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 quarterly period ended JUNE 30, 2006

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

                       Commission file number 033-03362-D

                                  MIGAMI, INC.
     ---------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

         State of Nevada                                    87-0431043
     -------------------------------                      ----------------
     (State or other jurisdiction of                      (I.R.S. Employer
     incorporation or organization)                      Identification #)

              27121 Aliso Creek Road Ste 120, Aliso Viejo, CA 92656
              -----------------------------------------------------
                    (Address of principal executive offices)

                                 (949) 831-1045
                                 --------------
                         (Registrant's telephone number)


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

There were 12,673,875 shares of common stock, $0.001 Par Value, outstanding as
of June 30, 2006.

    Transitional Small Business Disclosure Format (check one); Yes [ ] No [X]







                                  MIGAMI, INC.
                       (FORMERLY, KLEENAIR SYSTEMS, INC.)
                          (A DEVELOPMENT STAGE COMPANY)

                        CONSOLIDATED FINANCIAL STATEMENTS

                       JUNE 30, 2006 AND DECEMBER 31, 2005





     
                                           MIGAMI, INC.
                                (FORMERLY KLEENAIR SYSTEMS, INC.)
                                  (A Development Stage Company)
                                   Consolidated Balance Sheets


                                              ASSETS
                                              ------
                                                                   June 30,         December 31,
                                                                     2006              2005
                                                                 -------------      -------------
                                                                  (Unaudited)
CURRENT ASSETS

     Cash and cash equivalents                                   $       9,844      $       6,371
     Accounts receivable, net                                           32,800             32,800
     Accounts receivable - related parties, net                         65,978            180,210
     Parts inventory, at cost                                           40,553             36,553
     Prepaid expenses                                                    6,600              6,600
     Marketable securities                                             100,041            102,655
                                                                 -------------      -------------

         Total Current Assets                                          255,816            365,189
                                                                 -------------      -------------

PROPERTY AND EQUIPMENT, net                                             41,257             57,794
                                                                 -------------      -------------

OTHER ASSETS

     Patent license, net                                             1,064,556          1,113,689
     Deposits and other assets                                          13,607             12,854
                                                                 -------------      -------------

         Total Other Assets                                          1,078,163          1,126,543
                                                                 -------------      -------------

         TOTAL ASSETS                                            $   1,375,236      $   1,549,526
                                                                 =============      =============

                               LIABILITIES AND STOCKHOLDERS' EQUITY
                               ------------------------------------

CURRENT LIABILITIES

     Accounts payable                                            $     287,528      $     281,597
     Accounts payable - related parties                                 15,000             15,000
     Accrued expenses                                                   57,480             57,480
     Advances from directors                                            51,646             46,904
     Notes payable - related entities                                  390,265            296,265
                                                                 -------------      -------------

         Total Current Liabilities                                     801,919            697,246
                                                                 -------------      -------------

CONTINGENT LIABILITIES                                                      --                 --
                                                                 -------------      -------------

STOCKHOLDERS' EQUITY

     Preferred stock, series A, $0.001 par value (10,000,000
      shares authorized, none outstanding)                                  --                 --
     Common stock, $0.001 par value (50,000,000 shares
      authorized, 12,673,875 and 12,673,875 shares issued
      and outstanding, respectively)                                    12,674             12,674
     Additional paid-in capital                                     10,292,834         10,292,834
     Deficit accumulated during the development stage               (9,732,191)        (9,453,228)
                                                                 -------------      -------------

         Total Stockholders' Equity                                    573,317            852,280
                                                                 -------------      -------------

         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $   1,375,236      $   1,549,526
                                                                 =============      =============


                                                       1


                                                  MIGAMI, INC.
                                        (Formerly Kleenair Systems, Inc.)
                                          (A Development Stage Company)
                                      Consolidated Statements of Operations
                                                   (Unaudited)


                                                For the Three Months Ended           For the Six Months Ended
                                                          June 30,                           June 30,
                                              ------------------------------      ------------------------------
                                                  2006              2005              2006              2005
                                              ------------      ------------      ------------      ------------

