with ~~time,~~intermediaries ~~will~~and ~~allow~~market itmakers to ~~produce~~ensure ~~more~~that ~~than~~adequate ~~its~~sourcing ~~competitors,~~is atavailable afor ~~substantially~~its ~~reduced cost~~requirements.

DTE acquires these diamond stones as its first step. The ~~HPHT~~stones ~~cycle-time~~then ofhave ~~approximately~~to ~~two~~be ~~(2)~~initially ~~minutes~~cut isand ~~defined~~polished by ~~the~~a ~~Company~~third asparty ~~the~~with ~~High~~which ~~Pressure~~DTE ~~High~~has ~~Temperature~~negotiated ~~part~~a ofreasonable ~~the~~fee ~~process~~and inthen ~~which~~processed ~~the~~through ~~rough~~DTE’s ~~stone~~HPHT ismachines ~~subjected~~producing stones from their brown state to ~~the~~permanent ~~pressure~~colors ~~and~~of ~~temperature~~white, ~~that~~yellow, ~~enhances~~pink, ~~the~~green, ~~color~~red, ofblue ~~the~~and ~~stone~~orange. The ~~entire~~stones ~~process,~~are ~~including~~then ~~the~~subjected ~~table~~to ~~raising~~a final cut and ~~pressure~~polish, ~~increase/decrease~~and ~~within~~are ~~the~~then ~~Machine~~available isfor ~~referred~~sale. Brown tostones aswhich ~~the~~in ~~Total~~their ~~Cycle~~original ~~Time~~condition have minimum value in the jewelry business, ~~which~~become isstones ~~currently~~of ~~estimated~~high atdemand ~~three~~and ~~(3)~~high ~~minutes~~cost in the diamond marketplace.

The Company has revised its estimated HPHT processing times upward from approximately forty-two (42) seconds to approximately two (2) minutes, based upon the performance of its initial Machine and the additional testing which has occurred since its installation at the Company’s facility and entry into limited production. Initial projections had been based on testing done on the Machine prior to its arrival and installation in the United States. Since that time, the Company has been testing and revising the Machine’s performance and has determined, based on its experience with the Machine, that the initial projections should be revised to better reflect its actual performance. As part of the process of bringing the Machine into full production, the Company’s engineers determined that the heat and pressure had to be increased to obtain the best color enhancement for the brown stone. As the duration of pressure increased, the duration of heat application also increased and eventually through this testing, the optimum amount of time the brown stone was subjected to heat and pressure rose to approximately two (2) minutes, which differed from the independent testing done on the machine in Russia. 9

~~The~~DTE’s ~~Company~~present ~~continues~~focus tois ~~experiment~~ on ~~its~~producing ~~initial~~Melee ~~Machine,~~size ~~and~~diamonds onfor ajewelry ~~variety of different size stones~~manufacturing. AsMelee ~~the~~is ~~size~~used ofto ~~stones~~identify ~~change,~~diamonds ~~the~~weighing ~~HPHT~~0.55 ~~cycle~~carats ~~time~~or ~~also~~less ~~changes, resulting in an approximate two~~ (2)DTE’s ~~minute~~machinery ~~HPHT~~can ~~cycle~~process ~~time,~~stones ~~which~~up ~~varies,~~to ~~but~~3 ~~which hasn’t yet exceeded (2~~carats) ~~two minutes~~. ~~Due~~ toThe ~~the~~use ~~Company’s initial stage~~ of ~~operations~~diamond ~~and~~melee ~~the~~stone ~~variations~~ in ~~processing~~jewelry ~~times~~makes ~~based~~up ~~upon~~a ~~the~~large ~~size~~portion of the ~~stones~~world’s ~~used,~~diamond ~~the Machines HPHT cycle projections are subject to further change~~consumption.

