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

FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.

For the quarterly period ended August 31, 2006
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.

For the transition period from to
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Commission file number 0-49978
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Island Residences Club, Inc.
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(Exact name of registrant as specified in its charter)

Delaware 20-2443790
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(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)

1769-203 Jamestown Rd, Williamsburg, VA 23185
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(Address of principal executive offices) (Zip Code)

P.O. Box 1518, Williamsburg, VA 23185
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(Mailing address of principal executive offices) (Zip Code)

(757) 927-6848
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(Registrant's telephone number, including area code)

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

[X] Yes [ ] No

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Outstanding at October 6, 2006
Common Stock, par value $0.0001 - 14,737,000

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

PART I - FINANCIAL INFORMATION

Item 1 Financial statements

ISLAND RESIDENCES CLUB, INC.
(FORMERLY ISLAND INVESTMENTS, INC.)
BALANCE SHEET
AUGUST 31, 2006
(UNAUDITED)

ASSETS

ASSETS:

Cash and cash equivalents $ 230
Receivable from related party 50,025
Marketable securities 2,520,790
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TOTAL ASSETS $ 2,571,045
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LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 35,017
Due to officers 8,000
Due to related party 161,928
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TOTAL LIABILITIES 204,945
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STOCKHOLDERS' EQUITY

Preferred stock, $0.0001 par value; 20,000,000 shares
authorized, 0 shares issued and outstanding --
Common stock, $0.0001 par value; 100,000,000 shares
authorized; 14,737,000 shares issued and outstanding 1,474
Additional paid-in capital 270,095
Accumulated comprehensive unrealized gain 2,383,775
Accumulated comprehensive loss on foreign currency translation (105,485)
Prepaid consulting fees (13,522)
Accumulated deficit (170,236)
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TOTAL STOCKHOLDERS' EQUITY 2,366,100
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,571,045
=============

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

ISLAND RESIDENCES CLUB, INC.
(FORMERLY ISLAND INVESTMENTS, INC.)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTH PERIODS ENDED AUGUST 31, 2006 AND 2005
(UNAUDITED)

2006 2005
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Net revenue - related party $ 14,000 $ -

Cost of revenue - related party 9,800 -
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Gross profit 4,200 -

Selling, general and administrative
expenses 23,870 61,025
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Net loss (19,670) (61,025)

Comprehensive loss

Loss on foreign currency translation (105,485) -
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Comprehensive loss $ (125,155) $ (61,025)
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Loss per share - basic and diluted $ (0.00) $ (0.01)
============= =============
Weighted average number of shares
basic and diluted 15,676,130 6,240,000
============= =============

*Basic and diluted weight average number of shares are the same since the Company has
no dilutive securities

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

ISLAND RESIDENCES CLUB, INC.
(FORMERLY ISLAND INVESTMENTS, INC.)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED AUGUST 31, 2006 AND 2005
(UNAUDITED)

2006 2005
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Cash flows from operating activities:
Net loss $ (19,670) $ (61,025)
Adjustments to reconcile net loss to net
cash used in operating activities:
Amortization of prepaid consulting 1,943 -
Increase in current assets:
Receivable from related party (4,200) -
Increase/(decrease) in current liabilities:
Account payable (19,919) 27,546
Due to officers 8,000 -
Due to related party 33,599 33,479
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Total adjustments 11,423 61,025
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Net cash used in operating activities (247) -
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Cash and cash equivalents, beginning 477 -
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Cash and cash equivalents, ending $ 230 $ -
============= =============

Supplemental disclosure of cash flow information:
Interest paid $ - $ -
============= =============
Income taxes paid $ - $ -
============= =============

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

ISLAND RESIDENCES CLUB, INC.
(FORMERLY ISLAND INVESTMENTS, INC.)
NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1 - BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Organization and Business Operations

Island Residences Club, Inc., formerly Island Investments, Inc., formerly
Hengest Investments, Inc was incorporated in the State of Delaware on July 16,
2002 to serve as a vehicle to effect a merger, exchange of capital stock, asset
acquisition or other business combination with a domestic or foreign private
business. The principal business of the Company includes the development,
management and operations of luxury resorts and residences and marketing and
selling of vacation stay entitlement ("rights") in the form of vacation points.
The rights are issued as stay entitlements in the Island Residences Club, Inc.
affiliate's recently completed Bali Island Villas in Seminyak, Bali.