REVENUES

     Sales                                    $         --      $     40,930      $         88      $     49,384
     Management fees                                    --            15,750                --            31,500
                                              ------------      ------------      ------------      ------------

         Total Revenues                                 --            56,680                88            80,884
                                              ------------      ------------      ------------      ------------

COST OF REVENUES                                       367            32,814             2,237            39,624
                                              ------------      ------------      ------------      ------------

GROSS PROFIT (LOSS)                                   (367)           23,866            (2,149)           41,260
                                              ------------      ------------      ------------      ------------

PRODUCTION DEVELOPMENT COSTS                         1,791            20,853             8,601            72,390
                                              ------------      ------------      ------------      ------------

OPERATING EXPENSES

     Depreciation                                    8,737             9,125            17,269            20,166
     Amortization of intangible assets              24,566            32,575            49,133            65,298
     Advertising and promotion                         355               685               871             1,690
     Other general and administrative               86,641           115,931           195,984           209,668
                                              ------------      ------------      ------------      ------------

         Total Operating Expenses                  120,299           158,316           263,257           296,822
                                              ------------      ------------      ------------      ------------

LOSS FROM OPERATIONS                              (122,457)         (155,303)         (274,007)         (327,952)
                                              ------------      ------------      ------------      ------------

OTHER INCOME (EXPENSE)

     Unrealized gain (loss) on securities               63            44,461            (2,611)           32,069
     Loss on sale of stock                              --           (78,632)               --           (78,632)
     Interest expense                               (1,405)           (4,725)           (2,345)           (9,480)
                                              ------------      ------------      ------------      ------------

         Total Other Income (Expense)               (1,342)          (38,896)           (4,956)          (56,043)
                                              ------------      ------------      ------------      ------------

LOSS BEFORE INCOME TAXES                          (123,799)         (194,199)         (278,963)         (383,995)

     Benefit from deferred taxes                        --                --                --                --
                                              ------------      ------------      ------------      ------------

NET LOSS                                      $   (123,799)     $   (194,199)     $   (278,963)     $   (383,995)
                                              ============      ============      ============      ============

BASIC LOSS PER SHARE                          $      (0.01)     $      (0.02)     $      (0.02)     $      (0.03)
                                              ============      ============      ============      ============

WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING                      12,673,875        11,809,352        12,673,875        11,715,220
                                              ============      ============      ============      ============


                                                      2


                                          MIGAMI, INC.
                               (FORMERLY KLEENAIR SYSTEMS, INC.)
                                 (A Development Stage Company)
                             Consolidated Statements of Cash Flows
                                          (Unaudited)


                                                                     For the Six Months Ended
                                                                            June 30,
                                                                 ------------------------------
                                                                     2006              2005
                                                                 ------------      ------------

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                                         $   (278,963)     $   (383,995)
Adjustments to reconcile net loss to net cash
 used in operating activities:
     Realized and unrealized loss on securities                         2,611            46,562
     Loss on disposition of assets                                         --             7,431
     Depreciation                                                      17,269            20,166
     Amortization of:
       Prepaid expenses                                                    --            12,450
       Intangibles                                                     49,133            65,297
     Stock issued for services                                             --            24,390
Changes in assets and liabilities:
     Decrease in accounts receivable and accounts
       receivable - related parties                                   114,232            65,664
     Increase in inventory                                             (4,000)             (151)
     Decrease in prepaid expenses                                          --            11,237
     Increase in deposits and other assets                               (753)               --
     Increase in accounts payable and accrued expenses                  5,935            44,759
                                                                 ------------      ------------

         Net Cash Used in Operating Activities                        (94,536)          (86,190)
                                                                 ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

     Cash paid for property and equipment                                (733)           (1,705)
     Proceeds from disposition of assets                                   --             9,750
     Proceeds from sale of stock                                           --            51,645
     Cash paid for patent licensing                                        --           (16,835)
                                                                 ------------      ------------

