UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

xANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 20082009

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

Commission file number:  333-149978

DIAMOND INFORMATION INSTITUTE, INC.
(Exact name of registrant as specified in its charter)

New Jersey22-2935867
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

12 Daniel Road East2300 W. Sahara Avenue, Suite 800  
Fairfield, New JerseyLas Vegas, Nevada 0700489102
(Address of principal executive offices) (Zip Code)

Issuer’s telephone number: (973) 227-3230(888) 840-2646

Copies of Communications to:
Stoecklein Law Group
402 West Broadway
Suite 690
San Diego, CA 92101
(619) 704-1310
Fax (619) 704-1325

Securities registered under Section 12(b) of the Act:  None

Securities registered under Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ¨  No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes x  No ¨

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 ¨

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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "small reporting company" in Rule 12b-2 of the Exchange Act.

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ¨
No x

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of June 30, 20082009 (the last business day of the registrant's most recently completed second fiscal quarter) was $1,638,100 based on a share value of $1.00.$0.

The number of shares of Common Stock, $0.001 par value, outstanding on March 23, 2009April 12, 2010 was 11,813,10011,863,100 shares.
 

 
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DIAMOND INFORMATION INSTITUTE, INC.
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 20082009

Index to Report
on Form 10-K

PART IPage
   
Item 1.Business2 5
Item 1A.Risk Factors7
Item 1B.Unresolved Staff Comments11
Item 2.Properties12 11
Item 3.Legal Proceedings12 11
Item 4.Submission of Matters to a Vote of Security HoldersDeleted and Reserved by Securities and Exchange Commission12 11
   
PART II 
   
Item 5.Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities12 11
Item 6.Selected Financial Data14 13
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations14 13
Item 7A.Quantitative and Qualitative Disclosures About Market Risk23 17
Item 8.Financial Statements and Supplementary Data23 17
Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure23 19
Item 9A (T)Control and Procedures23 19
Item 9B.Other Information25 20
   
PART III 
   
Item 10.Directors, Executive Officers and Corporate Governance25 20
Item 11.Executive Compensation30 22
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters32 23
Item 13.Certain Relationships and Related Transactions, and Director Independence33 23
Item 14Principal Accounting Fees and Services33 25
   
PART IV 
   
Item 15.Exhibits, Financial Statement Schedules34 26

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FORWARD-LOOKING STATEMENTS

This document contains “forward-looking statements”.  All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words.  These forward-looking statements present our estimates and assumptions only as of the date of this report.  Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made.  Except for our ongoing securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.  Additionally, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 most likely do not apply to our forward-looking statements as a result of being a penny stock issuer.  You should, however, consult further disclosures we make in future filings of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Although we believe the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements.  Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties.  The factors impacting these risks and uncertainties include, but are not limited to:

·  our current lack of working capital;
·  increased competitive pressures from existing competitors and new entrants;
·  increases in interest rates or our cost of borrowing or default under any material debt agreements;
·  inability to raise additional financing;
·  deterioration in general or regional economic conditions;
·  adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations;
·  changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate;
·  the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain;
·  inability to efficiently manage our operations;
·  loss of customers or sales weakness;
·  inability to achieve future sales levels or other operating results;
·  key management or other unanticipated personnel changes;
·  the unavailability of funds for capital expenditures; and
·  operational inefficiencies in distribution or other systems.

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For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see Item 1A.
For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see Item 1A, Risk Factors, in this document.

Throughout this Annual Report references to “we”, “our”, “us”, “Diamond”, “the Company”, and similar terms refer to Diamond Information Institute, Inc.

AVAILABLE INFORMATION

Our securities as of September 8, 2008 are registered under the Securities Act of 1933, and we will file reports and other information with the Securities and Exchange Commission as a result. Additionally, we shall file supplementary and periodic information, documents and reports that are required under section 13(a) and Section 15(d) of the Exchange Act, as amended.

Any annual, quarterly, special reports and other information filed with the SEC can be inspected and copied at the public reference facility maintained by the SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549-0405. Information regarding the public reference facilities may be obtained from the SEC by telephoning 1-800-SEC-0330. The Company’s filings are also available through the SEC’s Electronic Data Gathering Analysis and Retrieval System which is publicly available through the SEC’s website (www.sec.gov). Copies of such materials may also be obtained by mail from the public reference section of the SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549-0405 at prescribed rates.

PART I

ITEM 1.                      BUSINESS

General Business Development

Diamond Information Institute, Inc. was incorporated in the State of New Jersey in October of 1988 and had minimal activity until 1995 when it began in the business of jewelry manufacturing.  Diamond has been engaged in the design and manufacture of upscale jewelry sincefrom 1995 through its tradenameOctober, 2009.   Effective October 19, 2009, as approved at our shareholder meeting on October 8, 2009, we entered into a Share Exchange Agreement with Alba Mineral Exploration, Inc. (“Alba”), a Delaware Corporation (the “Agreement”).  Pursuant to the Agreement, Alba agreed to issue our shareholders a total of 2,585,175 shares of common stock in Alba in proportion to their holdings in our company.  Following the transaction described in the Agreement and other accompanying transactions, our shareholders own 60% of the “Bergio” line.common stock issued and outstanding in Alba.  Also pursuant to the Agreement, Alba acquired all of the assets and liabilities related to our business. As a result of the transaction the company became a wholly-owned subsidiary of Alba, and all of our operations related to the jewelry business we were in were discontinued.

Agreement for the Purchase of Common Stock and Warrants

Bergio International, Inc. (the “Seller”) , as record owner or agent representing 11,863,100 shares of common stock of Diamond Information Institute, Inc., a corporation formed under the laws of the State of New Jersey (the “Company”) entered into a share purchase agreement dated February 2, 2010 (the “Share Purchase Agreement”) with Macau Consultants and Advisory Services Inc. (the “Buyer”). In 2002, Diamond launched its “Bergio Bridal Collection”accordance with the terms and provisions of the
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Share Purchase Agreement, the Seller sold an aggregate of 11,863,100 shares of common stock (the “Common Stock”) of the Corporation to the Buyer in exchange for $225,000 (the “Purchase Price”). The closing and consummation of the Share Purchase Agreement occurred March 18, 2010 (the “Closing Date”). The Purchase Price shall be paid as follows: (i) $50,000 initial deposit, which as of the date of this Current Report has been paid; (ii) $55,000 within thirty day from the Closing Date, which is due approximately April 18, 2010; (iii) $60,000 within sixty days from the Closing Date, which is due approximately May 18, 2010; and (iv) $60,000 within ninety days from the Closing Date, which is approximately June 18, 2010.  As of the date of this Current Report, new officers and directors of the Company have been appointed and the change in control is being effected. A subsequent current report on Form 8-K will be filed disclosing beneficial ownership and control of the Company.

Current Business Operations

Diamond is entering into its 20th yearThe Company was organized under the laws of operations and concentrates on boutique, upscale jewelry stores.  Diamond currently sells its jewelry to approximately 150 independent jewelry retailers across the United States and has spent over $3 million in branding the Bergio name through tradeshows, trade advertising, national advertising and billboard advertising since launching the line in 1995.  Diamond has manufacturing control over its line as a resultState of having a manufacturing facility in New Jersey as well as subcontractsin October of 1988. Since approximately 1995, the Company had been involved in the business of designing and manufacturing jewelry under its tradename of the “Bergio” line. Based upon consummation of the Share Purchase Agreement and the subsequent change in control of the Company, the business operations of the Company will change.

The Company’s business operations will involve embarking upon a project to make Venture Capital Investments into private and public Companies. The eligible companies qualifying for an investment from the Company will be companies who currently have a dynamic business plan and are nearing completion of the establishment of that business plan or are currently established businesses with facilitiespositive cash flow but require additional funding to develop existing markets or expand into new markets. Emphasis will be on businesses with a very low overhead and cost of sales thus giving them a large increase in Italy and Bangkok.

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In September of 2008, Diamond’s S-1 registration statement became effectivepositive cash flow with the SEC.  Diamond believes that in becoming a public company, it will provideinjection of new capital into the company. A specific emphasis of the Company increased flexibility in being able to acquire smaller jewelry manufacturers while also being able to consolidate overlapping expenses.  It is Diamond’s intention to establish itself as a holding company for the purpose of acquiring established jewelry design and manufacturing firms who possess branded product lines.  Branded product lines are products and/or collections whereby the jewelry manufacturers have established their products within the industry through advertising in consumer and trade magazines as well as possibly obtaining federally registered trademarks of their products and collections.  This is in line with the Company’s strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products.

Diamond intends to acquire design and manufacturing firms throughout the United States and Europe.  If and when Diamond pursues any potential acquisition candidates, it intends to target the top 10% of the world’s jewelry manufactures that have already created an identity and brandwill be in the jewelry industry.  Diamond intends to locate potential candidates through its relationships in the industry and expects to structure the acquisition through the payment of cash, which will most likely be provided from third party financing,Green Energy as well as the Company’s common stockrenewable energy fields and not cash generated from the Company’s operations.  In the event, Diamond obtains financing from third parties for any potential acquisitions; Diamond may agreedevelopment of Software as a Service (SAAS) sector. The Company will also be operating a consultancy division to issue its common stock in exchange for the capital received.  However, as of the date of this report Diamond does not have any binding agreements with any potential acquisition candidates or arrangements with any third parties for financing.

Principal Products and Services

Diamond has historically sold its products directlyassist existing private companies to distributors, retailers and other wholesalers, who then in turn sell their products to consumers through retail stores.  Independent retail jewelers that offer the Bergio line are not under formal contracts and most sell competing products.

Diamond’s products consist of a wide range of unique styles and designs made from precious metals such as gold, platinum and Karat gold,go public as well as diamondsassisting companies who are already public to restructure and other precious stones.  We continuously innovate and change our designs based upon consumer trends andraise additional money from the capital markets.
The Company plans on using consultants to execute its business plan as a result of new designs being created we believe we aremuch as possible. That way management is able to differentiate ourselvesaccess the very best in the industry sectors that the Company will be operating in and strengthen our brands.  We sell our productsthe Company will not be encumbered with considerable expensive overhead when the marketplace becomes soft as they all do from time to our customers at price pointstime. Management believes that reflectthe Company’s business model should insulate it from major market downturns since the market price ofsector the base material plus a mark up reflecting our designCompany will be operating in will be fee and processing fees.

Each year, most jewelry manufacturers bring new products to market. Diamond considers itself to be a trendsetter in jewelry manufacturing.  As a result, Diamond comes out with a variety of products throughout the yearbased. Management further believes that it believes have commercial potential to meet what it feels are new trends within the industry.  The “Bergio” designs consist of upscale jewelry that includes white diamonds, yellow diamonds, pearls, and colored stones, in 18K gold, platinum, and palladium.  We currently design and produce approximately 50 to 75 product styles.  Prices for our products range from $400 to $200,000.

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Diamond’s product range is divided into three fashion lines: (i) 18K gold line, (ii) a bridal line, and (iii) a couture and/or one of kind pieces. Mr. Abajian consults regularly with the design teams of his Italian manufacturers, which usually results in a constant continuation of new products and sometimes entire lines being developed.  Typically, new products come on line approximately every 3 months and most recently, Diamond introduced its latest collection “Power in Pink”, which launched in April 2008 year and consists of approximately 35 pieces made with pink gold and diamonds.  Depending on the timing and styling at any point in time, Diamond’s products and collections would fall in one of the various categories shown below:

1.  Whimsical. The whimsical line includes charms, crosses and other “add-on” pieces.

2.  Middle. The proposed middle line will consist of fashion jewelry utilizing colored stones, diamonds and pearls applied to a variety of applications such as necklaces, pendants, earrings, bracelets and rings. The metals that Diamond intends to use for the Middle line include platinum, 18K white & yellow gold.

3.  Couture. The Couture line is Diamond’s most luxurious line, and consists of one of a kind pieces, new showcase products each year, and predominantly utilizes diamonds, platinum and other precious metals and stones of the highest grade and quality available.

4.  Bridal. The Bridal line is Diamond’s core business. Diamond attempts to stay on the forefront of trends and designs in the bridal market with the latest in wedding sets, engagement rings and wedding bands for both men and women.

Each year, Diamond attempts to expand and/or enhance these lines, while constantly seeking to identify trends that it believes exist in the market for new styles or types of merchandise.  Design and innovation are the primary focus of Diamond’s manufacturing and it is less concerned with the supply and capacity of raw materials.  Over the last 19 years, Mr. Abajian has been the primary influencer over the Bergio collections.  Mr. Abajian with his contacts, which are located mostly overseas, regularly meet to discuss, conceptualize and develop Bergio’s various products and collections.  When necessary, additional suppliers and design teams can be brought in as the market needs dictate. Management intends to maintain a diverse line of jewelry to mitigate concentration of sales and continuously expand its market reach.

Distribution Methods and Marketing

Diamond continues to devote its efforts towards brand development and utilizes marketing concepts in an attempt to enhance the marketability of its products.  During the past several years, Diamond has carried out its brand development strategy based on its product quality and design excellence, which is highlighted through the company’s sales personnel.  Diamond has established significant networks and relationships with retailers which allow our products to be promoted and sold nationwide.  Diamond maintains a broad base of customers and concentrates on retailers that sell fashionable and high end jewelry.  Diamond also works with its customers to adjust product strategies based on the customer’s feedback to try and decrease the likelihood of overstocked or undesired products.

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Diamond intends to further promote its products and brand by participating in trade shows and various exhibitions, consumer and trade advertisements, billboard advertisements, as well as make specialty appearances in retail stores carrying the company’s products.

Sources and Availability of Raw Materials and Principal Suppliers

Most of the inventory and raw materials purchased by Diamond occur through its manufacturers located in Europe.  The inventory that is directly maintained by the company is based on recent sales and revenues of Diamond’s products but ultimately is at the discretion of Mr. Abajian and his experience in the industry.  The entire inventories kept on hand by Diamond are commodities that can be incorporated into future products or can be sold on the open market.  Additionally, Diamond performs physical inventory inspections on a quarterly basis to assess upcoming styling needs and consider the current pricing in metals and stones needed for its products.

Diamond acquires all raw gemstones, precious metals and other raw materials used for manufacturing its products on the open market.  Diamond is not constrained in its purchasing by any contracts with any suppliers and acquires raw material based upon, among other things, availability and price on the open wholesale market.

Approximately 80% of Diamond’s product line is contracted to manufacturing suppliers in Italy, who then procure the raw materials in accordance with the specifications and designs submitted by Diamond.  However,when the general supply of precious metals and stones used by Diamond canmarket enters a Bear Market phase, there will be reasonably forecast even though the pricesmost demand for the services the Company will fluctuate often.  Any price differentials inbe providing. As well the precious metals and stones will typically be passed on to the customer.

For the raw materials not procured by contracted manufacturers, Diamond has approximately 5 suppliers that compete for their business, with the Company’s largest gold suppliers being Carrera Casting and Metro Gold.  Mostconsultancy side of the Company’s precious stones are purchased from C. Mahandra & Sonsbusiness, the Company will be able to monitor and EFD.  We do not haveassist any formal agreements with any of our suppliers but have established an ongoing relationship with each of our suppliers.

Customers

During the year ended December 31, 2008, Shane & Co. accounted for approximately 9.5% of Diamond’s annual sales.  Previously, Diamond had one customer, Western Stones and Metals, during the year ended December 31, 2007, that accounted for approximately 9% of its annual sales.  During the next twelve months,companies it is anticipated that Shane & Co. may account for more than 5% of our annual sales based on recent orders placed and our current projections.  Diamond is not dependent on any specific customers as a result of having very few customers representing 5% or more of its annual sales.

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Intellectual Property

Bergio is a federally registered trademarked name owned by Diamond.  Since the first trademark of “Bergio” was filed all advertising, marketing, trade shows and overall presentation ofinvests in to ensure the Company’s product toinvestments grow and mature on a timely basis with as little harm from cycles in the public has prominently displayed this trademark.  As additional lines are designed and added to the Company’s products,specific investment sectors that the Company may trademark new names to distinguish the particular products and jewelry lines.invests in as possible.

Personnel

At December 31, 2008, Diamond had 3 full-time employees and 2 part-time employees.  Of Diamond’s current employees, 1 is sales and marketing personnel, 2 are manufacturing and 2 hold administrative and executive positions.  No personnel are covered by a collective bargaining agreement.  Diamond’s relationship with its employees is believed to be good.  We intend to use the services of independent consultants and contractors when possible or until we are able to hire personnel in house.

Competition and Market Overview

The jewelry design and manufacturer’s industry is extremely competitive and has low barriers to entry.  Diamond competes with other jewelry design and manufacturers of upscale jewelry to the retail jewelry stores.  There are over 4,000 jewelry design and manufacturer’s companies, several of which have greater experience, brand name recognition and financial resources than Diamond.

Diamond’s management believes that the jewelry industry competes in the global marketplace and therefore must be adaptable to ensure a competitive measure.  Recently the U.S. economy has encountered a slowdown and Diamond anticipates the U.S. economy will most likely remain weak at least through the end of 2009.  Consumer spending for discretionary goods such as jewelry is sensitive to changes in consumer confidence and ultimately consumer confidence is affected by general business considerations in the U.S. economy.  Consumer spending for discretionary spending generally decline during times of falling consumer confidence, which may affect Diamond’s retail sale of its products.  U.S. consumer confidence reflected these slowing conditions throughout 2008.  The impact of the slowing U.S. economy is not usually known until the second quarter of any given year in Diamond’s industry thus it is hard to estimate the actual impact the slowing economy will have on our business.

According to the United States Department of Commerce outlook in 2008, the United States apparent consumption of precious metal jewelry was expected to grow over the new few years at a slow but steady rate, before picking up considerably in 2010.  A stronger economy, more spending by the baby boomers and young professionals with an overall trend toward luxury products will lead to future growth.  From 2007 to 2011, apparent consumption of precious metal jewelry is expected to increase by an average of 3.9% per year, totaling $14.0 billion in 2011.  Therefore, Diamond intends to make strong efforts to maintain its brand in the industry through its focus on the innovation and design of its products as well as being able to consolidate and increase cost efficiency when possible through acquisitions.
 
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Management believes that regardless of whether the Company is in a Bear cycle or a Bull market run, there will always be a healthy demand for funds and always a need for business management services to assist those who are floundering. Management believes that the Company has the best of both worlds since the Company should prosper from the Bear and Bull Market cycles. The only determinant for the Company in determining how fast it can grow its business will be in the Company’s success in obtaining the necessary funds for deployment into good qualifying business models. Management of the Company looks forward to the future with great anticipation.

