|UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION
    Washington, D.C. 20549Form 10-KSB
|------------------------------------------------------------------------------------------





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



For the fiscal year ended: May 31, 2007



Commission file number: 333-61801





|LIFEQUEST WORLD
    CORPORATION(Exact name of registrant as
    specified in its charter)(formerly Phytolabs, Inc. and Jurak Corporation World
    Wide, Inc.)(Name of small business issuer in its charter)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                            
|Minnesota (State or other jurisdiction of incorporation
    or organization)                                                                                                                                
|                                                                                                                                                                                                            
|1181 Grier Drive, Suite C, Las Vegas, Nevada 89119-3746(Address of principal executive offices)                                                                                                             
|                                                                                                                                                                                                            
|(702) 914-9688(Issuer's telephone number)                                                                                                                                                                   
|                                                                                                                                                                                                            
|Securities registered pursuant to Section
    12(b) of the Act:                                                                                                                                             
|None                                                                                                                                                                                                        
|                                                                                                                                                                                                            
|Securities registered pursuant to Section
    12(g) of the Act:                                                                                                                                             
|Common Stock, .001 par value                                                                                                                                                                                
|(Title of Class)                                                                                                                                                                                            





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

Yes [X]     No     [
]

Check here if there is no disclosure of delinquent filers in
response to item 405 of Regulation S-B contained in this Form, and no disclosure
will be contained, to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB [ ]

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

State issuer's revenues for its most recent fiscal year
(ending May 31, 2007): $1,046,299

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked prices of such common
equity: As of August 15, 2007, the aggregate market value of the issuer's common
stock was $32,063,855, based on the average bid and ask price on that date of
$0.31.

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

|Class                      | Outstanding as of August 15, 2007
|-------------------------- | ---------------------------------
|Common Stock, no par value | 103,431,791                      



Documents Incorporated By Reference

If the following documents are incorporated by reference,
briefly describe them and identify the part of the Form 10-KSB into which the
document is incorporated: (1) any annual report to security holders; (2) any
proxy or information statement; and (3) any prospectus filed pursuant to Rule
424(b) or (c) of the Securities Act of 1933 "Securities Act"). The listed
documents should be clearly described for identification purposes.

None.

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







---



LIFEQUEST WORLD CORPORATION
(formerly PHYTOLABS, INC. and JURAK CORPORATION WORLD WIDE, INC.)





Form 10-KSB

|Item 1.      | Description of Business.                                                                                                                           | 5 
|------------ | -------------------------------------------------------------------------------------------------------------------------------------------------- | --
|             |                                                                                                                                                    |   
|Item 2.      | Description of Property.                                                                                                                           | 21
|             |                                                                                                                                                    |   
|Item 3.      | Legal
    Proceedings.                                                                                                                             | 21
|             |                                                                                                                                                    |   
|Item 4.      | Submission
    of Matters to a Vote of Security Holders.                                                                                           | 21
|             |                                                                                                                                                    |   
|Item 5.      | Market for
    Common Equity and Related Stockholder Mattersand Small Business Issuer's Purchase of Securities                                     | 22
|             |                                                                                                                                                    |   
|Item 6.      | Management's Discussion and Analysis of Financial Condition and Results of
    Operations.                                                         | 25
|             |                                                                                                                                                    |   
|Item
    7.  | Financial Statements.                                                                                                                              | 36
|             |                                                                                                                                                    |   
|Item 8.      | Changes In
    and Disagreements With Accountants on Accounting and Financial Disclosure.                                                          | 49
|             |                                                                                                                                                    |   
|Item 8A.     | Controls and Procedures.                                                                                                                           | 49
|             |                                                                                                                                                    |   
|Item
    8B. | Other Information.                                                                                                                                 | 50
|             |                                                                                                                                                    |   
|Item 9.      | Directors,
    Executive Officers, Promoters and Control Persons; and Corporate Governance;
    Compliance With Section 16(a) of the Exchange Act. | 50
|             |                                                                                                                                                    |   
|Item
    10. | Executive Compensation.                                                                                                                            | 52
|             |                                                                                                                                                    |   
|Item 11.     | Security Ownership of Certain Beneficial Owners and Management and Related
    Stockholder Matters.                                                | 54
|             |                                                                                                                                                    |   
|Item
    12. | Certain
    Relationships and Related Transactionsand Director Independence                                                                        | 54
|             |                                                                                                                                                    |   
|Item 13.     | Exhibits.                                                                                                                                          | 55
|             |                                                                                                                                                    |   
|Item 14.     | Principal
    Accountant Fees and Services.                                                                                                        | 55