         Net Cash Provided by (Used in) Investing Activities             (733)           42,855
                                                                 ------------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES:

     Advances and loans from related parties                           98,742             2,922
     Proceeds from issuing stock                                           --            25,000
     Repayments to related parties                                         --           (14,756)
                                                                 ------------      ------------

         Net Cash Provided by Financing Activities                     98,742            13,166
                                                                 ------------      ------------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                                      3,473           (30,169)

CASH AND CASH EQUIVALENTS AT BEG OF PERIOD                              6,371            87,696
                                                                 ------------      ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                       $      9,844      $     57,527
                                                                 ============      ============


SUPPLEMENTAL CASH FLOW INFORMATION

     Cash Payments For:

         Interest                                                $         --      $      1,608
         Income taxes                                            $         --      $         --

     Non-Cash Investing and Financing Activities

         Consultants and prepaid services                        $         --      $     24,390


                                               3



                                  MIGAMI, INC.
                       (FORMERLY, KLEENAIR SYSTEMS, INC.)
                 Notes to the Consolidated Financial Statements
                       June 30, 2006 and December 31, 2005
                                   (Unaudited)

NOTE 1 -      BASIS OF PRESENTATION

              The financial information included herein is unaudited and has
              been prepared consistent with generally accepted accounting
              principles for interim financial information and with the
              instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
              Accordingly, these financial statements do not include all
              information and footnotes required by generally accepted
              accounting principles for complete financial statements. These
              statements should be read in conjunction with the audited
              financial statements and notes thereto included in the Company's
              annual report on Form 10-KSB for the year ended December 31, 2005.
              In the opinion of management, these financial statements contain
              all adjustments (consisting solely of normal recurring
              adjustments) which are, in the opinion of management, necessary
              for a fair statement of results for the interim period presented.

              The results of operations for the six months ended June 30, 2006
              are not necessarily indicative of the results to be expected for
              the full year.

NOTE 2 -      FULLY DILUTED LOSS PER SHARE

              Following is a reconciliation of the fully diluted loss per share
              for the three months and six months ended June 30, 2006 and 2005:

                                                           For the
                                                     Three Months Ended
                                                           June 30,
                                                ------------------------------
                                                    2006              2005
                                                ------------      ------------
               Net loss available to
                common shareholders             $   (123,799)     $   (194,199)
                                                ============      ============

               Weighted average shares            12,673,875        11,809,352
                                                ------------      ------------

               Basic loss per share (based
                on weighted average shares)     $      (0.01)     $      (0.02)
                                                ============      ============


                                                           For the
                                                       Six Months Ended
                                                           June 30,
                                                ------------------------------
                                                    2006              2005
                                                ------------      ------------

               Net loss available to
                common shareholders             $   (278,963)     $   (383,995)
                                                ============      ============

               Weighted average shares            12,673,875        11,715,220
                                                ------------      ------------

               Basic loss per share (based
                on weighted average shares)     $      (0.02)     $      (0.03)
                                                ============      ============

                                        4


                                  MIGAMI, INC.
                       (FORMERLY, KLEENAIR SYSTEMS, INC.)
                 Notes to the Consolidated Financial Statements
                       June 30, 2006 and December 31, 2005
                                   (Unaudited)

NOTE 2 -      FULLY DILUTED LOSS PER SHARE (Continued)

              As of June 30, 2006, a warrant to purchase 501,333 shares was
              outstanding as well as an option to purchase $250,000 worth of
              stock. The shares underlying these items have not been added to
              outstanding common shares in the presentation above because the
              presentation would prove to be anti-dilutive.

NOTE 3 -      STOCK SPLIT

              During the six months ended June 30, 2006, the Company effected a
              five-for-one (5 for 1) reverse stock split of its outstanding
              common stock. These financial statements have been retroactively
              restated for the split.