Environmental Regulation and Compliance

The United States environmental laws do not materially impact Diamond’s manufacturing operations as a result of having a large majority of our jewelry manufacturing being conducted overseas.  In fact, approximately 80% of Diamond’s manufacturing is contracted to quality suppliers in the vicinity of Valenza, Italy with the remaining 20% of setting and finishing work being conducted in Diamond’s Fairfield, New Jersey facility.  The setting and finishing work done in its New Jersey facility involves the use of precision lasers, which use soap and water rather than soldering.  Also a standard polishing compound is used for the finishing work but it does not have a material impact on Diamond’s cost and effect of compliance with environmental laws.operations.

Government Regulation

Currently, Diamondthe Company is subject to all of the government regulations that regulate businesses generally such as compliance with regulatory requirements of federal, state, and local agencies and authorities, including regulations concerning workplace safety, labor relations, and disadvantaged businesses.   In addition, the Company’s operations are affected by federal and state laws relating to marketing practices in the retail jewelry industry. Diamond is subject to the jurisdiction of federal, various state and other taxing authorities.  From time to time, these taxing authorities review or audit the Company.

ITEM 1A.                      RISK FACTORS

Risks Relating withTo Our Planned Business and Marketplace

Diamond will need additionalYou should carefully consider the risks described below and all other information contained in this annual report on Form 10-K, including financial statements and the related notes thereto. The risks and uncertainties described below are not the only risks we face. Additional risks and uncertainties not presently known to us, or not presently deemed material by us, may also impair our future operations and performance. If any of the following risks actually occur, our business, financial condition or results of operations could be materially adversely affected. If that happens, the trading price of our common stock could decline, and you may lose all or part of your investment.
Our business may be adversely affected by the recent financial crisis and our ability to access the capital markets. 
The global financial markets are in turmoil, and the future to finance its operations or any future acquisitions,economies of the U.S. and many other countries are in recession, which it may not be able to raise or it may only be available on terms unfavorable to current non-affiliate shareholders.severe and prolonged. This may resultstatus has resulted in Diamond’s inability to fund its working capital requirementsdiminished opportunities for liquidity and ultimately harm its operational results.

Diamond hascredit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, and expects to continue to have substantial capital expenditureuncertainty about overall economic stability, and working capital needs.  For the years ended December 31, 2008 and 2007, Diamond had sales of $1,386,000 and $1,297,000, respectively and net loss of $1,107,000 and $1,172,000, respectively.  While management believes that its financial policies have been prudent, the Company will be reliant on future potential equity and/or debt raises to expand its current business and assist in any future acquisitions, if and when those opportunities occur.

Therethere can be no assurance that Diamond willagainst further decline. The end markets for certain of our portfolio of prosepctive companies’ products and services have experienced, and continue to experience, negative economic trends. We are unable to predict the likely duration and severity of this global financial turmoil, and if the current uncertainty continues or economic conditions further deteriorate, our business and the businesses of our portfolio companies could be successful in continuing to meet its cash requirements from existing operations, or in raising a sufficient amount of additional capital in future finance offerings.  Additional financing might not be available on terms favorable to Diamond, or at all. If adequate funds were not available or were not available on acceptable terms, Diamond’s ability to fund its operations, take advantage of unanticipated opportunities, develop or enhance its business or otherwise respond to competitive pressures would be significantly limited.materially and adversely affected.

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A decline
There is uncertainty regarding the value of our planned investments in discretionary consumer spendingrestrictedsecurities.
We may be required to carry our planned portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us with our Board of Directors having final responsibility for overseeing, reviewing and approving, in good faith, our estimate of fair value. Because of the inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market values, our fair value determinations may differ materially from the values a third party would be willing to pay for such securities or the values which would be applicable to unrestricted securities having a public market.
The lack of liquidity of restrictedsecurities may adversely affect Diamond’s industry, its operations,our planned business.
Our portfolio may contain many securities which are subject to restrictions on sale because they will have been acquired from issuers in "private placement" transactions or because we are deemed to be an affiliate of the issuer. Unless an exemption from the registration requirements of the Securities Act of 1933 is available, we will not be able to sell these securities publicly without the expense and ultimately its profitability.time required to register the securities under applicable federal and state securities laws. In addition, contractual or practical limitations may restrict our ability to liquidate our securities in planned portfolio companies, because we may own a relatively large percentage of the issuer’s outstanding securities. Sales may also be limited by unfavorable market conditions. The illiquidity of our investments may preclude or delay the disposition of such securities, which may make it difficult for us to obtain cash equal to the value at which we record our investments. 

Luxury products, such as fine jewelry, are discretionary purchases for consumers.  Any reduction in consumer discretionary spending or disposable income may affect the jewelry industry more significantly than other industries.  Many economic factors outside of Diamond’s control could affect consumer discretionary spending, including the financial markets, consumer credit availability, prevailing interest rates, energy costs, employment levels, salary levels, and tax rates.  Any reduction in discretionary consumer spending could materially adversely affect Diamond’s business and financial condition.

Diamond is highly dependent on its key executive officers for the success of its business plan andThere may be dependentlimited publicly available information regarding the companies in which we are contemplating investment. 
It is possible that some of the securities in our future portfolio may be issued by privately held companies.  Many of the securities in our portfolio are issued by privately held companies. There is generally little or no publicly available information about such companies, and we may have to rely on the efforts and relationshipsdiligence of our management to obtain the principals of future acquisitions and mergers.  If any of these individuals become unableinformation necessary for our decision to continue in their role, the company’s business couldinvest. There can be adversely affected.

Diamond believes its success will depend, to a significant extent, on the efforts and abilities of Berge Abajian, its CEO.  If Diamond lost Mr. Abajian, it would be forced to expend significant time and money in the pursuit of a replacement, which would result in both a delay in the implementation of its business plan and the diversion of limited working capital. Diamond can give you no assurance that such diligence efforts will uncover all material information necessary to make fully informed investment decisions.
Some of our planned portfolio companies,may behighly leveraged.
Some of our planned portfolio companies may have incurred substantial indebtedness in relation to their overall capital base. Such indebtedness often has a term that will require the balance of the loan to be refinanced when it matures. If these companies cannot generate adequate cash flow to meet the principal and interest payments on their indebtedness, the value of our investment in them could find a satisfactory replacement for Mr. Abajian at all,be reduced or eliminated through foreclosure on terms that are not unduly expensive or burdensome.

If Diamond grows and implements its business plan, it will need to add managerial talent to support its business plan.  There is no guarantee that Diamond will be successful in adding such managerial talent.  These professionals are regularly recruited by other companies and may choose to change companies.  Given Diamond’s relatively small size compared to some of its competitors, the performance of its business may be more adversely affected than its competitors would be if Diamond loses well-performing employees and are unable to attract new ones.

Diamond may acquireportfolio company’s assets or other businesses inby the future.portfolio company’s reorganization or bankruptcy.

We may consider acquisitions of assets or other business. Any acquisition involves a number of risks that could fail to meet
Fluctuationsmay occurin our expectations and adversely affect our profitability. For example:quarterly results.

·  The acquired assets or business may not achieve expected results;
·  We may incur substantial, unanticipated costs, delays or other operational or financial problems when integrating the acquired assets;
·  We may not be able to retain key personnel of an acquired business;
·  Our management’s attention may be diverted; or
·  Our management may not be able to manage the acquired assets or combined entity effectively or to make acquisitions and grow our business internally at the same time.

If these problems arise we may not realize the expected benefits of an acquisition.

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The jewelry industry
Our future quarterly operating results may fluctuate materially due to a number of factors including, among others, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our planned portfolio companies’ markets, the ability to find and close suitable investments, and general is affected by fluctuations in the prices of precious metals and precious and semi-precious stones.

The availability and prices of gold, diamonds, and other precious metals and precious and semi-precious stones may be influenced by cartels, political instability in exporting countries and inflation.  Shortageseconomic conditions. As a result of these materials or sharp changesfactors, results for any future period should not be relied upon as being indicative of performance in their pricesfuture periods.   
Our future financial condition and results of operations will depend on our ability to effectivelymanage any future growth.
Sustaining growth will depend upon our ability to identify, evaluate, finance, and invest in companies that meet our investment criteria. Accomplishing such results on a cost-effective basis is a function of our marketing capabilities and skillful management of the investment process. Failure to achieve future growth could have a material adverse effect on Diamond’s results of operations or financial condition.  A significant change in prices of key commodities, including gold, could adversely affect itsour business, or reduce operating margins and impact consumer demand if retail prices increased significantly, even though Diamond historically incorporates any increases in the purchase of raw materials to its consumers.  Additionally, a significant disruption in our supply of gold or other commodities could decrease the production and shipping levels of our products, which may materially increase our operating costs and ultimately affect our profit margins.

Diamond depends on its ability to identify and respond to fashion trends.

The jewelry industry is subject to rapidly changing fashion trends and shifting consumer demands.  Accordingly, Diamond’s success may depend on the priority that its target customers place on fashion and its ability to anticipate, identify, and capitalize upon emerging fashion trends.  If Diamond misjudges fashion trends or are unable to adjust its products in a timely manner, its net sales may decline or fail to meet expectations and any excess inventory may be sold at lower prices.

Diamond’s ability to maintain or increase its revenues could be harmed if Diamond is unable to strengthen and maintain its brand image.

Diamond has spent significant amounts in branding its Bergio and Bergio Bridal lines.  Diamond believes that primary factors in determining customer buying decisions, especially in the jewelry industry, are determined by price, confidence in the merchandise and quality associated with a brand.  The ability to differentiate products from competitors of Diamond has been a factor in attracting consumers.  However, if Diamond’s ability to promote its brand fails to garner brand recognition, its ability to generate revenues may suffer.  If Diamond fails to differentiate its products, its ability to sell its products wholesale will be adversely affected.  These factors could result in lower selling prices and sales volumes, which could adversely affect its financial condition, and results of operations.
We will be dependent upon management for our future success.

Diamond maintains a relatively large inventory
Selection, structuring and closing our investments will depend upon the diligence and skill of its raw materialsour management, which is responsible for identifying, evaluating, negotiating, monitoring and if this inventory is lost due to theft, itsdisposing of our investments. Our management’s capabilities may significantly impact our results of operations. If we lose any member of our management team and he/she cannot be promptly replaced with an equally capable team member, our results of operations wouldcould be negativelysignificantly impacted.

We purchase large volumeswill operate in a highly competitive market for investment opportunities. 
We will compete for attractive investment opportunities with private equity funds, venture capital partnerships and corporations, venture capital affiliates of precious metalsindustrial and store significant quantitiesfinancial companies, SBICs and wealthy individuals. Some of raw materialsthese competitors will be substantially larger and jewelry products at our facility in New Jersey.  Although we have an insurance policy with Lloyd’s of London, if we were to encounter significant inventory losses due to third party or employee theft from our facility which required us to implement additional security measures, this would increase our operating costs.  Also such losses of inventory could exceed the limits of, or begreater financial resources, and some are subject to an exclusiondifferent and frequently less stringent regulation. As a result of this competition, we may not be able to take advantage of attractive investment opportunities from coverage undertime to time and there can be no assurance that we will be able to identify and make investments that satisfy our current insurance policy.  Claims filedobjectives.
Changes in laws or regulations governing our operations or our failure to comply with those laws or regulations may adversely affect our business. 
We and our planned portfolio companies are subject to regulation by us underlaws at the local, state and federal level. These laws and regulations, as well as their interpretation, may be changed from time to time. Accordingly, any changes in these laws and regulations or failure to comply with them could have a material adverse effect on our insurance policiesbusiness.
Failure to deploy new capital may reduce our return on equity.
If we fail to invest our capital effectively, our return on equity may be decreased, which could lead to increases inreduce the insurance premiums payable by us or possible terminationprice of coverage under the relevant policy.shares of our common stock. 

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If Diamond were to experience substantial defaults by its customers on accounts receivable, this could have a material adverse affect on Diamond’s liquidity and results of operations.

A significant portionThe market price of our working capital consistscommon stock may fluctuate significantly.
The market price and marketability of accounts receivableshares of our common stock may from customers.  If customers responsible for a large amount of accounts receivable weretime to become insolvent or otherwise unabletime be significantly affected by numerous factors, including our investment results, market conditions, and other influences and events over which we have no control and that may not be directly related to pay for our products, or to make payments in a timely manner, Diamond’s liquidity and results of operations could be materially adversely affected.  An economic or industry downturn could materially affect the ability to collect these accounts receivable, which could then result in longer payment cycles, increased collections costs and defaults in excess of management’s expectations.  A significant deterioration in the ability to collect on accounts receivable could affect the cash flow and working capital position of Diamond.us.

Risks Relating to our Common Stock

If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board which would limit the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.

Companies trading on the OTC Bulletin Board, such as us, must be reporting issuers under Section 12 of the Securities Exchange Act of 1934, as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board.  More specifically, the Financial Industry Regulatory Authority (“FINRA”) has enacted Rule 6530, which determines eligibility of issuers quoted on the OTC Bulletin Board by requiring an issuer to be current in its filings with the Commission.  Pursuant to Rule 6530(e), if we file our reports late with the Commission three times in a two-year period or our securities are removed from the OTC Bulletin Board for failure to timely file twice in a two-year period then we will be ineligible for quotation on the OTC Bulletin Board.  As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.  We have not been late in any of our SEC reports through December 31, 2008.2009.

Our common stock could be deemed a low-priced “Penny” stock which could make it cumbersome for brokers and dealers to trade in our common stock, making the market for our common stock less liquid and negatively affect the price of our stock.

In the event where our securities are accepted for trading in the over-the-counter market, trading of our common stock may be subject to certain provisions of the Securities Exchange act of 1934, commonly referred to as the “penny stock” as defined in Rule 3a51-1.  A penny stock is generally defined to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions.  If our stock is deemed to be a penny stock, trading will be subject to additional sales practice requirements of broker-dealers.  These require a broker-dealer to:
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 ·Deliver to the customer, and obtain a written receipt for, a disclosure document;
 ·Disclose certain price information about the stock;
 ·Disclose the amount of compensation received by the broker-dealer or any associated person of the broker-dealer;
 ·Send monthly statements to customers with market and price information about the penny stock; and
 ·In some circumstances, approve the purchaser’s account under certain standards and deliver written statements to the customer with information specified in the rules.

Consequently, penny stock rules may restrict the ability or willingness of broker-dealers to trade and/or maintain a market in our common stock.  Also, prospective investors may not want to get involved with the additional administrative requirements, which may have a material adverse effect on the trading of our shares.

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FINRA sales practice requirements may also limit a stockholder's ability to buy and sell our stock.

In addition to the “penny stock” rules described above, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, the FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

Our current chief executive officer and sole director, Mr. Berge Abajian, owns a significant percentage of our company and will be able to exercise significant influence over our company.

Berge Abajian, our chief executive officer and sole director, beneficially owns approximately 88% of our common stock.  Accordingly, Mr. Abajian will be able to determine the composition of our board of directors, will retain the effective voting power to approve all matters requiring shareholder approval, will prevail in matters requiring shareholder approval, including, in particular the election and removal of directors, and will continue to have significant influence over our business.  As a result of his ownership and position in the Company, Mr. Abajian is able to influence all matters requiring shareholder action, including significant corporate transactions.  In addition, sales of significant amount of shares held by Mr. Abajian, or the prospect of these sales, could adversely affect the market price of our common stock.

ITEM 1B.                  UNRESOLVED STAFF COMMENTS

None.

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ITEM 2.                      PROPERTIES

Currently, Diamond hasthe Company leases office space in a 1,730 square feet design and manufacturing facilityshared executive suite located in Fairfield, New Jersey, which is currently being leased until August 31, 2010.  Diamond also rents office space at this facility.  Diamond pays approximately $2,200 per month.  SinceLas Vegas, Nevada on a majority of the manufacturing is conducted by sub-contractors in Italy, the current space is presently adequate for the performance of all company functions, which includes minimal manufacturing, design and administrative needs.monthly basis.

Additionally, Diamond anticipates opening additional offices and/or design facilities in other locations as it continues to implement its business plan throughout the United States, when and if any acquisitions are completed in the future.  At the current time, the Company’s expansion plans are in the preliminary stages with no formal negotiations being conducted.  Most likely no expansions will take place until additional revenues can be achieved or additional capital can be raised to help offset the costs associated with any expansion.

ITEM 3.                      LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are not presently a party to any material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect our financial position or results of operations.

ITEM 4.                      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

We did not submit any matters to a vote of our security holders duringDeleted and Reserved by the fiscal year ended December 31, 2008.Securities and Exchange Commission

PART II

ITEM 5.                      
ITEM 5.MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASE OF EQUITY SECURITIES

Market Information

During the year ended December 31, 2008, we filed for inclusion of our common stock on the Over-the-Counter Bulletin Board (“OTC:BB”).  Our Common Stock was approved for trading by FINRA for trading on the OTC:BB under the symbol DIII on January 26, 2009.  Since being quoted on the OTC:BB, our common stock has not traded.
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Holders of Common Stock

As of March 23, 2009,April 12, 2010 we had approximately 3410 stockholders of record of the 11,813,10011,863,100 shares outstanding.
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Dividends

The payment of dividends is subject to the discretion of our Board of Directors and will depend, among other things, upon our earnings, our capital requirements, our financial condition, and other relevant factors.

We currently do not intend to pay cash dividends in the foreseeable future on the shares of common stock. We intend to reinvest any earnings in the development and expansion of our business.  Any cash dividends in the future to common stockholders will be payable when, as and if declared by our Board of Directors, based upon the Board’s assessment of:

·our financial condition;
·earnings;
·need for funds;
·capital requirements;
·prior claims of preferred stock to the extent issued and  outstanding; and
·other factors, including any applicable laws.

Therefore, there can be no assurance that any dividends on the common stock will ever be paid.

Securities Authorized for Issuance under Equity Compensation Plans

We currently do not maintain any equity compensation plans.

Recent Sales of Unregistered Securities

During the fourth quarter of 2008, we did not issue any shares of our common stock

Subsequent Issuances

On January 30, 2009, we authorized the issuance of 100,000 shares of our common stock to Stoecklein Law Group pursuant to its retainer agreement for legal services.

On February 11, 2009, we authorized the issuance of 50,000 shares of our common stock to Berge Abajian as compensation for his board services during the 2009 year.

On February 26, 2009, we authorized the issuance of 20,000 shares of our common stock to Stoecklein Law Group pursuant to a new retainer agreement for legal services during the 2009 year.

We believe that the issuance of the shares was exempt from the registration and prospectus delivery requirements of the Securities Act of 1933 by virtue of Section 4(2). The shares were issued directly by us and did not involve a public offering or general solicitation. The recipients of the shares were afforded an opportunity for effective access to files and records of our company that contained the relevant information needed to make their investment
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decision, including our financial statements. We reasonably believe that the recipients, immediately prior to issuing the shares, had such knowledge and experience in our financial and business matters that they were capable of evaluating the merits and risks of their investment.  The recipients had the opportunity to speak with our management on several occasions prior to their investment decision. There were no commissions paid on the issuance of the shares.

