Form 10-KSB
- ---------------------------------------------------------------------------

/X/  Annual  report  under  section 13 or 15(d)  of the Securities Exchange
Act of 1934

For the Fiscal Year ended December 31, 2006

/_/  Transition report under section 13 or 15(d) of the Securities Exchange
Act of 1934

For the transition period from ______to______.

Commission file number:  001-15777

                                UNITREND, INC.
                (Name of small business issuer in its charter)

                 Nevada                             34-1904923
    (State or other jurisdiction of      (IRS Employer Identification No.)
     incorporation or organization)


4665 W. Bancroft Street, Toledo, Ohio                  43615
(Address of principal executive offices)             (Zip code)



                               (419) 536-2090
                         (Issuer's telephone number)

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

Securities registered pursuant to Section 12(g) of the Act:
                                                 Common Stock no par value
                                                 Options
                                                 (Title of Class)

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.
Yes_X_ No  __

Check  if  disclosure  of  delinquent  filers  in  response to Item 405 of
Regulation S-B  is  not  contained  in this form, and no disclosure will be
contained,  to  the  best of registrant's knowledge, in definitive proxy or
information statements incorporated by  reference in Part III  of this Form
10-KSB or any amendment to this Form 10-KSB. /_ /

State issuer's revenues for its most recent year:	$

State the aggregate market value of the voting and non-voting common equity
held by non-affiliates of the registrant computed by reference to the price
at which the stock was sold, or  the  average  bid  and  ask prices of such
stock equity,  as  of  a date within the past 60 days:  $ 133,985,145 as of
April 30, 2007.

State the number of shares  outstanding of  each of the issuer's classes of
common equity, as of the latest practicable date:
As of April 30, 2007:                Common Stock:               70,390,770


                      DOCUMENTS INCORPORATED BY REFERENCE
Form 10-12b filed March 30, 2000

Transitional Small Business Disclosure Format:

Yes ___      No    X

FORWARD-LOOKING STATEMENTS

Unitrend, Inc.  may from time to time make written or oral "forward-looking
statements,"  including  statements  contained  in  its  filings  with  the
Securities and Exchange Commission. These forward-looking statements may be
included in this Annual Report on Form 10-KSB and the exhibits  attached to
it, in  Unitrend's  reports  to  shareholders  and in other communications,
which are made in good faith by us pursuant to the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995.

These  forward-looking  statements  include  statements  about our beliefs,
plans,  objectives,  goals,  expectations,  anticipations,  estimates   and
intentions,  that  are subject to significant risks and uncertainties,  and
are  subject  to  change based on various factors, some of which are beyond
our control.  The  words  "may",  "could",  "should",  "would",  "believe",
"anticipate",   "estimate",   "expect",   "intend",   "plan"   and  similar
expressions are  intended  to  identify  forward-looking  statements.   The
following factors,  among others,  could cause our financial performance to
differ  materially  from the plans, objectives, expectations, estimates and
intentions expressed in the forward-looking statements:

   - the strength of the United States economy  in general and the strength
     of the local economies in which we conduct operations;

   - the effects of, and changes in,  trade,  monetary and fiscal policies
     and laws,  including  interest  rate  policies of the Federal Reserve
     Board;

   - the  timely development of and  acceptance of our new products and the
     perceived  overall value of these  products  by  users,  including the
     features, pricing and quality compared to competitors' products;

   - the willingness of users to substitute  our  products  for products of
     our competitors;

   - the impact of technological changes;

   - acquisitions;

   - changes in consumer spending habits; and

   - our success at managing the risks involved in the foregoing.

The list of important factors stated above  is not exclusive.   We  do  not
undertake to update any forward-looking statement, whether written or oral,
that may be made from time to time by or on behalf of Unitrend, Inc.



                                    PART I

Item 1.	Description of Business

Unitrend, Inc. (the "Company") is a development stage company founded as an
Ohio  Corporation  in  1996  by   Conrad A.H. Jelinger.   The  Company  was
reincorporated in  Nevada  in  July, 1999.   The  Company  focuses  on  the
computer enclosure,  power supply and wire management industry.   Since the
Company's  formation,  it  has  focused  on  research  and  development and
procuring patents on its technology.   The Company released the  Cablety(r)
wire management system in the fourth quarter 2003  and plans to follow with
the  VersaCase(r)  "Viking Chassis"  computer enclosure, Stable(r) "Breeze"
power supply  in 2007.   Final  prototypes  of  Breeze  power  supply  were
delivered to the Company in April, 2006

In 1998, the Company formed Osborne Manufacturing, Inc.(OMI) to produce the
Company's products.   In 2002 OMI was dissolved because management believed
that  it  could  save  time  and money by entering into a contract with New
Product  Innovations, Inc.  (NPI)  to  provide turnkey manufacturing of its
product line.  In 1998 we agreed to acquire by merger a related party known
as  Server  Systems  Technology, Inc., (SSTI),  an  Ohio corporation formed
September 27, 1994,  for  the  purpose  of  obtaining  patented  technology
crucial  to  retaining  control  of  the  VersaCase line of products.  This
acquisition was legally effectuated in July 1999.

COMPANY OVERVIEW

Unitrend, Inc. was founded with the purpose of expanding the useful life of
computer technology.   Our  mission is to maximize our customers' return on
investment  in   information  systems  by  extending  the  value  of  older
technologies  as  they  combine  with  the  latest advances.   Our patented
products  which are designed to accomplish this aim are the Cablety, Stable
"Breeze"  and  "Blizzard"  power supplies and  the highly modular VersaCase
"Viking Chassis"  and  "Neptune Chassis"  computer enclosures.   Unitrend's
current goal is to establish its products as the industry standard for open
architecture,   accessibility,  scalability  and  thermal  stability  while
setting new benchmarks for quality and adaptability.

We  utilize  proprietary  and  patented   technology  to  design,  develop,
manufacture,  and  market  our  products.   The  patented Cablety is a wire
management system that routes and supports internal wires and  ribbon cable
in a vertical  position  which  allows  warm  air to rise to the top of the
enclosure where it is swept away and vented out of the case.   This results
in  a  cooler  and  cleaner  operating  environment  inside  the  computer.
VersaCase  is  a  family  of  computer  enclosures  that  allows  a user or
technician  to rapidly access all internal components of a computer.   This
architecture  dramatically  reduces  downtime  for maintenance,  and allows
quick  upgrading  of  a  single  component  (such as the computer's central
processing unit)  without  having  to  replace or tear down and rebuild the
entire computer.   We have also patented the Stable "Prism",  "Breeze"  and
"Blizzard power supply units  that  greatly enhances the energy performance
and  cooling  operations  inside  a  computer  case.   These  products save
substantial  time  and  financial  resources  for  both users and technical
support staff.   As of the  date of this filing, we have commenced sales of
the Cablety,  although  sales  have been modest, we expect them to increase
later in 2007.   We  have  not  had  any  sales  of the VersaCase family of
computer enclosures or Stable family of power supplies.

We have entered into a contract with New Product Innovations, Inc. (NPI) to
provide  turnkey  manufacturing of our product line.   NPI began as a joint
venture between General Electric, Inc. (GE) and Fitch, Inc.  NPI along with
Fitch will complete product development, obtain agency approvals, engage in
product positioning and manufacturing development.   Upon completion of the
manufacturing development process,  NPI will utilize GE's  "Global Network"
to  produce  Unitrend's  products and deliver complete units ready for sale
and   shipment.   These  companies  have   successful  long-term  operating
histories  as  manufacturers/providers  of component parts for the computer
industry.

The  Cablety,  VersaCase,  Stable  power  supply will  be marketed and sold
through direct and indirect channels.   After  introducing  the  product to
North America,  we will expand to Europe,  Asia/Pacific, and Latin America,
although not necessarily in that order.   The  unique  total  modularity of
VersaCase  and  related  products enables the end-user to save considerable
time and money, whether the product is utilized as a personal computer (PC)
or  as  a  server  in  a network of computers.  Due to the mission-critical
nature  of  computer  network activities, our primary marketing efforts for
the VersaCase and Stable are directed at server applications.  We will also
market  to  high-end PC users concerned with complex, high quality computer
systems,  and  expect  these  users  to  be  strong  early  adopters of the
VersaCase and Stable technology.

Unitrend's  corporate  headquarters  is  in  Toledo,  Ohio.    The  company
currently  employs  two  people,  and  expects to grow to approximately ten
people by late 2007.

PATENTS AND TRADEMARKS

We  rely  on  a  combination  of  patents,  trademarks,  trade  secrets and
non-disclosure  agreements to protect our proprietary rights.   We  execute
confidentiality  and  non-disclosure agreements with our employees and with
key vendors and suppliers.   These  efforts  allow  us  to  rely  upon  the
knowledge and experience of our management and technical personnel and  our
ability  to market our existing products and to develop new products.   The
departure  of  any of our management and technical personnel, the breach of
their confidentiality and non-disclosure obligations to us,  or the failure
to achieve our intellectual property objectives may have a material adverse
effect on our business,  financial  condition  and  results  of operations.
Currently,  we  have  nine  United States patents issued and fifteen United
States   patent   applications  pending.   We  also  have  nine  registered
trademarks and service marks.   There  can  be  no  assurance  that any new
patents  will  be  issued,  that  we  will  continue to develop proprietary
products  or  technologies  that  are  able to be patented, that any issued
patent  will  provide  us  with  any  competitive advantages or will not be
challenged by third parties,  or that the patents of others will not have a
material adverse effect on our business and operating results.

Our ability to  compete successfully and achieve future revenue growth will
depend,  in part,  on our ability to protect our proprietary technology and
operate  without  infringing  upon  the rights of others.   There can be no
assurance  that  these  measures will successfully protect our intellectual
property  or  that  our  intellectual  or  proprietary  technology will not
otherwise  become  known or be independently developed by competitors.   In
addition,  the  laws  of various countries in which our products are or may
be  sold  may  not protect our products and intellectual property rights to
the same extent as the laws of the United States.  Our inability to protect
our  intellectual property and proprietary technology could have a material
adverse  effect  on  our  business,  financial  condition  and  results  of
operations.   As  the  number of patents, copyrights and other intellectual
property  rights  in  the computer enclosure industry increases, and as the
coverage  of  these  rights  and  the  functionality of the products in the
market  further overlap,  computer  enclosure  companies  may  increasingly
become  subject of infringement claims.   In the future, we may be notified
that  we  are infringing on patent or other intellectual property rights of
others.   Although there are no pending or threatened intellectual property
lawsuits  against  us,   we  may  become  the  subject  of   litigation  or
infringement  claims  in  the future.   Any of these potential claims could
result  in  substantial  costs  and diversion of resources and could have a
material  effect  on  our  business,  results  of  operations and financial
condition.

