**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **WASHINGTON,
        D.C. 20549**
 **FORM
        10-QSB**
 
 
 x
              QUARTERLY
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
        the
        quarterly period ended: September
        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)
 
 N/A
 (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**
 
 Indicate
        the number of shares outstanding of each of the issuer's classes of common
        equity as of the latest practicable date: As of September 30, 2006, the issuer
        had 3,569,956 shares of its common stock, par value $.002 per share,
        outstanding.
 
 Transitional
        Small Business Disclosure Format (check one):  Yes o No x
  
 
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 **FORM
        10-QSB**
 For
        The
        Quarterly Period Ended September 30, 2006
 Table
        Of
        Contents
 
 PageNumber**PART
                  I. FINANCIAL INFORMATION****Item
                  1.**
              **Financial
                  Statements**Balance
                  Sheet as of September 30, 2006
              3Statement
                  of OperationsThree
                  Months Ended September 30, 2006 and
                  2005
              4Nine
                  Months Ended September 30, 2006 and
                  2005
              5Statement
                  of Cash FlowsNine
                  Months Ended September 30, 2006 and
                  2005
              6Notes
                  to Financial Statements
              7**Item
                  2.**
              **Management's
                  Discussion and Analysis of Financial Condition and
                  Results of Operations**
              10**Item
                  3.**
              **Controls
                  and Procedures**
              13**PART
                  II. OTHER INFORMATION****Item
                  1.**
              **Legal
                  Proceedings**
              14**Item
                  2.**
              **Unregistered
                  Sales of Equity Securities and Use of
                  Proceeds**
              14**Item
                  3.**
              **Defaults
                  Upon Senior Securities**
              14**Item
                  4.**
              **Submission
                  of Matters to a Vote of Security
                  Holders**
              14**Item
                  5.**
              **Other
                  Information**
              14**Item
                  6.**
              **Exhibits**
              15**Signatures**
              16
  2
 *Table
            of Contents*
  **PART
                  I.**
              **FINANCIAL
                  INFORMATION**
 **ITEM
                  1.**
              **Financial
                  Statements**
 
 **KENT
        INTERNATIONAL HOLDINGS, INC.**
 BALANCE
        SHEET
 AS
        OF
        SEPTEMBER 30, 2006
 (in
        000’s, except share and per share amounts)
 (UNAUDITED)
 
 ASSETSCurrent
                  Assets:Cash
                  and cash equivalents
              
              $
              31Short-term
                  investments
              
              
              10,956Other
                  current assets
              
              
              21Total
                  assets
              
              $
              11,008LIABILITIES
                  AND STOCKHOLDERS’ EQUITYCurrent
                  liabilities:Accounts
                  payable and accrued expenses
              
              $
              105Stockholders'
                  equity:Preferred
                  stock, $.002 par value; 2,000,000 shares authorized; none
                  outstanding
              
              
              -Common
                  stock, $.002 par value; 5,000,000 shares authorized; 3,569,956
                  shares
                  issued and outstanding
              
              
              7Additional
                  paid-in capital
              
              
              99,374Accumulated
                  deficit
              
              
              (88,478
              )Total
                  stockholders' equity
              
              
              10,903Total
                  liabilities and stockholders' equity
              
              $
              11,008
 
 See
        accompanying notes to financial statements.
  3
 *Table
            of Contents*
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 STATEMENT
        OF OPERATIONS
 (in
        000’s, except per share amounts)
 (UNAUDITED)
 
 Three
                  Months EndedSeptember
                  30,2006
              
              2005Revenues:Interest
              
              $
              137
              
              $
              93Other
                  income
              
              
              50
              
              
              -Total
                  revenues
              
              
              187
              
              
              93Expenses:General
                  and administrative
              
              
              205
              
              
              82Income
                  (loss) before income taxes
              
              
              (18
              )
              
              11Provision
                  for income taxes
              
              
              -
              
              
              -Net
                  income (loss)
              
              $
              (18
              )
              $
              11Basic
                  and diluted net income (loss) per common share
              