On March 17, 2005, the Company began business operations, and all activity prior
to that date relates to the Company's formation and proposed fund raising. On
June 20, 2005, the board of directors resolved to change the company's fiscal
year end from December 31 to May 31, commencing May 31, 2005. During the three
month period ended November 30, 2005, the Company began to earn revenue,
therefore is no longer a development stage company.

B. Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original
maturity of three months or less from the date of purchase that are readily
convertible into cash to be cash equivalents.

C. Use of Estimates

The preparation of the financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

D. Income Taxes

The Company accounts for income taxes under the Financial Accounting Standards
Board of Financial Accounting No. 109, "Accounting for Income Taxes" "Statement
109"). Under Statement 109, deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax basis. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. Under
Statement 109, the effect on deferred tax assets and liabilities of a change in
tax rates is recognized in income in the period that includes the enactment
date. There was no current or deferred income tax expense or benefits due to the
Company not having any material operations for the period ended August 31,2006.

E. Basic and diluted net loss per share

Net loss per share is calculated in accordance with Statement of Financial
Accounting Standards 128, Earnings per Share ("SFAS 128"). Basic net loss per
share is based upon the weighted average number of common shares outstanding.
Diluted net loss per share is based on the assumption that all dilutive
convertible shares, stock options and warrants were converted or exercised.
Dilution is computed by applying the treasury stock method. At May 31, 2006
there were no dilutive convertible shares, stock options or warrants.

F. Revenue recognition

The Company recognizes revenues under the full accrual method of accounting when
a formal arrangement exists, title is transferred, no other significant
obligations of the Company exist and the Company deems the receivables to be
collectible. The revenue is recognized net of returns and discounts.

G. Issuance of shares for service

The Company accounts for the issuance of equity instruments to acquire goods and
services based on the fair value of the goods and services or the fair value of
the equity instrument at the time of issuance, whichever is more reliably
measurable.

H. Fair Value:

Unless otherwise indicated, the fair values of all reported assets and
liabilities, which represent financial instruments, none of which are held for
trading purposes, approximate carrying values of such amounts.

I. Reclassifications:

For comparative purposes, prior year's financial statements have been
reclassified to conform with report classifications of the current year.

J. Recent Pronouncements

In February 2006, FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments". SFAS No. 155 amends SFAS No 133, "Accounting for
Derivative Instruments and Hedging Activities", and SFAS No. 140, "Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities". SFAS No. 155, permits fair value remeasurement for any hybrid
financial instrument that contains an embedded derivative that otherwise would
require bifurcation, clarifies which interest-only strips and principal-only
strips are not subject to the requirements of SFAS No. 133, establishes a
requirement to evaluate interest in securitized financial assets to identify
interests that are freestanding derivatives or that are hybrid financial
instruments that contain an embedded derivative requiring bifurcation, clarifies
that concentrations of credit risk in the form of subordination are not embedded
derivatives, and amends SFAS No. 140 to eliminate the prohibition on the
qualifying special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial interest other than another derivative financial
instrument. This statement is effective for all financial instruments acquired
or issued after the beginning of the Company's first fiscal year that begins
after September 15, 2006. SFAS No. 155 is not expected to have a material effect
on the financial position or results of operations of the Company.

In March 2006 FASB issued SFAS 156 'Accounting for Servicing of Financial
Assets' this Statement amends FASB Statement No. 140, Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities, with
respect to the accounting for separately recognized servicing assets and
servicing liabilities. This Statement:

1. Requires an entity to recognize a servicing asset or servicing liability
each time it undertakes an obligation to service a financial asset by entering
into a servicing contract.

2. Requires all separately recognized servicing assets and servicing
liabilities to be initially measured at fair value, if practicable.

3. Permits an entity to choose 'Amortization method' or 'Fair value
measurement method' for each class of separately recognized servicing assets and
servicing liabilities.

4. At its initial adoption, permits a one-time reclassification of
available-for-sale securities to trading securities by entities with recognized
servicing rights, without calling into question the treatment of other
available-for-sale securities under Statement 115, provided that the
available-for-sale securities are identified in some manner as offsetting the
entity's exposure to changes in fair value of servicing assets or servicing
liabilities that a servicer elects to subsequently measure at fair value.

5. Requires separate presentation of servicing assets and servicing
liabilities subsequently measured at fair value in the statement of financial
position and additional disclosures for all separately recognized servicing
assets and servicing liabilities.