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Issuer Purchases of Equity Securities

We did not repurchase any of our securities during the year ended December 31, 2008.2009.

ITEM 6.                      SELECTED FINANCIAL DATA

Not applicable.

ITEM 7.                      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

Diamond Information Institute, Inc. was incorporated in the State of New Jersey in October of 1988 and had minimal activity until 1995 when it began in the business of jewelry manufacturing under the name Diamond Information Institute (d/b/a “Bergio”).  Since 1995manufacturing.  Diamond has been engaged in the design and manufacture of upscale jewelry from 1995 through its trade nameOctober, 2009.   Effective October 19, 2009, as approved at our shareholder meeting on October 8, 2009, we entered into a Share Exchange Agreement with Alba Mineral Exploration, Inc. (“Alba”), a Delaware Corporation (the “Agreement”).  Pursuant to the Agreement, Alba agreed to issue our shareholders a total of “Bergio” and2,585,175 shares of common stock in 2002 launched its “Bergio Bridal Collection”.  The Company sellsAlba in proportion to approximately 150 independent jewelry retailers acrosstheir holdings in our company.  Following the United States and has incurred a significant amount of capital resources in creating brand recognitiontransaction described in the Agreement and other accompanying transactions, our shareholders own 60% of the common stock issued and outstanding in Alba.  Also pursuant to the Agreement, Alba acquired all of the assets and liabilities related to our business. As a result of the transaction the company became a wholly-owned subsidiary of Alba, and all of our operations related to the jewelry industry.business we were in were discontinued.   Based upon consummation of this Share Purchase Agreement and the subsequent change in control of the Company, the business operations of the Company will change as follows:

OVERVIEW OF CURRENT OPERATIONS

Diamond’s products consistThe Company’s business operations will involve embarking upon a project to make Venture Capital Investments into private and public Companies. Management plans on obtaining the necessary capital for these venture capital investments via borrowings and investments into the Company. The eligible companies qualifying for an investment from the Company will be companies who currently have a dynamic business plan and are nearing completion of
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the establishment of that business plan or are currently established businesses with positive cash flow but require additional funding to develop existing markets or expand into new markets. Emphasis will be on businesses with a wide rangevery low overhead and cost of unique styles and designs made from precious metals such as, gold, platinum, and Karat gold,sales thus giving them a large increase in positive cash flow with the injection of new capital into the company. A specific emphasis of the Company will be in the Green Energy as well as diamondsthe renewable energy fields and other precious stones.  Diamondthe development of Software as a Service (SAAS) sector. The Company will also be operating a consultancy division to assist existing private companies to go public as well as assisting companies who are already public to restructure and raise additional money from the capital markets. There are numerous projects already submitted which are currently being considered for funding.

The Company plans on using consultants to execute its business plan as much as possible. That way management is able to access the very best in the industry sectors that the Company will be operating in and the Company will not be encumbered with considerable expensive overhead when the marketplace becomes soft as they all do from time to time. Management believes that the Company’s business model should insulate it from major market downturns since the market sector the Company will be operating in will be fee based. Management further believes that when the general market enters a Bear Market phase, there will be the most demand for the services the Company will be providing. As well the consultancy side of the Company’s business, the Company will be able to monitor and assist any companies it invests in to ensure the Company’s investments grow and mature on a timely basis with as little harm from cycles in the specific investment sectors that the Company invests in as possible.

Management believes that regardless of whether the Company is in a Bear cycle or a Bull market run, there will always be a healthy demand for funds and always a need for business management services to assist those who are floundering. Management believes that the Company has the best of both worlds since the Company should prosper from the Bear and Bull Market cycles. The only determinant for the Company in determining how fast it can grow its business will be in the Company’s success in obtaining the necessary funds for deployment into good qualifying business models. Management of the Company looks forward to the future with great anticipation.


Results of Operations

Based upon consummation of the Share Purchase Agreement and the subsequent change in control and business operations, the Company had not yet commenced its planned business operations.  A relevant discussion of operational results is therefore not available.

Income Tax (Benefit) Provision

At December 31, 2009, the Company had approximately $1,600,000 of federal net operating tax loss carryforwards expiring at various dates through 2029.  The Tax Reform Act of 1986 enacted a complex set of rules which limits a company's ability to utilize net operating loss carryforwards and tax credit carryforwards in periods following an ownership change. These rules define an ownership change as a greater than 50 to 75 product stylespercent change in its inventory, with prices ranging from $400 to $200,000.  Additionally, Diamond has manufacturing control over its line asstock ownership within a defined testing period which is generally a three-year period. As a result of having a manufacturing facilitystock which may be issued by us from time to time and the conversion of warrants, options or the result of other changes in New Jersey as well as subcontracts with facilities in Italyownership of our outstanding stock, the Company may experience an ownership change and Bangkok.consequently our utilization of net operating loss carryforwards could be significantly limited.

In September of 2008, Diamond’s S-1 registration statement became effective with the SEC.  Diamond believes that in becoming a public company, it will provide the Company increased flexibility in being able to acquire smaller jewelry manufacturers while also being able to consolidate overlapping expenses.  It is Diamond’s intention to establish itself as a holding company for the purpose of acquiring established jewelry design and manufacturing firms who possess branded product lines.  Branded product lines are products and/or collections whereby the jewelry manufacturers have established their products within the industry through advertising in consumer and trade magazines as well as possibly obtaining federally registered trademarks of their products and collections.  This is in line with the Company’s strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products.

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Diamond intends to acquire design and manufacturing firms throughout the United States and Europe.  If and when Diamond pursues any potential acquisition candidates, it intends to target the top 10% of the world’s jewelry manufactures that have already created an identity and brand in the jewelry industry.  Diamond intends to locate potential candidates through its relationships in the industry and expects to structure the acquisition through the payment of cash, which will most likely be provided from third party financing, as well as Diamond’s common stock and not cash generated from Diamond’s operations.  In the event, Diamond obtains financing from third parties for any potential acquisitions; Diamond may agree to issue Diamond’s common stock in exchange for the capital received.  However, as of the date of this annual report Diamond does not have any binding agreements with any potential acquisition candidates or arrangements with any third parties for financing.

 Diamond’s management believes that the jewelry industry competes in the global marketplace and therefore must be adaptable to ensure a competitive measure.  Recently the U.S. economy has encountered a slowdown and Diamond anticipates the U.S. economy will most likely remain weak at least through all of 2009.  Consumer spending for discretionary goods such as jewelry is sensitive to changes in consumer confidence and ultimately consumer confidence is affected by general business considerations in the U.S. economy.  Consumer spending for discretionary spending generally decline during times of falling consumer confidence, which may affect Diamond’s retail sale of its products.  U.S. consumer confidence reflected these slowing conditions during the last quarter of 2007 and has been carried forward throughout the year of 2008.  Therefore, Diamond intends to make strong efforts to maintain its brand in the industry through its focus on the innovation and design of its products as well as being able to consolidate and increase cost efficiency when possible through acquisitions.

Result of Operations for the Years Ended December 31, 2008 and 2007

The following income and operating expenses tables summarize selected items from the statement of operations for the year ended December 31, 2008 compared to the year ended December 31, 2007.

INCOME:

  Years Ended December 31, 
  2008  2007 
       
Sales $1,385,620  $1,296,585 
         
Cost of Sales  847,976   1,226,561 
         
Gross Profit $537,644  $70,024 
         
Gross Profit Percentage of Revenue  39%  5%
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Sales

Sales for the year ended December 31, 2008 were $1,385,620 compared to $1,296,585 for the year ended December 31, 2007.  This resulted in an increase of $89,035 or 7% from the comparable period of 2008 to 2007.  We experienced a moderate increase in sales during the year ended December 31, 2008 as compared to the comparable period of 2007.

Typically, revenues experience significant seasonal volatility in the jewelry industry.  The first two quarters of any given year typically represent approximately 15%-25% of total year revenues, based on historic results.  The holiday buying season during the last two quarters of every year typically account for the remainder of annual sales.

Cost of Sales

Cost of sales for the year ended December 31, 2008 was $847,976 a decrease of $378,585, or 31%, from $1,226,561 for the year ended December 31, 2007.  Our cost of sales were significantly higher for the year ended December 31, 2007 due to a write-down of approximately $284,000 of inventory to the lower of cost or market value, which we experienced during the six months ended June 30, 2007.  The inventory write-down was a result of the refinement of cost and quantity of on hand data attributable to the conversion of the Company’s books and records to new accounting software in the beginning of 2007.  We did not record any inventory write-down for the year ended December 31, 2008 and believe the cost of sales expenses are more reflective of what we expect our cost of sales to be going forward.

Gross Profit:

During the year ended December 31, 2008, we experienced a gross profit as a percentage of revenue of 39%, compared to a gross profit as a percentage of revenue of 5% for the year ended December 31, 2007.  Our increased gross profit during the year of 2008 was a result of selling lower commodity priced products at higher margins.  Also, the inventory write-down mentioned as part of cost of sales added approximately $284,000 to our 2007 cost of sales.  Without the inventory write-down in 2007, our pro-forma gross profit percent in 2007 would have been approximately 27%.

OPERATING EXPENSES:

  Years Ended December 31,  Increase/ 
  2008  2007  (Decrease) 
          
Selling Expenses $368,664  $392,793   (6%)
             
Total General and Administrative Expenses  1,262,623   1,095,549   15%
             
Total Operating Expenses $1,631,287  $1,488,342   10%
             
Net Loss $(1,106,856) $(1,171,980)  (6%)

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Selling Expenses

Total selling expenses were $368,664 for the year ended December 31, 2008, which was approximately a 6% decrease from $392,793 for the year ended December 31, 2007.  Selling expenses include advertising, trade show expenses and selling commissions.  The decrease in selling expenses during the year ended December 31, 2008 compared to the year ended December 31, 2007 was a result of decreased advertising and travel expenses under the Company’s cost saving programs implemented in 2008.

General and Administrative Expenses

General and administrative expenses were $1,262,623 for the year ended December 31, 2008 versus $1,095,549 for the year ended December 31, 2007.  The increase in general and administrative expenses in 2008 is due primarily to an increase in professional fees due to being a publicly-traded company.  Included within professional fees in 2008 is a noncash charge related to stock-based compensation of $450,000. Also included in 2008 general and administrative expenses is share-based compensation of $317,500. Total noncash stock-based compensation was $781,500 in 2008 compared to $181,000 in 2007. The $600,500 increase in stock-based compensation was primarily offset by decreases in payroll and payroll taxes from staff reductions.

Loss from Operations

During the year ended December 31, 2008, we had a loss from operations totaling $1,093,643 which was a decrease from $1,418,318 for the same period in 2007, or approximately 23%.  The primary contributing factor of our lower loss from operations is higher gross margins on slightly higher sales.

Other Expense / Income

Other Expense / Income is comprised primarily of interest incurred on bank lines of credit, corporate credit cards, term loans and capital leases in connection with operations related to manufacturing and indirect operating expenses offset by miscellaneous income.  We attribute the increase in our other expense / income during the year ended December 31, 2008 when compared to the year ended December 31, 2007 as a result of a reduction of interest expense of $17,603 offset by recognizing sales of gold scrap in 2007. Interest expense in 2008 primarily decreased due to lower interest rates on credit lines and credit cards.  There were no sales of gold scrap occurring in 2008.

Income Tax (Benefit) Provision

The Company reported an income tax benefit of $89,133 for the year ended December 31, 2008 as compared to an income tax benefit of $331,642 for the year ended December 31, 2007.  In 2008, management recorded a full valuation allowance against its deferred tax assets.

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Net Loss

The Company incurred a net loss of $1,106,856 for the year ended December 31, 2008 versus a net loss of $1,171,980 for the year ended December 31, 2007.  This was a decrease of $65,124, or 6%, in our net loss for the comparable period.  Although we experienced higher general and administrative expenses for the year ended December 31, 2008, we were able to decrease our net loss when compared to same period a year ago as a result of decreasing our cost of sales and selling expenses.  Our gross margins in 2008 have significantly increased as a result of us selling lower commodity priced products at higher margins.  Additionally, in 2007 gross margins were lower due to an inventory adjustment of approximately $284,000.   Overall our net loss is primarily attributable to a significant increase in costs associated with the non-cash stock compensation.

Liquidity and Capital Resources

The following table summarizes working capital at December 31, 2008 compared to December 31, 2007.

  
 
  
 
  Increase / (Decrease) 
  December 31, 2008  December 31, 2007  $  % 
             
Current Assets $2,079,321  $2,074,989  $4,332   ** 
                 
Current Liabilities $1,996,988  $1,549,538  $447,450   28%
                 
Working Capital $82,333  $525,451  $(443,118)  (84%)
**Denotes less than 1%.

As of December 31, 2008, we had a cash overdraft of $7,345, compared to a cash overdraft of $48,144 at December 31, 2007.  In 2007, we conducted a private placement offering of our common stock to accredited investors in accordance with SEC regulations and raised approximately $425,000.  However, it is anticipated that we will need to sell additional equity or debt securities or obtain credit facilities from financial institutions to meet our long-term liquidity and capital requirements, which include strategic growth through mergers and acquisitions.  There is no assurance that we will be able to obtain additional capital or financing in amounts or on terms acceptable to us, if at all or on a timely basis.

Accounts receivable at December 31, 2008 was $713,194 and $692,619 at December 31, 2007, representing an increase of 3%.  We typically offer our customers 60, 90 or 120 day payment terms on sales, depending upon the product mix purchased.  When setting terms with our customers, we also consider the term of the relationship with individual customers and management’s assessed credit risk of the respective customer, and may at management’s discretion, increase or decrease payment terms based on those considerations.

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Inventory at December 31, 2008 was $1,326,989 and $1,333,752 at December 31, 2007. Our management seeks to maintain a very consistent inventory level that it believes is commensurate with current market conditions and manufacturing requirements related to anticipated sales volume.  We historically do not have an inventory reserve for slow moving or obsolete products due to the nature of our inventory of precious metals and stones, which are commodity-type raw materials and rise in value based on quoted market prices established in actively trade markets.  This allows for us to resell or recast these materials into new products and/or designs as the market evolves.

Accounts payable and accrued expenses at December 31, 2008 were $446,892 compared to $389,798 at December 31, 2007, which represents a 15% increase.  In 2008, we negotiated more favorable repayment terms from our suppliers.

We do not typically utilize our shares as a method of payment for our debt but during 2007, we entered into a debt conversion agreement and agreed to issue 100,000 shares of common stock at a fair market value of $1 per share to a vendor as full satisfaction for accounts payable previously due and as pre-payment for future services to be rendered. Of the total $100,000 of common stock issued, approximately $55,000 was to satisfy previous accounts payable balances, and the difference of approximately $45,000 was issued as consideration for future services to be rendered.

Also during 2007, we entered into another debt conversion agreement and agreed to issue 150,000 shares of common stock at fair market value of $1 per share to a vendor as full satisfaction of an accounts payable balance of approximately $150,000.  The debt conversion agreement allows for the vendor to purchase for a period of 60 months, 150,000 “Class A” purchase warrants, which have an exercise price of $1.50 per share. As of the year ended December 31, 2008, no “Class A” purchase warrants had been acquired by the vendor.

Bank Lines of Credit and Notes Payable

Our indebtedness is comprised of various bank credit lines, term loans, capital leases and credit cards intended to provide capital for the ongoing manufacturing of our jewelry line, in advance of receipt of the payment from our retail distributors.  As of December 31, 2008, we had 2 outstanding term loans.  One of our loans is for $150,000 with Columbia Bank, which is payable in monthly installments and matures in April of 2009.  The note bears an annual interest rate of 7.25% and as of December 31, 2008, there was an outstanding balance of $20,965.  We also have a $300,000 term loan with JPMorgan Chase, which is payable in monthly installments and matures in May 2011.  The note bears an annual interest rate of 7.60% and as of December 31, 2008 there was an outstanding balance of $158,320.  Both of these notes are collateralized by our assets as well as a personal guarantee by our CEO, Berge Abajian.

In addition to the notes payable, we utilize bank lines of credit to support working capital needs.  As of December 31, 2008, we had two lines of credit.  One bank line of credit is for $700,000 with Columbia Bank and requires minimum monthly payment of interest only.  The interest is calculated at the bank’s prime rate plus 0.75%.  As of December 31, 2008, we had an outstanding balance of $699,999 at an effective annual interest rate of 4.00%.  Additionally, we have a bank line of credit of $55,000 with JPMorgan Chase Bank, which also requires a monthly payment of interest only.  The interest rate is calculated at the bank’s prime rate plus 0.75%.  As of December 31, 2008, we had an outstanding balance of $45,793 at an effective annual interest rate of 4.00%.  Each credit line renews annually and is collateralized by our assets as well as a personal guarantee by our CEO, Berge Abajian.

19
In addition to the bank lines of credit and term loans, we have a number of various unsecured credit cards.  These credit cards require minimal monthly payments of interest only and as of December 31, 2008 have interest rates ranging from 4.74% to 13.99%.  As of December 31, 2008, we have outstanding balances of $164,657.

Satisfaction of our cash obligations for the next 12 months.

For each of the years ended December 31, 2008 and 2007, we have incurred net losses of approximately $1.1 million and $1.2 million, respectively. We have funded our working capital needs primarily from revenues, a private placement equity offering and advances from our CEO and principal stockholder. Our plan is to acquire design and manufacturing companies throughout the United States and Europe. If and when we pursue any potential business acquisitions, we intend to target the top 10% of the world’s jewelry manufacturers that have already created an identity and brand in the jewelry business. We plan to fund these potential business acquisitions from additional equity and/or debt financing, and joint venture partnerships.  However, we have no binding agreements or understandings with any potential acquisition targets. There is no assurance that we will be able to obtain additional capital in the amount or, on terms acceptable to us, in the required timeframe.

A critical component of our operating plan impacting our continued existence is to efficiently manage the production of our jewelry lines and successfully develop new lines through our Company or through possible acquisitions and/or mergers. Our ability to obtain capital through additional equity and/or debt financing, and joint venture partnerships will also be important to our expansion plans. In the event we experience any significant problems assimilating acquired assets into our operations or cannot obtain the necessary capital to pursue our strategic plan, we may have to reduce the growth of our operations. This may materially impact our ability to increase revenue and continue our growth.

Over the next twelve months we believe we have the required working capital needs to fund our current operations through revenues.  However, any expansion or future business acquisitions will require us to raise capital through an equity offering.

Summary of product and research and development that we will perform for the term of our plan.

We are not anticipating significant research and development expenditures in the near future.

20

Expected purchase or sale of plant and significant equipment.equipment.

We do not anticipate the purchase or sale of any plant or significant equipment; as such items are not required by us at this time.

Significant changes in the number of employees.employees.