              $
              (0.01
              )
              $
              -Basic
                  and diluted weighted average number of common common shares
                  outstanding
              
              
              3,570
              
              
              3,596
 
 See
        accompanying notes to financial statements.
  4
 *Table
            of Contents*
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 STATEMENT
        OF OPERATIONS
 (in
        000’s, except per share amounts)
 (UNAUDITED)
 
 Nine
                  Months EndedSeptember
                  30,2006
              
              2005Revenues:Interest
              
              $
              373
              
              $
              234Other
                  income
              
              
              50
              
              
              -Total
                  revenues
              
              
              423
              
              
              234Expenses:General
                  and administrative
              
              
              605
              
              
              262Loss
                  before income taxes
              
              
              (182
              )
              
              (28
              )Provision
                  for income taxes
              
              
              1
              
              
              1Net
                  loss
              
              $
              (183
              )
              $
              (29
              )Basic
                  and diluted net loss per common share
              
              $
              (0.05
              )
              $
              (0.01
              )Basic
                  and diluted weighted average number of common common shares
                  outstanding
              
              
              3,580
              
              
              3,596
 
 See
        accompanying notes to financial statements.
  5
 *Table
            of Contents*
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 STATEMENT
        OF CASH FLOWS
 (in
        000’s)
 (UNAUDITED)
 
 Nine
                  Months EndedSeptember
                  30,2006
              
              2005Cash
                  flows from operating activities:Net
                  loss
              
              $
              (183
              )
              $
              (29
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Interest
                  receivable on short-term investments
              
              
              (142
              )Change
                  in other assets
              
              
              (14
              )
              
              (1
              )Change
                  in accounts payable and accrued expenses
              
              
              (24
              )
              
              (21
              )Net
                  cash used in operating activities
              
              
              (363
              )
              
              (51
              )Cash
                  flows from investing activities:Purchase
                  of short-term investments
              
              
              (10,871
              )Maturity
                  of short-term investments
              
              
              10,908
              
              
              -Net
                  cash provided by investing activities
              
              
              37
              
              
              -Cash
                  flows from financing activities:Repurchase
                  of common stock
              
              
              (68
              )
              
              -Net
                  decrease in cash and cash equivalents
              
              
              (394
              )
              
              (51
              )Cash
                  and cash equivalents at beginning of period
              
              
              425
              
              
              11,382Cash
                  and cash equivalents at end of period
              
              $
              31
              
              $
              11,331Supplemental
                  disclosure of cash flow information:Cash
                  paid for:Taxes
              
              $
              1
              
              $
              1
  See
        accompanying notes to financial statements.
  6
 *Table
            of Contents*
  **KENT
        INTERNATIONAL HOLDINGS, INC.**
 Notes
        To
        Financial Statements
 (Unaudited)
 
 **NOTE
        A - Basis of Presentation**
 
 The
        accompanying unaudited financial statements of Kent International (“Kent
        International” or the “Company”) as of September 30, 2006 and for the three and
        nine months ended September 30, 2006 and 2005 reflect all material adjustments
        consisting of only normal recurring adjustments, that, 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 nine months ended September 30, 2006
        and
        2005 are not necessarily indicative of the results to be expected for the
        entire
        year or for any other period.
 
 **NOTE
        B - Related Party Transactions**
 
 A
        monthly
        management fee of $21,000 is paid to Kent Financial Services, Inc. (“Kent”), a
        Delaware corporation, 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. Kent is the beneficial owner of
        approximately 53.22% of the Company’s outstanding common stock at September 30,
        2006. Paul O. Koether, Chairman of the Company is also the Chairman of Kent
        and
        the beneficial owner of approximately 55.38% 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.
  7
 *Table
            of Contents*
  **NOTE
        C - 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 September 30, 2006, 24 shares were acquired resulting in
        135,536 shares remaining authorized for repurchase under the program. Between
        October 2000 and September 30, 2006 a total of 184,464 shares of Common Stock
        were repurchased for approximately $627,329. All shares repurchased were
        returned to the status of authorized but unissued shares.
 