INDUSTRY

The  PC  market  is  defined  as  shipments  of  desktops,   portables  and
Intel-based servers priced under $25,000.    About 154.7 million units were
shipped worldwide in 2003, an 11.4 percent increase over the previous year,
according  to  figures  released  by  International Data Corporation (IDC).
Gartner Inc., which uses slightly different measurement methods, calculated
that 168.9 million units were shipped in 2003, a 10.9 percent increase over
2002.   Domestic PC shipments totaled 57.7 million in 2003,  a 12.4 percent
increase from 2002 (tallahassee.com 1/15/04).   In 2004,  shipments reached
177.5 million units worldwide,  up 14.7 percent from 2003 according to IDC.
IDC  also reports that domestic  PC shipments totaled 58.3 million in 2004,
a slight increase over 2003 and a strong 15.5% in 2005, compared with 2004.
In  2006,  IDC  reported  shipments  reached  approximately  229.4  million
worldwide,  66.1  million   units   sold  domestically  and  163.3  million
internationally.   IDC forecast  U.S.  PC sales to grow 6.9 percent to 70.7
million  units  in 2007,  and 7.7 percent to 76.1 million units in 2008. In
comparison, the worldwide market as a whole will rise 11.3 percent to 255.4
million units in 2007 and 10.9 percent to 283.2 million units in 2008.

According to market research firm Gartner Inc.,  shipments of PCs worldwide
will grow at a slower pace in 2006 than in 2005 (PC shipments grew 15.5% in
2005, compared with 2004.)   However,  PC shipments in 2006 are expected to
reach 234.5 million units, up 10.7% compared with 2005.  Although shipments
of  mobile  PCs  are expected to grow strongly in 2006, the deceleration in
desktop PC replacements will drag down the overall growth  rate,  according
to Gartner.  Desktop PC shipments are projected to grow just 1.9% this year
overall,  declining  8.6%  in  mature markets  while  increasing  19.55% in
emerging  markets,  said  Gartner.   Mature  markets  include  the U.S. and
Western Europe. IDC separately has similar expectations. IDC predicted that
worldwide PC shipments will grow 10.5% this year over 2005, helped in large
part  by  strong  sales  in  the Asia-Pacific region,  with 13.2% growth in
shipments and in emerging markets such as Eastern Europe,  the Middle East,
Africa  and  Latin  America,  with 18.5% growth,  analyst David Daoud said.
Mature  markets  will  experience  more moderate growth with Western Europe
seeing  a  9.7%  increase in shipments,  the U.S. a 6.8% increase and Japan
remaining  essentially  flat  this year.   In 2005,  worldwide PC shipments
grew 15.9% over 2004, Daoud said.   This year, the growth will slow in part
because of a desktop PC saturation in mature markets,  he said.   Growth in
2007 isn't expected to fall below 2006 levels because  Vista is expected to
help the market, he said.

IDC  originally  expected  a  9.7 percent increase in worldwide PC sales in
2005 over 2004 (Figures now show 15.9%).   Domestic shipments were expected
to grow to 62.7 million in 2005, a 7.6  percent  according  to  IDC.   Even
though sales have slightly increased,  the  Company believes that worldwide
PC  sales  will  continue  to  increase  in the coming years because of the
replacement of  outdated  units.   Market  researcher  IDC  attributes  the
lower-than-expected  growth to the delayed economic recovery in Japan and a
cautious  outlook  in  the United States.   In 2004, pre-Year 2000 machines
began  to  reach  the  end  of  their life cycles.   This replacement cycle
appears to be slowly under way.   We  believe  that  this will be the major
reason  for  upgrading  and/or  replacing  existing  PCs,   not  technology
innovations.   Although  these old PCs would normally have been replaced by
now,  economic  uncertainty  may have delayed new purchases. Simon Yates of
research firm Forrester states,  "helping to create strong PC demand is the
fact  that  many  businesses  stretched their PC refresh cycles much longer
than is really healthy and have gone beyond the existing warranties on this
equipment,  and Microsoft has finally killed off support  for some of their
older operating systems "(newsfactor.com 12/12/03).   In the fourth quarter
of 2002 these replacements  began  to  occur  with  PC  shipments  to  U.S.
businesses  with  more  than 500 employees per site growing by 13.9 percent
from  the  fourth  quarter of 2001 according to Dataquest.   Dataquest also
reports  that  in  the same time period PC shipments to business with fewer
than  500  employees per site increased by 5.4 percent over the same period
in  the previous year.   Small and midsize businesses are changing their PC
and server buying habits,  choosing, for example, to purchase hardware from
the  manufacturer.   Slower  replacement  cycles  are  among the challenges
facing vendors.   Business customers are in the middle  of  the replacement
cycle that PC vendors have been anticipating for two years,  but  consumers
have largely tapped themselves out after two years of keeping the PC market
afloat  amid slow  business sales (Pcworld.com 1/19/05).   Enterprises will
continue to  prioritize cost savings through optimization  and extension of
technology  and   solution  investments  that  will  make  this  a  perfect
environment  for  the  introduction  of the VersaCase and related products.
Our  product  line  will  help reduce the costs associated with maintaining
outdated machines.

Open Architecture.  The concept of open architecture enables computer users
to combine various components and peripherals from different manufacturers.
To some extent, the industry has moved in the direction of common standards
typified  by  open  architecture.   For  example,  mounting boards,  DVD's,
CD-ROM's,  floppy drives,  and serial ports,  to name  a  few, are designed
according to a set of common specifications. In addition, the ATX/BTX logic
board  platform  developed  by  Intel,  the world's largest manufacturer of
microprocessors,  sets  the standard for placement of connecting devises to
the logic board.  However, fiercely competitive market forces have thus far
defeated true open architecture.

Major assemblers such as  Apple,  Dell,  Gateway  and Hewlett Packard build
units that  support only their proprietary components.   If  one  of  these
parts should fail, the only option is to replace it with the same part from
the  same  company.   While  this  provides  additional  revenue for the PC
producer,  the consumer suffers in significant ways.   Consumers are locked
into  the  price,  availability,  and  delivery  time  dictated  by  the PC
producer,   which   can   add   to   downtime   and  cost  of  maintenance.

Accessibility.   In  order to simplify the repair and upgrade of computers,
the  industry  is  beginning  to create hardware that is easily accessible.
Historically,  the design of computer enclosures has severely limited one's
ability  to  service both critical and ordinary problems with a PC.   Rapid
access  is  especially  important  in mission-critical applications where a
technician  must  make  a  prompt intervention to save the computer network
from crashing. Some industry leaders have moved toward tool-less cases that
can be opened by pressing tabs to lift the top panel.  Apple introduced the
G-3 model highlighting the ease of access to the "guts" through a drop-down
side panel.  Gateway  and  Dell  have  introduced  models that move in this
direction.   These  models  are  tower  units that will most likely be used
in  desktop applications as opposed to the VersaCase that will be initially
targeted to server applications.

Continuous  Need  to  Upgrade.   Both hardware and software components  are
updated at an astounding pace.   Moore's  Law  states that processing power
doubles roughly every 18 to 24 months.  The rapid release of 12 Intel micro
processing chips from the 8080 through the Pentium 4 over the last 25 years
shows  that  Moore's  observation  is still remarkably accurate, while also
demonstrating  technology's  rushing  rate  of change.   A steady stream of
software  upgrades  takes  advantage of this additional processing power to
create  more  powerful,   intuitive,   and  stable  software.    We  become
increasingly  dependent  on  the software,  and thus the software upgrades,
which  in  turn  require  upgrading  the  computer's  memory,  storage,  or
processing capabilities. There are many additional expenses associated with
PC ownership, not just the base sticker price.   A mid-range PC,  featuring
all the bells and whistles for a mere $1,300 US,  might have a price tag of
$4-6,000 - or more.   The  average  annual  cost  of a PC for an enterprise
could  be  as low as $2-4,000 or as high as $13,000,  IDC analyst Roger Kay
told NewsFactor.   80 percent of what a PC costs over its life goes largely
for  support,  including the labor costs for repairs.  (newsfactor  network
12/1/03), a trend that continues to this day.

Scalability.   The  ability  to change internal components is essential for
extending the investment in computer technology.   There  has  been  little
change  in  recent  years,   but  in  2005  the  desktop  PC  may   undergo
transformations.  A series of developments are combining to bring about the
changes, with most of them centered on the new Balanced Technology Extended
(BTX) interface.   The  BTX  interface  specification provides  a  flexible
standards-based  form factor foundation that supports the implementation of
new  desktop  technologies,  including  PCI Express and Serial ATA (TechWeb
1/23/04).   It could take five years or more to implement.   Additional AMD
has  found  support  within  the  industry  for  DTX,  a new platform being
developed for compact motherboards

Thermal Stability.   The  ability  to maintain a proper cooling environment
within the computer system reduces heat induced failures.  Heat is an enemy
because   it   causes  components  to  expand  or  respond  differently  to
electricity.   Restricted  airflow  in  the  case is often the crux of case
temperature problems.   Ribbon  cables  and power  connectors  can create a
barrier in the case (TechRepublic 8/12/03).   Restricted airflow allows for
dust  to  settle  on  the equipment causing an "insulating blanket" on heat
emitting devices such as a processing chip.

UNITREND SOLUTION

We  believe  Unitrend  is well positioned to offer solutions to many of the
issues listed above.   Cablety,  VersaCase  and  Stable power supplies were
designed  with  these factors in mind,  resulting  in products that address
these five areas:  true  open architecture;  complete accessibility;  rapid
upgrade and maintenance; creative scalability and thermal stability.

True Open Architecture.   The  VersaCase  family of  products achieves true
open   architectural  design   by   allowing  the  combination  of  various
technologies  and/or  peripherals from different manufacturers.   VersaCase
accepts   all   industry   standard   components,   such   as   motherboard
configurations   from   Intel   and  AMD.   Because  the  case  design  and
interchanging  back  plane  apertures  allow  for  the  acceptance  of  any
non-proprietary part,   the  consumer  will  not  be  restricted  to  using
proprietary components.   This significantly enhances the computer's  value
by allowing the owner to choose the best component for each repair, upgrade
and/or life cycle rotation.

Complete Accessibility.   The VersaCase family of products allows a user or
technician  to  quickly access the internal components of a computer.   The
design of the case is similar to a drawer,  thereby providing quick access,
without tools, to the inside of the computer.   Internal  components become
modules that can be installed or replaced simply and easily.   This  design
simplifies  routine  repair,  maintenance,  and upgrade  procedures.   This
full-access-design  is  vital  for mission-critical applications.  Often, a
failure  in  a server system can be isolated to two or three units, and the
technician  must  rapidly  check  all three units to save the entire system
from shutting down.  Standard computer enclosures require considerable time
to  access  all  internal  components  because  they  must  be  laboriously
dismantled.   With  the  VersaCase,  the  technician simply slides open the
drawer.   What  can  take  agonizing  minutes  or even hours with a typical
enclosure is done in seconds or minutes with any VersaCase enclosure.

Rapid Upgrade and Maintenance.  The drawer-like design of the VersaCase not
only allows full access to all the  internal  components,  it  dramatically
reduces the time required to get to any given component.  The time it takes
to  perform upgrades and repairs is increased when you add the cost of  the
person's  time  performing  the  task  to the lost productivity of the user
while the system is down.