As previously mentioned, weWe currently have 3 full-time employees and 2 part-time employees.  We do not anticipate a significant change in the number of full time employees over the next 12 months.  None of our employees are subject to any collective bargaining agreements.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, results or operations, liquidity, capital expenditures or capital resources that is deemed material.

Critical Accounting Policies

The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements in accordance with generally accepted accounting principles requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reported period.

Accounts Receivable.  Management periodically performs a detailed review of amounts due from customers to determine if accounts receivable balances are impaired based on factors affecting the collectability of those balances.  Management has provided an allowance for doubtful accounts of approximately $80,000 at December 31, 2008.

Long-Lived Assets.  In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived tangible assets subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  If an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value as determined by an estimate of undiscounted future cash flows.  As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in their impairment analyses may not be achieved.

Revenue Recognition. The Company’s management recognizes revenue when realized or realizable and earned.  In connection with revenue recorded, the Company establishes a sales returns and allowances reserve for anticipated merchandise to be returned.  The estimated percentage of sales to be returned is based on the Company’s historical experience of returned merchandise. Also, management calculates an estimated gross profit margin on returned merchandise deriving a cost for the anticipated returned merchandise also based on the Company’s historical operations.

21
The Company’s sole revenue producing activity as a manufacturer and distributor of upscale jewelry is affected by movement in fashion trends and customer desire for new designs, varying economic conditions affecting consumer spending and changing product demand by retailers affecting their desired inventory levels.

Therefore, management’s estimation process for merchandise returns can result in actual amounts differing from those estimates.  This estimation process is susceptible to variation and uncertainty due to the challenges faced by management to comprehensively discern all conditions affecting future merchandise returns whether prompted by fashion, the economy or customer relationships.  Ultimately, management believes historical factors provide the best indicator of future conditions based on the Company’s responsiveness to changes in fashion trends, the cyclical nature of the economy in conjunction with the number of years in business and consistency and longevity of its customer mix.

Recently Issued Accounting Standards

In December 2007,On July 1, 2009, the Accounting Standards Codification (“ASC”) became the Financial Accounting Standards Board (“FASB”) officially recognized source of authoritative U.S. generally accepted accounting principles applicable to all public and non-public non-governmental entities, superseding existing FASB, issued SFAS No. 141 (revised 2007), "Business Combinations" (SFAS 141(R)), which replaces SFAS No. 141, "Business Combinations." SFAS 141(R) retainsAICPA, EITF and related literature. Rules and interpretive releases of the underlying concepts of SFAS 141 in that all business combinations are still required to be accounted for at fair valueSEC under the acquisition methodauthority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting but SFAS 141(R) changed the method of applying the acquisition method in a number of significant aspects. Acquisition costs will generally be expensed as incurred; noncontrolling interests will be valued at fair value at the acquisition date; in-process research and development will be recorded at fair value as an indefinite-lived intangible asset at the acquisition date; restructuring costs associated with a business combination will generally be expensed subsequentliterature is considered non-authoritative. The switch to the acquisition date; and changesASC affects the away companies refer to U.S. GAAP in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. SFAS 141(R) is effective on a prospective basis for all business combinations for which the acquisition date is on or after the beginning of the first annual period subsequent to December 15, 2008, with the exception of the accounting for valuation allowances on deferred taxes and acquired tax contingencies. SFAS 141(R) amends SFAS 109 such that adjustments made to valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to the effective date of SFAS 141(R) would also apply the provisions of SFAS 141(R). Early adoption is not permitted. We are currently evaluating the effects, if any, that SFAS 141(R) may have on our financial statements and believe it couldaccounting policies. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure.
15

FASB ASC Topic 260, “Earnings Per Share.” On January 1, 2009, the Company adopted new authoritative accounting guidance under FASB ASC Topic 260, “Earnings Per Share,” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.

FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” New authoritative accounting guidance under ASC Topic 820,”Fair Value Measurements and Disclosures,” affirms that the objective of fair value when the market for an asset is not active is the price that would be received to sell the asset in an orderly transaction, and clarifies and includes additional factors for determining whether there has been a significant decrease in market activity for an asset when the market for that asset is not active. ASC Topic 820 requires an entity to base its conclusion about whether a transaction was not orderly on the weight of the evidence. The new accounting guidance amended prior guidance to expand certain disclosure requirements. The Company adopted the new authoritative accounting guidance under ASC Topic 820 during the first quarter of 2009. Adoption of the new guidance did not significantly impact the Company’s consolidated financial statements.

Further new authoritative accounting guidance (Accounting Standards Update No. 2009-5) under ASC Topic 820 provides guidance for measuring the fair value of a liability in circumstances in which a quoted price in an active market for the identical liability is not available. In such instances, a reporting entity is required to measure fair value utilizing a valuation technique that uses (i) the quoted price of the identical liability when traded as an asset, (ii) quoted prices for similar liabilities or similar liabilities when traded as assets, or (iii) another valuation technique that is consistent with the existing principles of ASC Topic 820, such as an income approach or market approach. The new authoritative accounting guidance also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The forgoing new authoritative accounting guidance under ASC Topic 820 will be effective for the Company’s consolidated financial statements beginning October 1, 2009 and is not expected to have a significant impact if business combinations are consummated.  However,on the effect of which is indeterminable as of December 31, 2008.Company’s consolidated financial statements.

In December 2007,FASB ASC Topic 825 “Financial Instruments.” New authoritative accounting guidance under ASC Topic 825,”Financial Instruments,” requires an entity to provide disclosures about the fair value of financial instruments in interim financial information and amends prior guidance to require those disclosures in summarized financial information at interim reporting periods.

FASB ASC Topic 855, “Subsequent Events.” New authoritative accounting guidance under ASC Topic 855, “Subsequent Events,” establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. ASC Topic 855 defines (i) the period after the balance sheet date during which a reporting entity’s management should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements,
16
and (iii) the disclosures an entity should make about events or transactions that occurred after the balance sheet date. The new authoritative accounting guidance under ASC Topic 855 became effective for the Company’s financial statements for periods ending after June 15, 2009. Effective February 24, 2010, the FASB issued Financial Accounting Standards Update (“ASU”) No. 160, "Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB2010-09, “Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements” which revised certain disclosure requirements. ASU No. 51." This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008, with earlier adoption prohibited. This statement requires the recognition of a noncontrolling interest (minority interest) as equity in the consolidated financial statements and separate from the parent's equity. The amount of net income attributable to the noncontrolling interest will be included in consolidated net income on the face of the income statement. It also amends certain of ARB No. 51's consolidation procedures for consistency with the requirements of SFAS 141(R). This statement also includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest. We are currently evaluating this new statement and anticipate that the statement will2010-09 did not have a significant impact on the reportingCompany’s consolidated financial statements. The company evaluated subsequent events, which are events or transactions that occurred after December 31, 2009 through the issuance of our results of operations.the accompanying consolidated financial statements.

22
In March 2008,Management does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have an effect on the FASB issued FASB Statement No. 161, "Disclosures about Derivative Instruments and Hedging Activities."  The new standard is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows.  This statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged.  The Company is currently evaluating the impact of adopting SFAS No. 161 on itsaccompanying consolidated financial statements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 8.                      FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See Index to Financial Statements and Financial Statement Schedules appearing on page F-1 through F-22F-23 of this Form 10-K.
 
ITEM 9.                      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND







DIAMOND INFORMATION INSTITUTE, INC.

FINANCIAL DISCLOSURESTATEMENTS

DECEMBER 31, 2009











17







DIAMOND INFORMATION INSTITUTE, INC.

TABLE OF CONTENTS

DECEMBER 31, 2009


Report of Independent Registered Public Accounting Firm                         F-1                       

Balance Sheet as of December 31, 2009                                                                                                                                                F-2

Statements of Operations for the Years Ended                      
December 31, 2009 and 2008                                      F-3 
Statement of Stockholder’s Equity (Deficit) as of December 31, 2009                        F-4

Statements of Cash Flows for the Years Ended December 31, 2009 and 2008                     F-5

Notes to the Financial Statements                                    F-6 - F-9


















18



Silberstein Ungar, PLLC CPAs and Business Advisors
Phone (248) 203-0080
Fax (248) 281-0940
30600 Telegraph Road, Suite 2175
Bingham Farms, MI 48025-4586
www.sucpas.com

Report of Independent Registered Public Accounting Firm

To the Board of Directors of
Diamond Information Institute, Inc.
Las Vegas, Nevada

We have audited the accompanying balance sheet of Diamond Information Institute, Inc. (the “Company”) as of December 31, 2009, and the related statements of operations, stockholder’s equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Diamond Information Institute, Inc. as of and for the year ended December 31, 2008 were audited by other auditors whose report dated March 23, 2009 expressed an unqualified opinion on those financial statements.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Diamond Information Institute, Inc. as of December 31, 2009 and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 1 to the financial statements, the Company has no working capital, and has discontinued its operations.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  Management’s plans with regard to these matters are described in Note 1. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Silberstein Ungar, PLLC

Silberstein Ungar, PLLC

Bingham Farms, Michigan
April 11, 2010

F-1
 

DIAMOND INFORMATION INSTITUTE, INC.
BALANCE SHEETS
AS OF DECEMBER 31, 2009 and 2008


ASSETS December 31, 2009  December 31, 2008 
       
Net assets in excess of liabilities of discontinued operations $-0-  $111,954 
         
Total Assets $-0-  $111,954 
         
LIABILITIES AND STOCKHOLDER'S  EQUITY        
Liabilities        
Net liabilities in excess of assets of discontinued operations $-0-  $-0- 
         
Stockholder's Equity        
Common stock, par value $0.001, 25,000,000 shares authorized, 11,813,100 and 11,643,100 shares issued and outstanding  11,814     11,643 
Additional paid in capital  1,660,535   1,599,707 
Accumulated deficit  (1,672,349)  (1,499,396)
Total Stockholder's Equity  -0-   111,954 
         
Total Liabilities and Stockholder's Equity $-0-  $111,954 
























See accompanying notes to financial statements.

F-2
DIAMOND INFORMATION INSTITUTE, INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008


  Year Ended December 31, 2009  Year Ended December 31, 2008 
       
Net Loss from Discontinued Operations, net of income tax $(172,953) $(1,106,856)
         
         
NET LOSS PER SHARE: BASIC AND DILUTED (DISCONTINUED OPERATIONS) $(0.01) $(0.09)
         
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED  11,796,470   12,405,723 





























See accompanying notes to financial statements.

F-3

DIAMOND INFORMATION INSTITUTE, INC.
STATEMENT OF STOCKHOLDER’S EQUITY
AS OF DECEMBER 31, 2009

  Common stock  
 
Additional paid-in
  Accumulated  
 
 
Deferred
    
  Shares  Amount  Capital  Deficit  Compensation  Total 
                   
Balance, January 1, 2008  18,075,000  $18,075  $825,175  $(392,540  $(14,307) $436,403 
Cancellation of common stock outstanding  (7,200,000)  (7,200)  7,200   -     -   - 
Share-based compensation  317,500   317   317,183   -   -   317,500 
Amortization of deferred compensation in connection with services rendered  -   -   -   -         14,307   14,307 
Issuance of common stock for professional services rendered  450,000   450   449,550   -     -   450,000 
Private placement offering of common stock  600   1   599   -     -   600 
Net loss for the year ended December 31, 2008  -   -   -   (1,106,856)    -   (1,106,856)
                         
Balance, December 31, 2008  11,643,100   11,643   1,599,707   (1,499,396)  -   (111,954)
                         
Issuance of common stock for professional services rendered  170,000   171   60,828   -     -   60,999 
                         
Net loss for the year ended December 31, 2009  -   -   -   (172,953)    -   (172,953)
                         
Balance, December 31, 2009  11,813,100  $11,814  $1,660,535  $(1,672,349) $-  $-0- 






See accompanying notes to financial statements.

F-4
DIAMOND INFORMATION INSTITUTE, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008


  Yrear Ended December 31, 2009  Year Ended December 31, 2008 
CASH FLOWS FROM DISCONTINUED OPERATIONS      
Net cash flows from discontinued operations $0  $0 
         
Cash, beginning of period  0   0 
Cash, end of period $0   0 
         


































See accompanying notes to financial statements.

F-5

DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009

NOTE 1 – NATURE OF OPERATIONS AND BUSINESS CONTINUITY

Diamond Information Institute Inc., formerly doing business as Designs by Bergio [the "Company"] was engaged in the product design, manufacturing, distribution of fine jewelry throughout the United States and is headquartered from its corporate office in Fairfield, New Jersey.  Based on the nature of operations, the Company's sales cycle experienced significant seasonal volatility with the first two quarters of the year representing 15% - 25% of annual sales and the remaining two quarters representing the remaining portion of annual sales.

Effective October 19, 2009, as approved at our shareholder meeting on October 8, 2009, we entered into a Share Exchange Agreement with Alba Mineral Exploration, Inc. (“Alba”), a Delaware Corporation (the “Agreement”).  Pursuant to the Agreement, Alba agreed to issue our shareholders a total of 2,585,175 shares of common stock in Alba in proportion to their holdings in our company.  Following the transaction described in the Agreement and other accompanying transactions, our shareholders own 60% of the common stock issued and outstanding in Alba.  Also pursuant to the Agreement, Alba acquired all of the assets and liabilities related to our business. As a result of the transaction the company became a wholly-owned subsidiary of Alba, and all of our operations related to the jewelry business we were in were discontinued. See Note 8.
The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.  The Company has incurred losses since inception resulting in an accumulated deficit of $18,299 as of December 31, 2009 and has no operating assets orliabilities and no operations, which raises substantial doubt about the Company’s ability to continue as a going concern.  The ability to continue as a going concern is dependent upon the Company finding new management to develop a new business that generates profitable operations in the future and/or to obtain the necessary capital to fund a new business plan.

NOTE 2 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

Basis of Presentation
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting) are the financial statements are presented in US dollars.  The Company has adopted a December 31 fiscal year end.

Use of Estimates and Assumptions
The  preparation  of  financial  statements  in conformity 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 disclosure 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.

Financial Instruments
The carrying value of the Company's financial instruments approximates their fair value because of the short maturity of these instruments.




F-6
DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009

NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (CONTINUED)

Income Taxes
Income taxes are accounted for under the assets and liability method.  Deferred  tax  assets  and  liabilities are recognized for  the  estimated future tax consequences attributable  to differences between the financial statement carrying amounts of existing  assets  and  liabilities and their respective  tax  bases and operating loss and tax credit  carry  forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.  Use of net operating loss carryforwards for income tax purposes may be limited by Intertnal Revenue Code section 382 if a change of ownership occurs.

Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of December 31, 2009.

Dividends
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown.

Impairment of Long-Lived Assets
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.

Advertising Costs
The Company’s policy regarding advertising is to expense advertising when incurred.

Revenue Recognition
The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718).  To date, the Company has not adopted a stock option plan and has not granted any stock options.






F-7
DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009

NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (CONTINUED)

New Authoritative Accounting Guidance
On July 1, 2009, the Accounting Standards Codification (“ASC”) became the Financial Accounting Standards Board (“FASB”) officially recognized source of authoritative U.S. generally accepted accounting principles applicable to all public and non-public non-governmental entities, superseding existing FASB, AICPA, EITF and related literature. Rules and interpretive releases of the SEC under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. The switch to the ASC affects the away companies refer to U.S. GAAP in financial statements and accounting policies. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure.

FASB ASC Topic 260, “Earnings Per Share.” On January 1, 2009, the Company adopted new authoritative accounting guidance under FASB ASC Topic 260, “Earnings Per Share,” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.

FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” New authoritative accounting guidance under ASC Topic 820,”Fair Value Measurements and Disclosures,” affirms that the objective of fair value when the market for an asset is not active is the price that would be received to sell the asset in an orderly transaction, and clarifies and includes additional factors for determining whether there has been a significant decrease in market activity for an asset when the market for that asset is not active. ASC Topic 820 requires an entity to base its conclusion about whether a transaction was not orderly on the weight of the evidence. The new accounting guidance amended prior guidance to expand certain disclosure requirements. The Company adopted the new authoritative accounting guidance under ASC Topic 820 during the first quarter of 2009. Adoption of the new guidance did not significantly impact the Company’s consolidated financial statements.

Further new authoritative accounting guidance (Accounting Standards Update No. 2009-5) under ASC Topic 820 provides guidance for measuring the fair value of a liability in circumstances in which a quoted price in an active market for the identical liability is not available. In such instances, a reporting entity is required to measure fair value utilizing a valuation technique that uses (i) the quoted price of the identical liability when traded as an asset, (ii) quoted prices for similar liabilities or similar liabilities when traded as assets, or (iii) another valuation technique that is consistent with the existing principles of ASC Topic 820, such as an income approach or market approach. The new authoritative accounting guidance also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The forgoing new authoritative accounting guidance under ASC Topic 820 will be effective for the Company’s consolidated financial statements beginning October 1, 2009 and is not expected to have a significant impact on the Company’s consolidated financial statements.

FASB ASC Topic 825 “Financial Instruments.” New authoritative accounting guidance under ASC Topic 825,”Financial Instruments,” requires an entity to provide disclosures about the fair value of financial instruments in interim financial information and amends prior guidance to require those disclosures in summarized financial information at interim reporting periods.

F-8

DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009


NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (CONTINUED)

New Authoritative Accounting Guidance (continued)

FASB ASC Topic 855, “Subsequent Events.” New authoritative accounting guidance under ASC Topic 855, “Subsequent Events,” establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. ASC Topic 855 defines (i) the period after the balance sheet date during which a reporting entity’s management should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and (iii) the disclosures an entity should make about events or transactions that occurred after the balance sheet date. The new authoritative accounting guidance under ASC Topic 855 became effective for the Company’s financial statements for periods ending after June 15, 2009. Effective February 24, 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-09, “Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements” which revised certain disclosure requirements. ASU No. 2010-09 did not have a significant impact on the Company’s consolidated financial statements. The company evaluated subsequent events, which are events or transactions that occurred after December 31, 2009 through the issuance of the accompanying consolidated financial statements.

Management does not believe that any other recently issued but not yet effective accounting pronouncements, if adopted, would have an effect on the accompanying consolidated financial statements.

NOTE 4 – RELATED PARTY TRANSACTIONS

The Company received periodic advances from its principal stockholder based upon the Company's cash flow needs. At December 31, 2008, $394,532 was due to the shareholder.  Interest expense was accrued at an average annual market rate of interest which was 4.99% at December 31, 2008. No terms for repayment were established.

During 2009, the Company obtained a $100,000 note payable for settlement of IT implementation services to an Advisory Panel member.

NOTE 5 – COMMON STOCK

Articles of Incorporation Amendment and Stock Split - The Company's Certificate of Incorporation, as amended, authorizes the issuance of up to 25,000,000 shares of common stock at a par value of $.001 per share.  Over the course of 2007, the Company's Board of Directors ratified two forward stock splits. The first stock split, for 1.725 to 1 and the second for 10,000 to 1.