 **NOTE
        D - Basic and Diluted Net Loss Per Share**
 
 The
        Company reports income (loss) per share under the requirements of Statement
        of
        Financial Accounting Standards No. 128, “ *Earnings
        per Share* ”.
        Basic
        income (loss) per share includes the weighted average number of common shares
        outstanding during the year. Diluted income (loss) per share includes the
        weighted average number of shares outstanding and dilutive potential common
        shares, such as warrants and options. The Company had 294,149 and 299,699
        common
        stock options outstanding at September 30, 2006 and 2005, respectively. Since
        the Company had losses in the three and nine months ended September 30, 2006,
        the stock options outstanding would have an anti-dilutive effect on net loss
        per
        share and as such are not included in the calculation.
 
 **NOTE
        E - Stock Options Plans**
 
 Kent
        International has issued certain common stock options to its employees,
        directors and consultants. At September 30, 2006, Kent International had
        294,149
        common stock options outstanding, and none were issued during the three and
        nine
        months ended September 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
        F - Transfer of Patent Rights**
 
 On
        September 15, 2006, the Company entered into an asset purchase option agreement
        to transfer certain patent rights to Accurthera, Inc., a Colorado corporation,
        for $50,000 paid on September 15, 2006, and an additional $300,000 payable
        within the following thirty-six (36) months. These patents were previously
        recorded on the Company’s books at a zero carrying value. The agreement
        stipulates that Accuthera can terminate the agreement at any time within
        the
        thirty-six (36) month period at which time the patent rights would revert
        back
        to the Company without any additional payment. The
        Company has not recorded revenue or a corresponding receivable for the
        additional payment as its receipt is believed
        to be uncertain .
  8
 *Table
            of Contents*
  **NOTE
        G - Net Operating Loss Carryforwards**
 
 As
        of
        December 31, 2005, Kent International had approximately $84 million of net
        operating loss carryforwards (“NOL”) for income tax purposes. In addition, Kent
        International has approximately $2 million of research and development and
        foreign tax credit carryforwards available to offset future federal income
        tax,
        subject to limitations for alternative minimum tax. The NOL’s and tax credit
        carryforwards expire in various years from 2006 through 2025. Kent
        International’s use of operating loss carryforwards and tax credit carryforwards
        is subject to limitations imposed by the Internal Revenue Code. Management
        believes that the deferred tax assets as of December 31, 2005 do not satisfy
        the
        realization criteria set forth in SFAS No. 109 and has recorded a valuation
        allowance for the entire net tax asset. By recording a valuation allowance
        for
        the entire amount of future tax benefits, the Company has not recognized
        a
        deferred tax benefit for income taxes in its statements of
        operations.
 
 **NOTE
        H - New Accounting Pronouncements**
 
 In
        June
        2006, the FASB issued Interpretation No. 48, “ *Accounting
        for Uncertainty in Income Taxes - an Interpretation of FASB Statement No.
        109* .”
This
        Interpretation clarifies the accounting for uncertainty in income taxes
        recognized in an enterprise’s financial statements in accordance with FASB
        Statement No. 109, *Accounting
        for Income Taxes.* This
        Interpretation prescribes a recognition threshold and measurement attribute
        for
        the financial statement recognition and measurement of a tax position taken
        or
        expected to be taken in a tax return. This Interpretation also provides guidance
        on derecognition, classification, interest and penalties, accounting in interim
        periods, disclosure, and transition.
 
 The
        evaluation of a tax position in accordance with this Interpretation is a
        two-step process. The first step is recognition: The enterprise determines
        whether it is more likely than not that a tax position will be sustained
        upon
        examination, including resolution of any related appeals or litigation
        processes, based on the technical merits of the position. In evaluating whether
        a tax position has met the more-likely-than-not recognition threshold, the
        enterprise should presume that the position will be examined by the appropriate
        taxing authority that has full knowledge of all relevant information. The
        second
        step is measurement: A tax position that meets the more-likely-than-not
        recognition threshold is measured to determine the amount of benefit to
        recognize in the financial statements. The tax position is measured at the
        largest amount of benefit that is greater than 50 percent likely of being
        realized upon ultimate settlement.
 