NOTE 4 -      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
              Company has neither sufficient operating revenues nor disposable
              assets to fund completion of its development program, current
              level of expenses, or initial production stages. In this
              situation, the Company is reliant solely upon its ability to raise
              capital through sales of its stock, debt financing, or acquisition
              of services through issuances of the Company's stock. There is no
              assurance that a market exists for the sale of the Company's stock
              or that lenders could be found to lend money to the Company.
              Should financing not be available, the Company would, in all
              likelihood, be forced to stop development efforts and/or to shut
              down its activities completely.

              Management has been in contact with various parties who are
              interested in providing funding for the completion of testing and
              trials to obtain certifications from the State of California and
              the EPA regarding the product's ability to function as an emission
              control device. Because of these contacts, management anticipates
              that efforts to obtain certification will be continued and that
              there should be no substantial difficulties in obtaining
              sufficient financing to obtain such certifications and subsequent
              distribution. Additionally, testing in England resulted in product
              sales and installations during 2003 through the Company's U.K.
              affiliate. Sales/installations were halted during late 2003 and
              all of 2004 and 2005, due to budgetary limitations under the U.K.
              trust that is administering the governmental cost sharing program.
              These sales are expected to resume in 2006 with the advent of a
              new budget period and final resolution of methods and practices by
              the trust.

              These financial statements do not include any adjustments relating
              to the recoverability and classification of recorded assets of the
              amount of liabilities that might be incurred should the Company be
              unable to continue in existence.


                                        5


ITEM 2. MANAGEMENT'S DISCUSSION AND PLAN OF OPERATION

RESULTS OF OPERATIONS

Revenues for the six months ended June 30, 2006 were $88 compared to $80,884 for
the same period in 2005. Cost of goods sold for the six months ended June 30,
2006 were $2,237 compared to $39,624 for the same period in 2005.

Gross profit (loss) for the six months ended June 30, 2006 was ($2,149) compared
to $41,260 for the same period in 2005.

Operating expenses for the six months ended June 30, 2006 were reduced from
$296,822 for the same period in 2005 to $263,257 in 2006.

Net loss for the six months ended June 30, 2006 was down from $383,995 for the
same period in 2005 to $278,963 for 2006.

LIQUIDITY AND SOURCE OF CAPITAL

Various officers and directors have made short-term loans to the Company as
needed. In 2005, private placements plus the sale of the Company's investment in
Langley Park Investment Trust met the working capital requirement for the year
in the absence of cash generated from sales revenue. In August 2005 the Company
sold to KleenAir Systems International plc, of London, England its Intellectual
Property rights for approximately $180,000 plus a royalty on gross sales of 8%.
This cash is being used to meet the working capital requirements of the Company.

GENERAL DISCUSSION AND PLAN OF OPERATIONS

The Company was incorporated under the laws of the State of Nevada on February
4, 1986, under the name of Covington Capital Corporation. In 1986, the Company
filed an S-18 and registered certain stock. From 1989 through 1993, the Company
underwent a series of name changes in order to explore various business
opportunities. However, none of the business opportunities was successfully
completed.

In April 1995, under the name Investment and Consulting International, Inc., the
Company acquired a patent for a proprietary device designed to neutralize
nitrogen oxide automobile emissions from a separate company which was then known
as KleenAir Systems, Inc. Simultaneously with the acquisition of the patent, the
Company acquired the right to use the corporate name KleenAir Systems, Inc., and
changed to its current name.

Since acquiring the patent in 1995, the Company has been a developmental stage
company and has worked toward the completion of the development and testing of
the NOxMaster(TM) technology. The Company owns U.S. Patent #5,224,346 - Engine
NOx Reduction System issued in 1993 and U.S. Patent #5,609,026 - Engine NOx
Reduction issued in 1997. In 1999 the Company was issued a third patent on
Ammonia Injection in NOx Control, U.S. Patent #5,992,141. The Company has
applied for and maintained patent protection under the Patent Cooperation Treaty
(PCT) to protect its intellectual property in a variety of countries that are
significant producers of automotive products.