This resulted in common stock outstanding increasing from 1,000 to 17,250,000 which were all owned by the Company's founder and CEO. The per share data for all periods presented has been retroactively adjusted due to each of the stock splits.


F-9
DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009


NOTE 5 – COMMON STOCK (CONTINUED)

Subsequent to the forward stock splits, the Company's founder and CEO transferred a total of 2,250,000 shares to the Company's President and an Advisory Panel member.  Upon resignation of the Company’s President and Advisory Panel Member in late 2007, the Company cancelled 2,200,000 of the shares previously issued to those individuals along with, 5,000,000 shares held by the CEO and principal stockholder.  These shares were cancelled in February 2008.

The share and per share data for all periods presented has been retroactively adjusted to reflect the stock splits.

Debt Conversions - In April 2007, the Company entered into a Debt Conversion Agreement (the "Agreement") and issued 100,000 shares of common stock at $1 per share to a vendor as full satisfaction for accounts payable previously due and future services to be rendered.  Of the total $100,000 of common stock issued, $55,000 was to satisfy previous account payable balances and $45,000 was issued as consideration for future services to be rendered and was reflected in the Deferred Compensation caption of the Stockholders' Equity section of the Balance Sheet, of which approximately $14,000 was expensed in 2008. The shares have a one year restriction from sale or offering.

Restricted Share Issuances - In January 2008, two Advisory Panel members and a Board of Director member received restricted common stock for services to be rendered throughout 2008.  The two Advisory Panel members received 50,000 and 100,000 shares, respectively, with a fair value of $1.00 per share or $150,000 while the Board of Director member received 50,000 shares with a fair value of $1.00 per share or $50,000.  The share-based compensation expense for the three and nine months ended September 30, 2008 amounted to $25,000 and $175,000, respectively.

Also in January 2008, the Company issued 117,500 shares of restricted common stock with a fair value of $1.00 per share or $117,500 to employees.  Shares issued in connection with the Board of Director consent, were dispersed ratably over the first two quarters of 2008 as authorized in the consent. The Share-based Compensation expense for the three and nine months ended September 30, 2008 amounted to $0, and $117,500, respectively.

Additionally, in January and February 2008, the Company sold 600 shares of common stock at $1.00 per share to individual investees.

For the year ended December 31, 2008, the Company issued to its SEC counsel, 450,000 shares of restricted common stock with a fair value of $1.00 per share or $450,000 for services in connection with the effective filing of Form S-1 with the SEC.

In January 2009, the Company agreed to issue its SEC counsel, 100,000 shares of restricted common stock with a fair value of $0.40 per share or $40,000 for services in connection with the effective filing of Form 15c-211 and submittal to FINRA through a market maker. The Share-Based Compensation expense for the three and nine months ended September 30, 2009 amounted to $0 and $40,000, respectively.




F-9
DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009

NOTE 5 – COMMON STOCK (CONTINUED)

In February 2009, the Company issued to its CEO 50,000 shares of restricted common stock with a fair value of $0.40 per share or $20,000 for services as a Board of Directors member throughout 2009.  The Share-based Compensation expense for the three and nine months ended September 30, 2009 amounted to $5,000 and $15,000, respectively.

In February 2009, the Company issued its SEC counsel 20,000 shares of restricted common stock with a fair value of $0.40 per share or $8,000 for legal services to be provided for the Company’s SEC filings for the 2009 reporting year.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

At December 31, 2009, the Company neither owned nor leased any real or personal property.

NOTE 7 – INCOME TAXES

Deferred income tax assets [liabilities] are as follows:

  December 31,  December 31, 
  2009  2008 
       
Deferred Income Tax Assets:      
     Net Operating Loss Carryforwards $656,485  $590,514 
Allowance for Doubtful Accounts  34,511   32,115 
Allowance for Sales Returns
  13,903   52,862 
         
     Totals  704,899   675,491 
         
Deferred Income Tax Liabilities:        
     Property and Equipment $(25,925) $(25,546)
     Sec. 481 Adjustment - Accrual Basis  (249,919)  (374,879)
     Totals  (275,844)  (400,425)
     Gross Deferred Tax Asset [Liability]  429,055   275,066 
         
     Valuation Allowance for Deferred Taxes  (429,055)  (275,066)
     Net Deferred Tax Asset [Liability] $--  $-- 

Reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:

  2009  2008 
       
U.S. statutory rate  (34%)  (34%)
State income taxes – net of federal benefit  6%  6%
Change in valuation allowance and other  28%  21%
Effective rate  --   (7%)




F-10
DIAMOND INFORMATION INSTITUTE, INC.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009


NOTE 7 – INCOME TAXES (CONTINUED)

Effective with the 2008 tax year, management voluntarily elected a change in its method of tax accounting to the accrual basis as required by Section 481 of the Internal Revenue Code (the "IRC"). In management's opinion, based on provisions of the IRC, a voluntary election to the accrual basis of tax reporting should not subject the Company to tax examinations for previous years that income tax returns have been filed and prompt an uncertain tax position in accordance with the ASC Topic No. 740. As a result, no contingent liability has been recorded for the anticipated change in tax reporting. Further, the resulting tax liability from the change in tax accounting method will be reduced by operating losses previously incurred.

At December 31, 2009, the Company had approximately $1,600,000 of federal net operating tax loss carryforwards expiring at various dates through 2029.  The Tax Reform Act of 1986 enacted a complex set of rules which limits a company's ability to utilize net operating loss carryforwards and tax credit carryforwards in periods following an ownership change. These rules define an ownership change as a greater than 50 percent point change in stock ownership within a defined testing period which is generally a three-year period. As a result of stock which may be issued by us from time to time and the conversion of warrants, options or the result of other changes in ownership of our outstanding stock, the Company may experience an ownership change and consequently our utilization of net operating loss carryforwards could be significantly limited.

Based upon the net losses historically incurred and, the prospective global economic conditions, management believes that it is not more likely than not that the deferred tax asset will be realized and has provided a valuation allowance of 100% of the deferred tax asset. The valuation allowance increased by approximately $154,000 and $275,000 in the years ended December 31, 2009 and 2008, respectively.

NOTE 8 – DISCONTINUED OPERATIONS
The Company’s former jewelry business, which was discontinued on October 19, 2009 when all assets and liabilities related to this business were acquired by Bergio International, Inc. (formerly known as Alba Mineral Exploration, Inc.) has been accounted for as discontinued operations.  The results of operations of this business have been removed from the results of continuing operations for all periods presented.  The assets and liabilities of discontinued operations have been reclassified and are segregated in the balance sheets.

NOTE 9 – SUBSEQUENT EVENTS

On February 2, 2010 Bergio International, Inc. (the “Seller”), owner of 100% of the outstanding common shares of the Company, entered into a share purchase agreement (the “Agreement”) with Macau Consultants and Advisory Services Inc. (the “Buyer”).  In accordance with the terms and provisions of the Agreement, the Seller sold an aggregate of 11,863,100 shares of common stock of the Company to Buyer in exchange for $225,000.  The closing and consummation of the Agreement occurred March 18, 2010. New officers and directors of the Company were apoointed and a change of control of the Company occurred.

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to December 31, 2009 and has determined that it does not have any other material subsequent events to disclose in these financial statements.
F-11
ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

We have had no disagreements with our independent auditors on accounting or financial disclosures.

ITEM 9A(T).                                CONTROLS AND PROCEDURES

Our new Chief Executive Officer, Paul Crawford, and PrincipalChief Financial Officer, Berge Abajian,Dennis Atkins, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Report.  Based on that evaluation, Mr. AbajianMessrs. Crawford and Atkins concluded that our disclosure controls and procedures are effective in timely alerting himthem to material information relating to us required to be included in our periodic SEC filings and in ensuring that information required to be disclosed by us in the reports that we file or submit under the Act is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

23
There were no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control, as is defined in the Securities Exchange Act of 1934.  These internal controls are designed to provide reasonable assurance that the reported financial information is presented fairly, that disclosures are adequate and that the judgments inherent in the preparation of financial statements are reasonable.  There are inherent limitations in the effectiveness of any system of internal controls, including the possibility of human error and overriding of controls.  Consequently, an effective internal control system can only provide reasonable, not absolute, assurance with respect to reporting financial information.

Our internal control over financial reporting includes policies and procedures that: (i) pertain to maintaining records that in reasonable detail accurately and fairly reflect our transactions; (ii) provide reasonable assurance that transactions are recorded as necessary for preparation of our financial statements in accordance with generally accepted accounting principles and the receipts and expenditures of company assets are made and in accordance with our management and directors authorization; and (iii) provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

Our internal control over financial reporting includes policies and procedures that: (i) pertain to maintaining records that in reasonable detail accurately and fairly reflect our transactions; (ii) provide reasonable assurance that transactions are recorded as necessary for preparation of our financial statements in accordance with generally accepted accounting principles and the receipts and expenditures of company assets are made and in accordance with our management and directors authorization; and (iii) provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

Management has undertaken an assessment of the effectiveness of our internal control over financial reporting based on the framework and criteria established in the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).  Based upon this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2008.2009.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to the temporary rules of the Securities and Exchange Commission that permit the company to provide only management’s report in this annual report.


24

ITEM 9B.                   OTHER INFORMATIONAUDIT COMMITTEE

Section 5 – Corporate Governance and Management

Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointments of Principal Officers

(c)  Appointment of Officers

On January 8, 2009, Ms. Arpi Abajian was appointed to serve as Diamond’s interim secretary.  Ms. Abajian is the wife of our Chief Executive Officer and Sole Director, Mr. Abajian.

Section 8 – Other Information

Item 8.01 Other Events

On January 26, 2009, our common stock was approved for trading by FINRA for trading on the OTC:BB under the symbol “DIII”.

PART III
ITEM 10.                    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The members of theOur Board of Directors has not established an audit committee. The respective role of the Company will serve until the next annual meeting of stockholders, or until their successors havean audit committee has been elected.  The officers serve at the pleasure of theconducted by our Board of Directors. Officers are elected byIn the event the Merger Agreement is not consummated, we intend to establish an audit committee during fiscal year 2010. When established, the audit committee's primary function will be to provide advice with respect to our financial matters and to assist our Board and their terms of office are, except to the extent governed by employment contract, at the discretion of the Board.  Information as to the directors and executive officers of the Company is as follows:Directors in fulfilling its oversight

NAMEAGEPOSITION
Berge Abajian48Chief Executive Officer, President, current Principal Accounting Officer and Sole Director
Alfred Sirica (1)
47Former Chief Executive Officer
Arpi Abajian (2)
46Secretary
(1)  Subsequent to the S-1 Registration Statement becoming effective, Mr. Sirica resigned from his position with the Company.  Mr. Abajian agreed to become the Principal Accounting Officer for the Company.
(2)  On January 8, 2009, the board of directors appointed Ms. Arpi Abajian as the Secretary of the Company.  Ms. Abajian is married to our CEO, Mr.  Berge Abajian.

2519
Duties, Responsibilities
responsibilities regarding finance, accounting, and Experiencelegal compliance. The audit committee's primary duties and responsibilities will be to: (i) serve as an independent and objective party to monitor our financial reporting process and internal control system; (ii) review and appraise the audit efforts of our independent accountants; (iii) evaluate our quarterly financial performance as well as its compliance with laws and regulations; (iv) oversee management's establishment and enforcement of financial policies and business practices; and (v) provide an open avenue of communication among the independent accountants, management and our Board of Directors.

ITEM 9B                   OTHER INFORMATION

Not applicable.


PART III

ITEM 10DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Following the Share Purchase Agreement: (i) Berge Abajian comes from resigned as the President/Chief Executive Officer/Chief Financial Officer/Treasurer and the sole director of the Company effective as of March 17, 2010; (ii) Arpi Abajian resigned as the Secretary of the Company effective as of March 17, 2010; (iii) Paul Crawford consented to act as the President /Chief Executive Officer and a family background in jewelry manufacturing.  The Abajian family started manufacturing jewelry indirector of the 1930’sCompany effective as of March 18, 2010; (iv) Dennis Atkins consented to act as the Chief Financial Officer and Berge entered intoa director of the industryCompany effective as a manufacturer in 1980.    From 1980of March 18, 2010; and (v) Merlin Larson consented to 1983, Mr. Abajian servedact as the Secretary and Treasurer of Pyramid Jewelry,and a jewelry manufacturing company.  Mr. Abajian established operations of Diamond Information Institute in 1995 and started his “Bergio” brand label over ten years ago.  Currently, Mr. Abajian is the chief executive officer, president and sole director of Diamond.  the Company effective as of March 18, 2010.

The Bergiobiographies of each of the new directors and officers are set forth below as follows:


     NAME                                               AGE                          POSITION WITH THE COMPANY
     ___________                           ___                          _________________________________

     Paul Crawford                                             74                            President/Chief Executive Officer and a Director
     Dennis Atkins                                             49                           Chief Financial Officer and a Director
     Merlin Larson                                              35                           Secretary and Treasurer and a Director

Paul Crawford.  Since 1990, Mr. Crawford has been assisting early stage companies in raising capital. He is both a venture capitalist and an entrepreneur and has been working with developing businesses since the late 1970s. In addition to raising capital, Mr. Crawford has started several successful businesses including Celcom. Cellcom was incorporated in Minnesota in 1981 specifically to acquire the first non-wire line was onecellular license in the first phase of the first U.S. cellular phone systems. The initial cellular licenses in the top 75 U.S. cities were opened to introduce yellow diamondsall filers who were then submitted to a series of Federal Communications Commission (FCC) comparative hearings, which is similar to how the F.C.C awards radio and television licenses.  The remaining U.S. cellular markets were subsequently placed via a lottery. The deadline for the initial filings in jewelrythe top markets was closed in early 1982. This resulted in Celcom participating in a joint venture with MCI. The Twin Cities cellular system operated as MCI/Celcom and has continued subsequently was renamed Cellular One of the Twin Cities.  In 1986 MCI/Celcom sold the Twin Cities non-wireline cellular system
20
to beMcCaw Communications for approximately $43 million. In July 1998, Mr. Crawford co-founded Commission Junction (CJ).  CJ became very profitable in early 2002 and was acquired in December 2003 by ValueClick (VCLK) in a $58 million cash and stock transaction.  CJ is a leader in the affiliate marketing/pay-per-sale advertising on the cutting edgeInternet. Starting in late 2007, Mr. Crawford focused on the next generation of jewelry trends.  In 2002, the Internet which is a “sea change event” underway today. The porfolio is dominated by Software as a Service (SaaS) services and 4G, Mobile WiMAX and includes five SaaS businesses (Empathic Clinical Suites, MSAFastDraftPRO, CompleteLAW-WEB, Sports Director Online, Bankruptcy Compiler, LocaLoop, Inc.

Mr. Abajian also began productionCrawford is the owner of his Bergio Bridal Collection.  Mr. Abajian has a BS in Business Administration from Fairleigh Dickinson University andCrawford Capital Corporation. Crawford Capital Corporation is well known and respectedranked as the 8th largest Twin Cities based venture capital firm in the jewelry industry.  Since 2005, Mr. Abajian has served as the Presidentmost recent 2010 Edition of the East Coast branch of the Armenian Jewelry AssociationThe Minneapolis-St. Paul Business Journal.  These rankings are based on total capital raised by all reporting firms from their inception through December 31, 2008.  Crawford Capital Corporation’s total at that time was $200,000,000+. Paul Crawford and has also served as a Board Member on MJSA (Manufacturing Jewelers and Suppliers of America), New York Jewelry Association, and the 2001-2002 Luxury Show.his wife reside in Minneapolis, MN.

Arpi AbajianDennis Atkins.  Mr. Atkins is a Certified Public Accountant with over twenty-five years experience in public accounting. Mr. Atkins has worked at Diamond Information Instituteextensive experience in business and personal tax planning and preparation including the use of offshore domiciles for over 10 years in administrative positions.  On January 8, 2009, Diamond appointed Ms. Abajian to serve asincome tax benefit and asset protection, public and private company auditing and business consulting. He has been a member SEC Practice Section and the Company’s interim Secretary until thePublic Company Oversight Board.  Mr. Atkins has the resources available to hire a permanent Secretary for the Company.  Ms. Abajian is currently married to the Chief Executive Officer and Sole Director of Diamond and does not serveserved on the board of any otherdirectors and as chief financial officer for various private and publicly traded companies.  He is a member of the American Institute of Certified Public Accountants and holds licenses in Oklahoma and California.  Mr. Atkins holds a Bachelors Degree in Accounting from Oklahoma State University and a Masters Degree in Accountancy from the University of Oklahoma.

ElectionMerlin Larson. During the past five years, Mr. Larson has been involved in the contruction housing industry in Canada. Mr. Larson currently has a building contracting business in Victoria, British Columbia.Mr. Larson gained a wealth of Directorspractical business experience and Officers.knowledge growing up and working on a grain farm and in his father’s business prior to graduating from high school in Vancouver, British Columbia. Mr. Larson studied art at the Art College in Nelson, British Columbia, and earned a nursing degree.

Directors are elected to serve until the next annual meeting of stockholders and until their successors have been elected and qualified. Officers are appointed to serve until the meeting of the Board of Directors following the next annual meeting of stockholders and until their successors have been elected and qualified.

Involvement in Certain Legal Proceedings

No Executive Officerexecutive officer or Directordirector of the Corporation has been the subject of any Order, Judgment, or Decree of any Court of competent jurisdiction, or any regulatory agency permanently or temporarily enjoining, barring suspending or otherwise limiting him from acting as an investment advisor, underwriter, broker or dealer in the securities industry, or as an affiliated person, director or employee of an investment company, bank, savings and loan association, or insurance company or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any securities.
21

No Executive Officer or Director of the Corporation has been convicted in any criminal proceeding (excluding traffic violations) or is the subject of a criminal proceeding which is currently pending.

No Executive Officer or Director of the Corporation is the subject of any pending legal proceedings.

Employment Agreements and Compensation
During the 2007 year, Diamond entered into employment agreements with its Chief Executive Officer, Berge Abajian, and its then President, Scott Wanstrath.  Both agreements were to not take effect until the Company had raised a significant amount of capital.  Subsequent to the year ended December 31, 2007, Mr. Wanstrath gave notice of his termination and Mr. Abajian agreed to terminate the employment agreement.  As of the date of this filing, the Company does not have any employment agreements in place.  The Company intends to draft a new employment agreement with Mr. Abajian during the 2009 year.

26
On January 20, 2008, Diamond authorized the issuance of 100,000 shares to Mr. Zareh Beylerian in conjunction with Mr. Beylerian being appointed to the Company’s Advisory Panel.  The shares were issued in advance for the 2008 fiscal year, in which Mr. Beylerian agreed to serve on Diamond’s Advisory Panel.  Nvair Beylerian is Zareh Beylerian’s wife and Mr. Beylerian elected to gift 50,000 shares of the 100,000 issued shares of Diamond’s common stock to her.

