**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**FORM      10-QSB **

** **

*Commission      file number: 0-27795*

**QUADTECH      INTERNATIONAL, INC. **

|  NEVADA                                                                                       |  52-2079421                                         |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------|
|  (State                or other jurisdiction of incorporation                or organization) |  (I.R.S.                Employer IdentificationNo.) |

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**QUADTECH      INTERNATIONAL, INC. AND SUBSIDIARIES **

**INDEX      TO FORM 10-QSB **

** ****PART 1. FINANCIAL INFORMATION**

|                                                                                                                                                                                                                                                   | **Page**                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
| **Item                  1. Consolidated Financial Statements                  (un-audited):**                                                                                                                                                          |                                |
| Consolidated                  Balance Sheets as of July 31, 2006 and October 31, 2005                                                                                                                                                                  | 5                                        |
|                                                                                                                                                                                                                                                   |                                     |
| Consolidated                  Statements of Operations for the three months and nine ended July                  31,                  2006and                  2005, and the period May 10, 2002 (date of inception) to July 31,                  2006 | 6                                        |
|                                                                                                                                                                                                                                                   |                                     |
| Consolidated                  Statements of Cash Flows for the nine months ended July 31, 2006                  and                  2005, and the period May 10, 2002 (date of inception) to July 310,                  2006                          | 7                                        |
|                                                                                                                                                                                                                                                   |                                     |
| Statement                  of Changes in Stockholders Equity                                                                                                                                                                                           | 8                                        |
|                                                                                                                                                                                                                                                   |                                     |
| **Notes                  to Consolidated Financial Statements**                                                                                                                                                                                        | 9                  -                  13 |
|                                                                                                                                                                                                                                                   |                                     |
| **Item                  2. Management's Discussion and Analysis of Financial Condition****and                  Results of Operations**                                                                                                                 | 14                  - 15                 |
|                                                                                                                                                                                                                                                   |                                     |
| **Item                  3. Controls and Procedures**                                                                                                                                                                                                   | 16                                       |
|                                                                                                                                                                                                                                                   |                                     |
| **PART                  II. OTHER INFORMATION**                                                                                                                                                                                                        |                                     |
|                                                                                                                                                                                                                                                   |                                     |
| **Item                  1. Legal Proceedings.**                                                                                                                                                                                                        | 17                                       |
|                                                                                                                                                                                                                                                   |                                     |
| **Item                  2. Changes in Securities.**                                                                                                                                                                                                    | 18                                       |
|                                                                                                                                                                                                                                                   |                                     |
| **Item                  3. Defaults Upon Senior Securities**                                                                                                                                                                                           |  18** **                       |
|                                                                                                                                                                                                                                                   |                                          |
| **Item                  4. Submission of Matters to a Vote of Securities Holders**                                                                                                                                                                     | 18                                       |
|                                                                                                                                                                                                                                                   |                                     |
| **Item                  5. Other Information**                                                                                                                                                                                                         | 18                                       |
|                                                                                                                                                                                                                                              |                                     |
| **Item                  6. Exhibits and Reports on Form 8-K**                                                                                                                                                                                          | 19-21                                    |

  

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**PART      I **

**FORWARD-LOOKING      STATEMENTS **

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**FINANCIAL      STATEMENTS **
** **

Madsen      & Associates, CPA’s Inc.

**REPORT      ON REVIEW BY INDEPENDENT**

**CERTIFIED      PUBLIC ACCOUTANT**

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**FINANCIAL      STATEMENTS  **