~~The~~As ~~Company is~~ a ~~start-up~~Result ~~enterprise~~of ~~that~~DTE’s ~~has~~buying atrips ~~multi-tiered~~for ~~business~~rough ~~plan,~~brown ~~projected~~vs+ todiamond ~~permit~~stones ~~the~~DTE ~~Company~~was topresented ~~commence limited operations~~ with the ~~initial~~opportunity ~~Machine already owned and~~ to ~~expand~~acquire ~~the~~rough ~~operations~~white ~~by acquiring an additional twenty-one~~ (~~21)~~generally ~~Machines~~all ~~that~~colors ~~are~~including ~~available~~some tovariety ~~purchase~~of asbrown ~~finances~~colors) ~~allow. Our first machine has been delivered to and is installed~~ at ~~250~~advantageous ~~Port~~price ~~Street,~~levels ~~Newark,~~for ~~New~~sale ~~Jersey. Management believes this location to be ideal because it offers the security it believes is required and the Company will be able to utilize up to 10,000 square feet~~ as ~~the~~rough ~~need~~or ~~arises. This~~polished ~~location~~stones ~~further~~in ~~meets~~ the ~~weight~~jewelry ~~bearing requirements of the machines, thus allowing for the installation of all twenty-two machines that will weigh in excess of 154 tons once fully acquired and installed~~industry.

~~Management~~These ofwhite ~~the~~stones ~~Company~~(primarily ~~anticipates~~Melee ~~the~~sizes) ~~first machine~~ will benot ~~fully~~require ~~operational~~HPHT ~~during~~processing. DTE commenced the ~~fourth~~sale ~~quarter~~ of ~~calendar~~these ~~year~~stones in August 2015 with positive results.

~~Once~~In ~~the~~May ~~first~~2000, ~~machine~~responding isto ~~fully~~a ~~operational~~growing grassroots movement on “blood diamonds”, ~~management~~governments, ~~intends~~including tothe ~~operate~~Unites itStates ~~daily~~and Brazil, inand ~~shifts;~~the ~~each~~diamond ~~shift~~industry ~~requiring~~came ~~one~~together ~~engineer,~~to ~~one~~combat ~~handler~~the ~~and~~trade ~~one~~in ~~maintenance~~diamonds ~~worker~~from conflict zones. ~~Management~~The ~~does~~result ~~not~~of ~~anticipate~~these ~~difficulty~~negotiations inwas ~~finding~~the Kimberly Process Certification Scheme setting up an internationally recognized certification system for rough diamonds and ~~recruiting~~establishing ~~qualified~~national ~~personal~~import/export standards. The ~~second~~issuance ~~shift~~of isa ~~expected~~Kimberly toCertificate, ~~commence~~under ~~within~~that 60process, ~~days~~certifies ~~after~~that the ~~first~~rough ~~Machine’s~~stones ~~initial~~being ~~production~~acquired ~~date~~may be legally imported/exported.

~~Once~~The ~~the~~sales ~~Company~~in ~~has~~August ~~finished~~were a test for the ~~installation~~sourcing ~~process,~~and sale of the ~~training~~rough white diamond stones. DTE’s operating assumption is that it can establish a successful sales program for rough white diamond stones of ~~personnel~~2,000 ~~and~~to ~~the~~4000 ~~start~~carats per month. One of ~~operations~~the values of engaging in the ~~machines,~~buying ~~management~~and ~~intends~~selling toof ~~begin~~rough ~~its~~white ~~sales,~~diamond ~~marketing~~stones is that they require no processing and ~~advertising~~are ~~programs~~immediately available for sale by the company. An ~~The~~option ~~Company’s~~for ~~senior~~the ~~executives~~company ~~believe~~is ~~they~~to ~~have~~cut ~~developed~~and ~~strong,~~polish ~~industry~~the ~~specific~~white ~~relationships~~stones ~~over~~(which ~~their~~would ~~prior~~sell ~~years~~at ofa ~~experience~~higher profit margin) in which event the company would engage a third party that would cut and ~~intend~~polish tosuch ~~utilize~~stones. The ~~those~~Company ~~relationships~~has toa ~~begin~~verbal arrangement for these services at what the ~~Company~~company ~~product~~believes ~~sales.~~is at advantageous prices for this work.

