Direct Equity International (DEQI) 10QSB 2006 Q1 Quarterly report (small business)

		UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C., 20549
		FORM 10-QSB

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter report ended March 31, 2006
	or

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

ACT OF 1934

For the transition period from to ___________

Commission File number 000-28581

	DIRECT EQUITY INTERNATIONAL, INC.
(Exact name of small business issuer as registrant as specified in charter)

		Nevada 88-0422528
	(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

3245 Grande Vista Drive, Newbury Park, California 91320
	(Address of principal executive office)

Registrants telephone no., including area code (877) 786-8504

Check 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), Yes No and (2) has been subject to such filing requirements for the past 90 days. Yes No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the last practicable date.

	Class	Outstanding as of March 31, 2006
Common Stock, $0.001
			628,010

TABLE OF CONTENTS

PART 1. FINANCIAL INFORMATION

		Heading	Page
Item 1.	Consolidated Financial Statements			1

Consolidated Balance Sheets March 31, 2006 And December 31, 2005     2

Consolidated Statements of Operations for the three months

Ended March 31, 2006 and 2005 3

Consolidated Statements of Comprehensive Income (Loss) 4

Consolidated Statements of Stockholders Equity 5

Consolidated Statements of Cash Flows for the three months

Ended March 31, 2006 and 2005 6

Notes to Consolidated Financial Statements 7

Item 2.		Managements' Discussion and Analysis and
	Result of Operations		8-11

Item 3. Controls and Procedures

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 4. Submission of Matter to a Vote of Securities Holders

Item 5. Other Information on Form 8-K

Item 6. Exhibits and Reports on Form 8-K

Signatures

PART 1. FINANCIAL INFORMATION

ITEM 1. Financial Statement

ARMANDO C. IBARRA

Certified Public Accountants

A Professional Corporation

Armando C. Ibarra, C.P.A. Members of the California Society of Certified Public Accountants

Armando Ibarra, Jr., C.P.A., JD Members of the American Institute of Certified Public Accountants

Registered with the Public Company Accounting Oversight Board

To the Board of Directors

Direct Equity International, Inc.

(Triad Industries, Inc.)

Report of Independent Registered Public Accounting Firm

We have reviewed the accompanying consolidated balance sheet of Direct Equity International, Inc. (Formerly Triad Industries, Inc.) as of March 31, 2006, and the related consolidated statements of operations, statements of comprehensive income, changes in stockholders’ equity, and statements of cash flows for the three months ended March 31, 2006 and 2005. These interim financial statements are the responsibility of Company’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with U.S. generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2, the Company in the past has shown significant operating losses that raise substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

__________________________________

ARMANDO C. IBARRA, C.P.A. – APC

May 20, 2006

Chula Vista, California

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DIRECT EQUITY INTERNATIONAL, INC.
(Formerly Triad Industries, Inc.)
Consolidated Balance Sheets
ASSETS
			As of		As of
			March 31,		December 31,
			2006		2005
	CURRENT ASSETS
	Cash	$	80,970	$	110,692
	Accounts receivable - net		23,130		21,500
	Available for sale securities		14,331		19,231
	Loan receivable		17,659		54,937
	Total Current Assets		136,090		206,360
	NET PROPERTY & EQUIPMENT		6,710		26,906
	OTHER ASSETS
	Investment in other companies		120,365		120,365
	Total Other Assets		120,365		120,365
	TOTAL ASSETS	$	263,165	$	353,631

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DIRECT EQUITY INTERNATIONAL, INC.
(Formerly Triad Industries, Inc.)
Consolidated Statements of Operations
			Three Months		Three Months
			Ended		Ended
			March 31,		March 31,
			2006		2005
	REVENUES
	Consulting income	$	10,267	$	12,050
	Total Revenues		10,267		12,050
	Costs of revenues		(4,059)		(3,755)
	GROSS PROFIT		6,208		8,295
	OPERATING COSTS
	Depreciation expense		995		1,733
	Administrative expense		84,112		57,834
	Total Operating Costs		85,107		59,567
	OPERATING INCOME (LOSS)		(78,899)		(51,272)
	OTHER INCOME & (EXPENSES)
	Interest income		-		1,187
	Dividend income		-		263
	Net realized gain (loss) on sale securities		417		(8,640)
	Loss on retirement of fixed assets		(14,623)		-
	Interest expense		(161)		-
	Total Other Income & (Expenses)		(14,367)		(7,190)
	NET INCOME (LOSS)	$	(93,266)	$	(58,462)
	BASIC EARNINGS (LOSS) PER SHARE	$	(0.15)	$	(0.10)
	WEIGHTED AVERAGE NUMBER OF
	COMMON SHARES OUTSTANDING		638,970		604,521

