Converted by Olde Monmouth Stock Transfer

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

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

General

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

Basis of presentation

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

Liquidity and Going Concern

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

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

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

Use of estimates

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

Cash and Cash Equivalents

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

Research and Development Cost

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

Property, plant and equipment

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

Income taxes

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

The Company recognizes a 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 taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of April 30, 2015 and July 31, 2014, the Company has not recorded any unrecognized tax benefits.

Stock Based Compensation

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

Revenue Recognition

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

Net Income (loss) Per Common Share

The Company computes earnings (loss) per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per share is computed using the weighted average number of common and common stock equivalent shares outstanding during the period. As of April 30, 2015 and 2014, shares issuable upon conversion of preferred stock were excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive.

Fair Value of Financial Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities, and short-term borrowings, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

Recent Accounting Pronouncements

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

NOTE 2- PROPERTY AND EQUIPMENT

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




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

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

NOTE 3 –JOINT VENTURE OBLIGATION

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

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

NOTE 4– ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

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

NOTE 5– NOTES PAYABLE, RELATED PARTY

From October 25, 2013 through April 27, 2015, the Company issued an aggregate of $542,747 unsecured notes payable to Eduard Musheyev, the Company’s Chief Executive Officer for cash advances and purchases on the Company’s behalf. The notes bear 4% per annum interest, payable monthly in arrears and are due five years from the date of issuance.

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

The Company accrued and recorded as current year expenses $5,534 and $14,998 as related party interest for the three and nine months ended April 30, 2015, respectively.

NOTE 6– NOTES PAYABLE

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

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

The Company recorded $1,600 and $4,349 as interest expense for the three and nine months ended April 30, 2015.

NOTE 7– RELATED PARTY TRANSACTIONS

The Company’s officers and shareholders have contributed capital to the Company for working capital purposes. As of April 30, 2015 and July 31, 2014, advances from related party were $-0- and $51,566, respectively. These are interest free advances.

NOTE 8- STOCKHOLDERS EQUITY

Stock based payable

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

a) Upon execution, the Company shall issue to Mortman or his designee that number of shares ("Equity Compensation") of the Company's Common Shares representing 2% or Two Million shares ownership interest (whichever is greater) in the Company on a fully diluted basis.

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

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

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

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

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

Business Overview

The Company was organized under the laws of the state of Delaware on January 14, 2013. We formed our Company for the purpose of producing higher quality diamonds from any virtually brown VS+ diamonds and reselling them in the open market. The Company presently owns one (1) high pressure, high temperature (HPHT) Machines (“Machines”).

The Company’s founding principals have been involved in the wholesale diamond industry for more than 30 years in New York City and have extensive experience in the field. The Machines are being imported from Russia where they were developed prior to the fall of the Soviet Union for Super Hard and Novel Carbon Materials. The Company has revamped and modified the Machine, replacing old parts and upgrading the several components that are proprietary to our Company. The Machine utilizes the HPHT process that takes any raw, brown diamond, and transforms them into a brilliant, multicolored range of diamonds (white, yellow, pink, green, red, blue and orange) in a process that takes only minutes to complete its cycle per diamond.

While other processes exist that convert Type IIa brown diamonds into natural “HPHT” diamonds, the Company’s Machines are capable of doing so utilizing any brown VS+ diamonds in approximately 2 minutes, and a complete Machine cycle time of approximately three (3) minutes,many times faster than any known competitor. These competitors are further limited by using only Type IIa brown diamonds in their process. Those diamonds represent a limited supply, generally less than 3% of brown stones are Type IIa. The Company believes that the ability to utilize any brown stone and an edge in production time, will allow it to produce more than its competitors, at a substantially reduced cost.

The HPHT cycle-time of approximately two (2) minutes is defined by the Company as the High Pressure High Temperature part of the process in which the rough stone is subjected to the pressure and temperature that enhances the color of the stone. The entire process, including the table raising and pressure increase/decrease within the Machine is referred to as the Total Cycle Time, which is currently estimated at three (3) minutes.