** **

** **** **

*September      14*
*,      2006*

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**QUADTECH      INTERNATIONAL INC. AND SUBSIDIARY**

**(      **

| **CONSOLIDATED                BALANCE SHEET**as                  at:                                                                                                                                   |   |   |                                    |   |   |                                   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|
| **ASSETS****CURRENT                  ASSETS**                                                                                                                                                          |   |   | **31                  July 2006**  |   |   | **31                  Oct 2005**  |   |
| Cash                                                                                                                                                                                                   |   | $      | 85                                      |   | $      | 154                                    |   |
| Total                  Current Assets                                                                                                                                                                  |   | $      | 85                                      |   | $      | 154                                    |   |
| EQUIPMENT                                                                                                                                                                                              |   | $      | 0                                       |   | $      | 4,660                                  |   |
| -                  net                  of accumulated depreciationOTHER                  ASSETSAvailable-for-sale                  securities                                                         |   | $      | 930                                     |   | $      | 1,770                                  |   |
|                                                                                                                                                                                                   |   | **$**  | **1,015**                               |   | **$**  | **6,584**                              |   |
| **LIABILITIES                  AND STOCKHOLDERS' DEFICIENCY****CURRENT                  LIABILITIES**Note                  payable                                                                     |   | $      | 32,431                                  |   | $      | 32,431                                 |   |
| Accrued                  interest payable                                                                                                                                                              |   | $      | 12,875                                  |   | $      | 10,754                                 |   |
| Accounts                  payable                                                                                                                                                                      |   | $      | 53,863                                  |   | $      | 133,717                                |   |
| Accrued                  rent payable                                                                                                                                                                  |   | $      | 41,435                                  |   | $      | 41,435                                 |   |
| Accounts                  payable - related parties                                                                                                                                                    |   | $      | 59,867                                  |   | $      | 164,963                                |   |
| Total Current                  Liabilities                                                                                                                                                        |        | $      | 200,472                                 |   | $      | 383,300                                |   |
| STOCKHOLDERS'                  DEFICIENCYCommon                  stock                                                                                                                                 |   | $      | 26,429                                  |   | $      | 1,368                                  |   |
|                          200,000,000 shares authorized, at $0.001 par value;   26,429,565                  shares                  issued and outstanding |   |   |                                    |   |   |                                   |   |
| Capital                  in excess of par value                                                                                                                                                        |   | $      | 3,300,975                               |   | $      | 1,142,526                              |   |
| Deficit                  accumulated during development stage                                                                                                                                          |   | $      | (3,526,861                              | )      | $      | (1,520,610                             | )      |
| Total                  Stockholders' Deficiency                                                                                                                                                        |   | $      | (199,457                                | )      | $      | (376,716                               | )      |
|                                                                                                                                                                                                   |   | **$**  | **1,015**                               |   | **$**  | **6,584**                              |   |

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|                                                                                                                                                                                                                            |   |   | 31                July  2006  |   |   | 31                July  2005  |   |   | 31                July 2006  |   |   | 31                July 2005  |   |   | 10                May -02 to 31 July 2006  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------|--------|
| REVENUES                                                                                                                                                                                                                        |   | $      | -                                       |   | $      | -                                       |   | $      | -                                 |   | $      | -                                 |   | $      | 80,756                                          |   |