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DIRECT EQUITY INTERNATIONAL, INC.
(Formerly Triad Industries, Inc.)
Consolidated Statements of Comprehensive Income (Loss)
			Three Months		Three Months
			Ended		Ended
			March 31,		March 31,
			2006		2005
	Net Income (Loss) - Net of Tax	$	(93,266)	$	(58,462)
	Other Comprehensive Income (Loss) :
	Unrealized gain (loss) on securities		(4,483)		(11,369)
	Total Other Comprehensive Income (Loss)		(4,483)		(11,369)
	Other Comprehensive Income (Loss) Before Income Taxes		(4,483)		(11,369)
	Income Tax (Provision) Benefit
	related to Items of Comprehensive Income (Loss)		-		-
	Total Other Comprehensive Income (Loss)	$	(4,483)	$	(708,740)

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DIRECT EQUITY INTERNATIONAL, INC.
(Formerly Triad Industries, Inc.)
Consolidated Balance Sheets
LIABILITIES AND STOCKHOLDERS' EQUITY
			As of		As of
			March 31,		December 31,
			2006		2005
	CURRENT LIABILITIES
	Accounts payable	$	24,812	$	19,136
	Loans payable		999		999
	Loans payable - (related party)		27,747		31,140
	Client deposits		5,600		600
	Total Current Liabilities		59,158		51,875
	TOTAL LIABILITIES		59,158		51,875
	STOCKHOLDERS' EQUITY
	Preferred stock ($1.00 par value, 10,000,000 shares
	authorized -0- shares issued and outstanding as of
	March 31, 2006 and December 31, 2005)		-		-
	Common stock ($0.001 par value, 50,000,000 shares
	authorized 638,970 shares issued and outstanding
	as of March 31, 2006 and December 31, 2005)		628		628
	Additional paid-in capital		4,639,491		4,639,491
	Treasury stock		(10,989)		(10,989)
	Stock subscription receivable		(62,500)		(62,500)
	Accumulated other comprehensive loss		(710,346)		(705,863)
	Retained earnings (deficit)		(3,652,277)		(3,559,011)
	Total Stockholders' Equity		204,007		301,756
	TOTAL LIABILITIES
	& STOCKHOLDERS' EQUITY	$	263,165	$	353,631

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DIRECT EQUITY INTERNATIONAL, INC.
(Formerly Triad Industries, Inc.)
Consolidated Statements of Cash Flows
			Three Months		Three Months
			Ended		Ended
			March 31,		March 31,
			2006		2005
	CASH FLOWS FROM OPERATING ACTIVITIES
	Net income (loss)	$	(93,266)	$	(58,462)
	Adjustments to reconcile net income to net
	cash provided by (used in) operating activities:
	Depreciation expense		995		1,733
	Common stock issued for services				5,500
	Treasury stock		-		(11,000)
	(Increase) decrease in available for sale securities		417		-
	(Increase) decrease in trading securities		-		-
	Changes in operating assets and liabilities:
	(Increase) decrease in accounts receivable		(1,630)		(62,852)
	(Increase) decrease in prepaid expenses		-		(2,701)
	(Increase) decrease in loan receivable		37,278		73,989
	Increase (decrease) in accounts payable		5,676		(11,666)
	Increase (decrease) in security deposits		5,000		-
	Net Cash Provided by (Used in) Operating Activities		(45,530)		(65,458)
	CASH FLOWS FROM INVESTING ACTIVITIES
	(Increase) decrease fixed assets		19,201		5,058
	Net Cash Provided by (Used in) Investing Activities		19,201		5,058
	CASH FLOWS FROM FINANCING ACTIVITIES
	Borrowings from line of credit net of payments		-		(400)
	Proceeds (borrowing) from loan payable - (related party)		(3,393)		-
	Proceeds (borrowing) from loan payable		-		(9,681)
	Net Cash Provided by (Used in) Financing Activities		(3,393)		(10,081)
	Net Increase (Decrease) in Cash		(29,722)		(70,481)
	Cash at Beginning of Period		110,692		196,444
	Cash at End of Period	$	80,970	$	125,963
	Supplemental Cash Flow Disclosures:
	Cash paid during period for interest	$	-	$	-
	Cash paid during period for taxes	$	-	$	-
	Schedule of Non-Cash Activities:
	Common stock issued for accrued services	$	-	$	5,500

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NOTE 1 - CONDENSED FINANCIAL STATEMENTS

The accompanying March 31, 2006 financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at March 31, 2006 and 2005 and for all periods presented have been made. Certain information and Footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2005 audited financial statements. The results of operations for periods ended March 31, 2006 and 2005 are not necessarily indicative of the operating results for the full years.

NOTE 2 - GOING CONCERN

The Company’s consolidated financial statements are prepared using generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might result from the outcome of this uncertainty. It is management intention to seek additional operating funds through operations, and debt or equity offerings. Management has yet to decide what type of offering the Company will use or how much capital the Company will raise. There is no guarantee that the Company will be able to raise any capital through any type of offerings.

NOTE 3 - SUBSEQUENT EVENT

Subsequent to the March 31, 2006 balance sheet certain stockholders of the Company completed a controlling interest sale of Triad Industries, Inc. The Company’s subsidiaries were spun out in the sale of the parent company. Upon completion of the sale the Company changed the name to Direct Equity International, Inc.