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

The Company continues to experiment on its initial Machine, and on a variety of different size stones. As the size of stones change, the HPHT cycle time also changes, resulting in an approximate two (2) minute HPHT cycle time, which varies, but which hasn’t yet exceeded (2) two minutes. Due to the Company’s initial stage of operations and the variations in processing times based upon the size of the stones used, the Machines HPHT cycle projections are subject to further change.

The Company is a start-up enterprise that has a multi-tiered business plan, projected to permit the Company to commence limited operations with the initial Machine already owned and to expand the operations by acquiring an additional twenty-one (21) Machines that are available to purchase as finances allow. Our first machine has been delivered to and is installed at 250 Port Street, Newark, New Jersey. Management believes this location to be ideal because it offers the security it believes is required and the Company will be able to utilize up to 10,000 square feet as the need arises. This location further meets the weight bearing requirements of the machines, thus allowing for the installation of all twenty-two machines that will weigh in excess of 154 tons once fully acquired and installed.

Management of the Company anticipates the first machine will be fully operational during the fourth quarter of calendar year 2015.

Once the first machine is fully operational, management intends to operate it daily, in shifts; each shift requiring one engineer, one handler and one maintenance worker. Management does not anticipate difficulty in finding and recruiting qualified personal. The second shift is expected to commence within 60 days after the first Machine’s initial production date.

Once the Company has finished the installation process, the training of personnel, and the start of operations of the machines, management intends to begin its sales, marketing and advertising programs. The Company’s senior executives believe they have developed strong, industry specific relationships over their prior years of experience and intend to utilize those relationships to begin the Company product sales.

After the diamonds are processed by the HPHT machines, they will be sold through auction, international jewelry fairs, over the Internet and through the use of wholesale and retail jewelry store outlets and channels. Throughout the calendar year of 2015 and through scaling up to 11 machines, the Company anticipates minimum marketing and advertising efforts will be needed. As production increases our marketing and advertising efforts will begin to scale as well. Initially, the Company believes that the client base developed by the Company’s founders will be sufficient sales conduit for the Company’s sales requirements. We do anticipate that Company representatives will attend international jewelry fairs to market and advertise the Company and its products in anticipation of having a full complement of 31 machines in production.

The Company’s long-term business plan is to acquire an additional twenty-one (21) Machines over time and operate them in a secured facility where they will operate under 24-hour security. Because of the proprietary trade secrets in upgrading these Machines it is the Company`s intention to own and operate them exclusively and to not offer them for sale to competitors.

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

Current Operating Trends

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

In order to generate revenues, we must successfully address the following areas:

The Machines must be delivered and installed in their US location which has been identified.

The Company must obtain the necessary personnel to operate the Machines;

The Company must locate and secure suitable raw diamonds for processing;

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

The Company must implement a marketing and advertising plan to promote and sell the finished diamonds throughout the fourth quarter of 2015, the Company anticipates minimum marketing and advertising efforts will be needed. As the Company adds manufacturing and production increases, our marketing and advertising efforts will begin to scale as well; and

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

Results of Operations

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

Three Months Ended April 30, 2015 Compared to Three Months Ended April 30, 2014

Revenues and Cost of Goods Sold. We had no revenues or cost of goods sold during the three month periods ended April 30, 2015 and 2014.

General and Administrative Expenses. General and administrative expenses for the three months ended April 30, 2015 were $223,979, an increase of $72,857, or 48%, from $151,122 incurred in the three months ended April 30, 2014. This increase is primarily due to increases in payroll-related expenses, accounting and auditing fees, legal professional fees, travel, meals and entertainment expenses and other general and administrative expenses.

Depreciation. Depreciation for the three months ended April 30, 2015 was $46,949, an increase of $45,837 from $1,112 incurred in the three months ended April 30, 2014. During the latter part of last fiscal year period, we acquired equipment and furniture and placed in service our machinery as compared to minimal in service for the same period last year.

Interest and Other Financing Costs. Interest expense for the three months ended April 30, 2015 totaled $7,207, as compared to $2,250 during the three months ended April 30, 2014. Interest expense is related to our notes payable issued in the latter part of last fiscal year and the current period.