| EXPENSES                                                                                                                                                                                                                        |   |   |                                    |   |   |                                    |   |   |                              |   |   |                              |   |   |                                            |   |
| Professional                and consulting                                                                                                                                                                                      |   | $      | 1,968,182                               |   |   | 18,170                                  |   | $      | 1,988,182                         |   | $      | 96,300                            |   | $      | 3,480,783                                       |   |
| Administrative                                                                                                                                                                                                                  |   | $      | (1,793                                  | )      |   | 16,206                                  |   | $      | 10,450                            |   | $      | 20,857                            |   | $      | 93,495                                          |   |
| Depreciation                                                                                                                                                                                                                    |   | $      | 0                                       |   |   | 884                                     |   | $      | 4,660                             |   | $      | 2,652                             |   | $      | 19,253                                          |   |
|                                                                                                                                                                                                                            |   | $      | 1,966,389                               |   | $      | 35,260                                  |   | $      | 2,003,291                         |   | $      | 119,809                           |   | $      | 3,593,531                                       |   |
| NET                LOSS FROM OPERATIONS OTHER                                                                                                                                                                                   |   | $      | 1,966,389                               |   | $      | 35,260                                  |   | $      | 2,003,291                         |   | $      | 119,809                           |   | $      | 3,512,775                                       |   |
| Interest                                                                                                                                                                                                                        |        | $      | (943                                    | )      | $      | -                                       |   |   | ($2,120                           | )      | $      | -                                 |   |   | ($5,016                                         | )      |
| Loss                in Investment - unrealized                                                                                                                                                                                  |   | $      | (840                                    | )      | $      | -                                       |   |   | ($840                             | )      | $      | -                                 |   |   | ($9,070                                         | )      |
| NET                LOSS                                                                                                                                                                                                         |   | $      | (1,968,172                              | )      | $      | (35,260                                 | )      |   | ($2,006,252                       | )      |   | ($119,809                         | )      |   | ($3,526,862                                     | )      |
| **NET                LOSS PER COMMON SHARE**Basic                and diluted                                                                                                                                                    |   |   | (0.08                                   | )      |   | -                                       |   |   | -0.14                             |   |   | -0.09                             |   |   |                                            |   |
| AVERAGE              OUTSTANDING              SHARES                                     (stated in 1,000's) |   |   |                                    |   |   |                                    |   |   |                              |   |   |                              |   |   |                                            |   |
| Basic                                                                                                                                                                                                                           |        |        | 26,045                                  |   |   | 1369                                    |   |   | 13,899                            |   |   | 1,369                             |   |   |                                                 |   |
| Diluted                                                                                                                                                                                                                         |   |   | 26,045                                  |   |   | 1369                                    |   |   | 13,899                            |   |   | 1,639                             |   |   |                                            |   |
|                                                                                                                                                                                                                            |   |   |                                    |   |   |                                    |   |   |                              |   |   |                              |   |   |                                            |   |