~~After~~Our ~~the~~first ~~diamonds~~machine ~~are~~has ~~processed~~been bydelivered ~~the~~to ~~HPHT~~and ~~machines,~~is ~~they~~installed ~~will~~at be250 ~~sold~~Port ~~through~~Street, ~~auction~~Newark, ~~international~~New ~~jewelry~~Jersey, ~~fairs~~however, ~~over~~it went off-line for repair in July 2015. Repairs are not yet complete due to the ~~Internet~~high costs and ~~through~~ the ~~use~~machine ofmay ~~wholesale~~need ~~and~~to ~~retail~~be ~~jewelry~~returned ~~store~~to ~~outlets~~Russia ~~and~~for ~~channels. Throughout~~repairs ~~the~~to ~~calendar~~be ~~year of~~done ~~2015~~properly. ~~and~~The ~~through~~company ~~scaling~~fortunately upwas able to 11add ~~machines,~~to ~~the~~its ~~Company~~production ~~anticipates~~floor ~~minimum~~an ~~marketing~~additional 3 HPHT machines which have been tested and ~~advertising~~are ~~efforts~~presently ~~will~~available befor ~~needed~~full production. AsWe ~~production~~currently ~~increases~~are ~~our~~in ~~marketing~~negotiations ~~and~~to ~~advertising~~either ~~efforts~~acquire ~~will~~or ~~begin~~lease these 3 machines, however they are subject to ~~scale~~their asowner ~~well. Initially,~~demanding ~~the~~their ~~Company~~return. Management believes that ~~the~~its ~~client~~facility ~~base~~is ~~developed~~ideal bybecause ~~the~~it ~~Company’s~~offers ~~founders~~the ~~will~~security beit ~~sufficient~~believes ~~sales~~is ~~conduit~~required ~~for~~and the Company’s ~~sales~~may ~~requirements. We~~be doable ~~anticipate~~to ~~that~~utilize ~~Company~~up ~~representatives~~to ~~will~~10,000 ~~attend~~square ~~international~~feet ~~jewelry~~at ~~fairs~~this tolocation, ~~market~~as ~~and~~the ~~advertise~~need ~~the~~arises. ~~Company~~This ~~and~~location ~~its~~further ~~products~~meets inthe ~~anticipation~~weight bearing requirements of ~~having~~the amachines, ~~full~~thus ~~complement~~allowing for the installation of 31up to 10 machines that will weigh in ~~production~~excess of 70 tons once fully acquired and installed.

~~The~~Our ~~Company’s~~principal ~~long-term~~executive ~~business~~offices ~~plan~~are iscurrently tolocated ~~acquire~~at an37 ~~additional~~West ~~twenty-one~~47th ~~(21) Machines~~Street, ~~over~~Suite1301, ~~time~~NY, ~~and~~NY, ~~operate~~10036 ~~them~~and inour atelephone ~~secured~~number ~~facility~~is ~~where~~(212) ~~they will operate under 24~~382-~~hour security~~2104. ~~Because of the proprietary trade secrets in upgrading these Machines it is the Company`s intention to own and operate them exclusively and to not offer them for sale to competitors.~~

Our principal executive offices are currently located at 37 West 47th Street, Suite1301, NY, NY, 10036 and our telephone number is (212) 382 2104.

Current Operating Trends

~~Our~~Acquire ~~business plan was designed to create a viable, sustainable business. Our operations to date have been devoted primarily to acquiring~~ the ~~Machine, upgrading and testing the Machine, arranging for transportation to the United States and locating a secure US facility in which to operate. The first of these~~ Machines has arrived in the United States and is located at 250 Port Street, Newark, New Jersey 07114. On July 31, 2013, we secured an initial occupancy agreement for 100 and now increased to 3,000 square feet of commercial space located at 250 Port Street, Newark, New Jersey 07114 in order to install and house the first machine. Our occupancy is on a month to month basis and the current monthly rent obligation is $3,000. On February 19, 2014, we secured an initial office lease for our administrative offices for five years with monthly payments escalating from approximately $5,322 in the first year to approximately $5,990 in the fifth year.

InThe ~~order~~Company tohas ~~generate~~4 ~~revenues,~~machines wein ~~must~~its ~~successfully~~production ~~address~~facility as previously described. It is attempting to arrange the ~~following~~purchase ~~areas:~~and/or lease purchase of up to an additional 6 Machines. The Company anticipates that up to 10 Machines should be fully operational by July 2016.