The Company has applied for additional patents related to its NOxMaster(TM)
technology, two of which have been granted. The U.S. Patent #6,446,940 has been
issued for a new emission control device, the Sonic Flow Carburetor, which
atomizes fuel on gasoline powered engines, enhancing operating efficiency and
reducing emissions. An additional U.S. Patent #6,499,463 has been issued for a
device which atomizes diesel fuel to enhance the performance of and reduce
emissions in diesel engines. Patent awards have now been confirmed for several
European countries including the U.K., Germany, France, Italy, Spain and Sweden,
and anticipated soon for Japan, Brazil, and China.


                                        6


The Company occupies 2,000 square foot facility at 27121 Aliso Creek Road, Suite
120, Aliso Viejo, CA 92656. The Company has loaned its R & D testing equipment
to its strategic partner, Dinex Exhausts, Inc., which is occupying a
several-thousand square foot facility in the City of Industry. The arrangement
calls for Dinex to conduct tests and evaluations on this equipment of systems to
be presented to the California Air Resource Board (CARB) and the Environment
Protection Agency (EPA). The Company and Dinex will jointly apply for Retrofit
Verification to these agencies for certain applications of it technology.
KleenAir will, from time to time, continue to use the equipment, of which it has
retained ownership, for its own exclusive testing and development programs.

As a result of an extensive test and evaluation program funded by the Energy
Savings Trust (EST) and implemented on a variety of vehicles over the last four
years, the Company has now been included as an approved vendor on the EST
Cleanup Register in a number of categories. It has completed an additional test
program for EST on several London taxicabs incorporating an updated light duty
combination particulate filter and NOxMaster(TM) NOx reduction system
manufactured and installed by the Company's licensee in Europe, Dinex A/S. These
tests were satisfactorily concluded in March.

Some forty Light Commercial Vehicles have been installed with these combination
particulate and Nox reduction systems in the fleet of a major U.K. local
authority. In addition, systems have been installed on twenty- four London
sightseeing buses.

The Company is the only entry in the SCR category for retrofit. In addition, the
Company's Selected Catalytic Reduction and Filter (SCRF) systems, which combine
high levels of emission reduction for both NOx and PM (particulates) together
with CO and HC, has become the sole entry for light and medium duty vehicles in
a new especially-created category called SCRF, which has the highest level of
funding grants. The Eminox is the only other SCRF product for heavy duty and has
recently been added to the Clean Up register. The Company's systems have now
been qualified for a variety of vehicles ranging from light-duty taxi
applications, to light commercial vans, shuttle buses and heavy duty bus
transport applications. However, the Department for Transport has recently
announced that most Government funding programs for the installation of retrofit
emissions technology are being suspended.

The Company's technology is expected to be launched in a variety of market
segments in the U.K., and subsequently in other European countries such as
Italy, Switzerland, Austria, Germany, Holland, Spain and France.

Distribution and supply agreements have been concluded through the Company's
U.K. affiliate with Dinex A/S of Denmark and Dinex Exhaust Systems Ltd of the
U.K. for the KleenAir product line. Dinex specializes in after-market sales of
particulate filters, silencers and exhaust system components for medium and
heavy-duty diesel-powered vehicles. The supply agreement will enable the Company
to source product at most favored nation pricing and distribute to its own list
of customers in Europe and elsewhere. The Company is in negotiation with a
number of fleet operators with a view to retrofitting and upgrading vehicles to
Euro 3 requirements.

Distribution and supply agreements for the KleenAir product line have been
concluded with Dinex Exhaust Systems, Inc., a wholly owned US subsidiary of
Dinex A/S of Denmark, with which the Company has European distributorship and
supply agreements. It is expected that Dinex will be applying for CARB and EPA
Retrofit Verification Programs for various types and sizes of vehicles for both
NOx and particulate reduction.

During 2003, over $750,000 of system components were shipped to Dinex. However,
in October 2003 the EST suspended funding payments due to budget problems and
these were not reinstated until April 2004. Orders for systems for over 100
buses, worth $500,000 in Company sales, were put on hold. The Company is
awaiting clarification as to whether these orders will now be funded or whether
new applications have to be filed to fund these systems. As of the current date,
only limited funding has been released for special programs and it is not clear
whether this will include taxis. It is hoped that some of the bus applications
applied for will be processed.