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**QUADTECH          INTERNATIONAL INC. AND SUBSIDIARY**

**CONSOLIDATED          STATEMENTS OF CASH FLOWS**

**FOR          THE NINE MONTHS ENDED JULY 31, 2006 AND 2005 AND THE          PERIOD**

**MAY          10, 2002 (DATE OF INCEPTION OF SUBSIDIARY) TO JULY 31,          2006**

**UNAUDITED**

|                                                                                                                   |   |    |                                       |   |   | **10-May-02**                  |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------------------------------------------|--------|--------|--------------------------------|--------|
|                                                                                                                   |   |         |  **31                    July**  |   |   | **31                    July** |   |   | **to                    31 July** |   |
|                                                                                                                   |   |         | **2006**                                   |   |   | **2005**                       |   |   | **2006** |   |
| **CASH                  FLOWS FROM**                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |
| **OPERATING                    ACTIVITIES**                                                                            |   |         |                                       |   |   |                           |   |   |   |   |
| Net                    loss                                                                                            |   | $            | (2,006,252                                 | )      | $      | (119,809                       | )      | $ | (3,526,862 | ) |
| Adjustments                    to reconcile net                                                                        |   |         |                                       |   |   |                           |   |   |   |   |
| loss                    to net cash provided by                                                                        |   |         |                                       |   |   |                           |   |   |   |   |
| operating                    activities                                                                                |   | $            | -                                          |   | $      | -                              |   |   |   |   |
| Depreciation                                                                                                           |   | $            | 4,660                                      |   | $      | 2,652                          |   | $ | 19,252 |   |
| Unrealized                    Loss in Investment                                                                       |   | $            | 840                                        |   | $      | -                              |   | $ | 8,230 |   |
| Stock                    issued for services and                                                                       |   | $            | -                                          |   | $      | -                              |   | $ | - |   |
| expenses                                                                                                               |   | $            | 1,988,182                                  |   | $      | -                              |   | $ | 3,148,232 |   |
| Changes                    in accounts receivables                                                                     |   | $            | -                                          |   | $      | -                              |   | $ | 4,592 |   |
| Changes                    in accounts payable                                                                         |   | $            | 12,501                                     |   | $      | 117,228                        |   | $ | 275,394 |   |
| Net                    Cash Provided (Used) in                                                                         |   |         |                                       |   |   |                           |   |   |   |   |
| Operations                                                                                                             |   | $            | (69                                        | )      | $      | 71                             |   | $ | (71,162 | ) |
|                                                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING**                                                                       |   |         |                                       |   |   |                           |   |   |   |   |
| **ACTIVITIES**                                                                                                         |   |         |                                       |   |   |                           |   |   |   |   |
| Purchase                    office equipment                                                                           |   | $            | -                                          |   | $      | -                              |   | $ | (19,253 | ) |
| Purchase                    available-for-sale                                                                         |   |         |                                       |   |   |                           |   |   |   |   |
| securities                                                                                                             |   | $            | -                                          |   | $      | -                              |   | $ | (10,000 | ) |
|                                                                                                                   |   | $            | -                                          |   | $      | -                              |   | $ | (29,253 | ) |
|                                                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING**                                                                       |   |         |                                       |   |   |                           |   |   |   |   |
| **ACTIVITIES**                                                                                                         |   |         |                                       |   |   |                           |   |   |   |   |
| Proceeds                    from issuance of common                                                                    |   |         |                                       |   |   |                           |   |   |   |   |
| Common                    stock and stock                                                                              |   |         |                                       |   |   |                           |   |   |   |   |
| Subscriptions                    received                                                                              |   | $            | -                                          |   | $      | -                              |   | $ | 100,500 |   |
|                                                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |
| Net                    Increase (Decrease) in Cash                                                                     |   | $            | (69                                        | )      | $      | 71                             |   | $ | 85 |   |
| Cash                    at Beginning of Period                                                                         |   | $            | 154                                        |   | $      | 147                            |   |   |   |   |
| Cash                    at End of Period                                                                               |   | $            | 85                                         |   | $      | 218                            |   | $ | 85 |   |
|                                                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |
| **NON                    CASH FLOWS FROM OPERATIONS**                                                                  |   |         |                                       |   |   |                           |   |   |   |   |
|                                                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |
| Issuance                    of 580,000 shares common capital stock for                                                 |   |         |                                       |   |   |                           |   |   |   |   |
| Services                    - founders stock - 2002                                                                    |   |         |                                       |   |   |                           |   | $ | 1,000 |   |
| Contributions                    to capital - expenses - 2002                                                          |   |         |                                       |   |   |                           |   | $ | 4,800 |   |
| Issuance                    of 61,774 shares common capital stock -                                                    |   |         |                                       |   |   |                           |   |   |   |   |
| Acquisition                    of Covenant - 2003                                                                      |   | $            | -                                          |   |   |                           |   | $ | (137,456 | ) |
| Issuance                    of 657,500 shares common capital stock for                                                 |   |         |                                       |   |   |                           |   |   |   |   |
| Services                    and expenses                                                                               |   |         |                                       |   |   |                           |   | $ | 720,050 |   |
| Issuance                    of 46,000 shares common capital stock                                                      |   |         |                                       |   |   |                           |   |   |   |   |
| For                    services - 2004                                                                                 |   |         |                                       |   |   |                           |   | $ | 230,000 |   |
| Issuance                    of 45,000 shares common capital stock                                                      |   |         |                                       |   |   |                           |   |   |   |   |
| For                    services - 2005                                                                                 |   | $            | -                                          |   |   |                           |   | $ | 225,000 |   |
| Issuance                    of  5,230,303                     shares                    common capital stock |   |         |                                       |   |   |                           |   |   |   |   |
| For                    services - 2006                                                                                 |   |         |                                       |   |   |                           |   | $ | 1,988,182 |   |
|                                                                                                                   |   |         |                                       |   |   |                           |   |   |   |   |