The Stable "Prism" power supply is  a  two stage modular design that allows
the user to rapidly remove the unit by simply lifting it  out of  its  base
for repairs, maintenance or upgrades.   The Breeze power supply is based on
Stable technology.   With both,  if  a  fan should need replaced, one would
just  need  to  remove  the bad fan by popping it off the power supply unit
and swapping in a new one.   In effect,  every  minute  saved by VersaCase,
Stable "Prism" or "Breeze" power supply buys back two minutes of  user  and
technical support time.   The  total cost of ownership for a computer built
with VersaCase, Stable "Prism" or "Breeze" power supply is greatly  reduced
by allowing individual components to be upgraded.   With other cases,  many
components  such  as  back  plane  apertures  cannot be changed and you are
forced  to  discard  the  entire  PC.   You  are  forced to buy a whole new
computer,  leaving you with many perfectly good,  but unusable, components.
VersaCase allows you  to  merely upgrade the old component and continue  on
with using the rest.

Creative Scalability.   The  VersaCase  provides unmatched flexibility.  It
can be used as a PC or a server.   As a server,  the  unit can be used in a
rack-mount application or as  a stand alone unit.   Up  to  fifteen  3 1/2"
drives can be mounted internally  onto three independent universal mounting
racks,  or  six 5 1/4" drives can be mounted onto two independent universal
mounting racks.   Removable  drive  bay panels allow for any combination of
drive sizes to be installed,  including new  2 1/2"  disk drives that  were
introduced to the market by the major drive manufacturers in 2004.   Due to
the  inter-changeability  of the components, hundreds of configurations are
possible.

Innovative Thermal Stability.   The Cablety  is  designed  to lift internal
cables and wires off the electronic system(s) board(s) and their microchips
by  holding  them  in  a  vertical  position  that  allows  heat that would
otherwise  be  trapped  in  and  around  the computer's critical devices to
escape  and be vented out  of the computer case.   This  increased  airflow
around  the  computer's electronics allows for a proper cooling environment
making  the  system  more  stable  and  reducing heat induced failures.  By
organizing  the  internal  wires  and  cables,  dust  and  dirt build-up is
reduced.   Dust  and  dirt  build-up  inside  of  a computer will act as an
insulator and  cause thermal instability.   The Stable power supply has two
high  quality  plug-in cooling fans pitched at fifteen degrees to allow for
the most efficient airflow throughout the computer case.   Properly cooling
the computer environment saves time and money that would otherwise be spent
in replacing damaged parts due to heat induced failures.

In  summary,  the VersaCase,   Stable power supplies and Cablety offers new
Technology  to the market,  which gives you the ability to easily maintain,
upgrade  and  cool  your  system  while providing unsurpassed configuration
options.   VersaCase, Stable power supply, and Cablety simplify changes and
extend  the  life of computers,  saving substantial time and money for both
companies and individuals.

COMPETITION

We  compete  in the wire management,  computer enclosure and computer power
supply markets.  The first product that has been sold by the Company is the
Cablety  (wire management device(s)),  with  initial  sales  focus on large
domestic  distributors  and computer original equipment manufactures (OEM).
Within  the  wire  management  market  we  may  encounter  competition from
domestic manufactures and distributors.   To  our  knowledge,  no competing
company,  such  as  ITW  Fastex or Panduit,  offers a  product with all the
benefits and features of the Cablety.  The next products to be offered will
be the Stable "Breeze" power supply,  with initial sales focus on Military,
OEM and VAR (Value Added Resellers) sales. The computer power supply market
is intensely competitive.  Within the power supply market we will encounter
competition from domestic manufactures and distributors. The only competing
company  that  offers  a  product that delivers some scalable and versatile
technology is Ultra Products' X-Connect power supply.   The  fourth product
to  be  sold  will  be the VersaCase "Viking" computer enclosure, initially
focusing on the high-end PC and entry-level server segments.   The computer
enclosure market is intensely competitive.    Within  the  enclosure, power
supply and wire management markets, we will encounter competition primarily
from large domestic manufacturers and distributors such as, California P.C.
Products, Portwell, Inc. and Antec,  Inc.   To our knowledge,  no competing
company offers  an enclosure that contains all the features and benefits of
the VersaCase.

As noted above,  some major computer assembly  firms,  e.g.,  HP,  Gateway,
Acer,  and Dell,  have  introduced  PC  models  that  contain  some modular
features  that  are  found in a VersaCase and or Stable.   No one, however,
has  designed  or  introduced a model(s) that delivers all the scalable and
versatile technology that our technology offers.

We  will  also  encounter  strong  competition  from international computer
enclosure, power supply and wire management companies who sell to worldwide
original  equipment  manufacturers  and distributors.   These international
companies  also  set  up  their  own distribution networks in international
markets, including the United States. The international market is extremely
competitive due primarily to aggressive pricing.  Examples of international
companies include: EverCase Technology, Inc.,  Addtronics Enclosures, Inc.,
Lead  Year  Enterprises Co. Ltd.,  Evergreat Computer Tech  Corporation and
Chieftec Industries Co. Ltd.

The Cablety is  a  new concept in computer wire and cable management and as
such  we  hope  to  set new industry standards with its introduction to the
markets.  Retail pricing on a Cablety kit has been established at $9.99 for
2006.   A  kit  includes three Cabletys,  three base mounts, three mounting
screws,  three hex nuts and three 3M adhesive pads.   Kits  and  individual
components are also available to OEMs on a bulk basis to fit whatever their
requirements may be.   The Cablety is currently available in light blue and
flame orange.   Other colors will be added in the future.   The Prism power
supply  is  more  expensive to purchase than traditional PC power supplies,
with  a  retail  price around $130 for the low wattage,  entry level model.
However  as  power  output  (in wattage)  increases  in  medium to high-end
models,  Prism  becomes  very  competitive  in  price  and  offers numerous
features and benefits not offered by any competitor.   The target price for
the  Breeze  power  supply  is  around  $160 for high watt units.   This is
fairly  competitive  with  others  on  the market.   The  VersaCase "Viking
Chassis"  is  more  expensive to purchase than traditional desktop computer
enclosures,  with  a  retail price around $180,  the  price  will depend on
whether the customer chooses the medium wattage  "Blizzard"  or  the higher
wattage "Blizzard" power supply. (Blizzard is a new generation power supply
under development for use in the Viking(tm) and Neptune(tm) Chassis.)   The
VersaCase  will  also  include  cables.   This  price  is  competitive when
compared to higher-end rackmount server enclosures.  We will compete in the
computer  enclosure  market  by demonstrating the value of the features and
benefits of VersaCase.   We  separate  ourselves  from  other companies now
offering  computer  enclosures  by  focusing  on  common  sense  solutions.
VersaCase is convertible technology.   Accordingly,  it  may  be  used as a
single unit,   in  multiple  stacks,  rack-mount  configuration,  or  as  a
workstation.   It can be used in  a variety of applications including,  but
not limited to file servers,  web servers,  disk arrays,  duplicators,  and
e-mail servers.    Further,  non-proprietary  components  can  be  used  to
configure  a  computer  for  a  specific application,  and possibly achieve
lower operating costs.

GROWTH STRATEGY

Our  growth  strategy  is   built  around  five  imperatives:   maintaining
technological leadership; increasing market share; acquiring other business
entities;  leveraging  strategic  relationships;  and  the  recruiting  and
retaining of key personnel.

Maintaining Technological Leadership.   The cutting  edge  of our effort to
achieve  technological  leadership  is  to  establish  a  standard for open
architecture  and  modularity  in  the computer enclosure industry.   Other
components, accessories, and products are in various stages of development.
They will be supported by an aggressive research and development budget.

Increasing Market Share.   Our  entry  into  the  market  is estimated at a
modest level to allow us to grow at a reasonable pace.  However, we make no
representations or guarantees that we will be able to manage the  growth of
our business.   The  Cablety  was  introduced  to  the market in the fourth
quarter of 2003 and we have experienced modest sales.   We anticipate sales
to grow as we move forward into 2007.   Once  VersaCase  is introduced,  we
expect  that  there will  be significant interest across a number of market
segments.   The VersaCase is unparalleled in its versatile application as a
PC  or  server  enclosure.  The ease of access and scalability will provide
numerous  benefits  to  routine and mission-critical users that will propel
and  increase  market  share.   By  moving into the "High end" power supply
market,  the  Company  can leverage its cutting edge patented technology to
generate further interest in its product line.

Acquiring Other Business Entities.   In  order  to expand our technological
and market capabilities,  we  may  consider the pursuit of other companies.
Such acquisitions may include core and non-core entities.   A  core  entity
may  be a research and development group,  and a non-core firm could be one
that might enhance our production process.

Leveraging Strategic Relationships.  We intend to leverage our relationship
with companies that complement our mission.   For instance,  the uniqueness
of Cablety,  Stable and VersaCase technology will create  opportunities for
us  to  establish   strong  relationships  with  key  distributors.   These
distributors  will  be  able  to offer their clients a product that is very
competitive and distinctive.   We  have  been approached by distributors to
consider a channel relationship or exclusive position with them.   While we
must  maintain  a  broader  market  focus,  we  may  selectively enter into
agreements that would enhance market credibility and penetration.

Recruiting and Retaining of Key Personnel.   An entrepreneurial spirit that
was  based  in creativity, risk and reward drove the birth of this company.
We  intend  to  maintain  this  quality  by offering competitive salary and
incentive  compensation.   Our  overriding human resources philosophy is to
build  a  corporate culture that supports the success of each employee,  as
well as the Company.

MARKETING AND SALES

We are implementing brand-building strategies for Unitrend, Cablety, Stable
(Prism, Breeze and Blizzard)  power  supply and VersaCase  (Viking, Neptune
and Orion Chassis).   Our brand objective is to identify emerging trends in
computer-related  technologies  and  to  provide streamlined solutions that
make those technologies more user friendly.   We  will  continue  to  build
equity  in  our brands by promoting the unique and patented features of our
products via multiple mediums to diverse market segments.

The Cablety wire management system is the first product we began to market.
Unitrend   has  entered  into   a  contract  with  Titan  Technologies,  an
established  national  sales  and  marketing group,  to market and sell the
Cablety,   VersaCase  (Viking, Neptune and Orion Chassis),  Stable  (Prism,
Breeze and Blizzard)  and  any future products developed by Unitrend.   The
Cablety  will  be  marketed  through  various  channels  including, but not
limited   to,   value  added  re-sellers  (VARs)  and   original  equipment
manufacturers  (OEMs).    VersaCase  and  Stable  power  supplies  will  be
marketed to, and sold for, two specific PC applications: high-end PC users,
such as  automated manufacturing functions,  and entry-level servers.   The
Breeze  will  be  initially marketed as a replacement for the standard slim
power supply commonly used in mini towers. We intend to market and sell our
products to non-profit and commercial organizations, individuals, and OEMs.
OEM  sales  and  licensing,   large  corporate and government accounts, and
large-volume   VAR  sales  will  be  managed  by  Unitrend's  direct  sales
organization.    Sales   to   all   other  organizations  will  be  through
distributors.   We  plan  to establish a multi-channel distribution network
that  will  allow  us  to  leverage  the distributors who are strategically
focused  on  offering  value  added  products  and services to the computer
industry.   However,  we will modify our  distribution plans as demanded by
the  markets  we  serve  in  order  to  maximize  efficiency throughout all
channels of distribution.   We intend to promote end-user demand,  and will
support our sales efforts through a variety of marketing programs including
but  not  limited to:  trade and consumer advertising,  website promotions,
public relations, and trade shows.