1.Staffing

The executive staff is presently in place, it includes the company’s Chairman and President, its Chief Financial Officer, an expert in rough diamond buying and selling, administrative staff and its strategic advisor. The ~~Machines~~production ~~must~~staff is expected to be ~~delivered~~in place at least 30 days prior to production for training and ~~installed~~implementation inof ~~their~~security USprotocols. ~~location~~The ~~which~~Company’s ~~has~~initial ~~been~~staffing ~~identified~~plans are based upon needing 3 personnel (consisting of an engineer mechanic and cylinder feeder) at a payroll cost of approximately $20,000 per month, for the initial machine. The staffing requirements would then be scaled upwards as machines are brought on-line at the rate of: 3 engineers per 10 machines; 4 handlers per 10 machines; 4 cylinder feeders per 10 machines and 1 Senior engineer for supervision per 10 machines. We anticipate interviewing, hiring and training to fill the necessary positions 30 days prior to initial production of machines.

2.10

~~The~~Acquire ~~Company must obtain~~ the ~~necessary~~raw ~~personnel to operate the Machines;~~ materials

3Raw materials may be purchased from a variety of mining sources or brokers. Raw materials will be competitively sourced for quality, price and terms. The Company estimates that the monthly cost for raw materials for one (1) machine in production will average approximately $2 million depending on global market conditions at that time. Working capital availability estimated in our Use of Proceeds and anticipated credit terms will be utilized to cover these costs.

~~The~~Complete ~~Company~~the ~~must~~HPHT ~~locate and secure suitable raw diamonds for processing;~~ Process

4The HPHT process is a manufacturing operation with proprietary Machines that produces a Melee gemstone diamond, from any brown VS+ diamond, in less than 2 minutes that then requires post production polishing before being able to be sold to the jewelry industry.

~~The~~Sell ~~Machines must operate in such a manner as to effectively and quickly transform brown diamonds into quality diamonds that have~~ the ~~projected~~Completed ~~market value;~~ Diamonds

5The company plans to sell the completed diamonds initially to its existing client base and thereafter auctions hosted by the Rapaport Company in New York, Hong Kong, Israel and Belgium. The Company will also attend and sell its products at International Jewelry and Gem Fairs held frequently and at global locations. The sale of rough and polished stones will initially be made to the company’s existing database of customers and thereafter in auctions and international jewelry and gem fairs.

The ~~Company~~white ~~must~~diamond ~~implement~~rough astones ~~marketing~~are ~~and~~being ~~advertising~~sold ~~plan~~ to ~~promote and sell~~ the ~~finished~~company’s ~~diamonds~~existing ~~throughout~~database ~~the fourth quarter~~ of ~~2015, the Company anticipates minimum marketing and advertising efforts will be needed~~customers. As ~~the~~this ~~Company~~revenue ~~adds~~line ~~manufacturing~~scales ~~and~~additional ~~production~~sales ~~increases,~~channels ~~our~~including ~~marketing~~auctions ~~and advertising efforts~~ will ~~begin~~be ~~to scale as well; and~~ engaged.

It is critical as the Company increases the number of machines on-line, that we develop and maintain strong client relationships by marketing and advertising our diamonds and then delivering them on a consistent basis.

Results of Operations

We anticipate that our results of operations will fluctuate for the foreseeable future due to several factors, such as the progress and timing of our business development plans and the timing and outcome financing. Due to these uncertainties, accurate predictions of future operations are difficult or impossible to make.

Three Months Ended ~~April~~October 3031, 2015 Compared to Three Months Ended ~~April~~October 3031, 2014

Revenues and Cost of Goods Sold. WeRevenue ~~had~~for nothe ~~revenues~~three ormonths ~~cost~~ended ofOctober ~~goods~~31, ~~sold~~2015 ~~during~~was $119,500 as compared with $-0- for the three ~~month~~months ~~periods~~ ended ~~April~~October 3031, ~~2015~~2014. Revenue ~~and~~for ~~2014~~the current period were comprised of the sale of white diamond rough stones.