This Statement is effective as of the beginning of the Company's first fiscal
year that begins after September 15, 2006. Management believes that this
statement will not have a significant impact on the financial statements.

In September 2006, FASB issued SFAS 157 `Fair Value Measurements'. This
Statement defines fair value, establishes a framework for measuring fair value
in generally accepted accounting principles ("GAAP"), and expands disclosures
about fair value measurements. This Statement applies under other accounting
pronouncements that require or permit fair value measurements, the Board having
previously concluded in those accounting pronouncements that fair value is the
relevant measurement attribute. Accordingly, this Statement does not require any
new fair value measurements. However, for some entities, the application of this
Statement will change current practice. This Statement is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The management is currently
evaluating the effect of this pronouncement on the financial statements.

In September 2006, FASB issued SFAS 158 `Employers' Accounting for Defined
Benefit Pension and Other Postretirement Plans--an amendment of FASB Statements
No. 87, 88, 106, and 132(R)' This Statement improves financial reporting by
requiring an employer to recognize the overfunded or underfunded status of a
defined benefit postretirement plan (other than a multiemployer plan) as an
asset or liability in its statement of financial position and to recognize
changes in that funded status in the year in which the changes occur through
comprehensive income of a business entity or changes in unrestricted net assets
of a not-for-profit organization. This Statement also improves financial
reporting by requiring an employer to measure the funded status of a plan as of
the date of its year-end statement of financial position, with limited
exceptions. An employer with publicly traded equity securities is required to
initially recognize the funded status of a defined benefit postretirement plan
and to provide the required disclosures as of the end of the fiscal year ending
after December 15, 2006. An employer without publicly traded equity securities
is required to recognize the funded status of a defined benefit postretirement
plan and to provide the required disclosures as of the end of the fiscal year
ending after June 15, 2007. However, an employer without publicly traded equity
securities is required to disclose the following information in the notes to
financial statements for a fiscal year ending after December 15, 2006, but
before June 16, 2007, unless it has applied the recognition provisions of this
Statement in preparing those financial statements:

a. A brief description of the provisions of this Statement
b. The date that adoption is required
c. The date the employer plans to adopt the recognition provisions of
this Statement, if earlier.

The requirement to measure plan assets and benefit obligations as of the date of
the employer's fiscal year-end statement of financial position is effective for
fiscal years ending after December 15, 2008.

NOTE 2 - MARKETABLE SECURITIES

The Company's marketable securities are classified as available-for-sale and, as
such, are carried at fair value. All of the securities are comprised of shares
of common stock of Island Concepts Indonesia (ICON), a Company related through
common ownership. Securities classified as available-for-sale may be sold in
response to changes in interest rates, liquidity needs, and for other purposes.

The investment in marketable securities represents less than twenty percent
(20%) of the outstanding common stock and stock equivalents of the investee, and
is traded on the Surabaya Stock Exchange in Indonesia through brokers. As such,
each investment is accounted for in accordance with the provisions of SFAS No.
115. The Company has recorded the market value of the shares based upon the
information provided by the broker.

Unrealized holding gains and losses for marketable securities are excluded from
earnings and reported as a separate component of stockholder's equity. Realized
gains and losses for securities classified as available-for-sale are reported in
earnings based upon the adjusted cost of the specific security sold.

Gains or losses on foreign currency translation are excluded from earnings and
reported as a separate component of stockholder's equity.

On August 31,2006, the investments have been recorded at $2,520,790 based upon
the fair value of the marketable securities at the balance sheet date.

Following is a summary of marketable equity securities classified as available
for sale as of August 31, 2006:

Loss on Foreign Number of Shares
Cost at Market Value at Accumulated Currency Held at
Investee Name August 31, 2006 August 31, 2006 Unrealized Gain Translation August 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------

Island Concepts Indonesia $ 242,500 $ 2,520,790 $ 2,383,775 $ (105,485) 24,500,000

NOTE 3 - STOCKHOLDERS' EQUITY

A. Preferred Stock

The Company is authorized to issue 20,000,000 shares of preferred stock at
$.0001 par value, with such designations voting and other rights and preference
as may be determined from time to time by the Board of Directors.

As of August 31, 2006, no preferred stock has been issued.

B. Common stock

During the year ended August 31, 2006, the Company issued 1,600,000 shares to
Angela Whichard, Inc. (AWI) per a Share Exchange Agreement, whereby the Company
will exchange 1,600,000 shares of its common stock for 400,000 restricted shares
of common stock of Grand Sierra Resorts Corp., a Nevada Corp., owned by AWI. The
Company recorded subscription receivable based on the market price of the shares
issued. However, AWI did not fulfill its obligation under the Share Exchange
Agreement. These shares were canceled on July 24, 2006.

