**UNITED
      STATES**


**SECURITIES
        AND EXCHANGE COMMISSION**
 **WASHINGTON,
        D.C. 20549**
 **FORM
        10-QSB**
 (Mark
        One)
 
 x
              QUARTERLY
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
        the
        quarterly period ended: June
        30, 2006
 
 **OR**
 
 o
              TRANSITION
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
                  the transition period from ____________ to
                  ___________.
 
 Commission
        File No.: 0-20726
 
 **Kent
        International Holdings, Inc.**
 (Exact
        name of small business issuer as specified in its charter)
 
 Nevada
              
              20-4888864(State
                  or other jurisdiction of incorporation or organization)
              
              (I.R.S.
                  Employer Identification No.)
  376
        Main Street, PO Box 74, Bedminster, NJ 07921
 (Address
        of principal executive offices)
 
 (908)
        234-1881
 (Issuer's
        telephone number)
 
 **Cortech,
        Inc.**
 (Former
        name, former address and former fiscal year,
 if
        changed since last report)
 
 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 issuer was required to file such reports), and (2) has been subject
        to
        such filing requirements for the past 90 days.
 Yes x No o
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).
 Yes x No o
 
 **APPLICABLE
        ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**
 **PROCEEDINGS
        DURING THE PRECEDING FIVE YEARS**
 
 Check
        whether the registrant filed all documents and reports required to be filed
        by
        Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
        under a plan confirmed by a court.
 Yes o  No o
 
 **APPLICABLE
        ONLY TO CORPORATE ISSUERS**
 
 State
        the
        number of shares outstanding of each of the issuer's classes of common equity
        as
        of the latest practicable date: As of July 31, 2006, the issuer had 3,569,980
        shares of its common stock, par value $.002 per share, outstanding.
 
 Transitional
        Small Business Disclosure Format (check one):  Yes o No x
 
 
  **PART
                  I.**
              **FINANCIAL
                  INFORMATION**
 **ITEM
                  1.**
              **Financial
                  Statements**
 
 **KENT
        INTERNATIONAL HOLDINGS, INC.**
 BALANCE
        SHEET
 AS
        OF
        JUNE 30, 2006
 (in
        000’s, except share and per share amounts)
 (UNAUDITED)
 
 ASSETSCurrent
                  assets:Cash
                  and cash equivalents
              
              $
              93Short-term
                  investments
              
              
              10,897Other
                  assets
              
              
              26Total
                  assets
              
              $
              11,016LIABILITIES
                  AND STOCKHOLDERS’ EQUITYCurrent
                  liabilities:Accrued
                  liabilities
              
              $
              95Commitments
                  and contingenciesStockholders’
                  equity:Preferred
                  stock, $.002 par value; 2,000,000 shares authorized; none
                  issued
              
              
              -Common
                  stock, $.002 par value; 5,000,000 shares authorized; 3,569,980
                  shares
                  issued and outstanding
              
              
              7Additional
                  paid-in capital
              
              
              99,374Accumulated
                  deficit
              
              
              (88,460
              )Total
                  stockholders’ equity
              
              
              10,921Total
                  liabilities and stockholders’ equity
              
              $
              11,016
   See
        accompanying notes to financial statements.
  2
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 STATEMENTS
        OF OPERATIONS
 (in
        000’s, except per share amounts)
 (UNAUDITED)
 
 
 Three
                  Months EndedJune
                  30,2006
              
              2005Revenues:Interest
              
              $
              121
              
              $
              77Expenses:General
                  and administrative
              
              
              219
              
              
              96Loss
                  before income taxes
              
              
              (
                  98
              )
              
              (
                  19
              )Provision
                  for income taxes
              
              
              -
              
              
              1Net
                  loss
              
              $
              (98
              )
              $
              (20
              )Basic
                  and diluted net loss per share
              
              $
              (.03
              )
              $
              (.01
              )Basic
                  and diluted weighted average common shares outstanding
              
              
              3,574
              
              
              3,596
  See
        accompanying notes to financial statements.
  3
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 STATEMENTS
        OF OPERATIONS
 (in
        000’s, except per share amounts)
 (UNAUDITED)
  Six
                  Months EndedJune
                  30,2006
              