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

Nine Months Ended April 30, 2015 Compared to Nine Months Ended April 30, 2014

Revenues and Cost of Goods Sold. We had no revenues or cost of goods sold during the nine month periods ended April 30, 2015 and 2014.

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

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

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

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

Liquidity and Capital Resources

As of April 30, 2015, we had a working capital deficit of $684,687, comprised primarily of cash of $211,560 and prepaid expenses of $4,746, which was offset by $225,000 of Joint Venture obligation and $675,993 of accounts payable.

For the nine months ended April 30, 2015, we used $124,930 of cash in operating activities as compared to $158,788 for the same period last year. The decrease was due to joint venture payments received net with our administrative and other operating cost increases as compared to prior period.

For the nine months ended April 30, 2015, proceeds from financing activities were from the issuance of promissory notes of $56,907 and from the issuance of promissory notes to related parties for $259,062. In the comparable 2014 period, $5,100 was raised through the sale of shares of common stock, $5,313 from related party advances, $83,936 from issuance of notes and from issuance of related party notes of $145,750. At April 30, 2015, we had cash of $211,560 compared to $38,777 at July 31, 2014. Our cash is held in bank deposit accounts

Cash used in investing activities for the nine months ended April 30, 2015 was $18,256 reflecting purchase of equipment as compared to $47,910 reflecting purchase of equipment and $23,262 payment of long term deposit (aggregate of $71,172) for the nine months ended April 30, 2014.

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

Transactions with Related Parties

The Company accrued and recorded as current year expenses $5,534 and $14,998 as related party interest for the three and nine months ended April 30, 2015, respectively.

Critical Accounting Policies and Estimates

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

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

Stock Based Compensation

Use of estimates

Recently Issued Accounting Pronouncements

Off-Balance Sheet Arrangements

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

Inflation

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

Climate Change

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

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

ITEM 4 - CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

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

Limitations on the Effectiveness of Controls

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

Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act. Management assessed the effectiveness of the internal controls over financial reporting as of April 30, 2015, using the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this assessment, our management concluded that, as of April 30, 2015, the internal controls over financial reporting were not effective. The reportable conditions and material weakness relate to a limited segregation of duties at the Company. Segregation of duties within our company is limited due to the small number of employees that are assigned to positions that involve the processing of financial information.

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

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

Changes in Internal Control Over financial Reporting

During the three months ended April 30, 2015, there were no changes to our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

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

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits





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

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

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

101 INS	XBRL Instance Document

101 SCH	XBRL Taxonomy Extension Schema Document

101 CAL	XBRL Taxonomy Calculation Linkbase Document

101 LAB	XBRL Taxonomy Labels Linkbase Document

101 PRE	XBRL Taxonomy Presentation Linkbase Document

101 DEF	XBRL Taxonomy Extension Definition Linkbase Document

SIGNATURES

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




	DIAMOND TECHNOLOGY ENTERPRISES, INC.

Date: June 15, 2015	By:	/s/ EDUARD MUSHEYER
		Eduard Musheyer
		Chairman of the Board, President, Secretary, Treasurer and Director (Principal Executive Officer)

Date: June 15, 2015	By:	/s/ JORDAN FRIEDBERG
		Jordan Friedberg
		Chief Financial Officer (Principal Financial Officer
		and Principal Accounting Officer)





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




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


DIAMOND TECHNOLOGY ENTERPRISES, INC.
CONDENSED BALANCE SHEETS

	April 30,	July 31,
	2015	2014
	(unaudited)
ASSETS
Current assets:
Cash	$ 211,560	$ 38,777
Prepaid supplies and expenses	4,746	5,199
Total current assets	216,306	43,976

Property and equipment, net	756,749	867,875

Deposits	23,262	23,262

Total assets	$ 996,317	$ 935,113

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable and accrued expenses, $534,067 and $5,061 related party	$ 675,993	$ 186,693
Joint venture obligation (Note 3)	225,000	-
Stock based payable	-	200,000
Advances, related party	-	51,566
Total current liabilities	900,993	438,259

Long term liabilities
Deferred rent, long term	12,448	11,554
Long term debt	193,283	136,376
Long term debt, related party	642,747	315,765
Total long term liabilities	848,478	463,695