C. Prepaid consulting:

During the year ended May 31, 2006, the Company recorded $20,000 prepaid
consulting for common stock issued for consulting service, which is the fair
value of the shares. During the three month period ended August 31, 2006 the
Company amortized $1,943 as an operating expense. The balance of prepaid
consulting at August 31, 2006 is $13,522.

D. Warrant and Options

There are no warrants or options outstanding to issue any additional shares of
common stock or preferred stock of the Company.

NOTE 4 - SUPPLEMENTAL DISCLOSURE OF CASH FLOWS

The Company prepares its statements of cash flows using the indirect method as
defined under the Financial Accounting Standard No. 95.

NOTE 5 - RELATED PARTY TRANSACTIONS

Due to officers represents unpaid salaries accrued for two officers (See Note
8). As of August 31, 2006, the balance due to officers amounted to $8,000.

Due to related party represents expenses paid by Francis Street Pty Ltd. on
behalf of the Company, which are non-interest bearing, unsecured, and due on
demand. As of August 31, 2006, the balance due to the related party amounted to
$161,928.

During the three month period ended August 31, 2006, the Company sold 5,600
rights amounting to $14,000 to Island Concepts, which represent 100% of the
revenue. As of August 31, 2006, the balance of the accounts receivable due from
Island Concepts is $50,025.

During the period ended August 31, 2006, the Company incurred $9,800 of
management fees to Island Concepts, which represent 100% cost of revenue.

On November 1, 2005, the Company entered into an advisory agreement with Francis
Street Pty Ltd., whereby Francis Street would provide certain business
consulting services for the period from November 1, 2005 to December 31, 2008 in
exchange for 1,000,000 shares of common stock valued at $10,000, which is the
fair value of the shares. The prepaid consulting is amortized over the service
period.

Island Residences Club, Inc ("IRCI"), Island Regency Group Limited a/k/a
Meridian Pacific Investments ("Island Regency"), Francis Street Pty Limited, and
PT Island Concepts, Indonesia Tbk ("Island Concepts") are related parties
through common ownership and officers.

Specifically in respect to the following: IRCI is a Delaware Corporation that is
publicly reporting but is not publicly trading. Island Regency is a Hong Kong
company that is privately owned. Francis Street is an Australian company that is
privately owned. Island Concepts (www.islandconcepts.com) is an Indonesian
Company that is publicly trading on the Surabaya Stock Exchange in Indonesia
under the symbol ("ICON"). Graham Bristow is an officer and director in Francis
Street and Island Regency and a commissioner on the advisory board of Island
Concepts. Graham Bristow, through direct and indirect ownership, owns 100% of
Meridian and approximately 73% of Island Concepts, 100% of Francis Street, and
78% of IRCI. On August 2, 2006, Meridian changed its name to Island Regency
Group Limited.

NOTE 6 - CONCENTRATION

One customer - a related party (related through common officer) represent 100%
of the Company's revenue and cost of revenue. The balance of account receivable
from this customer amounted to $50,025 as of August 31, 2006.

100% of the Company's revenue is from the sale of rights to the Indonesia
market.

NOTE 7 - GOING CONCERN CONSIDERATION

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. This basis of accounting contemplates
the recovery of the Company's assets and the satisfaction of its liabilities in
the normal course of business. The Company incurred a loss of $19,670 and
$61,025 for the three month periods ended August 31, 2006 and 2005,
respectively. The Company has an accumulated deficit of $170,236 as of August
31, 2006. The continuing losses have adversely affected the liquidity of the
Company.

In view of the matters described in the preceding paragraph, recoverability of a
major portion of the recorded asset amounts shown in the accompanying balance
sheet is dependent upon continued operations of the Company, which in turn is
dependent upon the Company's ability to raise additional capital, obtain
financing and to succeed in its future operations. The financial statements do
not include any adjustments relating to the recoverability and classification of
recorded asset amounts or amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.

Management has made plans to revise its operating and financial requirements,
which it believes are sufficient to provide the Company with the ability to
continue as a going concern. The management's plans include the sale of
membership in The Island Residences Club, a vacation rights club initially based
in Bali and the possible acquisition of a suitable business venture to provide
the opportunity for the Company to continue as a going concern. However, there
can be no assurance that management will be successful in this endeavor.