NOTE REGARDING FORWARD LOOKING STATEMENTS

This Annual Report includes or is based upon estimates,
projections or other "forward looking statements". Such forward-looking
statements include any projections or estimates made by us and our management in
connection with our business operations. Such forward-looking statements are
based on the beliefs of Lifequest World Corporation (formerly Phytolabs, Inc.
and Jurak Corporation World Wide, Inc.) When used in this Annual Report, the
words "anticipate," "believe," "estimate," "expect," "intends" and similar
expressions, as they relate to us, are intended to identify forward-looking
statements, which include statements relating to, among other things, the
ability of our company to continue to successfully compete in the herbal
supplement markets. While these forward looking statements, and any assumptions
upon which they are based, are made in good faith and reflect our current
information and judgment regarding the direction of our business, actual results
will almost always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested herein.

Such estimates, projections, or other "forward looking
statements" involve various risks and uncertainties. We caution the reader that
important factors in some cases have affected, and in the future could
materially affect actual results and cause actual results to differ materially
from the results expressed in any such estimates, projections, or other
"forward-looking statements".

Available Information

Lifequest World Corporation (formerly Phytolabs, Inc. and
Jurak Corporation World Wide, Inc.) files annual, quarterly and current reports
and other information with the Securities and Exchange Commission (the
"Commission"). You may read and copy documents referred to in this Annual Report
that have been filed with the Commission at the Commission's Public Reference
Room, 450 Fifth Street, N.W., Washington, D.C. You may obtain information on the
operation of the Public Reference Room by calling the Commission at
1-800-SEC-0330. You can also obtain copies of our Commission filings by going to
the Commission's website at http://www.sec.gov. The Company maintains a website
at www.phytolabsinc.com. Our annual reports on Form 10-KSB, our quarterly
reports on Form 10-QSB and our periodic reports on Form 8-K (and any amendments
to these reports) are available free of charge by linking from our website to
the Securities & Exchange Commission website.





---





PART I






ITEM 1. DESCRIPTION OF BUSINESS.



BUSINESS HISTORY AND DEVELOPMENT



Company Name Change

Effective August 20, 2007, the Company changed its name to
Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak Corporation
World Wide, Inc.) to more reflect the business the company is involved in --
that of products designed to positively affect the lives of people worldwide.
The shares of the Company trade on the Over the Counter Bulletin Board under the
symbol, "LQWC."



Lifequest World Corporation (formerly Phytolabs, Inc. and
Jurak Corporation World Wide, Inc.) was incorporated under the laws of the State
of Minnesota on November 1, 1997. In this Annual Report, the terms "Company",
"us", "we", "our" and "its" are used as references to Phytolabs Inc. We develop
and distribute dietary herbal supplement products. Our "JC Tonic, The Youth
Solution" first developed in the 1920's and 1930's and introduced to the
marketplace in 1943 by Mr. Carl Jurak, the father of the founder of our company.
Our dietary herbal supplement products are distributed through a network
marketing system using independent distributors that we refer to as "Ambassadors
of Health" (distributors).





BUSINESS OPERATIONS



General



We are a product-focused company specializing in the herbal
supplement industry and market. Our main product is the "JC Tonic, The Youth
Solution", which is an herbal supplement blend of thirty-one different
ingredients comprised primarily of eighteen medicinal tonic herbs and six vital
minerals. The JC Tonic, The Youth Solution is marketed in 32-ounce bottles and
two-third ounce single unit doses packaged 45 to a box, which combined,
constitute approximately 97% of our sales.



We distribute our products through a network marketing system
using independent distributors. Network marketing appeals to a wide
cross-section of people, particularly those seeking to supplement income, start
a home-based business, or pursue entrepreneurial opportunities other than
conventional full-time employment. We consider our compensation plan and cash
bonus pools to be attractive components of our network marketing system. We also
believe that our network marketing system is ideally suited to market herbal
supplement products because sales of such products are strengthened by ongoing
personal contact between our distributors and their customers. Distributors are
given the opportunity through sponsored events and training sessions to network
with other distributors, develop selling skills and establish personal goals. We
supplement monetary incentives with other forms of recognition in order to
further motivate and foster an atmosphere of excitement through our distributor
network.