              2005Revenues:Interest
              
              $
              236
              
              $
              141Expenses:General
                  and administrative
              
              
              400
              
              
              180Loss
                  before income taxes
              
              
              (
                  164
              )
              
              (
                  39
              )Provision
                  for income taxes
              
              
              1
              
              
              1Net
                  loss
              
              $
              (165
              )
              $
              (40
              )Basic
                  and diluted net loss per share
              
              $
              (.05
              )
              $
              (.01
              )Basic
                  and diluted weighted average common shares outstanding
              
              
              3,585
              
              
              3,596
  See
        accompanying notes to financial statements.
  4
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 STATEMENTS
        OF CASH FLOWS
 (in
        000’s)
 (UNAUDITED)
 
 Six
                  Months EndedJune
                  30,2006
              
              2005Cash
                  flows from operating activities:Net
                  loss
              
              $
              (165
              )
              $
              (40
              )Adjustments:Change
                  in other assets
              
              
              (
                  19
              )
              
              (
                  11
              )Interest
                  receivable on short-term investments
              
              
              (
                  5
              )
              
              -Change
                  in accrued liabilities
              
              
              (34
              )
              
              (20
              )Net
                  cash used in operating activities
              
              
              (223
              )
              
              (71
              )Cash
                  flows from investing activities:Purchases
                  of short-term investments
              
              
              (
                  10,871
              )Proceeds
                  from short-term investments
              
              
              10,830
              
              
              -Net
                  cash used in investing activities
              
              
              (41
              )
              
              -Cash
                  flows from financing activities:Repurchase
                  of common stock
              
              
              (68
              )
              
              -Net
                  decrease in cash and cash equivalents
              
              
              (
                  332
              )
              
              (
                  71
              )Cash
                  and cash equivalents at beginning of period
              
              
              425
              
              
              11,382Cash
                  and cash equivalents at end of period
              
              $
              93
              
              $
              11,311Supplemental
                  disclosure cash flow information:Cash
                  paid for income taxes
              
              $
              1
              
              $
              1
  See
        accompanying notes to financial statements.
  5
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 NOTES
        TO
        FINANCIAL STATEMENTS
 (UNAUDITED)
 
 **NOTE
        A - Organization**
 
 Cortech,
        Inc. (“Cortech” or the “Company”) was originally incorporated as a Colorado
        corporation in 1982 and then reincorporated in Delaware in 1991. On May 25,
        2006, Cortech was reincorporated in Nevada by a merger with its wholly owned
        subsidiary, Kent International Holdings, Inc. The reincorporation effected
        a
        change in Cortech’s legal domicile from Delaware to Nevada and a change in the
        name from Cortech, Inc. to Kent International Holdings, Inc. (“Kent
        International” or the “Company”). Cortech’s business, assets, liabilities, net
        worth and headquarters were unchanged as a result of the reincorporation
        and the
        directors and officers of Cortech prior to the reincorporation continued
        to
        serve Kent International after the reincorporation. In addition, Cortech’s
        stockholders automatically became stockholders of Kent International on a
        share-for-share basis. Kent International’s shares continued to be quoted on the
        Pink Sheets under the new symbol “KNTH.PK” beginning June 8, 2006.
 
 **NOTE
        B - Basis of Presentation**
 
 The
        accompanying unaudited financial statements of Kent International as of June
        30,
        2006 and for the three and six months ended June 30, 2006 and 2005 reflect
        all
        material adjustments consisting of only normal recurring adjustments, which,
        in
        the opinion of management, are necessary for a fair presentation of results
        for
        the interim periods. Certain information and footnote disclosures required
        under
        accounting principles generally accepted in the United States of America
        have
        been condensed or omitted pursuant to the rules and regulations of the
        Securities and Exchange Commission, although the Company believes that the
        disclosures are adequate to make the information presented not misleading.
        These
        financial statements should be read in conjunction with the financial statements
        and notes thereto included in the Company’s Annual Report on Form 10-KSB for the
        year ended December 31, 2005 as filed with the Securities and Exchange
        Commission.
 
 The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        estimates and assumptions that affect the reported amounts of assets and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the financial statements and the reported amounts of revenues and expenses
        during the reporting period. Actual results could differ from those estimates.
 
 The
        results of operations for the three and six months ended June 30, 2006 and
        2005
        are not necessarily indicative of the results to be expected for the entire
        year
        or for any other period.
 