In April 2004, Unitrend along with a representative from Titan Technologies
participated in RetailVision Spring 2004.   RetailVision Spring 2004  is  a
trade show that allows the manufacturer to sit face to face  with potential
retailers and distributors  in the computer industry.   Unitrend  presented
to   representatives  that  comprise  approximately  90%  of  the  computer
industry's manufacturers and/or distributors.   Positive  results  of  this
show include agreements signed with Micro Center, Inc., TigerDirect.com and
Zones, Inc.   Micro Center, Inc.  offers  a huge selection of competitively
priced,   high-quality products,  and  a  wealth  of  information  to  help
customers   make  informed  buying  decisions.   Micro  Center  has  twenty
nationwide retail stores along with an online retail site.   Currently, the
Cablety may be purchased at www.microcenter.com.   TigerDirect.com  carries
the  world's  largest  selection  of  computer  components, making them the
reseller  of  choice  for the "build-it-yourselfer."  Zones, Inc. and their
affiliates  are  single-source,  multi-vendor direct marketing resellers of
name-brand  information  technology  products  to the small to medium sized
business market,  enterprise  and  public sector accounts and sells product
through  outbound  and  inbound  call  center account executives, specialty
print and  e-catalogs, and the Internet.   The  Cablety  is  available  for
purchase at www.zones.com.  In August 2004, Unitrend exhibited at the Zones
Accessories  Training  Fair  where representatives from Unitrend showed the
benefits of using our product line.   This  show was attended by only Zones
sales and marketing representatives in order  for  them  to learn about all
the products that Zones carries.   In September 2004, Unitrend attended the
Gartner System Builders Summit.   This  show  is  the leading event for the
white box market.   Vendors  and resellers meet at this show to explore new
technologies  and  build  strategic  relationships.   Unitrend  established
relationships with interested vendors for when our product line is in  full
production.   In  early  April 2005,   Unitrend exhibited at the FOSE trade
show.   FOSE  is  the  most  comprehensive  technology  event  serving  the
government  marketplace.  The  U.S.  government  is  the  largest  buyer of
technology  in the world,  which  made this show the most efficient way for
Unitrend to reach government customers.   At  this  show  we introduced the
Breeze  power  supply  and  the   "new" flame   orange   Cablety  with  the
industrial/military  safety  wire  capabilities.   We  also  exhibited  the
VersaCase (Orion Chassis)  and  Cablety  kits.   Many  government  agencies
reviewed  our  products  and  gave  us positive feedback.   Many leads were
made  to  place beta units within the government for testing.   No exhibits
were attended during 2006.   Unitrend elected to concentrate  its resources
on  the  completion of the "Breeze" prototyping with data gathered from the
afore mentioned trade shows.

While  our  initial  focus  is the North American market, we plan to expand
to Europe,  Asia/Pacific,  and Latin America  as  opportunity arises.   The
data presented at the beginning of the  business  section  illustrates  the
size of these market segments.

PRODUCTS

The  Cablety  wire  management  system  has been available since the fourth
quarter 2003.

The Cablety features include:

  - Made of "Static Resistant" GE Plastics(r).

  - Lifts  internal  cables and wires off the electronic system(s) board(s)
    and  their  microchips  by holding them in a vertical and/or horizontal
    position.   This allows heat that would otherwise  be  trapped  in  and
    around the computer's  critical  devices to escape and be vented out of
    the computer case.

  - Increased airflow allows for  a  proper  cooling environment making the
    system more stable and reducing heat induced failures.

  - Wire management increases airflow thus reducing dust and dirt build-up.

  - New version includes  military/industrial  safety wire capabilities for
    security seals and tagging.


The Stable power supply is  a two stage modular design that allows the user
to  rapidly  remove  the  unit  by  simply  lifting  it out of its base for
repairs, maintenance or upgrades.

The Stable "Prism" power supply features include:

  - Snap-in upper power module for ultra fast power supply replacement.

  - Two  high  quality plug-in  cooling fans pitched at fifteen degrees for
    smooth, efficient airflow and rapid replacement in case of failure.

  - RPM sensors on cooling fans send signal to front panel LEDs to warn  of
    eminent failure.

  - Internal temperature sensors to warn of excessive heat conditions.

  - Self diagnosing power distribution base with audible and visual alarms.

  - Sixteen power take-off connectors for even power delivery to individual
    internal peripheral drives and devices.  Also allows for removal of the
    power module while leaving power connections intact.

  - Dual redundant power supply options connector.

  - Emergency "Kill Switch" connector.

  - Standard "Slim" power supply footprint.

  - Available in three power sizes: 500 Watts, 550 Watts and 600 Watts.

  - Optional battery pack allows for repairs, maintenance, or upgrades with
    the power on.

VersaCase is our first patented product.   The  VersaCase  has undergone an
extensive development process. Five developmental VersaCase prototypes have
been developed, including the yet to be released production-level  "Viking"
beta units.  These  units will undergo rigorous in-house testing as well as
field placement  at  selected government sites,  which will mirror our more
prominent market segments.

The  VersaCase  is  comprised  of a number of characteristics and features,
such as:

  - Chassis and outer shell are made of 16-gauge steel.

  - Up  to  fifteen  3 1/2"  drives  can  be  mounted internally onto three
    independent universal mounting racks.

  - Or  six  5 1/4"  drives  can  be mounted onto two independent universal
    mounting racks.

  - Or twenty 2 1/2"  drives can be mounted onto four independent universal
    mounting racks.

  - Removable drive bay panels allow for any combination  of drive sizes to
    be installed.

  - Front  mounted  DB  connector  for easy laptop docking or serial, SCSI,
    USB, WiFi and parallel connections.

  - Front DB connector can be swapped with  a  wireless infrared connecting
    port.

  - High-security tumbler lock  to  protect against unauthorized entry into
    the computer's interior.

  - Easy to read control panel with LED readouts for diagnostic activity.

  - 19" Rack-Mount ready chassis with invertible outer  shell  to  maintain
    EMI/RFI shielding.

  - Ultra-strong construction to allow units  to  be stacked up to six high
    with docking pin accessory.

  - Rugged design allows even the heaviest CAD Monitors to be placed on top
    of unit.

  - Ball bearing drawer sliders with heavy duty  100lb  weight  capacities,
    for smooth opening and closing.

  - Removable  and  interchangeable  back  plane  for  simple  upgrading of
    equipment.

  - Back plane lockdown removes need for screws.

  - Optional  10,  12,  or  16 slot back planes available for AT, ATX, BTX,
    Passive back plane and other designs.

  - Includes  Stable  power supply (when available)  or Breeze power supply
    (when available)  or  allows  the  use  of standard Slim power supplies
    mounted in either a horizontal or vertical position.

  - Rear mounted cable transom to facilitate moving wires  when opening and
    closing chassis drawer.

  - Quick-release  power  supply  base  unit  used  to  distribute power to
    electrical   components   which   accepts  optional  battery  pack  for
    uninterrupted power in the event of power supply failure.

  - Removable thread-mounted feet allow unit to be bolted  down on or under
    table, desk, wall, rack, etc.

  - Built with patented Stable technology.

  - Independent cable sockets for rapid installation  or  removal of power
    supply.

The Breeze power supply premiered  at  the  FOSE  2005 show.   Its features
include:

  - Reduces cable clutter by allowing use of only necessary cables.

  - Removable external and internal fans.

  - Self diagnostics capabilities and L.E.D. array

  - Fits in standard slim power supply form factor.

  - Will be available in two power sizes:  500 Watts, 600 Watts.


OPERATIONS

For the design and development of our products, we rely on our founder, Mr.
Conrad Jelinger, our project coordinator, Mr. Jon Osborne,  and New Product
Innovations, Inc. (NPI).   In  addition,  NPI  and  Mr. Osborne will select
principal suppliers based on experience and pricing considerations.

New Product Innovations, Inc. (NPI).   NPI began as a joint venture between
GE Plastics,  a division of General Electric, Inc. (GE)  and Fitch, Inc., a
Cordiant company. NPI, along with Fitch, will complete product development,
obtain agency approvals (UL, FCC, CE, CI, etc.),  Mil-Spec the products for
Military/Government  use  and  engage  in product branding and positioning.
Furthermore, NPI will design the manufacturing processes, establish ISO and
Six Sigma procedures and build the necessary tooling to develop a flexible,
high volume output capability for Unitrend's product lines. Upon completion
of  the  manufacturing development process,  NPI  will utilize GE's "Global
Network" to  produce  our  products  and  deliver completed units ready for
resale and shipment.

RESEARCH AND DEVELOPMENT

Apart from tooling costs of  $1,535,757,  as of December 31, 2006,  we have
invested  $658,993 in research and development.  To date, our primary focus
had  been  the  development  of the VersaCase.   In January 2003, our focus
shifted to the  Cablety wire management system.  The Cablety can be used in
any standard computer as well as an accessory for the VersaCase.   We began
selling product  in the fourth quarter 2003.   We are continuing to develop
accessories, like the Cablety, that will further enhance the VersaCase, and
allow for further customization.   It is our intent to continue to innovate
by  developing  similar  products that will enable a computer  user to save
time  and  money while upgrading and repairing his or her computer.   Other
product designs are also on the drawing board.   There is no guarantee that
any of these products will become viable revenue sources.

We  believe  timely  introduction  of  new  and  enhanced  products will be
essential  to  maintaining  a  competitive  edge.    However,  we  make  no
representation  or  guarantee that we will be able to establish or maintain
a  competitive  edge  in  the  marketplace.   Consequently,  the  human and
financial   commitment   to   research   and   development   will  increase
proportionately to meet these demands.

At December 31, 2006,  we had a total of two full-time employees.   None of
the  Company's  employees  are  represented  by a labor union or bound by a
collective bargaining agreement.   We consider our employee relations to be
good.

Item 2.	Properties

Unitrend's headquarters  comprise approximately 10,000 square feet of space
in an office building owned by the Company at  4665  West  Bancroft Street,
Toledo, Ohio 43615.   The building houses the Company's principal executive
offices, as well as limited laboratory and technical development space.

Item 3.	Legal Proceedings

None

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

None

PART II

Item 5.	Market for Common Equity and Related Stockholder Matters.

None

Item 6.	Management's Discussion and Analysis or Plan of Operation

                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The  following  discussion  should  be  read  together  with  our "Selected
Consolidated Financial Data"  and our financial statements and accompanying
notes. This document contains forward-looking statements that involve risks
and uncertainties.   The cautionary statements made in this document should
be  read  as  being  applicable  to  all related forward-looking statements
wherever they appear in this document. Actual results may differ materially
from those indicated in forward-looking statements.