NOTE 8 - AGREEMENTS

On June 3, 2006, James Rowbotham resigned as Chief Operating Officer and Vice
President of Operations of Island Residences Club, Inc. (the "Company"). On June
7, 2006, the Company appointed Julian James Bristow as the Company's Chief
Operating Officer and Vice President of Operations and Bettina Pfeiffer as the
Company's Vice President of Sales & Marketing for the Company. Effective July 1,
2006, the Company entered into employment agreements with both of these
individuals for a term of one year. Both agreements provide for compensation of
$2,000 per month during the employment term. Mr. Julian Bristow is the son of
Graham J. Bristow, Chief Executive Officer, director and majority shareholder of
the Company.

STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This report contains various forward-looking statements that are based on the
Company's beliefs as well as assumptions made by and information currently
available to the Company. When used in this report, the words "believe,"
"expect," "anticipate," "estimate" and similar expressions are intended to
identify forward-looking statements. Such statements may include statements
regarding seeking business opportunities, payment of operating expenses, and the
like, and are subject to certain risks, uncertainties and assumptions which
could cause actual results to differ materially from projections or estimates
contained herein. Factors which could cause actual results to differ materially
include, among others, unanticipated delays or difficulties in the company's
business plan, unanticipated or unexpected costs and expenses, competition and
changes in market conditions, lack of adequate management personnel and the
like. Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those anticipated, estimated or projected. The Company cautions against placing
undue reliance on forward-looking statements all of that speak only as of the
date made.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussion should be read in conjunction with the information
contained in our financial statements and the accompanying Notes.

PLAN OF OPERATION

Our principal business includes the development, management and operations of
luxury resorts and residences and marketing and selling vacation stay
entitlements ("rights") in the form of vacation points. The rights are issued as
stay entitlements in the Island Residences Club, Inc. and/or the recently
completed Bali Island Villas in Seminyak, Bali. The purchase of 10,000 rights at
$2.50 per right entitles the purchaser to membership in the Island Residences
Club, a vacation membership club we have established.

Island Residences Club, Inc. is finalizing a sales and marketing campaign to
launch the Island Residences Club concept in the US. Initially the property
owned by PT Island Concepts Indonesia Tbk in Seminyak, Bali is the only property
available to members for vacation and/or business stays. At this time, there are
ten (10) one bedroom luxury villas in Bali, each with its own lap pool available
in the vacation rights program. Currently the target market is the higher income
local and expatriate communities in Asia. We are seeking to acquire and/or
develop properties in the United States and Baja, Mexico to launch the Club
concept in the US and Canada later in 2006. Ultimately, Club Members will enjoy
"stays" at the Island Villas in Bali, and later, a selection of luxury
apartments and Villas in Thailand, North America, Mexico and elsewhere when
available, each and every year. The membership will receive a right each year to
stay at an Island Residences Club property. PT Island Concepts Indonesia Tbk
will expand its current Bali Island Villa Resort in Seminyak, Bali and construct
unique modern Villas on land it has identified in Thailand. These properties
will be modern,contemporary and yet tropical in design and can be sold with or
without a lease-back option to the Island Residences Club or with a contract to
the company for management and/or sundry letting. We will maintain a policy of
keeping our properties in the utmost pristine condition and will sell and
roll-over our inventory within a three to five year time frame. We hope to
develop our own properties in the U.S. and Mexico on both leasehold and freehold
land appealing to both local and foreign customers when time to sell. Over time
we expect to develop into essentially a property trust with the increasing value
of our inventory creating an increasing asset value for the shareholders. We
also intend to develop a commercial property portfolio consisting of luxury
hotels, spas and resorts. These properties will provide the infrastructure to
support villas and residences located within or adjacent to the resorts.