On February 20, 2008, Diamond cancelled 2,000,000 shares previously granted to Mr.  Ralph Amato and cancelled 200,000 shares previously granted to Mr. Scott Wanstrath.  The shares were cancelled as a result of both gentlemen no longer providing services to Diamond and as a result of not fulfilling the terms of their agreements.  Mr. Abajian also agreed to cancel 5,000,000 of his shares to reduce some of his ownership position in the Company.

Advisory Panel

On April 2, 2007, Diamond’s Board of Directors approved the establishment of an Advisory Panel to provide on-going advice to the Company’s officers.  Under the terms of the resolution adopting the panel, the Board of Directors agreed to issue 50,000 shares of common stock to each panel member as remuneration of their services.  Mr. Hagop Baghdadlian and Mr. Zareh Beylerian are the current members on the panel.
Mr. Baghdadlian opened Hagop Baghdadlian LTD, in 1977 as a diamond dealer in New York City.  In 2003, Hagop Baghdadlian LTD merged with Cora Diamonds, Inc., a diamond manufacturer and Mr. Baghdadlian became President of Cora International, LLC.  Cora International has since become a leading manufacturer of fancy colored diamonds.
Mr. Beylerian is an attorney with over 20 years of law experience.  Mr. Beylerian in 2004 formed the firm of Beylerian & Associates, which handles general litigation and commercial matters, bankruptcy, personal injury, immigration, real estate, intellectual property and more.
Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), requires executive officers and directors, and persons who beneficially own more than ten percent of an issuer's common stock, which has been registered under Section 12 of the Exchange Act, to file initial reports of ownership and reports of changes in ownership with the SEC.

As a company with securities registered under Section 15(d) of the Exchange Act, our executive officers and directors, and persons who beneficially own more than ten percent of our common stock are not required to file Section 16(a) reports.


27

Code of Ethics

A code of ethics relates to written standards that are reasonably designed to deter wrongdoing and to promote:

(1)  Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
(2)  Full, fair, accurate, timely and understandable disclosure in reports and documents that are filed with, or submitted to, the Commission and in other public communications made by an issuer;
(3)  Compliance with applicable governmental laws, rules and regulations;
(4)  The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and
(5)  Accountability for adherence to the code.

We have not adopted a corporate code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

Our decision to not adopt such a code of ethics is a result of having only two officers and one director operating as the management for the Company.  We believe that the limited interaction which occurs having such a small management structure for the Company eliminates the current need for such a code, in that violations of such a code would be reported to the party generating the violation.

Corporate Governance

Director Independence

The Board of Directors has concluded that Director, Berge Abajian is not independent in accordance with the director independence standards of the American Stock Exchange.

Nominating Committee

We do not have a Nominating Committee or Nominating Committee Charter.  Our Board of Directors performs some of the functions associated with a Nominating Committee.  We have elected not to have a Nominating Committee in that we are an initial-stages operating company with limited operations and resources.

Director Nomination Procedures

Generally, nominees for Directors are identified and suggested by the members of the Board or management using their business networks.  The Board has not retained any executive search firms or other third parties to identify or evaluate director candidates in the past and does not intend to in the near future.  In selecting a nominee for director, the Board or management considers the following criteria:
28

 
1.  whether the nominee has the personal attributes for successful service on the Board, such as demonstrated character and integrity; experience at a strategy/policy setting level; managerial experience dealing with complex problems; an ability to work effectively with others; and sufficient time to devote to the affairs of the Company;
2.  whether the nominee has been the chief executive officer or senior executive of a public company or a leader of a similar organization, including industry groups, universities or governmental organizations;
3.  whether the nominee, by virtue of particular experience, technical expertise or specialized skills or contacts relevant to the Company’s current or future business, will add specific value as a Board member; and
4.  whether there are any other factors related to the ability and willingness of a new nominee to serve, or an existing Board member to continue his service.

The Board or management has not established any specific minimum qualifications that a candidate for director must meet in order to be recommended for Board membership.  Rather, the Board or management will evaluate the mix of skills and experience that the candidate offers, consider how a given candidate meets the Board’s current expectations with respect to each such criterion and make a determination regarding whether a candidate should be recommended to the stockholders for election as a Director.  During 2008, the Company received no recommendation for Directors from its stockholders.

Audit Committee

Currently, we do not have an Audit Committee.  At this time, the board of directors will perform the necessary functions of an Audit Committee, such as: recommending an independent registered public accounting firm to audit the annual financial statements; reviewing the independence of the independent registered public accounting firm; review of the financial statements and other required regulatory financial reporting; and reviewing management’s policies and procedures in connection with its internal control over financial reporting.

Additionally, we do not have a financial expert. We believe the cost related to retaining a financial expert at this time is prohibitive.  However, at such time the Company has the financial resources a financial expert will be hired.

Compensation Committee

We currently do not have a compensation committee of the board of directors.  Until a formal committee is established our board of directors will review all forms of compensation provided to our executive officers, directors, consultants and employees, including stock compensation.  The Board makes all compensation decisions for the Executives and approves recommendation regarding equity awards to all elected officers of Diamond. Decisions regarding the non-equity compensation of other executive officers are made by the Board.


29

Compensation Philosophy and Objectives

The Board believes that the most effective executive compensation program is one that is designed to reward the achievement of specific annual, long-term and strategic goals by Diamond, and which aligns executives’ interests with those of the shareholders by rewarding performance above established goals, with the ultimate objective of improving shareholder value. As a result of the size of Diamond and only having two executive officers, the Board evaluates both performance and compensation on an informal basis. Upon hiring additional executives, the Board intends on establishing a Compensation Committee to evaluate both performance and compensation to ensure that Diamond maintains its ability to attract and retain superior employees in key positions and that compensation provided to key employees remains competitive relative to the compensation paid to similarly situated executives of our peer companies. The Board believes executive compensation packages, when and if established, provided to the Company’s executives, including the named executive officers, should include both cash and stock-based compensation that reward performance as measured against established goals.

Based on the foregoing objectives, the Board intends to structure Diamond's annual and long-term incentive-based cash and non-cash executive compensation to motivate executives to achieve the business goals set by Diamond and reward the executives for achieving such goals.

Shareholder Communications

Any shareholder communications to the Board should be forwarded to the attention of the Company’s Secretary at our offices at 12 Daniel Road East, Fairfield, New Jersey 07004.  Our Secretary will review any communication received from a shareholder, and all material communications from shareholders will be forwarded to the Chairman of the Board, the Board of Directors, or other individual directors as appropriate.

ITEM 11.                      EXECUTIVE COMPENSATION

The following table sets forth the compensation of our executive officers for the years ended December 31, 20082009 and 2007,2008, respectively.

Summary Compensation Table

Name and Principal Position
Year
Ended December 31,
Salary
Stock Awards (1)
All Other CompensationTotal
Berge Abajian     
Chief Executive Officer, President, Principal Accounting Officer
2007
2008
$63,108
$6,242
$50,000
$50,000
$-0-
$25,496 (2)
$113,108
$81,738
      
Scott Wanstrath     
Former President
2007
2008
$99,225
$-0-
$250,000 (3)
$-0-
$-0-
$-0-
$349,225
$-0-
      
Alfred Sirica (4)
     
Former Chief Financial Officer2008$-0-$-0-$-0-$-0-
      
Arpi Abajian (5)
     
Secretary2008$-0-$25,000
$-0- (2)
$25,000
Name and Principal Position
Year
Ended December 31,
Salary
Stock Awards (1)
All Other CompensationTotal
Berge Abajian
Chief Executive Officer, President, Principal Accounting Officer
2008
2009
$6,242
$13,413
$50,000
$20,000
$25,496 (2)
$17,856 (2)
$81,738
$51,269
Alfred Sirica (3)
Former Chief Financial Officer
2008
2009
$-0-
$-0-
$-0-
$-0-
$-0-
$-0-
$-0-
$-0-
Arpi Abajian (4)
Secretary
2008
2009
$-0-
$-0-
$25,000
$-0-
$-0- (2)
$-0- (2)
$25,000
$-0-
(1)  The amounts shown in this column reflect the expense recognized for financial statement reporting purposes for the fiscal year ended December 31, 20082009 and 2007,2008, in accordance with FAS 123(R).
(2)  Other compensation was made up of Mr. Abajian’s car expense and health insurance expenses.  Included in this amount was approximately $8,670 for Ms. Abajian’s health insurance expenses.
(3)
The Company had agreed to issue 250,000 shares of its common stock pursuant to Mr. Wanstrath’s employment agreement.  The common shares issued were those held by the Company’s CEO. However, subsequent to the year ended December 31, 2007, Mr. Wanstrath gave notice of his resignation and the Company cancelled 200,000 shares as a result of the agreement not being completed to its full term.
(4)  Mr. Sirica agreed to serve as Chief Financial Officer during the time in which the Company was going through the review process of its registration statement.  Subsequent to the registration statement becoming effective, Mr. Sirica resigned and Mr. Abajian agreed to serve as the Principal Accounting Officer.
(5)(4)  On January 8, 2009, the board of directors appointed Ms. Arpi Abajian as the Secretary of the Company.  On January 20, 2008, the Company authorized shares to be issued to its employees as bonus compensation of which Ms. Abajian received 25,000 shares.  The shares were issued during the first two quarters of 2008.

3022
Employment Agreement

DiamondThe Company currently does not have any employment agreements in place.  During 2007, Mr. Abajian had executed an employment agreement and an addendum stating the previously executed employment agreement would not take effect until the Company had received private equity financing.  During the first quarter of 2008, Mr. Abajian cancelled the agreement and intends on drafting a new employment agreement after the Company has raised additional capital.

Termination of Employment

There are no compensatory plans or arrangements, including payments to be received from the Company, with respect to any person associated with the Company which would in any way result in payments to any such person because of his resignation, retirement, or other termination of such person’s employment with the Company or its subsidiaries, or any change in control of the Company, or a change in the person’s responsibilities following a change in control of the Company.

Compensation Committee

We currently do not have a compensation committee on the board of directors.  Until a formal committee is established our entire board of directors will review all forms of compensation provided to our executive officers, directors, consultants, and employees, including stock compensation.

DIRECTOR COMPENSATION TABLE
Name
Fees
Earned or
Paid in
Cash
  ($)
Stock
Awards
 ($)
Option
Awards
  ($)
Non-Equity
Incentive
Plan
Compensation
      ($)
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
    ($)
    All
   Other
Compensation
     ($)
Total
  ($)
Berge Abajian
  2008
  2009
    -0-
    -0-
  -0-
50,000
     (1)
-0-
-0-
        -0-
        -0-
      -0-
      -0-
      -0-
      -0-
-0-
50,000
ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTER

The following table presents information, to the best of our knowledge, about the beneficial ownership of our common stock as of the date of this Annual Report, held by those persons known to beneficially own more than 5% of our capital stock and by our directors and executive officers.  The percentage of beneficial ownership for the following table is based on 11,863,100 shares of common stock outstanding as of the date of this Annual Report.
3123

Equity Awards
Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and does not necessarily indicate beneficial ownership for any other purpose. Under these rules, beneficial ownership includes those shares of common stock over which the stockholder has sole or shared voting or investment power. It also includes (unless footnoted) shares of common stock that the stockholder has a right to acquire within 60 days after April 12, 2010 through the exercise of any option, warrant or other right. The percentage ownership of the outstanding common stock, however, is based on the assumption, expressly required by the rules of the Securities and Exchange Commission, that only the person or entity whose ownership is being reported has converted options or warrants into shares of our common stock.

Our sole officer and director was also the founder of Diamond and therefore originally owned a total of 15,000,000 shares of our common stock.  During the first quarter of 2008, Mr. Abajian agreed to cancel 5,000,000 shares owned by him.  As of the date of this filing, he currently owns 10,150,000 shares.  Mr. Abajian was issued 100,000 shares of common stock as compensation for serving on our Board of Directors for the 2007 and 2008 fiscal years.  On February 11, 2009, Mr. Abajian was issued another 50,000 shares of common stock as compensation in advance for serving on our Board of Directors for the upcoming 2009 fiscal year.  None of the shares owned by Mr. Abajian have any registration rights attached to them.

Director Compensation and Other Arrangements

Name and Principal PositionFees Earned or Paid in Cash
Stock Awards (1)
All Other CompensationTotal
Berge Abajian, Sole Directors$-0-$50,000$-0-$50,000

Diamond has agreed to issue 50,000 shares per year as compensation to our board of directors and members of our advisory panel.  We anticipate in the future, once additional members are added to the board of directors, that the Company will reimburse all directors for expenses when attending board or committee meetings.
Name and Address of Beneficial Owner(1)
Amount and Nature of Beneficial Ownership(1)
Percentage of Beneficial Ownership
Directors and Officers:  
Merlin Larson
2300 W. Sahara Avenue, Suite 800
Las Vegas, Nevada 89102
6,852,70057.76%
Dennis Atkins
2300 W. Sahara Avenue, Suite 800
Las Vegas, Nevada 89102
2,000,00016.86%
Paul Crawford
2300 W. Sahara Avenue, Suite 800
Las Vegas, Nevada 89102
2,000,00016.86%
All executive officers and directors as a group (3 persons)10,852,70099.48%
Beneficial Shareholders Greater than 10%  
 None  
 
ITEM 12.                                SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
*Less than one percent.
 
The following table presents information, to the best of our knowledge, about the beneficial ownership of our common stock on March 23, 2009, held by those persons known to beneficially own more than 5% of our capital stock and by our directors and executive officers.  The percentage of beneficial ownership for the following table is based on 11,813,100 shares of common stock outstanding as of March 23, 2009.

Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and does not necessarily indicate beneficial ownership for any other purpose. Under these rules, beneficial ownership includes those shares of common stock over which the stockholder has sole or shared voting or investment power. It also includes (unless footnoted) shares of common stock that the stockholder has a right to acquire within 60 days after March 23, 2009 through the exercise of any option, warrant or other right. The percentage ownership of the outstanding common stock, however, is based on the assumption, expressly required by the rules of the Securities and Exchange Commission, that only the person or entity whose ownership is being reported has converted options or warrants into shares of our common stock.

 
 
Name of Beneficial Owner, Officer or Director (1)
 
 
Number
of Shares
 
 
Percent Beneficially Owned (2)
 
Berge Abajian, Chief Executive Officer and Sole Director 10,150,000 85.9% 
Arpi Abajian, Secretary 25,000 0.2% 
Directors and Officers as a Group 10,175,000 86.1% 
(1)  
As used in this table, “beneficial ownership” meansUnder Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the sole or shared power to vote, or to direct the voting of a security, or the sole or sharedshares; and (ii) investment power, with respectwhich includes the power to a security (i.e.,dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of orthe shares). In addition, shares are deemed to directbe beneficially owned by a person if the dispositionperson has the right to acquire the shares (for example, upon exercise of a security).  The address of each person is in the carean option) within 60 days of the Company.
(2)  Figures are roundeddate as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the nearest tenthnumber of a percent.  The percentage of beneficial ownership is based on 11,813,100 shares of common stock which does not includeactually outstanding as of the exercisedate of any warrants currently held by selling security holders registered inthis Annual Report. As of the Registration Statement which became effective in September 2008.date of this Annual Report, there are 11,863,100 shares issued and outstanding.
(3)  
On January 8, 2009, the board of directors appointed Ms. Arpi Abajian as the Secretary of the Company.

3224
CHANGES IN CONTROL

We are unaware of any contract, or other arrangement or provision, the operation of which may at a subsequent date result in a change of control of our company.

ITEM 13.                   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Diamond receives advances from time to time from its CEO, Berge Abajian based upon cash flow needs.  As of December 31, 2008 and 2007, $394,532 and $90,289 was due to Mr. Abajian, respectively.  Repayment terms have not been established atthe date of this point in time but interest expense is being accrued at an average annual market rateAnnual Report, none of 4.99%.   The amount owed to Mr. Abajian has been classified as a current liability.

In addition during 2007, Diamond hired an information technology company, Advanced Integrated Solutions, Inc. to provide consultation and technical support related to certain software applications and technology infrastructure.  The information technology company is owned by Mr. Hagop Beledankian, who is also a shareholderour directors, officers or principal stockholders, nor any associate or affiliate of the Company butforegoing, have any interest, direct or indirect, in any transaction or in any proposed transactions, which has a total ownership of less than 1%.  Although, Advanced Integrated Solutions is managed by a shareholder of the Company, Diamond believes the terms for the services performed by Advanced Integrated Solutions, were not more favorable than they would have been if performed by an arms-length service provider.  During thematerially affected or will materially affect us during fiscal year ended December 31, 2007, we issued 100,000 shares to this information technology company in connection with services rendered and for future services to be performed.  At the time of the 100,000 shares being issued, approximately $55,000 was to satisfy previous account payable balances and approximately $45,000 was for future services to be rendered.  As of December 31, 2008, the balance was fully amortized.2009.

ITEM 14.                   PRINCIPAL ACCOUNTING FEES AND SERVICES

(1) AUDIT FEESAudit Fees

The aggregate fees for professional services rendered by MSPC, Certified Public Accountants and Advisors, A Professional Corporation for the audit of our annual financial statements and review of the financial statements included in our Form 10-Q for the period ended September 30, 2008December 31, 2009 or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for fiscal yearsyear ended 2009 and 2008 were $7,500  and 2007$57,500, respectively.  The aggregate fees for professional services rendered by Silberstein Ungar, PLLC for the annual audit of our financial statements for the period ended December 31, 2009 were $57,500 and $22,000, respectively.$6,000.

(2) AUDIT-RELATED FEESAudit Related Fees

The aggregate fees by MSPC, Certified Public Accountants and Advisors, A Professional Corporation for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the registrant’s financial statements for the fiscal years 20082009 and 20072008 were $-0- and $-0-, respectively.

33
(3) TAX FEESTax Fees

The aggregate fees by MSPC, Certified Public Accountants and Advisors, A Professional Corporation for professional services rendered by the principal accountant for the fiscal years 20082009 and 20072008 were $-0- and $-0-, respectively.

(4) ALL OTHER FEESAll Other Fees

The aggregate fees by MSPC, Certified Public Accountants and Advisors, A Professional Corporation for products and services provided by the principal accountant for the fiscal years 20082009 and 20072008 were $-0- and $-0-, respectively.
25

(5) AUDIT COMMITTEE POLICIES AND PROCEDURES

We do not have an audit committee.

(6) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

Not applicable.
PART IV

ITEM 15.                    EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)The following exhibits are filed as part of this Annual Report.