 **NOTE
        C - Related Party Transactions**
 
 A
        monthly
        management fee of $21,000 is paid to Asset Value Fund Limited Partnership
        (“AVF”) for management services. These services include, among other things,
        periodic and other filings with the Securities and Exchange Commission,
        evaluating merger and acquisition proposals, internal accounting and shareholder
        relations. The Company believes that the management fee is less than the
        cost
        for the Company to perform these services. This arrangement may be terminated
        at
        will by either party. AVF is the beneficial owner of approximately 53.22%
        of the
        Company’s outstanding Common Stock at June 30, 2006. The sole general partner of
        AVF is Asset Value Management, Inc. (“AVM”), a Delaware Corporation and
        wholly-owned subsidiary of Kent Financial Services, Inc. (“Kent”), a Delaware
        Corporation. Paul O. Koether, Chairman of the Company is also the Chairman
        of
        Kent and the beneficial owner of approximately 54.93% of Kent’s outstanding
        common stock. Qun Yi Zheng, President of the Company is also the President
        of
        Kent and Bryan P. Healey, Chief Financial Officer of the Company is also
        the
        Chief Financial Officer of Kent.
  6
 
 On
        May 1,
        2006, Kent entered into an employment agreement with Bryan P. Healey, CPA,
        to be
        Vice President and Chief Financial Officer of Kent and Kent International
        for an
        initial two-year term. Mr. Healey is the son-in-law of Paul O. Koether, Chairman
        of the Board and Chief Executive Officer of Kent and Kent
        International.
 
 **NOTE
        D - Common Stock**
 
 In
        October 2000, the Board of Directors approved a stock repurchase program
        authorizing the Company to repurchase up to 320,000 shares of its Common
        Stock
        at prices deemed favorable from time to time in the open market or in privately
        negotiated transactions subject to market conditions, the Company’s financial
        position and other considerations. This program has no expiration date. During
        the quarter ended June 30, 2006, 24,960 shares were acquired resulting in
        135,560 shares remaining authorized for repurchase under the program. Between
        October 2000 and June 30, 2006 a total of 184,440 shares of Common Stock
        were
        repurchased for approximately $627,318. All shares repurchased were returned
        to
        the status of authorized but unissued shares.
 
 **NOTE
        E - Basic and Diluted Net Loss Per Share**
 
 Basic
        loss per common share is computed by dividing the net loss by the
        weighted-average number of common shares outstanding. Diluted net loss per
        common share is computed by dividing the net loss by the sum of the
        weighted-average number of common shares outstanding plus the dilutive effect
        of
        shares issuable through the exercise of stock options. The shares used for
        basic
        loss per common share and diluted loss per common share are reconciled below
        (in
        000’s).
 
 Three
                  Months Ended
              
              Six
                  Months EndedJune
                  30,
              
              June
                  30,2006
              
              2005
              
              2006
              
              2005Average
                  shares outstanding for basic loss per share
              
              
              3,574
              
              
              3,596
              
              
              3,585
              
              
              3,596Dilutive
                  effect of stock options
              
              
              -
              
              
              -
              
              
              -
              
              
              -Average
                  shares outstanding for dilutive loss per share
              
              
              3,574
              
              
              3,596
              
              
              3,585
              
              
              3,596
 
 The
        Company had options to acquire 294,149 and 299,699 shares of common stock
        outstanding at June 30, 2006 and 2005, respectively. Since the Company had
        losses in each of the periods presented above, the stock options outstanding
        would have an anti-dilutive effect on net loss per common share and are not
        included in the calculation.
  7
  **NOTE
        F - Stock Options Plans**
 
 Kent
        International has issued certain common stock options to its employees,
        directors and consultants. At June 30, 2006, Kent International had 294,149
        common stock options outstanding, and none were issued during the three and
        six
        months ended June 30, 2006.
  Until
        December 31, 2005, the Company applied Accounting Principles Board Opinion
        No.
        25 and related interpretations in accounting for its common stock options.
        Accordingly, no compensation cost had been recognized for the common stock
        options issued.
 