                                        7


The Public Carriage Office (PCO) has announced a mandate for the upgrade of some
13,500 London Taxis to Euro 3 emission standards. The The start date for this
program is July 2006. It is expected that there will be 1,500 upgrades for 2006.
The estimated number for 2007 is 8,000 with a further 4,000 in 2008.

In his policy statement in July 2006, the Mayor of London, Ken Livingstone,
confirmed plans for a Low Emission Zone for all areas of London within the M25
Ring Road. It is estimated that this will impact up to 50,000 vehicles by the
middle of 2008 and a further 100,000 to 200,000 by the end of 2012. The
Company's products already qualify to meet the required emission standards for
such mandated upgrades and have been approved by the Energy Savings Trust for
such applications.

The Company has formed a consortium together with Dinex, ATS Euromaster (a
subsidiary of Michelin), Air Products Plc and Terra Nitrogen(UK) Ltd for the
purpose of creating and supporting the infrastructure for ammonia supply,
installation and maintenance. It is anticipated that a similar consortium with
the same members will be formed to handle the U.S. infrastructure once EPA and
CARB Retrofit Verification has been received.

As the U.K. market is on the threshold of major commercial advances in the use
of SCR for retrofit programs, such as London taxis and buses, the Company, in
consultation with the Department For Transport (DFT) and Energy Savings Trust
(EST), has moved to pull together all the resources necessary for a reliable,
efficient and cost-effective infrastructure to support the implementation of its
Selected Catalytic Reduction and Filter (SCRF) systems on a variety of vehicles
for a number of different applications across the U.K.

U.S. testing continues of the NOxMaster(TM) Diesel Catalytic Converter together
with its NOxMaster(TM) Ammonia Injection System to present an integrated system
for the elimination of emissions from diesel powered mobile sources. The Company
has received an EO certification from the California Air Resources Board (CARB)
for off- road and stationary engine applications, which will enable it to
commence sales of its products in California.

The Company has now received approval from CARB for its applications for
Retrofit Verification for medium heavy-duty vehicles using its NOxMaster(TM) NOx
reduction system. Approval has also been received from the EPA to proceed with
an application for certification of the combination package of its Oxidizing
Particulate Trap (OPT) with the NOxMaster(TM) for both high particulate
reduction as well as high NOx reduction. However, the Company has negotiated an
arrangement with the EPA and CARB for a single testing protocol that would
satisfy both their requirements rather than having to bear the considerable cost
of running two separate test programs for the same product. Applications have
been on file with both institutions for a long time. The actual Retrofit
Verification Program is currently expected to commence during the first quarter
of 2007.

The Company's wholly-owned subsidiary, Carbon Cloth Technologies, Inc. (Carbon
Cloth), of Malibu, California, is a manufacturer of automotive thermal
management systems. Carbon Cloth has several years of experience developing
thermal solutions for such motorsports industry leaders as Ferrari,
Mercedes-Benz and Penske, that has enabled development of the CarbonGuard(TM), a
significant addition to the battle on pollution. It has applied for patents in
automotive thermal management systems.

At present the CarbonGuard(TM) is used to enhance the effectiveness of
particulate filters. These filters need to maintain 300 degrees centigrade for
30% of a vehicle's operating time otherwise the filters clog and create back
pressure. Wherever particulate filters are currently installed, estimated to be
at least 30,000 units at present, the CarbonGuard(TM) can improve performance
and save maintenance expense. Filter technology has come to prominence recently
as both the Environmental Protection Agency (EPA) and the California Air
Resource Board (CARB) have determined that particulates from vehicle emissions
are a serious public health problem.