OVERVIEW

We invent and market computer-related products designed to make  technology
simple, accessible and affordable through modularity.   We  have  exclusive
rights  to  patented and patent pending products and technology for certain
computer-related products.  Our Cablety wire management system was released
to  the  marketplace  fourth  quarter  2003.   The Breeze power supply  and
VersaCase  (Viking Chassis)  computer enclosure system will follow in 2007.
Our  VersaCase  computer  enclosure  system  allows users to quickly access
computer  components   by   incorporating  a  pull-drawer  design  of  high
modularity,  thus  reducing  downtime  and  extending  the  service life of
information technology.

We are a development stage company  that commenced operations in April 1996
and has incurred significant losses since that date.   In 1998, we acquired
Server Systems Technology, Inc. (SSTI),  a  related Ohio corporation formed
September 27, 1994.   SSTI  held  the  patent  on technology crucial to the
VersaCase  line  of  products.   We  acquired  SSTI  in  a  stock-for-stock
exchange.   Also in 1998,  we incorporated Osborne Manufacturing Inc. (OMI)
as  an  Ohio  Corporation  to  function  as the business entity for a joint
venture  between  our  Company  and one of our employees.   In 2002 OMI was
dissolved because  management believed that it could save time and money by
entering into a contract with New Product Innovations, Inc.(NPI) to provide
turnkey manufacturing of its product line.   To date,  we  have had minimal
revenues  from sales of our patented and patent pending products,  but have
relied on private financing and loans from our  founder.   Furthermore,  we
have  not  yet  been  profitable  since  our  inception and expect to incur
additional operating losses in 2007 as we ramp up for production and  sales
of our entire product line.  As of December 31, 2006, we had an accumulated
deficit  in  the  development  stage  of  approximately  $14,514,000.    At
December 31, 2006  we  had  available  net operating loss carry forwards of
approximately  $9.1  million for federal income tax reporting purposes that
begin  to  expire  in  2011.    Due to uncertainty as to the ability of the
Company to be utilizing,  the net  operating  loss has been fully reserved.
To date our operations have consisted predominately of sales of the Cablety
and  incidental  sales  of  computer  components  while we have principally
concentrated  on  the  progression  of  the VersaCase enclosure and related
products.   We have not achieved  profitability on a quarterly or an annual
basis  and  anticipate  that  we  will continue to incur net losses through
2007.  Expenses incurred have been primarily for development of the Cablety
wire management system, Stable power supply and VersaCase enclosure system,
tooling  and  administrative  support.   We  expect  to  incur  significant
engineering,  pre-production,  sales,  general and administrative expenses,
and  as  a  result, we will need to generate significant revenue to achieve
profitability.   Additionally,  our  lack  of  operating  history  makes it
difficult  for  us  to  predict  future operating results and, accordingly,
there  can  be  no assurance that we will sustain revenue growth or achieve
profitability  in  future quarters.   Although our core management team has
worked  together  for  several  years,   none  of  the  present  members of
management has extensive experience in managing a large public  business in
the computer industry.   We intend to hire accomplished  individuals in the
industry to supplement our current management  team.   However,  we  cannot
assure that we will be able to attract and retain such persons.

The  Company  has  conducted  extensive research and development activities
since its inception at a variety of levels.  Such activities have primarily
focused  on  acquiring  patent,   market  research,  marketing,  sales  and
distribution,  current technologies,  emerging technologies, manufacturing,
tool  production  and  analysis,  engineering (structural,  mechanical, and
electronic/electrical) and product development.   The  Company  has engaged
various  consultants  to  assist  in  some  of these matters.   The Company
initially  had a two to three year time line for developing and placing its
initial products into the market.  However early in 1998, toward the end of
the  initial  product  development cycle,   the computer industry announced
sweeping changes to its  20-year  old standard in  internal design layouts.
These  changes  caused  the  computer  industry  to  adopt  a new standard.
Substantial changes in the future  are not to be expected for at least five
years, but this is not a certainty.   These  changes  caused the Company to
redesign its products prior to commencement  of  the development of tooling
and dies.   The  changes  caused  delays  and  deviations  from the initial
timeline.   An additional delay was caused by the Company's underestimation
of the complications involved in developing the tools and dies necessary to
produce the Company's products (up to six months may be required per tool).
Additionally,   a  significant  number  of  these  tools  cannot  be  built
concurrently  with  one another because the parts produced by the core tool
must be compared and checked against industry  standards before other tools
based upon that part may be engineered.   The VersaCase  product line alone
has more than 200 parts, with most of those components having been invented
by the Company.    To  build  the  VersaCase  more than 40 tools have to be
designed,  machined  and  built.   The total  cost  for  tooling to date is
$1,535,757 with an additional $1,000,000  needed to replace and/or modify a
portion of our tools on an expedited basis.   Approximately $4,211,000 will
also  be  needed to complete tooling,  and for various marketing activities
provided  by  New Product Innovations, Inc.  including  but  not limited to
developing   a  selling  proposition,   conduct  naming  and  nomenclature,
developing  branding  elements and launch material formats,  design a trade
show exhibit booth,  and further develop the web site prior  to  full-scale
production of  the Stable power supply and VersaCase.  In 2006 and 2005, we
spent  zero  on  tooling but in  2004 we spent  $28,600 on  two  production
quality tools for the Cablety wire management system.   In 2003,  we  spent
$37,728  on pre-production tooling for the Cablety.   Nothing was spent  on
tooling for any of our products in 2002 or 2001.   We believe tooling costs
will increase as we move forward with changes  to our  current product line
and the development of new products.

The Company has applied for twenty-six patents with respect to its products
of which nine have been granted to date.   Patent  prosecution  is  also  a
source  of  delay  and  considerable  expense  for  the Company.   To fully
prosecute a patent may take several years,  depending on the type of patent
and the number of  competing  or  similar patents.   However,  the  Company
believes  that patenting its products is key to protecting the value of its
ideas  and  its  business  plans.   In addition to hiring patent attorneys,
engineers  and  designers  as  consultants  to  help  develop the Company's
products, the Company has also hired consultants to help with the marketing
of  its  products.   In 2003, the design of the Cablety  was finalized, the
initial production tool was completed and  production of the Cablety began.
At the present time, the re-design of the VersaCase and Stable power supply
are  near  completion  and  the  Company has produced several VersaCase and
Stable  prototypes.   The tools and dies  necessary  to  manufacture  these
products  have  been  designed  and  engineered  and "soft" tools have been
produced in order to enable the Company to  produce the prototypes.   Funds
are  still  required  in  order to finish product development, position the
product, develop manufacturing and assembly operations and purchase the raw
materials which will enable the Company to go into full-scale production of
the VersaCase and Breeze power supply.   Obviously, Breeze power supply and
VersaCase products near completion, it will be necessary for the Company to
hire  additional  staff in order to ramp up its ability to produce,  market
and distribute this product.   The  Company  expects  to  continue  to hire
additional staff to meet its business challenges,  as  it  gets  closer  to
full-scale operations.

We expect that our initial  revenues will  primarily be derived from direct
sales of our Cablety wire management system  to  major  original  equipment
manufacturers (OEMs).   We  expect  that  substantially  all of our revenue
through the fourth quarter of 2007  will be derived from customers based in
the United States.  We expect that revenue from customers based outside the
United  States  will  increase  in future periods.   In addition to revenue
derived  from  direct  sales,   we  expect  that  revenue  through indirect
distribution channels will increase in future periods.  Where strategically
beneficial,  we  believe  that  we  will  be  able  to enter into strategic
alliances   with   companies   focusing  on  the  development  of  computer
peripherals, logic boards and power supplies.  To date, we have not entered
into  any  such  alliances,  and  the  creation of such alliances cannot be
guaranteed.

The  Cablety  wire management system is the first product we have marketed.
Sales of the Cablety began via our website in the fourth quarter 2003.  The
Cablety  has  been  marketed  through  various channels including,  but not
limited  to,   value  added  re-sellers  (VARs),   and  original  equipment
manufacturers (OEMs).   We  intend  to  target  organizations  such  as the
government and the military.   VersaCase  and Stable power supplies will be
marketed to, and sold for, two specific PC applications: high-end PC users,
such as automated manufacturing functions,  and  entry-level  servers.   We
intend  to  market  and  sell  our  products  to  non-profit and commercial
organizations,  individuals,  and  OEMs.    OEM sales and licensing,  large
corporate  and  government accounts,  and  large-volume  VAR  sales will be
managed  by  Unitrend's  direct  sales  organization.   Sales  to all other
organizations will be through distributors.   We plan to establish a multi-
channel   distribution   network   that  will  allow  us  to  leverage  the
distributors who are strategically focused on offering value added products
and  services  to  the computer industry.   However,  we  will  modify  our
distribution plans as demanded by the markets we serve in order to maximize
efficiency throughout all channels of distribution.    We intend to promote
end-user  demand,  and  will support our sales efforts through a variety of
marketing  programs  including  but  not  limited  to:   trade and consumer
advertising, public relations, and trade shows.

While our initial focus is the North American market,  we plan to expand to
Europe,  Asia/Pacific,  and Latin America as opportunity arises.   The data
presented at the beginning of the business  section illustrates the size of
these market segments.

RESULTS OF OPERATIONS


Year Ended December 31, 2006 compared to Year Ended December 31, 2005

We had no significant revenues in the year ended December 31, 2006 ("2006")
or in the  year  ended  December 31,  2005 ("2005").  In the fourth quarter
2003, we began to produce and sell the Cablety wire management system.   We
anticipate not being  classified as a development stage enterprise sometime
during 2007.

We incurred an operating loss of $345,857 in 2006, compared to an operating
loss of $537,905 in 2005, a decrease of $192,048. The Company recorded less
professional fees and repair  and maintenance services in  2006 compared to
2005 due to a reduction in our use of these services employees.  These  are
the  primary  reasons  behind  the decrease in our operating  loss for 2006
as compared to 2005.

The  Company  had  $48,765  in research and development expenses during the
year  ended  December 31, 2006  as  compared  to $43,713 for the year ended
December 31, 2005.    Mr. Jelinger  performs  many  internal  research  and
development functions for Unitrend of which he does not collect or accrue a
salary.   We  believe  that  research and development expenses with outside
firms will increase as we go  forward due to the contract entered into with
NPI to provide turnkey manufacturing of our product line.   NPI  along with
Fitch, Inc.  will  complete  product development,  obtain agency approvals,
engage in product positioning and manufacturing development.  We anticipate
this  spending  to  continue  to  increase  as  we  continue to produce the
Cablety,  our first product that was made  available  to  the market in the
fourth quarter of 2003 and for the final product development and production
of the VersaCase and Breeze power supply.   There was zero spent on tooling
in 2006 and nothing spent on  tooling and dies in 2005,  we anticipate this
to increase as we move forward.