 In
        December 2004, the FASB issued SFAS No. 123(R), "Share-Based Payment," (“SFAS
        123(R)”), a revision of SFAS 123, "Accounting for Stock-Based Compensation.”
SFAS 123(R) requires that the compensation cost relating to share-based payment
        transactions be recognized in financial statements. The compensation cost
        is
        measured based on the fair value of the equity or liability instruments issued.
        SFAS 123(R) was effective as of the beginning of the first interim or annual
        period beginning after December 15, 2005. Kent International adopted SFAS
        123(R)
        on January 1, 2006. The adoption did not have an impact on the Company’s
        financial position or results of operations as all stock options granted
        to date
        were fully vested prior to January 1, 2006.
 
 **NOTE
        G - New Accounting Pronouncements**
 
 In
        May
        2005, the FASB issued Statement 154, “Accounting Changes and Error Corrections,
        a replacement of APB Opinion No. 20 and FASB Statement No. 3.”  The
        standard requires retrospective application to prior periods’ financial
        statements of a voluntary change in accounting principle unless it is deemed
        impracticable. The standard states that a change in method of depreciation,
        amortization or depletion for long-lived, non-financial assets be accounted
        for
        as a change in accounting estimate that is affected by a change in accounting
        principle.  The standard is effective for accounting changes and
        corrections of errors made in fiscal years beginning after December 15,
        2005.
  8
  **ITEM
                  2****.**
              **Management’s
                  Discussion and Analysis of Financial Condition and Results of
                  Operations**
 
 The
        following discussion and analysis should be read in conjunction with the
        Company’s Annual Report on Form 10-KSB for the fiscal year ended December 31,
        2005 as well as the Company’s financial statements and notes thereto included
        elsewhere in this Quarterly Report on Form 10-QSB. When used in this discussion,
        the word “expects” and similar expressions are intended to identify
        forward-looking statements. Such statements are subject to risks and
        uncertainties that could cause actual results to differ materially from those
        projected. The forward-looking statements contained herein speak only as
        of the
        date hereof. The Company expressly disclaims any obligation or undertaking
        to
        release publicly any updates or revisions to any forward-looking statements
        contained herein to reflect any change in the Company’s expectations with regard
        thereto or any change in events, conditions or circumstances on which any
        such
        statement is based.
 
 **Organization**
 
 Cortech
        was a biopharmaceutical company whose primary focus had been the discovery
        and
        development of novel therapeutics for the treatment of inflammatory disorders.
        Specifically, Cortech had directed its research and development efforts
        principally toward protease inhibitors and bradykinin antagonists. These
        efforts
        produced certain intellectual property rights.
 
 In
        response to disappointing test results and its loss of collaborative partner
        support, Cortech implemented a series of workforce reductions which resulted
        in
        the Company having no compensated employees from 1999 until November 2005,
        and
        effectively discontinued all internal research and development activities.
        In
        addition, in 1998 Cortech decommissioned its laboratories and sold all of
        its
        remaining scientific, technical and office equipment. As a result of these
        actions, Cortech no longer has the staff or operative facilities required
        to
        conduct internal research and development activities.
 
 On
        May
        25, 2006, Cortech was reincorporated in Nevada by a merger with its wholly
        owned
        subsidiary, Kent International Holdings, Inc. The reincorporation effected
        a
        change in Cortech’s legal domicile from Delaware to Nevada and a change in the
        name from Cortech, Inc. to Kent International Holdings, Inc. Cortech’s business,
        assets, liabilities, net worth and headquarters were unchanged as a result
        of
        the reincorporation and the directors and officers of Cortech prior to the
        reincorporation continued to serve Kent International after the reincorporation.
        In addition, Cortech’s stockholders automatically became stockholders of Kent
        International on a share-for-share basis.
 
 **Business
        Activities**
 
 In
        November 2005, the Company hired Dr. Qun Yi Zheng as its President. From
        1995 to
        2005, Dr. Zheng was associated with Pure World, Inc., a leading manufacturer
        of
        natural products. Dr. Zheng was President of Pure World from January 2004
        until
        it was sold in July 2005. Under Dr. Zheng’s leadership, Kent International
        intends to pursue business opportunities in China, Eastern Europe and the
        United
        States. The Company may consider potential opportunities in a number of areas
        including outsourcing for U.S. companies, consulting for U.S. and non U.S.
        companies interested in cross-border business relationships, surveys of small
        businesses for sale in China and Eastern Europe and import/export distribution
        contracts.
  9
  The
        Company does not expect that these activities will generate any revenues
        for an
        indefinite period as these efforts are in their early stages. As a result,
        this
        program may produce significant losses until such time as meaningful revenues
        are achieved.
 