We have obtained trademark protection for the name "JC Tonic"
within the United States and within Canada. We also own the web sites
www.theyouthsolution.com, www.jurak.com, www.jctonic.com, www.tonicman.com and
www.phytolabsinc.com



Industry Overview - Tonic Herbs



The nutrition industry includes many small and medium sized
companies that manufacturer and distribute products generally intended to
maintain the bodies health and general well being. The four major product
categories within the nutrition industry are: (i) nutritional supplements, which
are products such as vitamins and minerals, dietary supplements, herbs and
botanicals, and compounds derived from these substances; (ii) natural and
organic foods; (iii) functional foods; and (iv) personal care products.



The JC Tonic, The Youth Solution is a blend of 18
bi-directional tonic herbs with added minerals. "Tonic" has been defined as "a
substance (tonic) to strengthen the body against chronic conditions by gently
"moving" or "adjusting" processes in the body; they are "catalysts" or
"assisting remedies". The definition of a tonic clearly excludes the notion of
"making stronger" by pushing the body in one direction only. Tonics are
bi-directional, capable of both increasing and decreasing the activity of body
processes. Herbs whose action is bi-directional are called tonics. Tonic herbs
have the ability to exert balancing action on both systems and biochemical
processes of the body. Their power lies in both their therapeutic benefits and
ease of application.



We believe that the concept of a tonic may sound strange to
modern ears. We simply have not made room in our medical or nutritional agendas
for a concept of a substance that restores balance. We believe that this will
change as the medical community begins to realize that many modern plagues may
be prevented and even treated by maintaining optimum health in all body systems.
Such a re-orientation of thought demands that much less emphasis be placed on
finding and killing "germs", and much more on increasing the body systems
natural defenses and restorative powers. The concept of the herbal tonic will be
a signpost for the new research.



We believe that the nutrition industry, which includes our
herbal tonic product, is being fueled by certain factors including, but not
limited to, the following: (i) the public's exposure to more widely accepted
natural and homeopathic alternatives, which include herbal products; (ii) the
desire to slow down the aging process; (iii) the nationwide and worldwide trend
toward preventive health care combining Eastern and Western medicine; and (iv)
the rapid product introductions taking place in response to scientific research
fueled by new demand.



Our Product Line



In addition to the family of herbal based products and skin
care products, Lifequest World Corporation, through its wholly-owned subsidiary,
Phytolab Solutions, Inc., acquired the worldwide rights to the new
immune-stimulatory product from Nordic Immotech Trading. This ingredient holds
the U.S. Patent #7,205,284 and marketing of the product has already begun in
Europe and is slated to begin in North America in the Fall of 2007.



Network Marketing Strategy



We market and distribute our products through a network
marketing system and sell directly to distributors and preferred customers. We
recognize the need to aggressively grow our distributor sales force, thereby
building new sales. We had approximately 9,400 distributors and 3,300 retail
customers at May 31, 2007, compared with approximately 9,900 distributors and
4,300 retail customers at May 31, 2006. Network marketing is a form of
person-to-person direct selling through a network of vertically organized
independent distributors who purchase products at wholesale prices from the
manufacturer for resale to retail consumers. The emergence of readily available
means of mass communication such as personal computers, facsimiles, low-cost
long distance telephone services, and the Internet has contributed to the rapid
growth of network marketing. The concept of network marketing is based on the
strength of personal recommendations that frequently come from friends,
neighbors, relatives, and close acquaintances. We believe that network marketing
is an effective way to distribute our products because it allows
person-to-person product education, which is not as readily available through
other distribution channels. We believe our network marketing system appeals to
a broad cross-section of people, particularly those seeking to supplement family
income, start a home business, or pursue employment opportunities other than
conventional, full-time employment. Most of our distributors therefore sell our
products on a part-time basis.



We believe that our network marketing system is ideally
suited to market our products because sales are strengthened by ongoing personal
contact between retail consumers and distributors, all of which themselves use
our products. Sales are made through direct personal sales presentations as well
as presentations made to groups. These sales methods are designed to encourage
individuals to purchase our products by informing potential customers and
distributors of our products, results of personal use, and the potential
financial benefits of becoming a distributor. The objective of the marketing
program is to develop a broad based network marketing organization within a
relatively short period.



Our network marketing program encourages individuals to
develop their own downline network marketing organizations. Each new distributor
is either linked to the existing distributor that personally enrolled the new
distributor into our network marketing organization or the existing distributor
in the enrolling distributor's downline as specified at the time of enrollment.
Growth of a distributor's downline organization is dependent upon the recruiting
and enrollment of additional distributors within such distributor's downline
organization.