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ITEM 2. Managements’ Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

As of March 31, 2006, the Company has $136,090 in total current assets, compared to total current assets of $206,360 as of December 31, 2005. The major factor in the reduction of current assets was the use of cash in operations to fund the financial services operation. Also, contributing to the use of cash was the Company defending itself in a lawsuit, which was ultimately dropped in late September of 2005. The Company spent approximately $50,000 defending itself. Currently, the current assets are comprised of $80,090 in cash, $23,130 in accounts receivable, $14,331 in available for sale securities and $17,569 inloans receivable.

As of March 31, 2006, the Company has $59,158 in total current liabilities compared to $51,875 as of December 31, 2005. Accounts payable increased $5,676 and loans payable decreased $3,393.

Results of Operations

For the three months ending March 31, 2006, the Company had a net loss of $93,266 compared to a net loss of $58,462 for the same period of 2005. Administrative expenses increased by approximately $26,288 for the first quarter of 2006 compared to the same period of 2005. The majority of this increase can be attributed to increased salaries and wages. The increase in salaries and wages was approximately $24,000. Other than this increase operating expenses were very comparable with the same period of the year before.

The Company had revenues of $10,267 for the three months ended March 31, 2006, compared with $12,050 for the same period last year. Management cannot attribute the decrease in revenues to anything but a significant decrease in clients requesting services.

Management is still unhappy with the performance of the financial services sector. Management had hoped that a steadying of the financial markets would lead more companies to go public. However, the financial markets are still uncertain, which in the opinion of management causes smaller companies to hesitate achieving public status due to market uncertainty. This has a severe negative impact on the Company and is reflected in the operating results.

For the three months ending March 31, 2006, the Company had a net loss of $93,266 compared to a net loss of $58,462 for the same period of 2005. Administrative expenses increased by approximately $26,288 for the first three months of 2006 compared to the same period of 2005. A significant portion of this increase can be attributed to salaries and wages. The increase in salaries and wages was approximately $24,000. Other than this increase operating expenses were very comparable with the same period of the year before. Management further attributes this loss to the lack of business in the financial services sector. For the first three months of 2006, the Company had a gain of $467.00 from the sale of securities, compared to a net loss of $8,640.00 for the same period the year before.

The Company had revenues of $10,267.00 for the three months ended March 31, 2006, compared with $12,050.00 for the same period last year. Management cannot attribute the decrease in revenues to anything but a significant decrease in clients requesting services.

Net Operating Loss

The Company has accumulated approximately $3,652,277 of net operating loss carry-forwards as of March 31, 2006, which may be offset against taxable income and incomes taxes in future years. However, of this accumulated net operating loss $1,542,394 was from the sale of a discontinued operation. The loss from the discontinued operation can not be used to offset future income. The use of these to losses to reduce future incomes taxes will depend on the generation of sufficient taxable income prior to the expiration of the net loss carry-forwards. The carry-forwards expire in the year 2025. In the event of certain changes in control of the Company, there will be an annual limitation on the amount of carry-forwards, which can be used.

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Sale of Common Capital Stock

None.

Risk Factors and Cautionary Statements

Forward-looking statements in this report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of1995. The Company wished to advise readers that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve the risk and uncertainties that could cause actual results to differ materially from those expressed on or implied by the statements, including, but not limited to the following: the ability of the Company to successfully meet its cash and working capital needs, the ability of the Company to successfully market its

product, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission.

Item 3. Controls and Procedures

The Company's management, including our President and Chief Financial Officer, have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-14(c) promulgated under the Securities Exchange Act of 1934, as amended) as of the quarter ended March 31, 2006, the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded, that our disclosure controls and procedures are effective for timely gathering, analyzing and disclosing the information we are required to disclose in our reports filed under the Securities Exchange Act

of 1934, as amended.

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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company was named in a legal proceeding that was filed on October 5, 2004, in the Superior Court of California, County of San Diego, Central Division, case number 836664. The principal parties to this action are the plaintiffs, Kevin Smith and Canyon Capital Marketing, an entity controlled by Smith, and the defendants, Triad Industries, Inc., Golden Age Homes, Inc., Robert M. Bryson and Signature Stock Transfer, Inc.

The above-mentioned lawsuit was dropped in late September of 2005.

ITEM 2. CHANGES IN SECURITIES

On September 22, 2005, a holder our preferred securities converted their shares to common. This reduced the number of outstanding preferred shares from 7,500 to zero and increased our outstanding common shares by 15,000.

As of March 31, 2006, the Company has 628,010 shares of common stock issued and outstanding.

ITEM 3. DEFAULTS UPON SENIOR SECURITES

None.

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

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON 8-K

a.	33.1 302 Certification of the President
b.	33.2 302 Certification of the CFO
c.	99.1 906 Certification of Makoto Omori
d.	99.2 906 Certification of Toshiaki Sato

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SIGNATURES

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

DIRECT EQUITY INTERNATIONAL, INC.
	(formerly TRIAD INDUSTRIES, INC.)

Dated: June 2, 2006

By:/S/ Makoto Omori

Makoto Omori

President and CEO

By:/S/ Toshiaki Sato

Toshiaki Sato

Treasurer

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