 **Results
        of Operations**
 
 Kent
        International had a net loss of $98,000, or $.03 basic and fully diluted
        loss
        per share, for the quarter ended June 30, 2006, compared to a net loss of
        $20,000, or $.01 basic and fully diluted loss per share, for the same period
        of
        2005. For the six months ended June 30, 2006, the Company had a net loss
        of
        $165,000, or $.05 basic and fully diluted loss per share, compared to a net
        loss
        of $40,000, or $.01 basic and fully diluted loss per share, for the same
        period
        of 2005. The increase in the net loss was a result of the Company’s increased
        personnel and business development expenses which were offset by increased
        interest revenue on investments and cash equivalents as discussed
        below.
 
 **Revenues**
 
 Interest
        income increased to $121,000 and $236,000 for the three and six months ended
        June 30, 2006, respectively, from $77,000 and $141,000 for the same periods
        in
        2005. A higher yield on short-term investments and cash equivalents was the
        reason for the increase.
 
 **Expenses**
 
 General
        and administrative expenses were $219,000 and $400,000 in the three and six
        months ended June 30, 2006 compared to $96,000 and $180,000 in the three
        and six
        months ended June 30, 2005, increases of $123,000 and $220,000, respectively.
        These increases can be attributed to personnel expenses, management fees
        and
        other expenses as discussed below.
 
 Personnel
        expenses for the three months and six months ended June 30, 2006 were $53,000
        and $108,000, respectively, relating to the Company’s president who was hired in
        November 2005. The Company had no personnel expenses in the three and six
        months
        ended June 30, 2005. Personnel expenses were responsible for 43% and 49%
        of the
        increases in general and administrative expenses for the three and six months
        ended June 30, 2006 as discussed above.
 
 Management
        fees increased to $63,000 in the second quarter of 2006 from $45,000 in the
        second quarter of 2005 due to a $6,000 increase in the monthly management
        fee
        paid to an affiliated entity effective September 2005 (See Other Disclosures
        -
        Related Party Transactions in the Management’s Discussion and Analysis for more
        information about Management Fees). Management fees were $126,000 and $90,000
        in
        the six months ended June 30, 2006 and 2005 respectively. The increase in
        management fees make up 15% and 17% of the increases in general and
        administrative expenses discussed above.
 
 All
        other
        expenses increased to $103,000 and $166,000 for the three and six months
        ended
        June 30, 2006 from $51,000 and $90,000 for the three and six months ended
        June
        30, 2005, due primarily to an increase in travel expenses related to business
        development activities performed by the Company’s Chairman and its President.
        Additionally, the Company expended $17,000 for legal and regulatory fees
        in
        connection with the reincorporation by merger between Cortech and Kent
        International.
  10
  **Liquidity
        and Capital Resources**
 
 At
        June
        30, 2006, the Company had cash and cash equivalents of approximately $93,000.
        Cash and cash equivalents consist of cash held in banks and brokerage firms.
        The
        Company had short-term investments, consisting of U.S. treasury bills with
        original maturities of six months, of approximately $10.897 million at June
        30,
        2006. Working capital at June 30, 2006 was approximately $10.921 million.
        Management believes its cash and cash equivalents are sufficient for its
        operations for the next twelve months and for the costs of seeking an
        acquisition of or starting an operating business.
 
 Net
        cash
        of $223,000 was used in operations for the six months ended June 30, 2006;
        an
        increase over the $71,000 used in operations for the six months ended June
        30,
        2005. This increase resulted primarily from the increased expenses as described
        in the Expenses section of the Management’s Discussion and Analysis above. Net
        cash of $71,000 used in operations for the six months ended June 30, 2005
        was a
        result of the net loss for the period coupled with the changes in operating
        assets and liabilities.
 
 Net
        cash
        of $41,000 was used in investing activities for the six months ended June
        30,
        2006 resulting from the purchases and maturities of short-term investments.
        There were no cash flows from investing activities reported during the six
        months ended June 30, 2005.
 
 The
        Company used $68,000 for financing activities for the six months ended June
        30,
        2006 to repurchase 24,960 shares of common stock. There were no cash flows
        from
        financing activities reported during the six months ended June 30,
        2005.
 