Selling, general and administrative expenses consist  primarily of salaries
and  related  costs  of  marketing  and  customer support activities, legal
services,   and   accounting   services,  information  technologies,  human
resources,  and executive expenses,  as well as costs associated with trade
shows,  promotional  activities,  advertising  and  public relations. Legal
services  for  the  company  consisted  of salaries,  filing fees, dues and
subscriptions  and  new  and  ongoing  patent  and  trademark  filings  and
prosecution costs.   Prosecution  costs  include  those legal fees directly
associated  with  the  process of obtaining patents on inventions under the
control of or otherwise originating from the Company.  Finance, information
technologies,  human resources and executive expenses consisted of expenses
relating  to  salaries,  information systems expansion,  professional fees,
facilities expenses and other  general  corporate  expenses.   Our selling,
general  and  administrative  expenses  decreased  to $296,459 in 2006 from
$493,344 in 2005, a decrease of 40%.   This change was  due  primarily to a
decrease  in   professional  fees   and  repair and  maintenance  fees   of
approximately $172,000 during the year  ended December 31, 2006 as compared
to the year  ended December 31, 2005.  We expect that selling,  general and
administrative expenses will increase in the  future  as we hire additional
personnel,   expand   our  operations   domestically,  initiate  additional
marketing  programs, establish  sales  relationships  and  incur additional
costs related to the growth of our  business and our operations as a public
company.

During 2006 and 2005,  there were no stock options granted to non-employees
under  our  1999 Stock Option Plan.   As of December 31, 2006, zero options
remain  exercisable  by non-employee consultants at a strike price of $0.50
each.   During 2006, no options were exercised.

Accrued   payroll   and   related   taxes   increased   to   $1,168,965  at
December 31, 2006   as   compared   to  $1,010,514  at  December  31, 2005,
respectively.   Unitrend notified all Unitrend employees on January 1, 2001
that  due  to  insufficient  funding,  payment  of wages would cease for an
undetermined  amount  of  time  and  employees could remain, if they should
choose to, on a voluntary basis.   In 2002, Unitrend  decided  that payroll
expense would resume and has accrued wages since then.


Year Ended December 31, 2005 compared to Year Ended December 31, 2004

Unitrend  had  no  significant revenues in the year ended December 31, 2005
("2005") or in the year ended  December 31, 2004 ("2004").  In  the  fourth
quarter  2003,  Unitrend  began  to  produce  and  sell  the  Cablety  wire
management system.   Revenues  were  modest in 2004 because during the year
Unitrend  had developed a new marketing program and just began to implement
it during the last half of 2004.   This  program  includes, but will not be
limited to,  trade  and  consumer  advertising,  public relations and trade
shows.   Unitrend  anticipates  not being classified as a development stage
enterprise sometime during 2007.

Unitrend  incurred an operating loss of $537,905  in  2005,  compared to an
operating  loss of $624,263 in 2004,  a  decrease of $86,358.   The primary
reasons  behind  the decrease in our operating loss for 2005 as compared to
2004  was  a d ecrease in litigation expense, salaried wages and trade show
expense.  The Company incurred additional fees and interest on a settlement
in 2004 as compared to nothing on this settlement in 2005.

The Company  had  $43,713  in  research and development expenses during the
year  ended  December 31,  2005  as  compared  to  zero  for the year ended
December 31, 2004.    Mr. Jelinger  performs  many  internal  research  and
development functions for Unitrend of which he  does  not collect or accrue
a  salary.   We believe that research and development expenses with outside
firms will increase as we go forward due  to the contract entered into with
NPI to  provide turnkey manufacturing of our product line.   NPI along with
Fitch, Inc.  will  complete product  development,  obtain agency approvals,
engage in product positioning and manufacturing development.  We anticipate
this  spending  to  continue  to  increase  as  we  continue to produce the
Cablety,  our  first  product  that was made available to the market in the
fourth quarter of 2003 and for the final product development and production
of the VersaCase and Breeze power supply.   There was zero spent on tooling
in 2005 as compared to $28,600 spent on tooling in 2004, we anticipate this
to increase as we move forward.

Selling,  general and administrative expenses consist primarily of salaries
and  related  costs  of  marketing  and customer support activities,  legal
services,   and   accounting  services,  information  technologies,   human
resources,  and executive expenses,  as well as costs associated with trade
shows,  promotional activities,  advertising  and  public relations.  Legal
services  for  the  company consisted  of salaries,  filing fees,  dues and
subscriptions  and  new  and  ongoing  patent  and  trademark  filings  and
prosecution costs.   Prosecution  costs  include  those legal fees directly
associated with the process  of  obtaining patents  on inventions under the
control of or otherwise originating from the Company.  Finance, information
technologies,  human resources and executive expenses consisted of expenses
relating  to  salaries,  information systems expansion,  professional fees,
facilities expenses and other general  corporate  expenses.   Our  selling,
general and administrative expenses decreased  to  $493,299  in  2005  from
$621,078 in 2004, a decrease of 20.58%.  This  change  was due primarily to
decreases  in  litigation expense and payroll  and related employee benefit
costs  of approximately $219,500 during the year ended December 31, 2005 as
compared  to  the  year  ended  December  31, 2004.   The Company incurred
additional fees and interest on a settlement in 2004 as compared to nothing
on this settlement in 2005.  There was a significant increase in repair and
maintenance  expense  of  approximately   $78,000  which  can  be  directly
attributed  to  repairs  on  the  Company's  building.   There  was also an
increase of approximately  $13,500  for consulting expense which relates to
work  dealing  with  the Company's computer systems and website.  We expect
that  selling,  general and administrative expenses will to increase in the
future   as  we   hire   additional   personnel,   expand  our   operations
domestically,  initiate  additional  marketing programs,   establish  sales
relationships  and  incur  additional  costs  related  to the growth of our
business and our operations as a public company.

During 2005 and 2004,  there were no stock options granted to non-employees
under our 1999 Stock Option Plan.   As  of  December 31, 2005, zero options
remain  exercisable by non-employee consultants at a strike price of  $0.50
each.   During 2005,  14,472 options expired and no options were exercised.

Accrued payroll and related taxes increased to  $1,010,514  at December 31,
2005 as compared to $863,160 at December 31, 2004,  respectively.  Unitrend
notified all Unitrend employees on January 1, 2001 that due to insufficient
funding,  payment  of  wages would cease for an undetermined amount of time
and employees could remain, if they should choose to, on a voluntary basis.
In 2002, Unitrend decided that payroll expense would resume and has accrued
wages since then.


Year Ended December 31, 2004 compared to Year Ended December 31, 2003

Unitrend  had  no  significant revenues in the year ended December 31, 2004
("2004")  or  in  the year ended December 31, 2003 ("2003").  In the fourth
quarter  2003,  Unitrend  began  to  produce  and  sell  the  Cablety  wire
management system.   Revenues  were  modest in 2004 because during the year
Unitrend had developed a new  marketing program and just began to implement
it  during  the last half of 2004.   This program includes, but will not be
limited  to,  trade  and  consumer  advertising, public relations and trade
shows.   Unitrend  anticipates  not being classified as a development stage
enterprise sometime during 2007.

Unitrend  incurred  an  operating loss of $624,263 in 2004,  compared to an
operating loss of  $256,140  in 2003, an increase of $368,123.  The Company
reached  a  settlement  agreement  in  a lawsuit and recorded a significant
amount  of  accrued  payroll  expense  in  2002  where  a modest amount was
recorded in 2003;  these are the primary reasons behind the decrease in our
operating loss for 2003 as compared to 2002.

The  Company  had  $36,572  in research and development expenses during the
year  ended  December 31, 2003  as  compared  to  zero  for  the year ended
December 31, 2002.   We believe that research and development expenses will
increase  as  we  go  forward  due to the contract entered into with NPI to
provide  turnkey  manufacturing  of  our  product  line.   NPI  along  with
Fitch, Inc.  will  complete  product development,  obtain agency approvals,
engage in product positioning and manufacturing development.  We anticipate
this  spending  to  continue  to  increase  as  we  continue to produce the
Cablety, our first product that has now been made available to  the  market
In  the  fourth  quarter  of 2003 and for the final product development and
production of  the Stable power supply and VersaCase.   There  was  $37,728
spent on tooling in 2003 and nothing spent on tooling and dies in 2002,  we
anticipate this  to  continue  to  increase as we move forward.   The total
future tooling commitments that has been contracted as of December 31, 2003
totaled $365,295.

Selling,  general and administrative expenses consist primarily of salaries
and  related  costs  of  marketing  and customer  support activities, legal
services,   and  accounting  services,   information  technologies,   human
resources,  and executive expenses,  as well as costs associated with trade
shows,  promotional  activities,  advertising and public relations.   Legal
services  for  the  company  consisted  of salaries, filing fees,  dues and
subscriptions  and  new  and  ongoing  patent  and  trademark  filings  and
prosecution  costs.   Prosecution  costs  include those legal fees directly
associated  with the process  of  obtaining patents on inventions under the
control of or otherwise originating from the Company.  Finance, information
technologies,  human resources and executive expenses consisted of expenses
relating  to salaries,  information systems expansion,  professional  fees,
facilities  expenses  and  other general corporate expenses.   Our selling,
general  and  administrative expenses  decreased   to $218,641 in 2003 from
$998,755 in 2002, a  decrease of 78%.   This change was due primarily  to a
Decrease  in  payroll  and  related employee benefit costs of approximately
$424,000  during the year ended  December 31, 2003  as compared to the year
ended December 31, 2002.   In 2003, Mr. Jelinger decided that it was in the
Company's best interests if he  no  longer accrued a salary and forgave his
prior years' accrued wages.   Another significant decrease in 2003 compared
to  2002 was in litigation settlement expense.   This  expense  was zero in
2003  as compared  to  approximately  $307,500  in 2002.   The Company  saw
increases  in  key  man insurance expense,  repair and maintenance  expense
and   membership  fees  of  approximately   $14,860,   $7,900  and   $2,040
respectively.   The  Company   saw  significant  decreases  in   consulting
expense, professional fees,  telephone  expense  and contract labor expense
of approximately $40,000,  $7,000,  $4,000  and $2,200, respectively as the
Company continued  its efforts to cut costs to decrease the Company's  need
for cash.   We expect that selling,  general  and  administrative  expenses
will increase in  the future  as  we hire additional personnel,  expand our
operations domestically, initiate additional  marketing programs, establish
sales  relationships  and  incur additional costs related to  the growth of
our business and our operations as a public company.

During  2003 and 2002, there were no stock options granted to non-employees
under our 1999 Stock Option Plan.   As of  December 31, 2003, 214,472 total
options  remain  exercisable  by non-employee consultants at a strike price
of  $0.50 each.   Options  to  non-employee  consultants  were  recorded as
consulting  expenses and disclosed as  selling,  general and administrative
expenses in the Company's accompanying financial statement,  using the fair
market value of the services rendered  or  the options granted  on the date
of issuance.   During 2003,  4,895,033  options expired and no options were
exercised.

Accrued   payroll    and   related   taxes   decreased   to   $749,310   at
December 31,  2003   as   compared   to   $982,808  at  December 31,  2002,
respectively.   The  primary  reason  behind  this decrease is Mr. Jelinger
forgiving  approximately  $199,000 of his accrued salary.  Interest expense
decreased  to  $24,798  in  2003 compared to $52,182 in 2002, a decrease of
52%.   A portion  of  our decrease in interest expense can be attributed to
Mr. Jelinger forgiving approximately $7,800 of interest incurred  on  funds
he personally loaned the Company in 2003.