Our plan for the next twelve months includes moving forward with next phase of
our business plan, which is to (1) develop, acquire and manage vacation
properties in the U.S. and Mexico for members of the Island Residences Club, (2)
develop, market and manage the Island Residences Club concept and (3) sell
existing inventory of Vacation Stay Entitlements in the Bali Island Villas and
obtain and sell future Vacation Stay Entitlements in other properties. PT Island
Concepts Indonesia Tbk, on behalf of the company, currently has a software and
web design team of three persons and a research team of seven persons developing
our websites and back and front office software systems. This includes but is
not limited to the development of a membership loyalty program, online
reservation system and an in-room information system. This work will be moved to
the United States when staff and expertise become available or are employed.
However, we will continue to maintain a research and online concierge service
from Bali. These systems will be for our use and not for resale. We do not
intend to seek any specific patents or trademarks but will use a general
copyright to protect our property and systems. We invoice Island Concepts for
the sale of vacation rights and credit the invoice for management services that
they provide in the sales of the rights. There are no material agreements that
cover these transactions. IT services are provided on a normal commercial basis.
Also, if required, PT Island Concepts Indonesia Tbk is able to finance Island
Residences Club member's subscription payment through the sale of the vacation
entitlements held by the member to third party guests with 45% of rental income
received being credited against such loans.

We intend to invest up to $10,000,000 in 2006 and 2007 into property and income
producing assets located in the USA and Mexico. We intend for these funds to
come from the sale of Vacation Stay Entitlements ("Right"), and/or borrowings
secured over the assets acquired. There is no guarantee that we will be able to
sell these Vacation Stay Entitlements or obtain these funds or that the cost of
funds is acceptable to the Company. We intend to hire up to fifteen persons in
2006 and 2007, predominately for our Southern California operations, that we
have yet to establish.

In the next twelve months, Island Concepts has advised us that it will raise
funds to move forward with the next stage of development in the Bali Island
Villas in Seminyak, Bali. Ten two Bedroom Villas and a Spa Complex will be built
on land already owned by Island Concepts adjacent to stage I, being the existing
ten one bedroom Villas. These new Villas along with the original development
will be managed by PT Island Concepts Indonesia Tbk for the Island Residences
Club, Inc. Construction of Stage II is expected to be completed by August 2007.
Island Concepts also intends to expand in Thailand in 2007 on land it has
identified.

Island Residences Club, Inc. will market the Vacation Stay Entitlements
applicable to the new development as with the existing ten one bedroom Villas.
PT Island Concepts Indonesia Tbk will own and operate this development on behalf
of Island Residences Club, Inc.

It is the intention of Island Residences Club, Inc. within the next years to
acquire sufficient stock in PT Island Concepts Indonesia Tbk to achieve majority
control. The company currently owns 19.4% of the issued capital of PT Island
Concepts Indonesia Tbk and intends to acquire a further 19-20% per annum over
the next 3 years, although there can be no guarantee of this.

CRITICAL ACCOUNTING POLICIES

Cash and Cash Equivalents

Use of Estimates

Income Taxes

Basic and diluted net loss per share

Revenue recognition

Issuance of shares for service

Fair Value:

Reclassifications:

For comparative purposes, prior year's financial statements have been
reclassified to conform with report classifications of the current year.

Recent Pronouncements

1. Requires an entity to recognize a servicing asset or servicing liability
each time it undertakes an obligation to service a financial asset by entering
into a servicing contract.

2. Requires all separately recognized servicing assets and servicing
liabilities to be initially measured at fair value, if practicable.

3. Permits an entity to choose 'Amortization method' or 'Fair value
measurement method' for each class of separately recognized servicing assets and
servicing liabilities.

a. A brief description of the provisions of this Statement
b. The date that adoption is required
c. The date the employer plans to adopt the recognition provisions of
this Statement, if earlier.

RESULTS OF OPERATIONS - FOR THE THREE MONTH PERIODS ENDED AUGUST 31, 2006 AND
2005

The operations of Island Residences Clubs, Inc. will include marketing and
selling the vacation stay entitlement rights in the form of vacation points
("Vacation Rights"). The rights are issued as stay entitlements in the Bali
Island Villas in Seminyak, Bali. There is a minimum of 1,000 rights required to
be owned for a period of more than one year that entitles the owner of the
rights to 10 nights stay valued at $250 per night. These Villas have been
developed by and are operated by, PT Island Concepts Indonesia Tbk for The
Island Residences Club. PT Island Concepts Indonesia Tbk is working with the
company to (i) acquire, develop and operate other vacation ownership resorts,
(ii) providing financing to individual purchasers of Vacation Rights and (iii)
providing resort management and maintenance services to vacation ownership
resorts.