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**QUADTECH        INTERNATIONAL INC. AND SUBSIDIARY**

**STATEMENT          OF CHANGES IN STOCKHOLDERS' EQUITY**

**PERIOD        MAY 10, 2002 (DATE OF INCEPTION OF SUBSIDIARY) TO April 30,        2006**

**UNAUDITED**

|                                                           |   |                          |       |         |   |                       |        |                  CAPITAL                  IN |   |    |      |
|----------------------------------------------------------------|--------|-------------------------------|------------|--------------|--------|----------------------------|--------|---------------------------------------------------|--------|---------|-----------|
|                                                           |   | COMMON                  STOCK |       |         |   | EXCESS                  OF |   | ACCUMULATED                                       |   |
|                                                           |   | SHARES                        |       |  AMOUNT |   |                       |   | PAR                  VALUE                        |   | DEFICIT |      |
| BALANCE                  MAY 10, 2002                          |   |                          | -          |         | $      | -                          |   |                                              |   | $       | -         |   | $ | - |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| to                  founders for services                      |   |                          | 580,000    |         | $      | 580                        |   |                                              |   | $       | 420       |   | $ | - |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Services                  and office expenses                  |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| contributed                  by shareholder                    |   |                          | -          |         | $      | -                          |   |                                              |   | $       | 4,800     |   | $ | - |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Net                  operating loss May 10,                    |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| 2002                  to October 31, 2002                      |   |                          | -          |         | $      | -                          |   |                                              |   | $       | -         |   | $ | (4,856 | ) |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  services and office                       |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| expenses                                                       |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| -                  January 2003                                |   |                          | 632,550    |         |   | 633                        |   |                                              |   | $       | 631,917   |   |   |   |   |
| -                  June 2003                                   |   |                          | 25,000     |         |   | 25                         |   |                                              |   | $       | 87,475    |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  cash                                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| at                  - 2003                                     |   |                          | 15,000     |         |   | 15                         |   |                                              |   | $       | 37,485    |   |   |   |   |
| at-                  2003                                      |   |                          | 6,500      |         |   | 6                          |   |                                              |   | $       | 32,494    |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  acquisition of                            |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Covenant                  Corporation                          |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| -                  June 25, 2003                               |   |                          | 61,774     |         | $      | 62                         |   |                                              |   | $       | (137,518  | ) | $ | - |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Net                  operating loss for                        |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| the                  year ended October 31, 2003               |   |                          | -          |         | $      | -                          |   |                                              |   | $       | -         |   | $ | (757,109 | ) |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  cash                                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| -                  April 2004                                  |   |                          | 2,400      |         |   | 2                          |   |                                              |   | $       | 11,998    |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  services                                  |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| at                  - April 2004                               |   |                          | 46,000     |         | $      | 46                         |   |                                              |   | $       | 229,954   |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Net                  operating loss for                        |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| the                  year ended October 31, 2004               |   |                          | -          |         | $      | -                          |   |                                              |   | $       | -         |   | $ | (394,652 | ) |
| BALANCE                  OCTOBER 31, 2004                      |   |                          | 1,369,224  |         |   | 1,369                      |   |                                              |   |    | 899,025   |   |   | (1,156,617 | ) |
| Issuance                  of common stock for subscriptions    |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| received                  in 2004 year                         |   |                          | 4,000      |         | $      | 4                          |   |                                              |   | $       | 18,496    |   |   |   |   |
| Shares                  cancelled re Covent Corp               |   |                          | (50,000    | )            | $      | (50                        | )      |                                              |   | $       | 50        |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  services                                  |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| at                  - January 2005                             |   |                          | 45,000     |         | $      | 45                         |   |                                              |   | $       | 224,955   |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Net                  operating loss for                        |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| the                  year ended October 31, 2005               |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   | (363,993 | ) |
| BALANCE                  OCTOBER 31, 2005                      |   |                          | 1,368,224  |         |   | 1,368                      |   |                                              |   |    | 1,142,526 |   |   | (1,520,610 | ) |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Adjustment                  for Reverse Slipt of common stock- |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| 1                  share for 10 - March 30, 2006               |   |                          | 38         |         |   |                       |   |                                              |   |    |      |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  debt                                      |   |                          | 19,831,000 |         |   | 19,831                     |   |                                              |   |    | 175,498   |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Issuance                  of common stock                      |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| for                  services                                  |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| at                  $.01 - 7 April, 2006                       |   |                          | 2,000,000  |         |   | 2,000                      |   |                                              |   | $       | 18,000    |   |   |   |   |
| at                  $1.26 - 5 May, 2006                        |   |                          | 100,000    |         |   | 100                        |   |                                              |   | $       | 125,900   |   |   |   |   |
| at                  $.60 - 12 June, 2006                       |   |                          | 3,030,303  |         |   | 3,030                      |   |                                              |   | $       | 1,815,151 |   |   |   |   |
| at                  $.24 - 22 June, 2006                       |   |                          | 100,000    |         |   | 100                        |   |                                              |   | $       | 23,900    |   |   |   |   |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| Net                  operating loss for                        |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |
| the                  nine months July 31, 2006                 |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   | (2,006,252 | ) |
| BALANCE                  JULY 31, 2006                         |   |                          | 26,429,565 |         |   | 26,429                     |   |                                              |   |    | 3,300,975 |   |   | (3,526,862 | ) |
|                                                           |   |                          |       |         |   |                       |   |                                              |   |    |      |   |   |   |   |