1.  The financial statements listed in the "Index to Financial Statements" at page F-1 are filed as part of this report.
   Incorporated by reference
ExhibitExhibit DescriptionFiled herewithFormPeriod endingExhibitFiling date
3(i)Certificate of Incorporation, dated October 24, 1988 Form S-1/A 3(i)08/28/08
3(ii)Amendment to Certificate of Incorporation dated April 12, 2010.X    
3(i)(b)Certificate of Trade Name, dated January 31, 1997 Form S-1/A 3(i)(b)08/28/08
3(i)(c)Certificate of Amendment to the Certificate of Incorporation, dated May 31, 2007 Form S-1/A 3(i)(c)08/28/08
3(ii)Bylaws of Diamond Information Institute, Inc. Form S-1/A 3(ii)08/28/08
10.1Sample Subscription Agreement for the $25,000 unit offering Form S-1/A 10.108/28/08
23Consent of MSPC, dated March 23, 2009X    
23.1Consent of Silberstein Ungar, PLLC X    
31Certification of Berge Abajian pursuant to Section 302 of the Sarbanes-Oxley ActX    
32Certification of Berge Abajian pursuant to Section 906 of the Sarbanes-Oxley ActX    

2.  Financial statement schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

3.  Exhibits included or incorporated herein: See index to Exhibits.

3426
(b)           Exhibits

   Incorporated by reference
ExhibitExhibit DescriptionFiled herewithFormPeriod endingExhibitFiling date
3(i)Certificate of Incorporation, dated October 24, 1988 Form S-1/A 3(i)08/28/08
3(i)(b)Certificate of Trade Name, dated January 31, 1997 Form S-1/A 3(i)(b)08/28/08
3(i)(c)Certificate of Amendment to the Certificate of Incorporation, dated May 31, 2007 Form S-1/A 3(i)(c)08/28/08
3(ii)Bylaws of Diamond Information Institute, Inc. Form S-1/A 3(ii)08/28/08
10.1Sample Subscription Agreement for the $25,000 unit offering Form S-1/A 10.108/28/08
23Consent of MSPC, dated March 23, 2009X    
31Certification of Berge Abajian pursuant to Section 302 of the Sarbanes-Oxley ActX    
32Certification of Berge Abajian pursuant to Section 906 of the Sarbanes-Oxley ActX    

DIAMOND INFORMATION INSTITUTE, INC.
 
35
 

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act, of 1934, the registrant has duly caused thethis report to be signed on its behalf by the undersigned, thereuntotherunto duly authorized.

DIAMOND INFORMATION INSTITUTE, INC.


By: /s/ Berge Abajian
 Berge Abajian, President

DIAMOND INFORMATION INSTITTUE INC.
Dated: April 14, 2010  By:/s/ PAUL CRAWFORD
Paul Crawford, President/Chief
Executive Officer
Dated: April 14, 2010By:/s/ DENNIS ATKINS
Dennis Atkins, Chief Financial Officer
Date: March 24, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SignatureDated: April 14, 2010TitleBy:Date
/s/ Berge AbajianPresident, Treasurer, DirectorMarch 24, 2009
Berge AbajianPAUL CRAWFORD
  Director
Dated: April 14, 2010By:/s/ Berger AbajianPrincipal Executive Officer & Principal Accounting OfficerMarch 24, 2009
Berge AbajianDENNIS ATKINS
  
/s/ Arpi AbajianSecretaryMarch 24, 2009
Arpi AbajianDirector

 
36

DIAMOND INFORMATION INSTITUTE, INC.

INDEX TO FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2008 AND 2007

Dated: April 14, 2010PAGES
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMBy:F-2/s/ MERLIN LARSON
  
BALANCE SHEETSF-3
STATEMENTS OF OPERATIONSF-5
STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITYF-6
STATEMENTS OF CASH FLOWSF-7
NOTES TO FINANCIAL STATEMENTSF-9
Director

F-1


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders
   Diamond Information Institute, Inc.
   Fairfield, New Jersey

We have audited the accompanying balance sheets of Diamond Information Institute, Inc. as of December 31, 2008 and 2007, and the related statements of operations, changes in stockholders' equity, and cash flows for each of the two years in the period ended December 31, 2008.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Diamond Information Institute, Inc. as of December 31, 2008 and 2007, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2008, in conformity with U.S. generally accepted accounting principles.

We were not engaged to examine management's assessment of the effectiveness of Diamond Information Institute, Inc.'s internal control over financial reporting as of December 31, 2008, included in the accompanying Management’s Report on Internal Control Over Financial Reporting and, accordingly, we do not express an opinion thereon.




/s/ MSPC
Certified Public Accountants and Advisors,
A Professional Corporation


Cranford, New Jersey
March 23, 2009

F-2


DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
 
BALANCE SHEETS 
       
  December 31, 
  2008  2007 
       
       
Assets:      
Current Assets:      
Accounts Receivable - Net $713,194  $692,619 
Inventory  1,326,989   1,333,752 
Prepaid Expenses  39,138   48,618 
         
Total Current Assets  2,079,321   2,074,989 
         
Property and Equipment – Net  160,983   222,715 
         
Other Assets:        
Investment in Unconsolidated Affiliate  5,000   5,000 
         
Total Assets $2,245,304  $2,302,704 
 
See Notes to Financial Statements.
F-3


DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO 
BALANCE SHEETS 
       
  December 31, 
  2008  2007 
       
       
Liabilities and Stockholders' Equity:      
Current Liabilities:      
Cash Overdraft $7,345  $48,144 
Accounts Payable and Accrued Expenses  446,892   389,798 
Bank Lines of Credit – Net  910,449   853,621 
Current Maturities of Notes Payable  82,015   110,088 
Current Maturities of Capital Leases  23,402   19,060 
Advances from Stockholder – Net  394,532   90,289 
Sales Returns and Allowances Reserve  132,353   24,726 
Deferred Tax Liability  --   13,812 
         
Total Current Liabilities  1,996,988   1,549,538 
         
Long-Term Liabilities        
Notes Payable  97,270   177,167 
Capital Leases  39,092   60,924 
Deferred Tax Liability  --   78,672 
         
Total Long-Term Liabilities  136,362   316,763 
         
Commitments and Contingencies  --   -- 
         
Stockholders' Equity        
Common Stock - $.001 Par Value, 25,000,000 Shares Authorized, 11,643,100 and 18,075,000 Shares Issued and Outstanding as of December 31, 2008 and December 31, 2007, respectively  11,643   18,075 
Additional Paid-In Capital  1,599,707   825,175 
Accumulated Deficit  (1,499,396)  (392,540)
Deferred Compensation  --   (14,307)
         
Total Stockholders' Equity  111,954   436,403 
         
Total Liabilities and Stockholders' Equity $2,245,304  $2,302,704 
See Notes to Financial Statements
F-4


DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
 
STATEMENTS OF OPERATIONS 
       
  Year Ended December 31, 
  2008  2007 
       
Sales - Net $1,385,620  $1,296,585 
         
Cost of Sales (See Note 2)  847,976   1,226,561 
         
Gross Profit  537,644   70,024 
         
Selling Expenses  368,664   392,793 
         
General and Administrative Expenses        
         
Share-Based Compensation  317,500   150,000 
         
Common Stock Issued for Professional Services  450,000   -- 
         
Other  495,123   945,549 
         
Total General and Administrative expenses  1,262,623   1,095,549 
         
Total Operating Expenses  1,631,287   1,488,342 
         
Loss from Operations  (1,093,643)  (1,418,318)
         
Other Income [Expense]        
         
Interest Expense  (103,715)  (121,318)
         
Other Income  1,369   36,014 
         
Total Other Income [Expense]  (102,346)  (85,304)
         
Loss Before Income Tax Benefit  (1,195,989)  (1,503,622)
         
Income Tax Benefit  (89,133)  (331,642)
         
Net Loss $(1,106,856) $(1,171,980)
         
Net Loss Per Common Share - Basic and Diluted $(0.09) $(0.07)
         
Weighted Average Common Shares Outstanding – Basic and Diluted  12,405,723   17,790,890 
  
See Notes to Financial Statements.

F-5

DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO

STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
                   
           Retained       
        Additional  Earnings     Total 
  Common Stock  Paid-In  [Accumulated  Deferred  Stockholders' 
Description Shares  Par Value  Capital  Deficit]  Compensation  Equity 
                   
Balance as of January 1, 2007  17,250,000  $17,250  $1,000  $779,440     $797,690 
                        
Private placement offering of common stock  425,000   425   424,575   -   -   425,000 
                         
Shared-based compensation  150,000   150   149,850   -   -   150,000 
                         
Issuance of common stock for previously rendered                        
services or those to be performed  250,000   250   249,750   -   (44,307)  205,693 
                         
Amortization of deferred compensation in connection                        
with services rendered  -   -   -   -   30,000   30,000 
                         
Net [Loss]  -   -   -   (1,171,980)  -   (1,171,980)
                         
Balance as of December 31, 2007  18,075,000   18,075   825,175   (392,540)  (14,307)  436,403 
                         
Cancellation of common stock outstanding  (7,200,000)  (7,200)  7,200   -   -   - 
                         
Shared-based compensation  317,500   317   317,183   -   -   317,500 
                         
Amortization of deferred compensation in connection                        
with services rendered  -   -   -   -   14,307   14,307 
                         
Issuance of common stock for professional                        
services rendered  450,000   450   449,550   -   -   450,000 
                         
Private placement offering of common stock  600   1   599   -   -   600 
                         
Net [Loss]  -   -   -   (1,106,856)  -   (1,106,856)
                         
Balance as of December 31, 2008  11,643,100  $11,643  $1,599,707  $(1,499,396) $-  $111,954 
                         
See Notes to Financial Statements.



F-6

DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
 
STATEMENTS OF CASH FLOWS 
       
  Year Ended December 31, 
  2008  2007 
       
Operating Activities      
Net Loss $(1,106,856) $(1,171,980)
Adjustments to Reconcile Net Loss        
to Net Cash Used in Operating Activities:        
Sales Returns and Allowance Reserve  107,627   (17,450)
Depreciation and Amortization  61,732   55,020 
Share-Based Compensation  317,500   150,000 
Services Rendered for Common Stock  450,000   -- 
Amortization of Deferred Compensation  14,307   30,000 
Deferred Tax Benefit  (92,486)  (275,126)
Allowance for Doubtful Accounts  80,407   (36,250)
         
Changes in Assets and Liabilities        
[Increase] Decrease in:        
Accounts Receivable  (100,982)  466,234 
Inventory  6,763   272 
Prepaid Expenses  9,481   (6,425)
Increase [Decrease] in:        
Accounts Payable and Accrued Expenses  57,096   183,067 
Total Adjustments  911,445   549,342 
         
Net Cash Used in Operating Activities  (195,411)  (622,638)
         
Investing Activities:        
Capital Expenditures  --   (51,542)
         
Financing Activities:        
[Decrease] Increase in Cash Overdraft  (40,800)  48,144 
Advances under Bank Lines of Credit - Net  56,828   204,488 
Repayments of Notes Payable  (107,970)  (99,678)
Advances  from Stockholder - Net  304,243   65,209 
Repayments of Capital Leases  (17,490)  (11,450)
Proceeds from Private Placements of Common Stock  600   425,000 
         
Net Cash Provided by Financing Activities  195,411   631,713 
         
Net (Decrease) in Cash  --   (42,467)
         
      Cash - Beginning of Years  --   42,467 
         
Cash - End of Years $--  $-- 
         
See Notes to Financial Statements.

F-7


DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO 
STATEMENTS OF CASH FLOWS 
       
  Year Ended December 31, 
  2008  2007 
       
Supplemental Disclosures of Cash Flow Information:      
Cash Paid during the years for:      
Interest $101,000  $119,000 
Income Taxes $4,000  $2,000 
         
Supplemental Disclosures of Non-Cash Investing and Financing Activities: 
During 2008 and 2007, the Company issued 200,000 and 250,000 shares of common stock to vendors as full settlement for accounts payable balances amounting to $200,000 and $250,000, respectively. These shares were issued as consideration for payment of accounts payable balances and pre-payments for services to be rendered. 
  
During 2007 the Company entered into certain capital leases for the purchase of equipment having an aggregate net present value of $40,000. 
  
See Notes to Financial Statements.

F-8
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[1] Nature of Operations and Basis of Presentation

Nature of Operations - Diamond Information Institute Inc. d/b/a Designs by Bergio [the "Company"] is engaged in the product design, manufacturing, distribution of fine jewelry throughout the United States and is headquartered from its corporate office in Fairfield, New Jersey.  Based on the nature of operations, the Company's sales cycle experiences significant seasonal volatility with the first two quarters of the year representing 15% - 25% of annual sales and the remaining two quarters representing the remaining portion of annual sales.

Basis of Presentation and Liquidity- The accompanying financial statements have been prepared on a going-concern basis, which contemplates the continuation of operations, realization of assets, and liquidation of liabilities in the ordinary course of business. For the years ending December 31, 2008 and 2007, the Company generated a net losses of approximately $1.1 and $1.2 million, respectively. As of December 31, 2008, the Company has funded its working capital requirements primarily through revenue earned, a private placement equity offering and periodic advances from its CEO and principal stockholder. There can be no assurance that the Company will be successful in obtaining financing at the level needed for long-term operations or on terms acceptable to the Company. In addition, there can be no assurance, assuming the Company is successful in expanding commercialization of its product, realizing revenues and obtaining new equity offerings, that the Company will achieve profitability or positive operating cash flow.

Over the next twelve months, the Company’s management intends on sustaining operations through its working capital which, contemplates the liquidation of inventory and the realization of trade accounts receivable in the ordinary course of business at expected levels of sales volume.  It is anticipated, that working capital needs should they arise, may also be supplemented by further advances from the CEO and principal stockholder. Any planned expansion and product commercialization, including future business acquisitions, will require additional capital to be raised through an equity or debt offering which, management intends on pursuing.
[2] Summary of Significant Accounting Policies

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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.

F-9
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[2] Summary of Significant Accounting Policies [Continued]

Revenue Recognition - Revenue is recognized upon the shipment of products to customers with the price to the buyer being fixed and determinable and collectability reasonably assured.  The Company maintains a reserve for potential product returns based on historical experience.

Cash and Cash Equivalents - Cash equivalents are comprised of certain highly liquid instruments with a maturity of three months or less when purchased.  The Company did not have any cash equivalents on hand at December 31, 2008 and 2007.

Accounts Receivable – Accounts receivable is generated from sales of fine jewelry to retail outlets throughout the United States. At December 31, 2008 and 2007, accounts receivable were substantially comprised of balances due from retailers.

An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible.  The Company determines the adequacy of this allowance by regularly reviewing the composition of its accounts receivable aging and evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic circumstance.  As of December 31, 2008, an allowance for doubtful accounts of $80,407 has been provided. No allowance was deemed necessary at December 31, 2007.

Inventories - Inventory consists primarily of finished goods and is valued at the lower of cost or market. Cost is determined using the weighted average method and average cost is recomputed after each inventory purchase or sale.

In June 2007, the Company recorded an inventory adjustment of approximately $284,000 to more appropriately value amounts on hand at the lower of cost or market.  The inventory adjustment was prompted by the refinement of cost and quantity on hand data attributable to the conversion of the Company's books and records to new accounting software in early 2007.  Subsequent to implementation of the new accounting system, cost and quantity on hand data was refined as the Company discovered product data was not properly defined for importing into the new accounting module.  These data conversion complications were attributable to product information not established on a more disaggregated basis for proper recognition by the accounting module.  In other words, products offered with varying metal and stone qualities were not enumerated as needed, resulting in erroneous price averaging or improper quantities on hand, as product counts were not performed prior to data conversion.

As management's sophistication for use of the accounting software increased, these discrepancies were discovered and corrected through greater specification of the product type in the accounting module and revision of unit costs by comparing to original purchasing documents or physical count of on hand quantities.  These corrective efforts prompted the aforementioned inventory adjustment which is reflected in the Cost of Sales caption of the Statements of Operations.

F-10
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[2] Summary of Significant Accounting Policies [Continued]

Concentrations of Credit Risk – Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivables.  The Company places its cash with high credit quality financial institutions.  The Company, from time to time, maintains balances in financial institutions beyond the insured amounts.  At December 31, 2008 and 2007, the Company had no cash balances beyond the federally insured amounts.

Concentrations of credit risk with respect to accounts receivable is limited due to the wide variety of customers and markets into which the Company's services are provided, as well as their dispersion across many different geographical areas.  As is characteristic of the Company's business and of the jewelry industry generally, the Company extends its customers seasonal credit terms. The carrying amount of receivables approximates fair value. The Company routinely assesses the financial strength of its customers and believes its credit risk exposure on accounts receivable is limited. Based on management’s review of accounts receivable, an allowance for doubtful accounts has been recorded for the year ending December 31, 2008.  No allowance for doubtful accounts has been deemed necessary for year ending December 31, 2007.  The Company does not require collateral to support these financial instruments.

Property and Equipment and Depreciation - Property and equipment are stated at cost less accumulated depreciation.  Depreciation is computed using the straight-line method over estimated useful lives ranging from five (5) to seven (7) years.

Expenditures for repairs and maintenance are charged to expense as incurred whereas expenditures for renewals and improvements that extend the useful life of the assets are capitalized.  Upon the sale or retirement, the cost and the related accumulated depreciation are eliminated from the respective accounts and any resulting gain or loss is reported within the Statements of Operations in the period of disposal.

Long-Lived Assets - In accordance with Statement of Financial Accounting Standards ["SFAS"] No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived tangible assets subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets exceed their fair value as determined by an estimate of undiscounted future cash flows.

Losses on assets held for disposal are recognized when management has approved and committed to a plan to dispose of the assets, and the assets are available for disposal.

Fair Value of Financial Instruments - Generally accepted accounting principles require disclosing the fair value of financial instruments to the extent practicable for financial instruments, which are recognized or unrecognized in the balance sheet.  The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement.  In assessing the fair value of these financial instruments, the Company uses a variety of methods and assumptions, which are based on estimates of market conditions and risks

F-1127
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS
 
[2] Summary of Significant Accounting Policies [Continued]

existing at that time.  For certain instruments, including the cash overdraft, accounts receivable, accounts payable and accrued expenses, it was estimated that the carrying amount approximated fair value for the majority of these instruments because of their short maturity.  The fair value of property and equipment is estimated to approximate their net book value.  The fair value of debt obligations as recorded approximates their fair values due to the variable rate of interest associated with these underlying obligations.

Investments in Unconsolidated Affiliates - Investments in unconsolidated affiliates, in which the Company owns less than 20% or otherwise does not exercise significant influence, are stated at cost.  At December 31, 2008 and 2007, the Company had an investment in which the Company owned less than 1% interest in an unconsolidated affiliate and therefore the investment is carried at cost.

Share-Based Compensation - The Company does not currently sponsor stock option plans or restricted stock awards plans.  However, on January 1, 2006, the Company adopted the provisions of SFAS No. 123(R), "Share-Based Payment" using the modified prospective method. SFAS No. 123(R) requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards.