~~General~~Cost ~~and~~of ~~Administrative~~sales ~~Expenses. General~~for ~~and~~the ~~administrative~~current ~~expenses~~period ~~for~~was ~~the~~$125,818, ~~three~~netting ~~months~~a ~~ended~~gross ~~April~~loss 30of $6,318 ~~2015~~(5.3%) ~~were~~as ~~$223,979,~~compared anto ~~increase~~a cost of ~~$72,857,~~sales orof ~~48%~~$51,725 ~~from~~with ~~$151,122~~no ~~incurred~~offsetting inrevenue for the three months ended ~~April~~October 3031, 2014. Included ~~This~~in ~~increase~~cost isof ~~primarily~~sales ~~due~~was ~~to increases in payroll-related expenses~~$42, ~~accounting~~810 and ~~auditing fees~~$42,725 ~~legal~~non-cash ~~professional~~depreciation ~~fees,~~expense ~~travel,~~of ~~meals~~our ~~and~~manufacturing ~~entertainment expenses and other general and administrative expenses~~equipment.

~~Depreciation~~General and Administrative Expenses. ~~Depreciation~~General and administrative expenses for the three months ended ~~April~~October 3031, 2015 ~~was~~were $46175,~~949~~883, ana ~~increase~~decrease of $4511,~~837~~838, or 6%, from $1187,~~112~~721 incurred in the three months ended ~~April~~October 3031, 2014. ~~During~~This ~~the~~decrease ~~latter~~is ~~part~~primarily ofdue ~~last~~to reduction ~~fiscal~~in ~~year~~payroll-related ~~period~~expenses, accounting ~~we acquired equipment~~ and ~~furniture~~auditing ~~and~~fees, ~~placed~~legal inprofessional ~~service~~fees, ~~our~~travel, ~~machinery~~meals asand ~~compared~~entertainment toexpenses ~~minimal~~and inother ~~service~~general ~~for~~and ~~the~~administrative ~~same period last year~~expenses.

~~Interest and Other Financing Costs~~Depreciation. Depreciation ~~Interest expense~~ for the three months ended ~~April~~October 3031, ~~2015~~2014 ~~totaled~~was $74,~~207~~167, asa ~~compared~~decrease toof $297 from $4,~~250~~264 ~~during~~incurred in the three months ended ~~April~~October 3031, 2014. ~~Interest~~ ~~expense is related to our notes payable issued in the latter part of last fiscal year and the current period.~~

Net Loss. As a result of the foregoing, the net loss for the three months ended April 30, 2015 was $278,134, compared to a net loss of $154,484 for the three months ended April 30, 2014, an increase of $123,650, or 80%.11

~~Nine~~Interest ~~Months~~and ~~Ended~~Other ~~April~~Financing 30Costs. Interest expense for the three months ended October 31, 2015 ~~Compared~~totaled $10,469, as compared to ~~Nine~~$6,005 ~~Months~~during ~~Ended~~the ~~April~~three 30months ended October 31, 2014. Interest expense is related to our notes payable issued in the latter part of last fiscal year and the current period.

~~Revenues~~Net ~~and~~Loss. ~~Cost~~As a result of ~~Goods~~the ~~Sold.~~foregoing, Wethe ~~had~~net noloss ~~revenues~~for orthe ~~cost~~three ofmonths ~~goods~~ended ~~sold~~October ~~during~~31, ~~the~~2015 ~~nine~~was ~~month~~$196,838, ~~periods~~compared ~~ended~~to ~~April~~a 30net loss of $249,715 ~~2015~~for ~~and~~the three months ended October 31, 2014, a decrease of $52,877, or 21%.

General and Administrative Expenses. General and administrative expenses for the nine months ended April 30, 2015 were $825,512, an increase of $417,678, or 102%, from $407,834 incurred in the nine months ended April 30, 2014. This increase is primarily due to increases in payroll-related expenses, accounting and auditing fees, legal professional fees, travel, meals and entertainment expenses and other general and administrative expenses.