Total liabilities	1,749,471	901,954

Stockholders' (deficit) equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized
Series A Convertible Preferred stock, 1,000,000 shares designated, 1,000,000 shares issued and outstanding as of April 30, 2015 and July 31, 2014	100	100
Common stock, $0.0001 par value; 240,000,000 shares authorized, 69,575,000 and 67,575,000 shares issued and 68,815,000 and 66,815,000 shares outstanding as of April 30, 2015 and July 31, 2014, respectively	6,958	6,758
Common stock subscription	400	400
Additional paid in capital	1,778,511	1,578,711
Treasury stock (760,000 shares)	(76)	(76)
Accumulated deficit	(2,539,047)	(1,552,734)
Total stockholders' (deficit) equity	(753,154)	33,159

Total liabilities and stockholders' (deficit) equity	$ 996,317	$ 935,113

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


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

	Three months ended April 30,		Nine months ended April 30,
	2015	2014	2015	2014
OPERATING EXPENSES:
Selling, general and administrative expenses	$ 223,979	$ 151,122	$ 825,512	$ 407,834
Depreciation	46,949	1,112	141,382	1,112

Total operating expenses	270,928	152,234	966,894	408,946

Loss from Operations	(270,928)	(152,234)	(966,894)	(408,946)

Other expenses:
Interest expense	(7,207)	(2,250)	(19,420)	(2,924)

Loss before income taxes	(278,134)	(154,484)	(986,313)	(411,870)

Income taxes (benefit)	-	-	-	-

Net loss	$ (278,134)	$ (154,484)	$ (986,313)	$ (411,870)

Loss per common share, basic and diluted
	$ (0.00)	$ (0.00)	$ (0.01)	$ (0.01)
Weighted average number of common shares outstanding, basic and diluted	68,815,000	67,575,000	68,771,044	42,775,326

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


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

	Nine months ended April 30,
	2015	2014


CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (986,313)	$ (411,870)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	141,382	1,112
Preferred and common stock issued to founders	-	360
Common stock to be issued for services	-	66,100
Operating expenses incurred by related party on behalf of Company	4,354	-
Changes in operating assets and liabilities:
Prepaid expenses and supplies	453	(60,000)
Accounts payable and accrued expenses	489,300	81,529
Stock based payable	-	158,356
Joint venture obligation	225,000	-
Deferred rent	894	5,625
Net cash used in operating activities	(124,930)	(158,788)

CASH FLOWS FROM INVESTING ACTIVITIES:
Payment of long term deposit	-	(23,262)
Purchase of property and equipment	(18,256)	(47,910)
Net cash used in investing activities	(18,256)	(71,172)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	-	5,100
Proceeds from related party advances	-	5,313
Proceeds from notes payable	56,907	83,936
Proceeds from related party notes payable	259,062	145,750
Net cash provided by financing activities	315,969	240,099

Net increase in cash	172,783	10,139
Cash, beginning of period	38,777	10,586

Cash, end of period	$ 211,560	$ 20,725

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

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

Non-cash investing and financing activities:
Common stock issued for services rendered in prior year	$ 200,000	$ -
Equipment acquired by related party on behalf of Company	$ 12,000	$ -
Note payable, related party issued to acquire prepaid supplies and expenses	$ -	$ 136,015

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




PART I.	FINANCIAL INFORMATION

	ITEM 1	Financial Statements

		Condensed balance sheets as of April 30, 2015 (unaudited) and July 31, 2014	3

		Condensed statements of operations for the three and nine months ended April 30, 2015 and 2014 (unaudited)	4

		Condensed statements of cash flows for the nine months ended April 30, 2015 and 2014 (unaudited)	5

		Notes to condensed financial statements (unaudited)	6-10

	ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10-16

	ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	16

	ITEM 4.	Controls and Procedures	16

PART II.	OTHER INFORMATION

	ITEM 1.	Legal Proceedings	17
	ITEM 1A.	Risk Factors	17
	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
	ITEM 3.	Defaults Upon Senior Securities	17
	ITEM 4.	Mine Safety Disclosures	17
	ITEM 5.	Other Information	17
	ITEM 6.	Exhibits	18

	SIGNATURES		19