 Tax
        positions that previously failed to meet the more-likely-than-not recognition
        threshold should be recognized in the first subsequent financial reporting
        period in which that threshold is met. Previously recognized tax positions
        that
        no longer meet the more-likely-than-not recognition threshold should be
        derecognized in the first subsequent financial reporting period in which
        that
        threshold is no longer met. Use of a valuation allowance as described in
        Statement 109 is not an appropriate substitute for the derecognition of a
        tax
        position. The requirement to assess the need for a valuation allowance for
        deferred tax assets based on the sufficiency of future taxable income is
        unchanged by this Interpretation.
  The
        standard is effective for accounting changes and corrections of errors made
        in
        fiscal years beginning after December 15, 2006, although earlier implementation
        is encouraged. Implementation of this standard is not expected to have an
        impact
        on the Company’s financial statements.
  9
 *Table
            of Contents*
  **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. Statements in this report
        relating to future plans, projections, events or conditions are forward-looking
        statements. Such statements are subject to risks and uncertainties that could
        cause actual results to differ materially from those described. The Company
        expressly disclaims any obligation or undertaking to update these statements
        in
        the future.
 
 **Organization**
 
 The
        Company, previously known as Cortech, Inc., 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 had 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.
 
 **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, but not limited to, 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.
 
 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.
  10
 *Table
            of Contents*
  **Results
        of Operations**
 
 Kent
        International had a net loss of $18,000, or $.01 basic and fully diluted
        loss
        per share, for the quarter ended September 30, 2006 compared to net income
        of
        $11,000, or $0.00 basic and fully diluted income per share, for the same
        period
        of 2005. For the nine months ended September 30, 2006, the Company had a
        net
        loss of $183,000, or $.05 basic and fully diluted loss per share, compared
        to a
        net loss of $29,000, or $.01 basic and fully diluted loss per share, for
        the
        same period of 2005. The increase in the net losses were a result of the
        Company’s increased personnel and business development expenses which were
        offset by increased interest revenue on investments and cash equivalents
        and a
        one-time sale of certain of the Company’s patents as discussed
        below.
 
 **Revenues**
 
 Interest
        income increased to $137,000 and $373,000 for the three and nine months ended
        September 30, 2006, respectively, from $93,000 and $234,000 for the same
        periods
        in 2005. A higher yield on short-term investments and cash equivalents was
        the
        reason for the increase.
 
 The
        Company recorded $50,000 in other income in the three and nine months ended
        September 30, 2006, related to the one time sale of certain of the Company’s
        pharmaceutical patent rights to Accuthera, Inc., a Colorado corporation,
        in
        September 2006. These patents were previously recorded on the Company’s books at
        a zero carrying value. The Company did not have any revenues other than interest
        income during the three and nine months ended September 30, 2005.
 
 **Expenses**
 
 General
        and administrative expenses were $205,000 and $605,000 in the three and nine
        months ended September 30, 2006 compared to $82,000 and $262,000 in the three
        and nine months ended September 30, 2005, increases of $123,000 and $343,000,
        respectively. These increases can be attributed to personnel expenses,
        management fees and other expenses as discussed below.
 
 Personnel
        expenses for the three and nine months ended September 30, 2006 were $57,000
        and
        $170,000, respectively, relating to salary and associated payroll taxes for
        the
        Company’s President who was hired in November 2005. The Company had no personnel
        expenses in the three and nine months ended September 30, 2005. Personnel
        expenses were responsible for 46% and 50% of the increases in general and
        administrative expenses for the three and nine months ended September 30,
        2006
        as discussed above.
 