Depreciation. Depreciation for the nine months ended April 30, 2015 was $141,382, an increase of $140,270 from $1,112 incurred in the nine months ended April 30, 2014. During the latter part of last fiscal year period, we acquired equipment and furniture and placed in service our machinery as compared to minimal in service for the same period last year.

Interest and Other Financing Costs. Interest expense for the nine months ended April 30, 2015 totaled $19,420, as compared to $2,924 during the nine months ended April 30, 2014. Interest expense is related to our notes payable issued in the latter part of last fiscal year and the current period.

Net Loss. As a result of the foregoing, the net loss for the nine months ended April 30, 2015 was $986,313, compared to a net loss of $411,870 for the nine months ended April 30, 2014, an increase of $574,443, or 139%.

Liquidity and Capital Resources

As of ~~April~~October 3031, 2015, we had a working capital deficit of $~~684~~957,~~687~~226, comprised primarily of cash of $~~211~~1,~~560~~925, inventory of $219,217 and prepaid expenses of $48,~~746~~408, which was offset by $~~225~~858,~~000~~143 of ~~Joint~~accounts ~~Venture~~payable, short term notes payable of $59,687, joint venture obligation of $250,000 and $~~675~~18,~~993~~946 of ~~accounts~~advances ~~payable~~from related parties.

For the ~~nine~~three months ended ~~April~~October 3031, 2015, we used $~~124~~150,~~930~~597 of cash in operating activities as compared to $~~158~~117,~~788~~783 for the same period last year. The ~~decrease~~increase ~~was~~is due to ~~joint venture payments received net with~~ our administrative and other operating cost increases as compared to prior period.

For the ~~nine~~three months ended ~~April~~October 3031, 2015, proceeds from financing activities were from the issuance of promissory notes of $561,~~907~~500, and from the issuance of promissory notes to related parties for $~~259~~48,~~062~~841. In the comparable 2014 period, $5103,~~100~~400 ~~was~~from ~~raised through~~ the ~~sale of shares of common stock, $5,313 from related party advances, $83,936 from~~ issuance of ~~notes~~promissory ~~and from issuance of related party~~ notes ~~of $145,750. At April 30, 2015, we had cash of $211,560 compared~~ to ~~$38,777~~related ~~at July 31, 2014~~parties. ~~Our cash is held in bank deposit accounts~~

Cash used in investing activities for the ~~nine~~three months ended ~~April~~October 3031, 2015 was $~~18,256~~-0- ~~reflecting purchase of equipment~~ as compared to $4714,~~910~~890 ~~reflecting purchase of equipment and $23,262 payment of long term deposit (aggregate of $71,172)~~ for the ~~nine~~three months ended ~~April~~October 3031, 2014 reflecting purchase of equipment.

~~The~~At ~~Company~~October is31, ~~devoting~~2015, ~~substantially~~we ~~all~~had cash of ~~its~~$1,925 ~~efforts~~compared to ~~establishing~~$102,181 aat ~~new~~July ~~business~~31, ~~and planned principal operations have not yet commenced~~2015. ~~There~~Our ~~has~~cash ~~been~~is noheld ~~revenue~~in ~~generated~~bank ~~from~~deposit ~~sales, license fees or royalties~~accounts.

~~The~~As ~~Company's~~the ~~primary efforts are devoted to establishing operations and developing customer relationships. The~~ Company ~~has~~is ~~experienced~~devoting ~~net~~substantially ~~losses~~all ~~and~~of ~~negative~~its ~~cash~~efforts ~~flows from operations since inception and expects these conditions~~ to ~~continue~~establishing ~~for~~a ~~the~~new ~~foreseeable future. In addition~~business, ~~the~~and ~~Company~~planned ~~will~~principal ~~require additional financing to fund future~~ operations. ~~The Company intends to raise additional capital to complete the development and commercialization of its current product through equity or debt financing; however the Company does not~~ have ~~any~~just ~~commitments~~commenced, orthere ~~definitive~~has orbeen ~~binding~~minimal ~~arrangements~~revenue ~~for~~generated ~~such~~from ~~funds. There can be no assurance that such funds~~sales, iflicense ~~available~~fees ator ~~all, can be obtained on terms reasonable to the Company~~royalties. ~~If the Company is unsuccessful in raising additional capital it will need to reduce costs and operations substantially.~~