The company has generated $14,000 in net revenue from a related party for the
three months ended August 31, 2006 as compared to $0 for the three months ended
August 31, 2005. The increase in net revenue was due to sale of vacation rights
to a related party. Cost of revenue was $9,800 for the three months ended August
31, 2006 as compared to $0 for the three months ended August 31, 2005. This cost
of revenue is due to the fee paid to a related party for management of the Bali
Island Villas in Seminyak, Bali. Selling, general and administrative expenses
were $23,870 for the three months ended August 31, 2006 as compared to $61,025
at the three months ended August 31,2005. These expenses were the result of the
company establishment costs and commencing operations. The increase in revenues
was due to sales of vacation rights to a related party.

Net loss for the three months ended August 31, 2006 was $19,670 as compared to
$61,025 for the three months ended August 31, 2005. The decrease in net loss was
due to a decrease in costs associated with sales and administrative costs.

Our basic and diluted loss for the three months ended August 31, 2006 was
($0.00) as compared to ($0.01) for the three months ended August 31, 2005.

LIQUIDITY AND CAPITAL RESOURCES

The Company had $230 in cash and cash equivalents as of August 31, 2006. At
August 31, 2006, the company had current assets of $2,571,045 in the form of
$230 in cash and cash equivalents, marketable securities in the amount of
$2,520,790 and $50,025 in the form of an account receivable from a related
party. All of the marketable securities are comprised of shares of common stock
of Island Concepts Indonesia (ICON), a company related through common ownership.
As of August 31, 2006, the Company had $204,945 in current liabilities
consisting of $35,017 in the form of an account payable, $8,000 due to officers
and $161,928 due to a related party. Due to related party represents expenses
paid by related parties on behalf of the Company, are non-interest bearing,
unsecured,due on demand.

Our plan for meeting our liquidity needs may be affected by, but not limited to,
the following: demand for our product, our ability to enter into financing
agreements, the threat and/or effects on the travel and leisure industry of
future terrorist attacks and limitations on our ability to conduct marketing
activities, and other factors. Further, the Company has limited sources of
revenue. Without realization of additional capital, it would be unlikely for the
Company to continue as a going concern.

On June 20, 2005, we entered into an Investment Agreement (the "Agreement") with
Dutchess Private Equities Fund II, LP (the "Investor"). This Agreement provides
that, following notice to the Investor, the company may put to the Investor up
to $10,000,000 of its common stock for a purchase price equal to 95% of the
lowest closing bid price of its common stock during the five day period
following that notice. The number of shares that we are permitted to put
pursuant to the Agreement is either: (A) 200% of the average daily volume of the
common stock for the twenty trading days prior to the applicable put notice
date, multiplied by the average of the three daily closing bid prices
immediately preceding the put date; or (B) $100,000; provided however, that the
put amount can never exceed $1,000,000 with respect to any single put. In
connection with this Agreement, we agreed to register the shares issuable
pursuant to the Agreement. This line of credit is not available there is an
effective registration statement for the shares of common stock underlying this
line of credit. This registration statement will not be filed until the Company
establishes a market, if at all, for its common stock.

On November 1, 2005, we entered into an advisory agreement with Francis Street
Pty Ltd., whereby Francis Street would provide certain business consulting
services in exchange for 1,000,000 shares of common stock. Graham Bristow, our
CEO, controls Francis Street Pty Ltd.

On November 16, 2005, we entered into a Share Purchase Agreement with Island
Regency Group Limited f/k/a Meridian Pacific Investments HK Limited ("Island
Regency"), whereby we would purchase 20.25 million shares and a warrant to
purchase 24.25 million shares of PT Island Concepts Indonesia Tbk ("ICON")
(collectively, the "Shares"). In exchange for the Shares, we agreed to issue
Island Regency 6,000,000 shares of our restricted common stock. Island Regency
is considered an affiliate of the company as it owns more than 10% of the
outstanding common stock and is controlled by Graham Bristow, who is also the
CEO of Island Residences Club, Inc. On August 2, 2006, Meridian Pacific
Investments HK Limited changed its name to Island Regency Group Limited.

On November 17, 2005, we entered into a Share Exchange Agreement with Angela
Whichard, Inc. ("AWI"), whereby we would exchange 1,600,000 shares of our common
stock for 400,000 restricted shares of common stock of Grand Sierra Resorts
Corp., a Nevada Corp., owned by AWI. AWI has contracted to purchase up to 51% of
the outstanding common stock of Grand Sierra Resorts. In connection with this
agreement, AWI also granted us the right to purchase up to 51% of the total
outstanding shares of Grand Sierra Resorts. This option was subject to the
execution of definitive agreements and expired on December 1, 2005. The Company
recorded subscription receivable based on the market price of the shares issued.