 **Factors
        That May Affect Future Results**
 
 Future
        earnings of the Company are dependent on interest rates earned on the Company’s
        invested balances and expenses incurred. Kent International expects to incur
        significant expenses in connection with its objective of redeploying its
        assets
        into an operating business.
 
 **Other
        Disclosures - Related Party Transactions**
 
 A
        monthly
        management fee of $21,000 (increased from $15,000 in September 2005) is paid
        to
        Asset Value Fund Limited Partnership (“AVF”) for management services. These
        services include, among other things, periodic and other filings with the
        Securities and Exchange Commission, evaluating merger and acquisition proposals,
        internal accounting and shareholder relations. The Company believes that
        the
        management fee is less than the cost for the Company to perform these services.
        This arrangement may be terminated at will by either party. AVF is the
        beneficial owner of approximately 53.22% of the Company’s outstanding Common
        Stock at June 30, 2006. The sole general partner of AVF is Asset Value
        Management, Inc. (“AVM”), a Delaware Corporation and wholly-owned subsidiary of
        Kent Financial Services, Inc. (“Kent”), a Delaware Corporation. Paul O. Koether,
        Chairman of the Company is also the Chairman of Kent and the beneficial owner
        of
        approximately 54.93% of Kent’s outstanding common stock. Qun Yi Zheng, President
        of the Company is also the President of Kent and Bryan P. Healey, Chief
        Financial Officer of the Company is also the Chief Financial Officer of Kent.
 
 On
        May 1,
        2006, Kent entered into an employment agreement with Bryan P. Healey, CPA,
        to be
        Vice President and Chief Financial Officer of Kent and Kent International
        for an
        initial two-year term. Mr. Healey is the son-in-law of Paul O. Koether, Chairman
        of the Board and Chief Executive Officer of Kent and Kent International.
        Mr.
        Healey receives no compensation from Kent International.
  11
 
 **Off-Balance
        Sheet Arrangements**
 
 The
        Company has no off-balance sheet arrangements.
 
 **ITEM
                  3.**
              **Controls
                  and Procedures**
 
 As
        of the
        end of the period covered by this report, the Company carried out, under
        the
        supervision and with the participation of the Company’s management, including
        its Chief Executive Officer and Chief Financial Officer, an evaluation of
        the
        effectiveness of the design and operation of the Company’s disclosure controls
        and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities
        Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer
        and Chief Financial Officer concluded that the design and operation of these
        disclosure controls and procedures are effective. There was no change in
        the
        Company’s internal control over financial reporting (as defined in Rule
        13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during
        the
        quarter ended June 30, 2006, that has materially affected or is reasonably
        likely to materially affect the Company’s internal control over financial
        reporting.
 
 **Compliance
        with Section 404 of Sarbanes-Oxley Act**
 
 To
        achieve compliance with Section 404 of the Sarbanes-Oxley Act of 2002 (the
        “Act”) by December 31, 2007, the Company expects to begin, in fiscal 2006, the
        system and process documentation and evaluation needed to comply with Section
        404.
  12
  **PART
                  II.**
              **OTHER
                  INFORMATION**
 **ITEM
                  1.**
              **Legal
                  Proceedings**
 
 None.
 
 **ITEM
                  2.**
              **Unregistered
                  Sale of Equity Securities and Use of
                  Proceeds**
 
 **Purchase
        of Equity Securities**
 
 Small
        Business Issuer Purchases of Equity Securities (1)
 Common
        Stock
  Period
                
                Total
                    Number of Shares Purchased
                
                Average
                    Price Paid per Share
                
                Total
                    Number of Shares Purchased as Part of Publicly Announced Plans
                    or
                    Programs
                
                Maximum
                    Number of Shares that May Yet Be Purchased Under the Plans or
                    ProgramsApril
                    1, 2006 - April 30, 2006
                
                
                24,940
                
                $
                2.74
                
                
                24,940
                
                
                135,580May
                    1, 2006 - May 31, 2006
                
                
                20
                
                
                2.70
                
                
                20
                
                
                135,560June
                    1, 2006 - June 30, 2006
                
                
                -
                
                
                -
                
                
                -
                
                
                135,560Total
                
                
                24,960
                
                $
                2.74
                
                
                24,960
                
                
                135,560
  (1)
              In
                  October 2000, the Board of Directors approved a stock repurchase
                  program
                  authorizing the Company to repurchase up to 320,000 shares of its
                  common
                  stock. This program has no expiration
                  date.
 