                                        8


The CarbonGuard(TM) is already installed on over 1,000 New York City Transit
Authority buses as enhancements for the operating efficiency of its installed
base of particulate traps. It has been selected as a sole source product for
this application. ServoTech is a licensee of Ford Motor Company on SCR injection
technology. It's SOBRIS(TM) product is under test and evaluation by a number of
automotive manufacturers in the U.S. and Europe. The Company is working with
ServoTech on component development that incorporates injection controller and
reduction delivery technology suitable for effective implementation of its
systems and such controllers have been incorporated in the pilot installations
currently in use in the U.K.

Once production and sales begin, the Company anticipates initially employing 15
to 20 employees, primarily in management, technical, and administrative
capacities. The Company is actively seeking sources of funding for its operating
capital requirements both to complete its test and evaluation programs and to
support initial sales and production.

The Company is negotiating potential licensing and other commercial arrangements
with certain international companies in the automotive industry, subject to
completion of satisfactory test and evaluation programs.

The U.K. affiliate, KleenAir Systems International Plc (KSIP), has successfully
raised approximately $1,500,000 in private equity funding. This funding diluted
the Company's ownership interest to approximately 23%. In March 2006, KSIP was
listed on the Alternative Investment Market and raised approximately $2,500.000.
As a result, the Company's ownership interest was further diluted to a level of
approximately 17%. The funding strategy is designed to provide the working
capital necessary to fully exploit the commercialization opportunity in Europe
for the Company's products.

In December 2005 the Company signed an agreement to acquire Innovay, Inc. and
has filed a 14C with the SEC describing this proposed transaction. In
anticipation of closing this transaction the Company arranged for a 5 to 1
reverse split during the first quarter and changed its name from KleenAir
systems, Inc to Migami, Inc. Its symbol was changed from KAIR to MIGA. The
Company received from the SEC a series of questions related to its 14C
submission and it is anticipated that the response to those questions will be
filed by mid-August.

OFF-BALANCE SHEET ARRANGEMENTS

As of June 30, 2006, the Company had no off-balance sheet arrangements.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Where this Form 10-QSB includes "forward-looking" statements within the meaning
of Section 27A and Section 21E of the Securities Act, the Company desires to
take advantage of the "safe harbor" provisions thereof. Therefore, the Company
is including this statement for the express purpose of availing itself of the
protections of such safe harbor provisions with respect to all of such
forward-looking statements. The forward-looking statements in this Form 10-QSB
reflect the Company's current views with respect to future events and financial
performance. These forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ from those anticipated.
These risks include, but are not limited to, economic conditions, changes in
environmental regulations, the market for venture capital, etc. In this Form
10-QSB, the words "anticipates," "believes," "expects," "intends," "future" and
similar expressions identify forward-looking statements. The Company undertakes
no obligation to publicly revise these forward-looking statements to reflect
events or circumstances that may arise after the date hereof. All subsequent
written and oral forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their entirety by this
section.


                                        9


ITEM 3: CONTROLS AND PROCEDURES

(a) The management of KleenAir Systems, Inc. carried out an evaluation, under
the supervision and with the participation of the Company's management,
including the Corporation's Chief Executive Officer and Chief Financial Officer,
of the effectiveness of the design and operation of the Company's disclosure
controls and procedures as of June 30, 2006, pursuant to Rule 13a-15 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based on that
evaluation, the Company's Chief Executive Officer and Chief Financial Officer
concluded that the Corporation's disclosure controls and procedures were
effective as of June 30, 2006, in timely alerting them to material information
relating to the Corporation required to be included in the Corporation's
periodic Exchange Act filings.

(b) There have been no significant changes in the Corporation's internal
controls or in other factors which could significantly affect its internal
controls subsequent to the date the Corporation carried out its evaluation.


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                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

Exhibit 31 -- Certification of President and Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32 -- Certification 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.


                           REPORTS ON FORM 8-K -- NONE

                                   SIGNATURES

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

                                    MIGAMI, INC.

Date:  August 18, 2006              By: /s/ LIONEL SIMONS
                                        ----------------------------------------
                                        Lionel Simons, President,
                                        Secretary, Principal Accounting Officer,
                                        and Principal Financial Officer


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