----

**QUADTECH      INTERNATIONAL, INC. AND SUBSIDIARIES **

**(Development      Stage Company)**

**NOTES      TO FINANCIAL STATEMENTS **

**July      31, 2006**

**1.**
**ORGANIZATION**

**2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

----

**QUADTECH      INTERNATIONAL, INC. AND SUBSIDIARIES **

**(Development      Stage Company)**

**NOTES      TO FINANCIAL STATEMENTS (Continued)**

**July      31, 2006**

**2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

----

**QUADTECH      INTERNATIONAL, INC. AND SUBSIDIARIES **

**(Development      Stage Company)**

**NOTES      TO FINANCIAL STATEMENTS (Continued)**

**July      31, 2006**

**2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

----

**QUADTECH      INTERNATIONAL, INC. AND SUBSIDIARIES **

**(Development      Stage Company)**

**NOTES      TO FINANCIAL STATEMENTS (Continued)**

**July      31, 2006**

**3.      NOTE PAYABLE**

**4.      RELATED PARTY TRANSACTIONS**

**5.      CAPITAL STOCK**

----

**QUADTECH      INTERNATIONAL, INC. AND SUBSIDIARIES **

**(Development      Stage Company)**

**NOTES      TO FINANCIAL STATEMENTS (Continued)**

**July      31, 2006**

**6.      STOCK BASED COMPENSATION**

**7.      CONTINUING AND CONTINGENT LIABILITIES**

**8.      GOING CONCERN**

----

**MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND **

**RESULTS      OF OPERATIONS OR PLAN OF OPERATION **

**Overview**

**Liquidity      and Capital Resources**

----

**Plan      of Operation **

**Critical      Accounting Policies **

----

**ITEM      3 - CONTROLS AND PROCEDURES **

*** ***

**PART      II **

**Item      1. Legal Proceedings. **

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

----

**Item      3. Defaults upon Senior Securities. **

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

**Item      5. Other Information. **

**Formation      of Technical Advisory Board:**

----

----

**Item      6. Exhibits and Reports on Form 8-K. **

| 31.1 | Certification                by Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14,                pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification                by Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14,                pursuant                to Section 302 of the Sarbanes-Oxley Act of                2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                by Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification                by Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES      **

|         |                                                                                                                     |                               |
|--------------|--------------------------------------------------------------------------------------------------------------------------|------------------------------------|
|         | **QuadTech                International, Inc.**                                                                          |
|    |                                                                                                                |                          |
|         | By:                                                                                                            | /s/ *John              Meier* |
|         | *John              Meier*                                                                                                |
|         | *President                and                Chief Executive Officer**(Principal Executive                Officer)* |

|         |                                                                                                  |                                     |
|--------------|-------------------------------------------------------------------------------------------------------|------------------------------------------|
|         |                                                                                                  |
|    |                                                                                             |                                |
|         | By:                                                                                         | /s/ *J.              Roland Vetter* |
|         | *J.              Roland Vetter*                                                                       |
|         | *Chief                Financial Officer**(Principal                Financial and Accounting Officer)* |