LIQUIDITY AND CAPITAL RESOURCES

From inception,  we  have financed our operations primarily through private
placements of equity securities,  which provided aggregate net  proceeds of
approximately   $2,630,000   and  net  loans  from  founder  received  from
inception  of $4,928,000.   At December 31, 2006, our cash balance was $14.
Since that date,  we have received additional proceeds from founder's loans
and the Company's cash position fluctuates.   The Company expects founder's
loans to continue funding the Company's operations until the time that such
loans are not necessary.   In 2005, Mr. Jelinger, our founder, forgave debt
of $357,000.   The cash requirement needed  to complete production tooling,
infrastructure,  manufacturing  development and marketing of the VersaCase,
Stable power supply and Breeze power supply is approximately $4,200,000, of
which  zero  has  been  contractually committed to as of December 31, 2006.
Final  product  development  of  the  Cablety  began  in  January  2003 and
production began in the fourth quarter 2003. Production of the Stable power
supply  and  VersaCase  could  feasibly start in mid to late 2007 and would
require approximately $5,000,000 to begin initial ramp-up production  for a
90 day period.

Net cash used in operating activities for the years ended 2006 and 2005 was
$255,555 and $936,310,  respectively.   Our net cash flow used in investing
activities  was  zero  in 2006 and 2005.  Net cash  inflow  from  financing
activities was $255,278 in 2006 and $936,174 in 2005  and relates primarily
to funds contributed to the Company by Mr. Jelinger.

Our  future  capital  requirements  will  depend  upon   numerous  factors,
including  the  amount of revenues generated from operations,  the cost of
our  sales  and  marketing  activities and the progress of our research and
development activities, none of which can be predicted with certainty.   In
December, 2000,  the  company filed an SB-2 registration statement with the
Securities  and  Exchange Commission to register 4,000,000 shares of common
stock,  at $10.00 per share in a  "Best Efforts"  offering.  The filing was
declared  effective  on December 28, 2000.  The purpose of the offering was
to raise sufficient funds  to  enable the Company to commence manufacturing
of  its  VersaCase  product.   Ultimately,  the  Company  did  not  receive
sufficient  subscriptions  to  enable  to commence manufacturing operations
and  the  offering  terminated  with  all  funds  returned  to subscribers.
Currently,  the  Company  plans  to  raise  sufficient  funds  through  the
advancement of monies by its founder and/or through  a  private placements.
While funds advanced and raised from the founder may enable the Company  to
continue  product  development  and  commence out-source manufacturing,  we
cannot be certain that the founder will continue to fund our capital needs.
Consequently,  we  may  seek additional funding during the next  24 months
through a SB-2 registration statement or private placements.  There can be
no assurance that any additional financing will be available on acceptable
terms, if required. Moreover, if additional financing is not available, we
could be required to reduce or suspend our operations, seek an acquisition
partner  or  sell  securities  on  terms  that  may  be highly dilutive or
otherwise disadvantageous to existing investors,  or  investors purchasing
stock offered  in  the anticipated secondary offering.   In the event that
neither of the capital-raising mechanisms described above result in timely
usable  proceeds  to  the Company,  we  may  have  a  serious shortfall of
working capital.   We have experienced  in  the past,  and may continue to
experience,  operational difficulties  and delays  in  product development
due to working capital constraints.  Any such difficulties or delays could
have  a  material adverse effect  on our business, financial condition and
results of operations.

NEW ACCOUNTING PRONOUNCEMENTS

None



Item 7.     Financial Statements

                               UNITREND, INC.
                       (A Development Stage Company)

                              BALANCE SHEETS
                        December 31, 2006 and 2005


                                  ASSETS




(unaudited)                                      (unaudited)    (unaudited)
                                                    2006           2005
                                                             
CURRENT ASSETS
  Cash                                          $        14    $       291
  Accounts Receivable                                   434            569
  Inventory - Finished Goods                         13,168         13,168
                                                 ----------     ----------
    Total Current Assets                             13,616         14,028

PROPERTY AND EQUIPMENT, at cost
  Land                                               67,485         67,485
  Building and improvements                         351,168        351,168
  Furniture and fixtures                             65,496         65,496
  Computer equipment                                151,055        151,055
  Computer software                                  46,719         46,719
  Automobiles                                        15,937         15,937
  Tooling and dies under construction               940,007        940,007
                                                 ----------     ----------
                                                  1,637,867      1,637,867
  Less accumulated depreciation                    (345,038)      (328,540)
                                                 ----------     ----------
    Net property and equipment                    1,292,829      1,309,327
                                                 ----------     ----------
OTHER ASSETS
  Patent licensing costs,
    net of accumulated amortization                  16,483         18,598
                                                 ----------     ----------

       TOTAL ASSETS                             $ 1,322,927    $ 1,341,953
                                                 ==========     ==========


                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


CURRENT LIABILITES
  Accounts payable                              $   541,882    $   510,176
  Accrued expenses                                1,051,468      1,006,477
                                                 ----------     ----------
    Total current liabilities                     1,593,350      1,516,653
                                                 ----------     ----------
NOTES PAYABLE - RELATED PARTIES                   1,105,347        850,068
                                                 ----------     ----------
STOCKHOLDERS' EQUITY (DEFICIT)
  Common stock, no par value                      3,805,098      3,805,098
  Additional paid-in capital                      9,332,592      9,332,592
  Deficit accumulated in the development stage  (14,513,460)   (14,162,458)
                                                 ----------     ----------
     Total stockholders' equity (deficit)        (1,375,771)    (1,024,769)
                                                 ----------     ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY(DEFICIT)                                 $ 1,322,927    $ 1,341,953
                                                 ==========     ==========




                                 UNITREND, INC.
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2006, 2005, 2004 and for the period from
      the inception date of September 27, 1994 to December 31, 2006



- ----------------------------------------------------------------------------------------------------------------------------------
                                         (unaudited)        (unaudited)        (unaudited)           (unaudited)
                                         Year Ended         Year Ended         Year Ended         September 27, 1994
                                         December 31,       December 31,       December 31,      (Date of Inception)
                                            2006              2005               2004           to December 31, 2006
                                       --------------     --------------     --------------     --------------------
                                                                                    
Sales                                                     $          185     $        5,853     $              6,725

Cost of Sales                                    (632)            (1,033)            (9,038)                 (11,714)
                                       --------------     --------------     --------------     --------------------
Gross Loss                                       (632)              (848)            (3,185)                  (4,989)

Research and
  development expenses                        (48,765)           (43,713)                 -                 (658,993)

Selling, general
  and administrative expenses                (269,459)          (493,344)          (621,078)             (12,942,791)
                                       --------------     --------------     --------------     --------------------
Operating loss                               (345,857)          (537,905)          (624,263)             (13,606,774)

Other income                                        -                  -           (546,875)                (546,875)

Interest income                                     -                  -                  -                    1,546

Interest expense                               (5,145)            (7,615)           (14,541)                (337,389)
                                       --------------     --------------     --------------     --------------------
Net loss before cumulative
  effect of change in
  accounting principle                       (351,002)          (545,520)        (1,185,679)             (14,489,492)

Cumulative effect of change
  in accounting principle                           -                  -                  -                  (23,968)
                                       --------------     --------------     --------------     --------------------
Net loss                               $     (351,002)    $     (545,520)    $    1,185,679     $        (14,513,460)
                                       ==============     ==============     ==============     ====================
Basic and diluted loss per share:

Before cumulative effect of
  change in accounting
  principle                            $        (0.00)    $        (0.01)    $        (0.02)    $              (0.21)

Cumulative effect of change in
  accounting principle                              -                  -                  -                        -
                                       --------------     --------------     --------------     --------------------
Net loss                               $        (0.00)    $        (0.01)    $        (0.02)    $              (0.21)
                                       ==============     ==============     ==============     ====================
Weighted average shares
 outstanding used to compute
 basic and diluted loss
 per share                                 70,390,770         70,390,770         70,371,770               68,672,349
                                       ==============     ==============     ==============     ====================




                                 UNITREND, INC.
                        (A Development Stage Company)

                 STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
            For the Years Ended December 31, 2006, 2005 and 2004
                                  (unaudited)



                                                                 Deficit
                                                               Accumulated
                            Common Stock         Additional    During  the
                         ------------------       Paid-in      Development
                        Shares       Amount       Capital         Stage         Total
                      ----------   ----------    ----------   -------------   ----------
                                                               
BALANCE -
DECEMBER 31, 2003     70,371,770   $3,795,598   $8,601,683    (12,431,259)    $ (33,978)

Exercise of stock
  options at $0.50
  per share on
  January 14,2004         19,000        9,500                                     9,500

Majority stockholder
  forgives loans on
  March 31, 2004                                   136,832                      136,832

Majority stockholder
  forgives loans on
  June 30, 2004                                    237,077                      237,077

Net loss - 2004                                                (1,185,679)   (1,185,679)
                      ----------   ----------   ----------   ------------    ----------
BALANCE -
DECEMBER 31, 2004     70,390,770   $3,805,098   $8,975,592   $(13,616,938)   $ (836,248)
                      ----------   ----------   ----------   ------------    ----------

Majority stockholder
  forgives loans on
  June 30, 2005                                    357,000                      357,000

Net loss - 2005                                                  (545,520)     (545,520)
                      ----------   ----------   ----------   ------------    ----------
BALANCE -
DECEMBER 31, 2005     70,390,770   $3,805,098   $9,332,592   $(14,162,458)  $(1,024,769)
                      ----------   ----------   ----------   ------------   -----------
Net loss - 2006                                                  (351,002)     (351,002)
                      ----------   ----------   ----------   ------------    ----------
BALANCE -
DECEMBER 31, 2006     70,390,770   $3,805,098   $9,332,592   $(14,513,460)  $(1,375,771)
                      ==========   ==========   ==========   ============    ==========




                                 UNITREND, INC.
                         (A Development Stage Company)
                            STATEMENT OF CASH FLOWS
   For the Years Ended December 31, 2006, 2005, 2004 and for the period from
         the inception date of September 27, 1994 to December 31, 2006



                                          (unaudited)   (unaudited)    (audited)       (unaudited)
                                                                                    September 27, 1994
                                          Year Ended    Year Ended    Year Ended    (Date Of Inception)
                                          December 31,  December 31,  December 31,     December 31,
                                             2006          2005          2004              2006
                                        ------------  -------------  -------------    --------------
                                                                           
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                               $ (351,002)   $  (545,520)   $(1,185,679)    $ (14,513,460)
                                         -----------   ------------    -----------     -------------