The ~~above~~Company’s ~~factors~~primary ~~raise~~efforts ~~substantial~~are ~~doubt~~devoted as to ~~the~~establishing operations and developing customer relationships. The Company's ~~ability~~has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue asfor athe ~~going~~foreseeable ~~concern~~future. ~~The~~In ~~accompanying~~addition, ~~unaudited~~the ~~condensed~~Company ~~financial~~will ~~statements~~require ~~have~~additional ~~been~~financing ~~prepared~~to ~~assuming~~fund ~~that~~future ~~the~~operations. The Company ~~will~~intends ~~continue~~to asraise aadditional ~~going~~capital ~~concern~~to complete the development and docommercialization of its current product through equity or debt financing; however the Company does not ~~include~~have any ~~adjustments~~commitments or definitive or binding arrangements for such funds. There can be no assurance that ~~may~~such ~~result~~funds, ~~from~~if available at all, can be obtained on terms reasonable to the ~~outcome~~Company. ofIf ~~this~~the ~~uncertainty~~Company is unsuccessful in raising additional capital it will need to reduce costs and operations substantially.

It is anticipated that the company will receive revenues from operations in the coming year, however, it is difficult to anticipate what those revenues might be, if any, and therefore, management has assumed that it may need to sell common stock, take loans or advances from officers, directors or shareholders or enter into debt financing agreements in order to meet our cash needs over the coming twelve months.

The above factors raise substantial doubt as to the Company’s ability to continue as a going concern. The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that may result from the outcome of this uncertainty. Please refer to the Company’s risk factors described in the Company’s Form S-1/A filed on May 23, 2014 with the Securities and Exchange Commission (the “SEC”).

Transactions with Related Parties

The Company’s officers and shareholders have contributed capital to the Company for working capital purposes. As of ~~April~~October 3031, 2015 and July 31, ~~2014~~2015, advances from related party ~~were~~was $~~-0-~~29,174 and $5118,~~566,~~946; respectively.

From October 25, 2013 through ~~April~~October 2728, 2015, the Company issued an aggregate of $~~542~~636,~~747~~788 unsecured notes payable to Eduard Musheyev, the Company’s Chief Executive Officer for cash advances and purchases on the Company’s behalf. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.

InFrom August 2014 through July 2015, the Company issued ~~two~~three unsecured notes payable to Alexander Musheyev, a family member of the Company’s Chief Executive Officer for cash advances in aggregate of $~~100~~105,000. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.

The Company accrued and recorded as current ~~year~~period expenses $57,~~534~~175 and $144,~~998~~713 as related party interest for the three ~~and nine~~ months ended ~~April~~October 3031, 2015 and 2014, respectively.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements.

Stock Based Compensation

All stock-based payments to employees and to nonemployee directors for their services as directors, including any grants of restricted stock and stock options, are measured at fair value on the grant date and recognized in the statements of operations as compensation or other expense over the relevant service period. Stock-based payments to nonemployees are recognized as an expense over the period of performance. Such payments are measured at fair value at the earlier of the date a performance commitment is reached or the date performance is completed. In addition, for awards that vest immediately and are non-forfeitable the measurement date is the date the award is issued.

Use of estimates

Recently Issued Accounting Pronouncements

~~There~~Management ~~are~~does ~~various~~not ~~updates~~believe that any recently issued, ~~most~~but ofnot ~~which~~yet ~~represented~~effective ~~technical corrections to the~~ accounting ~~literature~~pronouncements, orif ~~application~~adopted, towould ~~specific industries and are not expected to a~~ have aan ~~material~~effect ~~impact~~ on the ~~Company's~~accompanying ~~financial~~unaudited ~~position,~~condensed ~~results~~financial ~~of operations or cash flows~~statements.

Off-Balance Sheet Arrangements

We do not maintain off-balance sheet arrangements nor do we participate in non-exchange traded contracts requiring fair value accounting treatment.

Inflation

The effect of inflation on our revenue and operating results was not significant.