 Management
        fees increased to $63,000 in the third quarter of 2006 from $45,000 in the
        third
        quarter of 2005 due to a $6,000 increase in the monthly management fee paid
        to
        an affiliated entity effective October 2005 (See Other Disclosures - Related
        Party Transactions in the Management’s Discussion and Analysis for more
        information about Management Fees). Management fees were $189,000 and $135,000
        in the nine months ended September 30, 2006 and 2005 respectively. The increase
        in management fees makes up 15% and 16% of the three and nine month increases,
        respectively, in general and administrative expenses discussed
        above.
 
 All
        other
        expenses increased to $85,000 and $246,000 for the three and nine months
        ended
        September 30, 2006 from $37,000 and $127,000 for the three and nine months
        ended
        September 30, 2005, due primarily to an increase in travel expenses related
        to
        business development activities performed by the Company’s President.
        Additionally, the Company expended $18,000 for legal and regulatory fees
        in
        connection with the reincorporation by merger between Cortech and Kent
        International.
  11
 *Table
            of Contents*
  **Liquidity
        and Capital Resources**
 
 At
        September 30, 2006, the Company had cash and cash equivalents of approximately
        $31,000. 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 $10.956 million
        at
        September 30, 2006. Working capital at September 30, 2006 was approximately
        $10.903 million. Management believes its cash and cash equivalents are
        sufficient for its operations for at least the next twelve months and for
        the
        costs of seeking an acquisition of or starting an operating business.
 
 Net
        cash
        of $363,000 was used in operations for the nine months ended September 30,
        2006,
        an increase of $312,000 over the $51,000 used in operations for the nine
        months
        ended September 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 $51,000 used in operations for the nine months
        ended
        September 30, 2005 was a result of the net loss for the period coupled with
        the
        changes in operating assets and liabilities.
 
 Net
        cash
        of $37,000 was provided by investing activities for the nine months ended
        September 30, 2006 resulting from the purchases and maturities of short-term
        investments. There were no cash flows from investing activities reported
        during
        the nine months ended September 30, 2005.
 
 The
        Company used $68,000 for financing activities for the nine months ended
        September 30, 2006 to repurchase 24,984 shares of common stock. There were
        no
        cash flows from financing activities reported during the nine months ended
        September 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 is paid to Kent Financial Services, Inc. (“Kent”), a
        Delaware corporation, 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. Kent is the beneficial owner of
        approximately 53.22% of the Company’s outstanding common stock at September 30,
        2006. Paul O. Koether, Chairman of the Company is also the Chairman of Kent
        and
        the beneficial owner of approximately 55.38% 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.
  12
 *Table
            of Contents*
  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.
 
 **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 September 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 2007, the
        system and process documentation and evaluation needed to comply with Section
        404.
  13
 *Table
            of Contents*
  **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
                  ProgramsJuly
                  1, 2006 - July 31, 2006
              
              
              -
              
              
              -
              
              
              -
              
              
              135,560August
                  1, 2006 - August 31, 2006
              
              
              -
              
              
              -
              
              
              -
              
              
              135,560September
                  1, 2006 - September 30, 2006
              
              
              24
              
              $
              2.54
              
              
              24
              
              
              135,536Total
              
              
              24
              
              $
              2.54
              
              
              24
              
              
              135,536
  (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**
 
 None.
 
 **ITEM5.**
              **Other
                  Information**
 
 On
        September 15, 2006, the Company entered into an asset purchase option agreement
        to transfer certain patent rights to Accurthera, Inc., a Colorado corporation,
        for $50,000 paid on September 15, 2006, and an additional $300,000 payable
        within the following thirty-six (36) months. These patents were previously
        recorded on the Company’s books at a zero carrying value. The agreement
        stipulates that Accuthera can terminate the agreement at any time within
        the
        thirty-six (36) month period at which time the patent rights would revert
        back
        to the Company without any additional payment. The
        Company has not recorded revenue or a corresponding receivable for the
        additional payment as its receipt is believed
        to be uncertain .
  14
 *Table
            of Contents*
 **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 Information 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
  15
 *Table
            of Contents*
  **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:
                  October 20, 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)
   16