Adjustments to reconcile net loss to
   net cash used in operating activities:
    Change in accounting principle                 -              -              -            23,968
    Options issued for services                    -              -              -         5,326,989
    Depreciation & amortization               18,614         18,619         19,890           391,500
    Loss on disposal of property
     and equipment                                 -              -        595,750           608,643
    Bad debt                                       -              -              -            42,157
    Accrued interest income                        -              -              -            (3,091)
    Common stock issued for services               -              -              -            10,000
  Increase in operating assets:
    Accounts receivable                          136           (185)          (384)             (434)
    Inventory                                      -         (9,405)         6,888           (13,168)
    Prepaid expenses                               -              -              -                 -
  Increase in operating liabilities:
    Accounts payable                          31,706       (197,025)        83,575           541,882
    Accrued expenses                          44,991       (202,794)        36,838         1,267,158
                                          ----------    -----------     ----------      ------------
    Total adjustments                         95,447       (390,790)       742,557         8,195,605
                                          ----------    -----------     ----------      ------------
  Net cash used in operating activities     (255,555)      (936,310)      (443,122)       (6,317,855)
                                          ----------    -----------     ----------      ------------


CASH FLOWS FROM INVESTING ACTIVITIES
  Payment for patent licensing costs               -              -              -           (31,723)
  Purchase of property and equipment               -              -        (28,600)       (2,277,022)
  Proceeds from sale of property and
   equipment                                       -              -              -            10,941
  Loans to related parties                         -              -              -           (18,191)
  Loans to other entities                          -              -              -           (23,916)
  Repayment from employee                          -              -              -             3,041
  Payment of organizational cost                   -              -              -           (30,168)
                                         -----------    -----------    -----------      ------------
  Net cash provided by (used in )
   investing activities                            -              -        (28,600)       (2,367,038)
                                         -----------    -----------    -----------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Payment of loan costs                            -              -              -            (5,448)
  Loans from stockholder                     255,278      1,107,221        473,755         4,928,442
  Proceeds from note payable                       -              -              -           290,000
  Payment on note payable                          -       (171,047)       (14,283)         (290,000)
  Proceeds from sale of common stock
   and exercise of stock options                   -              -          9,500         2,629,063
  Payments for stock recissions                    -              -              -          (134,170)
  Sale of stock subject to recission
   for cash                                        -              -              -         1,267,020
                                         -----------    -----------    -----------      ------------
  Net cash provided by financing
   activities                                255,278        936,174        468,972         8,684,907
                                         -----------    -----------    -----------      ------------

    Net increase (decrease) in cash             (277)          (136)        (2,751)               14

Cash - beginning of period                       291            427          3,178                 -
                                         -----------    -----------    -----------      ------------
Cash - end of period                     $        14    $       291           $427                14
                                         ===========    ===========    ===========      ============
SUPPLEMENTAL DISCLOSURE OF CASH
 FLOW INFORMATION:
    Cash paid during the period
     Interest                            $     5,145    $     6,113    $     7,069      $    184,940





Item 8.     Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

None

                                  PART III

Item 9.     Directors, Executive Officers and Key Employees

            Name               Age      Position with the Company

    Conrad  A.H. Jelinger      54       President, Chief Executive Officer,
                                        Chairman, interim CFO and Director

    Robert J. Hayes            51       Director

    Martha A. Moloney          69       Director


Conrad A. H. Jelinger.

Conrad A.H. Jelinger  is  the  founder  of  Unitrend and has been Chairman,
President and CEO of the Company since its inception in 1996.  Mr. Jelinger
has  over  36  years  of experience in the technical and computer industry.
This  includes serving as President and CEO of Server Systems Technologies
from September 1994 to April 1996.  Mr. Jelinger attended the University of
Toledo, where he studied Business Administration and International Finance.
He also completed technical and electronics training while serving  in  the
United States Navy.  Mr. Jelinger is one of our executive officers.


Robert J. Hayes.

Robert J. Hayes became a member of  the Board  of  Directors in March 2000.
Mr. Hayes joined NPI in 2002 to enhance design efforts by ensuring seamless
integrations  of  capabilities, expertise and resources with manufacturers.
He  is  involved in  all phases of the NPI Process - from conceptualization
through    production-contributing   a   unique,   creative   approach   to
engineering alternatives and solutions.   Prior  to  joining NPI, Mr. Hayes
directed   the  Product  Development  Group  including  Industrial  Design,
Mechanical  and  Electrical Engineering,  for Fitch USA where  his  project
involvement  included  work  for such companies as Amway, BioImage (a Kodak
company), Ciba  Corning Diagnostics Corp.,  Compaq, Diebold,  Lear  Siegler
Seymour, Rubbermaid and Lionel.  He is named on numerous design and utility
patents.   Mr. Hayes holds a B.S. in  Mechanical Engineering from Cleveland
State University.


Martha A. Moloney.

Martha A. Moloney became  a member of the Board of Directors in March 2000.
From 1972 to 1977, Ms. Moloney  was  Vice  President  and  Board  member at
Steger Schowel, a restaurant supply distribution company.   Since 1990, Ms.
Moloney  has  been  in  private practice while concurrently  serving  as  a
Counselor with Catholic Charities at numerous area hospitals.   Ms. Moloney
holds  a  B.A.  in  Psychology from Maryville University and  a  M.SW. From
St. Louis University.


Item 10.	Executive Compensation

The following table shows compensation for  each person who served  in  the
capacity  of  Chief  Executive  Officer  during the years set forth and any
other executive who earned a total of more than $100,000 in compensation in
such years.


                                          No. of shares
Name and                                    Underlying     Other Annual
Principal Position        Year    Salary    Bonus   Options Compensation
- ---------------------------------------------------------------------------
Conrad A.H. Jelinger      2006   $    --   $    --      --       $    --
CEO, President,           2005   $    --        --      --            --
Chairman, interim CFO     2004   $    --        --      --            --
                          2003   $    --        --      --            --


Item 11.	Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information regarding the  ownership
of  the Company's shares of common stock as of   April 30, 2007, by (i) all
those known by the Company to be beneficial  owners of  more than 5% of its
common stock;  (ii) all Directors; and  (iii) all Officers and Directors of
the  Company  as  a  group.   Unless  otherwise  indicated,  each   of  the
stockholders  has  sole  voting  and  investment power  with respect to the
common stock beneficially owned.


                                               Beneficial Ownership
                                               --------------------
Stockholder                              Number of shares      Percent (1)
                                         ----------------      ----------

Conrad A.H. Jelinger                        43,333,045(2)         58.5%
 4665 West Bancroft
 Toledo, OH  43615

Eric V. Jelinger                             7,750,000            10.5%
 4665 West Bancroft
 Toledo, OH  43615

Martha Moloney                                  95,800             0.1%
 4665 West Bancroft
 Toledo, OH  43615

Total for Beneficial Owners
and Management                              51,178,845            69.1%


   (1) Percentages are calculated  to  include  all  outstanding securities
       and securities deemed  outstanding  pursuant  to  Rule  13d-3 (d)(1)
       under the Securities Exchange Act of 1934.

   (2) Total includes 23,810 options that  are  fully  vested  and  subject
       To exercise.


Item 12.    Certain Relationships and Related Transactions

None
PART IV

Item 13.    Exhibits and Reports on Form 8-K

     (a)  List of Exhibits
          99.  Additional Exhibits
          Exhibit 99.1  Certification Under Section 906  of  Sarbanes-Oxley
                        Act of 2002

Exhibit
Number                             Document
2.1    Articles  of  Merger  for the Merger of  Unitrend, Inc.,  and Server
       Systems  Technologies,  Inc.  (incorporated  by  reference  from the
       Company's Form 10-12B filed March 30, 2000)
2.2    Articles of  Merger  for  the  Merger  of  Unitrend, Inc.,  an  Ohio
       corporation, and Unitrend, Inc., a Nevada corporation.
       (incorporated by  reference  from  the  Company's  Form 10-12B filed
       March 30, 2000)
3.1    Articles  of   Incorporation   of   Unitrend, Inc.  and  Amendments.
       (incorporated  by reference  from  the  Company's  Form 10-12B filed
       March 30, 2000)
3.2    By-Laws  of  Unitrend, Inc..  (incorporated  by  reference  from the
       Company's Form 10-12B filed March 30, 2000)
4.1    Lock-up   Agreement   between   Unitrend, Inc.  and  Eric  Jelinger.
       (incorporated by  reference  from  the  Company's  Form 10-12B filed
       March 30, 2000)
10.1   1999  Equity  Incentive  Plan.  (incorporated  by reference from the
       Company's Form 10-12B filed March 30, 2000)
10.2   Form Stock Option  Agreement (Employee).  (incorporated by reference
       from the Company's Form 10-12B filed March 30, 2000)
10.3   Form Stock Option Agreement (Non-Employee/Non-Qualified).
       (incorporated by  reference  from  the  Company's  Form 10-12B filed
       March 30, 2000)
10.4   Cash Incentive Plan. (incorporated  by  reference from the Company's
       Form 10-12B filed March 30, 2000)
10.5   Employment Agreement, Non-compete Agreement and Trade Secret
       Agreement  between the Company and Conrad A.H. Jelinger
      (incorporated  by  reference  from  the  Company's  Form 10-12B filed
       March 30, 2000)
10.10  Option   Agreements   between   the   Company   and  Martha  Moloney
       (incorporated  by  reference from  the  Company's  Form 10-12B filed
       March 30, 2000)
10.11  Promissory  Note  for  the  purchase  of  the  property  located  at
       4665 W. Bancroft, Toledo, Ohio (incorporated  by  reference from the
       Company's Form 10-12B filed March 30, 2000)
10.12  Mortgage for the property located  at 4665 W. Bancroft, Toledo, Ohio
      (incorporated  by  reference  from  the  Company's  Form 10-12B filed
       March 30, 2000)
10.13  Promissory  Note  from  the Company given to Conrad Jelinger for the
       year  ending  1998  (incorporated  by  reference  from the Company's
       Form 10-12B filed March 30, 2000)
10.14  Promissory Note from the Company given  to  Conrad Jelinger  for the
       year  ending  1999  (incorporated  by  reference  from the Company's
       Form 10-12B filed March 30, 2000)
10.15  Joint  Venture  Agreement  between  Unitrend, Inc.,  and Jon Osborne
       (incorporated  by  reference  from  the  Company's Form 10-12B filed
       March 30, 2000)
10.16  Promissory  Note  given  to  the Company from Osborne Manufacturing,
       for  the  year  ending  1998   (incorporated  by  reference from the
       Company's Form 10-12B filed March 30, 2000)
10.17  Promissory Note given to the Company from Osborne Manufacturing, for
       the  year ending 1999  (incorporated by reference from the Company's
       Form 10-12B filed March 30, 2000)


                                 SIGNATURES

Pursuant  to  the requirements of Section 15(d) of the Securities Exchanges
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.



                                UNITREND, INC.

Date:	April 30, 2007		By:	/s/ Conrad A.H Jelinger
                              __________________________________
					Conrad A.H. Jelinger, President,
                              Chief Executive Officer, Chairman,
                              interim CFO and Director
                              (Duly Authorized Representative)

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



/s/  Conrad A.H.Jelinger

______________________________________
Conrad A.H. Jelinger,
President, Chief Executive Officer,
Chairman, interim CFO and Director
(Principal Executive and Financial Officer)

Date: 04/30/07



/s/  Martha A. Moloney

_______________________________          _______________________________
Martha A. Moloney,                       Robert J. Hayes,
Director                                 Director

Date:  04/30/07