Climate Change

We believe that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required under Regulation S-K for “smaller reporting companies.”

ITEM 4 - CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We evaluated the design and operation of our disclosure controls and procedures to determine whether they are effective in ensuring that we disclose required information in a timely manner and in accordance with the Securities Exchange Act of 1934 (the "“Exchange Act"”) and the rules and regulations promulgated by the SEC. The executives who serve as our President and Chief Financial Officer has participated in such evaluation. Management concluded, based on such review, that our disclosure controls and procedures, as defined by Exchange Act Rules 13a-15(e) and 15d-15(e), were not effective as of the end of the period covered by this Quarterly Report on Form 10-Q. The ineffectiveness of these disclosure controls is due to the matters described below in "“Internal Control over Financial Reporting."”

Limitations on the Effectiveness of Controls

We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide a reasonable assurance of achieving their objectives and our President and Chief Financial Officer has concluded that such controls and procedures are not effective at the "“reasonable assurance"” level. The ineffectiveness of these disclosure controls is due to the matters described below in "“Internal Control over Financial Reporting."”

Internal Control 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. Management assessed the effectiveness of the internal controls over financial reporting as of ~~April~~October 3031, 2015, 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 ~~April~~October 3031, 2015, the internal controls over financial reporting were not effective. The reportable conditions and material weakness relate to a limited segregation of duties at the Company. Segregation of duties within our company is limited due to the small number of employees that are assigned to positions that involve the processing of financial information.

Specifically, certain key financial accounting and reporting personnel had an expansive scope of duties that allowed for the creation, review, approval and processing of financial data without independent review and authorization for preparation of schedules and resulting financial statements and related disclosures. We did not maintain a sufficient depth of personnel with an appropriate level of accounting knowledge, experience and training in the selection and application of Generally Accepted Accounting Principles commensurate with financial reporting requirements. Accordingly, we place undue reliance on the finance team at corporate headquarters, specifically the executive who is our President and Chief Financial Officer along with outside accounting consulting. Accordingly, management has determined that this control deficiency constitutes a material weakness. This material weakness could result in material misstatements of significant accounts and disclosures that would result in a material misstatement to our interim or annual financial statements that would not be prevented or detected.

Going forward, management anticipates that additional staff will be necessary to mitigate these weaknesses, as well as to implement other planned improvements. Additional staff will enable us to document and apply transactional and periodic controls procedures, permit a better review and approval process and improve quality of financial reporting. However, the potential addition of new staff is contingent on obtaining additional financing, and there is no assurance that the Company will be able to do so.

Changes in Internal Control Over financial Reporting

During the three months ended ~~April~~October 3031, 2015, there were no changes to our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are currently not a party to any material legal proceedings or claims.

Item 1A. Risk Factors

Not required under Regulation S-K for “smaller reporting companies.”

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits



31.01	Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.02	Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.01	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101 INS	XBRL Instance Document
101 SCH	XBRL Taxonomy Extension Schema Document

101 CAL	XBRL Taxonomy Calculation Linkbase Document

101 LAB	XBRL Taxonomy Labels Linkbase Document

101 PRE	XBRL Taxonomy Presentation Linkbase Document

101 DEF	XBRL Taxonomy Extension Definition Linkbase Document

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 thereunto duly authorized.

	DIAMOND TECHNOLOGY ENTERPRISES, INC.
Date: June 15, 2015	By:	/s/ EDUARD MUSHEYER
Date: January 8, 2016	By:	/s/ EDUARD MUSHEYER
		Eduard Musheyer
		Chairman of the Board, President, Secretary, Treasurer and Director (Principal Executive Officer)
		Chairman of the Board, President, Secretary, Treasurer and Director (Principal Executive
Date: June 15, 2015	By:	/s/ JORDAN FRIEDBERG
		Officer)
		Jordan Friedberg
Date: January 8, 2016	By:	/s/ JORDAN FRIEDBERG
		Chief Financial Officer (Principal Financial Officer
		Jordan Friedberg
		and Principal Accounting Officer)
		Chief Financial Officer (Principal Financial Officer
		and Principal Accounting Officer)

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