Under the modified prospective  method of adopting SFAS No. 123(R), the Company recognized compensation cost for all share-based payments granted after January 1, 2006, plus any awards granted to employees prior to January 1, 2006 that remain unvested at that time. Under this method of adoption, no restatement of prior periods is made.

The Company applies the fair value provisions of SFAS No. 123(R), to issuances of non-employee equity instruments at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in EITF 96-18, "Accounting for Equity Instruments That are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services".

Advertising and Promotional Costs - - Advertising and promotional costs are expensed as incurred and are recorded as part of Selling Expenses in the Statement of Operations.  The total cost for the years ended December 31, 2008 and 2007 was approximately $46,000 and $151,000, respectively.

During the year, the Company prepays costs associated with trade shows which, are recorded as Prepaid Expenses in the Balance Sheet and are charged to the Statement of Operations upon the trade shows being conducted.  At December 31, 2008 and 2007, approximately $39,000 and $49,000, respectively of prepaid trade show expenses have been recorded.

 
 
F-12
 
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[2] Summary of Significant Accounting Policies [Continued]

Income Taxes - The Company follows the provisions of SFAS No. 109, "Accounting for Income Taxes."  Under the asset and liability method of SFAS 109, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.  Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  Under SFAS 109, the effect on deferred income tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date.  Valuation allowances are established when necessary to reduce deferred tax assets to amounts expected to be realized.

On January 1, 2007, we adopted the provisions of FIN 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109", which provides a financial

statement recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return.  Under FIN 48, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.  The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.  FIN 48 also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures.  The adoption of FIN 48 did not have a material impact on our financial statements.

Basic and Diluted Loss Per Share - Basic earnings per share includes no dilution and is computed by dividing earnings  available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive earnings per share reflect the potential dilution of securities that could occur through the effect of common shares issuable upon the exercise of stock options, warrants and convertible securities.  At December 31, 2008 and 2007, 575,000 and 425,000 potential common shares issuable under Class A purchase warrants have not been included in the computation of diluted loss per share since the effect would be anti-dilutive.  These Class A purchase warrants may have a dilutive effect in future periods. .


 
F-13
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[3] Recently Issued Accounting Standards

In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business Combinations" (SFAS 141(R)), which replaces SFAS No. 141, "Business Combinations." SFAS 141(R) retains the underlying concepts of SFAS 141 in that all business combinations are still required to be accounted for at fair value under the acquisition method of accounting but SFAS 141(R) changed the method of applying the acquisition method in a number of significant aspects. Acquisition costs will generally be expensed as incurred; noncontrolling interests will be valued at fair value at the acquisition date; in-process research and development will be recorded at fair value as an indefinite-lived intangible asset at the acquisition date; restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. SFAS 141(R) is effective on a prospective basis for all business combinations for which the acquisition date is on or after the beginning of the first annual period subsequent to December 15, 2008, with the exception of the accounting for valuation allowances on deferred taxes and acquired tax contingencies. SFAS 141(R) amends SFAS 109 such that adjustments made to valuation allowances on deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to the effective date of SFAS 141(R) would also apply the provisions of SFAS 141(R). Early adoption is not permitted. We are currently evaluating the effects, if any, that SFAS 141(R) may have on our financial statements and believe it could have a significant impact if business combinations are consummated.  However, the effect of which is indeterminable as of December 31, 2008.

In December 2007, the FASB issued Financial Accounting Standards No. 160, "Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51." This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008, with earlier adoption prohibited. This statement requires the recognition of a noncontrolling interest (minority interest) as equity in the consolidated financial statements and separate from the parent's equity. The amount of net income attributable to the noncontrolling interest will be included in consolidated net income on the face of the income statement. It also amends certain of ARB No. 51's consolidation procedures for consistency with the requirements of SFAS 141(R). This statement also includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest. We are currently evaluating this new statement and anticipate that the statement will not have a significant impact on the reporting of our results of operations.

In March 2008, the FASB issued FASB Statement No. 161, "Disclosures about Derivative Instruments and Hedging Activities."  The new standard is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows.  This statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged.  The Company is currently evaluating the impact of adopting SFAS No. 161 on its financial statements.


F-14
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[4] Property and Equipment

Property and equipment and accumulated depreciation and amortization are as follows:

  December 31,  December 31, 
  2008  2007 
       
Selling Equipment $56,000  $56,000 
Office and Equipment  242,271   242,271 
Leasehold Improvements  7,781   7,781 
Furniture and Fixtures  18,487   18,487 
         
Total – At Cost  324,539   324,539 
Less: Accumulated Depreciation and Amortization  163,556   101,824 
         
     Property and Equipment - Net $160,983  $222,715 

Depreciation and amortization expense for the years ended December 31, 2008 and 2007 was approximately $62,000 and $55,000, respectively.

[5] Notes Payable

  December 31,  December 31, 
  2008  2007 
       
Notes payable due in equal monthly installments, over 36 months,
   maturing through May 2009 at interest rates of 7.25%.  The notes
   are collateralized by the assets of the Company.
 $20,965  $70,833 
         
Notes payable due in equal monthly installments, over 60 months,
   maturing through May 2011 at interest rates of 7.60%.  The notes
   are collateralized by the assets of the Company.
  158,320   216,422 
         
Total  179,285   287,255 
Less: Current Maturities Included in Current Liabilities  82,015   110,088 
         
   Total Long-Term Portion of Debt $97,270  $177,167 

Maturities of long-term debt are as follows:

Years ended   
December 31,   
2009 $82,015 
2010  67,529 
2011  29,741 
     
Total $179,285 

F-15
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[6] Bank Lines of Credit

During 2007, the Company refinanced its existing credit facilities and notes payable with various other financial institutions.  A summary of these credit facilities is as follows:

  December 31,  December 31, 
  2008  2007 
       
Credit Line of $700,000, minimum payment of interest only is due monthly at the bank's prime rate plus .75%. At December 31, 2008 and 2007, the interest rate was 4.00% and 8.00%, respectively. The Credit Line renews annually in May 2009 and is collateralized by the assets of the Company. $699,999  $699,999 
         
Credit Line of $55,000, minimum payment of interest only is due monthly at the bank's prime rate plus .75%. At December 31, 2008 and 2007, the interest rate was 4.00% and 8.00%, respectively. The Credit Line renews annually in July 2009 and is collateralized by the assets of the Company.  45,793   48,293 
         
Various unsecured Credit Cards of $178,700 and $250,000, minimum payment of principal and interest are due monthly at the credit card's annual interest rate.  At December 31, 2008 and 2007, the interest rates ranged from 4.74% to 13.99% and 8.24% to 29.49%, respectively.  164,657   105,329 
         
 
Total Bank Lines of Credit
 $910,449  $853,621 
The Company's CEO and majority shareholder also serves as a guarantor of the Company's debt.

The Company had approximately $9,000 and $7,000 available under the various credit facilities (not including credit cards) at December 31, 2008 and 2007, respectively.

[7] Equipment Held Under Capital Leases

The Company's equipment held under the capital lease obligations as of December 31, 2008 and  2007 is summarized as follows:

  December 31,  December 31, 
  2008  2007 
       
Showroom Equipment $96,000  $96,000 
Less: Accumulated Amortization  35,733   16,533 
         
     Equipment Held under Capitalized Lease Obligations - Net $60,267  $79,467 

F-16
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[7] Equipment Held Under Capital Leases [Continued]

Amortization related to the equipment held under capital leases for the years ended December 31, 2008 and 2007 was approximately $19,000 and $17,000, respectively.

As of December 31, 2008 the future minimum lease payments under the capital leases are as follows:

2009 $26,432 
2010  26,432 
2011  18,451 
     
Total  71,315 
Less: Amount Representing Imputed Interest  8,821 
     
Present Value of Net Minimum Capital Lease Payments  62,494 
Less: Current Portion of Capitalized Lease Obligations  23,402 
     
     Non Current Portion of Capitalized Lease Obligations $39,092 

Interest expense related to capital leases for the years ended December 31, 2008 and 2007 was approximately $7,000 and $4,000, respectively.

[8] Income Taxes

The income tax [benefit] provision is as follows:

  Year Ended 
  December 31, 
  2008  2007 
Current:      
     Federal $-  $- 
     State  3,353   2,117 
         
     Totals  3,353   2,117 
         
Deferred:        
     Federal  (78,672)  (222,506)
     State  (13,814)  (111,253)
         
     Totals  (92,486)  (333,759)
         
     Totals $(89,133) $(331,642)

F-17
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[8] Income Taxes [Continued]

Deferred income tax assets [liabilities] are as follows:

  December 31,  December 31, 
  2008  2007 
       
Deferred Income Tax Assets:      
     Net Operating Loss Carryforwards $590,514  $301,900 
Allowance for Doubtful Accounts  32,115   -- 
Allowance for Sales Returns
  52,862   -- 
Differences in Income Tax to Financial Reporting Accounting Method
  --   88,316 
     Totals  675,491   390,216 
         
Deferred Income Tax Liabilities:        
     Property and Equipment
     Differences in Income Tax to Financial Reporting
  Accounting Method
 $
(25,546
 
--
)                        $
(14,388
 
(468,312
)
 
)          
     Election to Change from Cash to Accrual Basis of Income Tax Accounting  (374,879)  -- 
     Totals  (400,425)  (482,700)
     Gross Deferred Tax Asset [Liability]  275,066   (92,484)
         
     Valuation Allowance for Deferred Taxes  (275,066)  -- 
     Net Deferred Tax Asset [Liability] $--  $(92,484)

Reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:

  2008  2007 
       
U.S. statutory rate  (34%)  (34%)
State income taxes – net of federal benefit  6%  6%
Change in valuation allowance and other  21%  6%
Effective rate  (7%)  (22%)

Effective with the 2008 tax year, management voluntarily elected a change in its method of tax accounting to the accrual basis as required by Section 481 of the Internal Revenue Code (the "IRC").  In management's opinion, based on provisions of the IRC, a voluntary election to the accrual basis of tax reporting should not subject the Company to tax examinations for previous years that income tax returns have been filed and prompt an uncertain tax position in accordance with the Financial Accounting Standards Board Interpretation ("FIN") No. 48, Accounting for Uncertainty in Income Taxes.  As a result, no contingent liability has been recorded for the anticipated change in tax reporting.  Further, the resulting tax liability from the change in tax accounting method will be reduced by operating losses previously incurred.

F-18
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[8] Income Taxes [Continued]

At December 31, 2008, the Company had approximately $1,482,000 of federal net operating tax loss carryforwards expiring at various dates through 2028.  The Tax Reform Act of 1986 enacted a complex set of rules which limits a company's ability to utilize net operating loss carryforwards and tax credit carryforwards in periods following an ownership change. These rules define an ownership change as a greater than 50 percent point change in stock ownership within a defined testing period which is generally a three-year period. As a result of stock which may be issued by us from time to time and the conversion of warrants, options or the result of other changes in ownership of our outstanding stock, the Company may experience an ownership change and consequently our utilization of net operating loss carryforwards could be significantly limited.

Based upon the net losses historically incurred and, the prospective global economic conditions, management believes that it is not more likely than not that the deferred tax asset will be realized and has provided a valuation allowance of 100% of the deferred tax asset.

[9] Stockholders' Equity

Articles of Incorporation Amendment and Stock Split - The Company's Certificate of Incorporation, as amended, authorizes the issuance of up to 25,000,000 shares of common stock at a par value of $.001 per share.  Over the course of 2007, the Company's Board of Directors ratified two forward stock splits. The first stock split, for 1.725 to 1 and the second for 10,000 to 1.

This resulted in common stock outstanding increasing from 1,000 to 17,250,000 which were all owned by the Company's founder and CEO. The per share data for all periods presented has been retroactively adjusted due to each of the stock splits.

Subsequent to the forward stock splits, the Company's founder and CEO transferred a total of 2,250,000 shares to the Company's President and an Advisory Panel member.  Upon resignation of the Company’s President and Advisory Panel Member in late 2007, the Company cancelled 2,200,000 of the shares previously issued to those individuals along with, 5,000,000 shares held by the CEO and principal stockholder.  These shares were cancelled in February 2008.

The share and per share data for all periods presented has been retroactively adjusted to reflect the stock splits.

Private Placement Offering - During the second quarter of 2007, the Company conducted a private placement offering (the "Offering") of its common stock to Accredited Investors in accordance with SEC regulations.  The offering was up to 40 units at $25,000 per unit or $1,000,000 in total.  Each unit was composed of 25,000 shares of common stock and 25,000 "Class A" common stock purchase warrants to purchase additional shares at $1.50 per share.

Through the aforementioned period, the Company issued 17 units or 425,000 shares resulting in total cash proceeds of $425,000.  Through December 31, 2008, no "Class A" purchase warrants were exercised by the investors.

F-19
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS
 
[9] Stockholders' Equity [Continued]

Debt Conversions - In April 2007, the Company entered into a Debt Conversion Agreement (the "Agreement") and issued 100,000 shares of common stock at $1 per share to a vendor as full satisfaction for accounts payable previously due and future services to be rendered.  Of the total $100,000 of common stock issued, $55,000 was to satisfy previous account payable balances and $45,000 was issued as consideration for future services to be rendered and is reflected in the Deferred Compensation caption of the stockholders' equity section of the Balance Sheet, of which approximately $14,000 and $31,000, respectively was expensed in 2008 and 2007. The shares have a one year restriction from sale or offering.

In June 2007, the Company entered into a Debt Conversion Agreement (the "Agreement") and issued 150,000 shares of common stock at a fair market value of $1 per share to a vendor as full satisfaction of an accounts payable balance of $150,000.  The shares have a one year restriction from sale or offering and the Agreement allows for the vendor to purchase for a period of 60 months from the date of closing of this Agreement 150,000 shares of common stock under "Class A" purchase warrants at $1.50 per share.  Through December 31, 2008, no "Class A" purchase warrants were exercised by the vendor.

Of the total 250,000 shares issued in connection with debt conversions and future services to be rendered, 205,000 shares of common stock valued at $1 per share or $205,000 were in full satisfaction of prior debts outstanding while, 45,000 shares of common stock valued at $1 or $45,000 were issued in connection with future services to be rendered.  As of December 31, 2007, approximately $14,000 of Deferred Compensation remained unamortized in connection with the 45,000 shares previously issued.  At December 31, 2008, the balance was fully amortized.

Restricted Share Issuances - During 2007, the Board of Directors ratified issuance of 50,000 restricted shares of common stock to the Company's CEO, also serving as a director, as compensation for services rendered through December 31, 2007.  The Board of Directors also ratified issuance of a total of 100,000 restricted shares of common stock to two of the Company's Advisory Panel Members as compensation for services rendered from January through December of 2007.

For the year ended December 31, 2007, the Company valued their shares based on recent stock transaction, and recorded $150,000 of stock based compensation expense which is reflected as part of General and Administrative expenses in the Statement of Operations.

In January 2008, two Advisory Panel members and a Board of Director member received restricted common stock for services to be rendered throughout 2008.  The two Advisory Panel members received 50,000 and 100,000 shares, respectively, with a fair value of $1.00 per share or $150,000 while the Board of Director member received 50,000 shares with a fair value of $1.00 per share or $50,000.  For the year ended December 31, 2008, $200,000 was charged to the Statement of Operations as Share-based Compensation expense.

 
F-20
 
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[9] Stockholders' Equity [Continued]

Also in January 2008, the Company issued 117,500 shares of restricted common stock with a fair value of $1.00 per share or $117,500 to employees.  Shares issued in connection with the Board of Director consent, were dispersed ratably over the first two quarters of 2008 as authorized in the consent.

Additionally, in January and February 2008, the Company sold 600 shares of common stock at $1.00 per share to individual investees.

Finally, in February 2008, certain stockholders of the Company with significant ownership, cancelled shares they owned for no consideration.  The share cancellation totaled 7,200,000 of shares previously outstanding.

For the year ended December 31, 2008, the Company issued to its SEC counsel, 450,000 shares of restricted common stock with a fair value of $1.00 per share or $450,000 for services previously rendered in connection with the effective filing of Form S-1 with the SEC.

[10] Related Party Transactions

The Company receives periodic advances from its principal stockholder based upon the Company's cash flow needs.  At December 31, 2008 and 2007, $394,532 and $90,289, respectively was due to the shareholder.  Interest expense is accrued at an average annual market rate of interest which was 4.99% at December 31, 2008.  No terms for repayment have been established.  As a result, the amount is classified as a Current Liability.

In 2007, the Company hired an information technology company to provide consultation and technical support related to certain software applications and technology infrastructure.  The information technology company is also a shareholder of the Company with a total ownership interest of less than 1%.  During 2007, common stock issued to this information technology company in connection with services rendered or, to be performed in future periods totaled $100,000 or 100,000 shares of common stock with a fair value of $1 per share. Of the total, $45,000 related to future services and was recorded as deferred compensation.  See “Debt Conversions” Note 9.

[11] Commitment and Contingencies

Operating Leases - The Company leases certain office and manufacturing facilities and equipment. The lease agreements, which expire at various dates through 2011, are subject, in many cases, to renewal options and provide for the payment of taxes, and operating costs, such as insurance and maintenance.  Certain leases contain escalation clauses resulting from the pass-through of increases in operating costs and property taxes.  All these leases are classified as operating leases.

 
F-21
DIAMOND INFORMATION INSTITUTE, INC. D/B/A DESIGNS BY BERGIO
NOTES TO FINANCIAL STATEMENTS


[11] Commitment and Contingencies [Continued]

Aggregate minimum annual rental payments under non-cancelable operating leases are as follows:

Years ended   
December 31,   
2009 $21,400 
2010  14,800 
2011  600 
     
Total $36,800 

Rent expense for the Company's operating leases for the years ended December 31, 2008 and 2007 was approximately $23,000 and $26,000, respectively.

Litigation - The Company, in the normal course of business, is involved in certain legal matters for which it carries insurance, subject to certain exclusions and deductibles.  As of December 31, 2008 and through the date of issuance of these financial statements, there was no asserted or unasserted litigation, claims or assessments warranting recognition and/or disclosure in the financial statements.

[12] Subsequent Events

In January 2009, the Company issued to its SEC counsel 100,000 shares of restricted common stock with a fair value of $1.00 per share for services previously rendered in connection with the effective filing of Form 15c-211 and submittal to FINRA through a market maker, which was completed in January 2009.

In February 2009, the Company issued to its CEO 50,000 shares of restricted common stock with a fair value of $1.00 per share for services as a Board of Directors member throughout 2009.

In February 2009, the Company issued to its SEC counsel 20,000 shares of restricted common stock with a fair value of $1.00 per share for legal services to be provided regarding the Company’s SEC filings for the 2009 reporting year.


F-22