On February 24, 2006, we entered into a Stock Purchase Agreement with DTLL,
Inc., a publicly traded Minnesota corporation, whereby we would purchase 400,000
shares of DTLL, Inc. in exchange for 400,000 shares of Grand Sierra Resorts
Corporation. On July 17, 2006, both the AWI and DTLL transactions were rescinded
and the 1,600,000 shares issued to AWI were cancelled.

On February 23, 2006, the company and Rich Woods, an unaffiliated investor,
entered into a Stock Purchase Agreement with RotateBlack LLC, a Michigan limited
liability company ("RBL"), whereby the company and the investor would purchase
9,400,000 shares of common stock, $.01 par value (the "Shares") of DTLL, Inc., a
publicly traded Minnesota corporation. The allocation of the Shares and the
company's obligation related thereto was to be determined at closing. The Shares
represent approximately 70% of the 13.5 million issued and outstanding common
stock of DTLL. The transaction was to result in a change of control of DTLL. The
purchase price for the shares to be paid at closing was $1,500,000, represented
by cash in the amount of $500,000 and a Secured Note Payable in the amount of
$1,000,000 due no later than April 10, 2006. On April 11, 2006, this agreement
was terminated. The company did not purchase any shares pursuant to the terms of
the Stock Purchase Agreement between the company, RotateBlack LLC and Rich
Woods.

On June 7, 2006, the Company appointed Julian James Bristow as the Company's
Chief Operating Officer and Vice President of Operations and Bettina Pfeiffer as
the Company's Vice President of Sales & Marketing for the Company. Effective
July 1, 2006, the Company entered into employment agreements with both of these
individuals for a term of one year. Both agreements provide for compensation of
$2,000 per month during the employment term. Mr. Julian Bristow is the son of
Graham J. Bristow, Chief Executive Officer, director and majority shareholder of
the Company. As of August 31, 2006, the balance due to officers amounted to
$8,000.

During the period ended August 31, 2006, the Company sold 5,600 rights amounting
to $14,000 to Island Concepts, which represent 100% of the revenue. As of August
31, 2006, the balance of the accounts receivable due from Island Concepts is
$50,025.

During the period ended August 31, 2006, the Company incurred $9,800 of
management fees to Island Concepts, which represent 100% cost of revenue.

Island Residences Club, Inc., Island Regency Group Limited, Francis Street Pty
Limited, and PT Island Concepts Indonesia Tbk are related parties through common
ownership and Graham Bristow. Specifically in respect to the following: IRCI is
a Delaware Corporation that is publicly reporting but is not publicly trading.
Island Regency is a Hong Kong company that is privately owned. Island Concepts
(www.islandconcepts.com) is an Indonesian Company that is publicly trading on
the Surabaya Stock Exchange in Indonesia under the symbol ("ICON"). Graham
Bristow is an officer and director in IRCI and Island Regency and a commissioner
on the advisory board of ICON. At September 20, 2006, Graham Bristow, through
direct and indirect ownership, owns 100% of Island Regency and approximately 73%
of Island Concepts and 78% of IRCI.

ITEM 3. CONTROLS AND PROCEDURES

(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. Our chief executive
officer and chief financial officer, carried out an evaluation (as required by
paragraph (b) of Rule 13a-15 or 15d-15) of the effectiveness of the Company's
disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e))
as of the end of the period covered by this report. Based on their evaluation,
our chief executive officer and chief financial officer believe that, given our
limited operations, our disclosure controls and procedures are effective.

(b) CHANGES IN INTERNAL CONTROLS. There were no changes in our internal
control over financial reporting that occurred during our last fiscal quarter
that materially affected or is reasonably likely to materially affect our
internal control over financial reporting.

PART II -- OTHER INFORMATION

Item 1. Legal Proceedings.

There are no legal proceedings against the Company and the Company is unaware of
such proceedings contemplated against it.

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

None.

Item 3. Defaults upon Senior Securities.

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 5. Other Information.

None.

ITEM 6. EXHIBITS

(a) Exhibits.

Exhibit No. Description
--------------- ---------------------------------------------------------

Exhibit 31.1. Certification of Principal Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2. Certification of Principal Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 Certification of Principal Executive Officer and
Principal Financial Officer Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002

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.

Island Residences Club, Inc.
(Registrant)

By: /s/ Graham J. Bristow
-----------------------------
Name: Graham J. Bristow
Title: President

Dated: October 14, 2006.