 **ITEM
                3.**
              **Defaults
                  Upon Senior Securities**
 
 None.
 
 **ITEM
                4.**
              **Submission
                  of Matters to a Vote of Security
                  Holders**
 
 The
        Company held its 2006 Annual Meeting of Stockholders on May 22, 2006. Five
        Directors were elected. The following is a vote tabulation for the
        nominees:
 
 NOMINEE
              
              FOR
              
              WITHHELDPaul
                  O. Koether
              
              1,861,166
              
              -James
                  L. Bicksler, Ph.D.
              
              1,861,166
              
              -Diarmuid
                  F. Boran
              
              1,861,166
              
              -Rocco
                  Mastrodomenico
              
              1,861,166
              
              -Qun
                  Yi Zheng, Ph.D.
              
              1,861,166
              
              -
  13
 
 The
        shareholders also voted to approve the reincorporation by merger into a newly
        formed, wholly owned Nevada subsidiary that would survive the merger. The
        merger
        changed the state of incorporation from Delaware to Nevada and changed the
        name
        of Cortech to Kent International Holdings, Inc. The following is a vote
        tabulation for the approval:
 
 FOR
              
              AGAINST
              
              WITHHELD1,861,166
              
              -
              
              -
 
 **ITEM
                  5.**
              **Other
                  Information**
 
 None.
 
 **ITEM
                  6.**
              **Exhibits**
 
 2.1
              Agreement
                  and Plan of Merger dated as of April 28, 2006 by and between Cortech,
                  Inc.
                  and Kent International Holdings, Inc.(1)
 
 2.2
              Certificate
                  of Ownership and Merger of Cortech, Inc. with and into Kent International
                  Holdings, Inc., as filed with the Delaware Secretary of State on
                  May 25,
                  2006.(2)
 
 2.3
              Articles
                  of Merger of Cortech, Inc. and Kent International Holdings, Inc.,
                  as filed
                  with the Nevada Secretary of State on May 25, 2006.(2)
 
 3.1
              Articles
                  of Incorporation of Kent International Holdings, Inc.(1)
 
 3.2
              Bylaws
                  of Kent International Holdings, Inc.(1)
 
 3.3
              Certificate
                  of Designation for Series A Junior Participating Preferred Stock.(3)
 
 10.1
              Employment
                  Agreement dated November 25, 2005 between Cortech, Inc., and Dr.
                  Qun Yi
                  Zheng(4)**
 
 31.1
              Certification
                  pursuant to Section 302 of the Sarbanes-Oxley Act of
                  2002
 
 31.2
              Certification
                  pursuant to Section 302 of the Sarbanes-Oxley Act of
                  2002
 
 32
              Certification
                  pursuant to Section 906 of the Sarbanes-Oxley Act of
                  2002
 
 
 (1)
              Filed
                  as an exhibit to the Company’s Definitive Proxy Statement on Form DEF 14C
                  filed April 21, 2006, film number 06771307, and incorporated herein
                  by
                  reference.
 
 (2)
              Filed
                  as an exhibit to the Company’s Form 8-K filed on June 2, 2006, and
                  incorporated herein by reference.
 
 (3)
              Filed
                  as an exhibit to the Company’s annual report on Form 10-K for the year
                  ended December 31, 1995, and incorporated herein by
                  reference.
 
 (4)
              Filed
                  as an exhibit to Cortech, Inc’s. Form 8-K filed on December 1, 2005.
                  **
 
 **
              Compensatory
                  Plan
  14
  **SIGNATURES**
 
 In
        accordance with the requirements of the Exchange Act, the Registrant caused
        this
        report to be signed on its behalf by the undersigned, thereunto duly
        authorized.
 
 KENT
                  INTERNATIONAL HOLDINGS, INC.Date:
                  August 7, 2006
              
              
              By:
              /s/
                  Bryan P. HealeyBryan
                  P. HealeyChief
                  Financial Officer, Treasurer and Secretary (Principal Accounting
                  and
                  Financial Officer and officer duly authorized to sign on behalf
                  of the
                  small business issuer)
   15