Distributors are encouraged to assume responsibility for
training and motivation of others within their downline organization and to
conduct opportunity meetings as soon as they are appropriately trained. We
strive to maintain a high level of motivation, morale, enthusiasm and integrity
among the members of our network marketing organization. We believe this result
is achieved through a combination of sales incentives, personal recognition, or
outstanding achievement, and quality promotional materials. Under our network
marketing program, distributors purchase sales aids and brochures from us and
assume the costs of advertising and marketing our products to their customers as
well as the direct costs of recruiting new distributors. We believe that this
form of sales organization is cost efficient because our direct sales expenses
are limited.



We continually strive to improve our marketing strategies,
including the compensation structure within our network marketing organization,
to attract and motivate distributors. These efforts are designed to increase
monthly product sales and the recruiting of distributors.



We believe that in addition to the United States and
Canadian markets, significant growth opportunities continue to exist in
international markets. We intend to select new markets following an assessment
of several factors including market size, anticipated demand for our products,
receptivity to network marketing, and ease of entry, which includes
consideration of possible regulatory restrictions on our products or network
marketing system.





Material Agreements



Intellectual Property License Agreement



On approximately January 1, 1999, we entered into an
intellectual property license agreement (the "License Agreement") with Jurak
Holdings Limited ("JHL"), a corporation organized under the laws of the Province
of Alberta and an affiliate of our Chief Executive Officer and one of our
directors. Pursuant to the terms and provisions of the License Agreement, we are
required to pay the greater of $500,000 for fiscal year 2003 and each calendar
year thereafter, during the first ten years of the License Agreement (the
"Minimum Royalty Fee"), or eight percent of the net sales price of all license
products sold under the License Agreement (the "Continuing Royalty Fee"). After
fiscal 2013, we are required to make payments in the amount of the Continuing
Royalty Fee.



The accrued payments due and owing to JHL under the License
Agreement for the Minimum Royalty Fee and the Continuing Royalty Fee was
$631,856 and $250,000 at May 31, 2007 and 2006 respectively.



Immune Booster License Agreement



During the year ended May 31, 2007, the Company expended
$1,067,531 for licensing fees associated with an exclusive license and
distribution agreement to acquire the worldwide marketing rights to a powerful,
natural immune booster. These rights are being acquired from Nordic Immotech
Trading APS, a leading life science company with a successful history of
producing unique, patented products that are distributed on a global scale. On
December 1, 2006, the Company, through its wholly owned subsidiary, Phytolab
Solutions, Inc. finalized the closing of this exclusive global license and
distribution agreement with respect to this natural immune booster product.
Phytolab Solutions, Inc. has not yet begun to market or sell these products, but
expects to begin later in 2007. As part of the closing for this agreement, the
Company paid $550,000 per the terms of the agreement on December 6, 2006,
$500,000 in April 2007 and various legal costs associated with the agreement
totaling $17,531. The agreement calls for additional installment payments
totaling $1,450,000 to be paid as follows:



$500,000 June 30, 2007

$500,000 September 30, 2007

$450,000 November 30, 2007

The Company has imputed interest on these installments at a
rate of 10%. The discounted value, including legal costs of the licensed asset
totals $2,390,721. The remaining installments payable as of May 31, 2007, net of
the calculated imputed interest, totaled $1,384,513. Since the sales and
marketing of this new immune booster product has not been initiated, no
amortization of the licensed asset has been recorded for the year ended May 31,
2007.

As part of the license agreement noted above, Nordic Immotech
shall pay a royalty of ten percent (10%) of net sales of products sold by Nordic
and or affiliates to independent third parties.

In a separate agreement, the Company was granted an option to
purchase all the shares in Nordic Immotech (the supplier). Subject to the terms
and conditions of the separate agreement, the Company has the option to purchase
all of the shares of Nordic Immotech (170,000 shares) at a fixed price of $76.47
per share for a total of $13,000,000. The Company may exercise the option
anytime before December 1, 2008.



Intellectual Property



Patents and other proprietary rights are vital to our
business operations. We protect our technology through a trademark that Jurak
Holdings Limited ("JHL") owns and can license. JHL's policy is to seek
appropriate protection both in the United States and abroad for our Jurak
Classic Whole Body Tonic and other products. We have acquired trademark
protection as follows.



JC Tonic



On January 15, 2002, the United States Patent and
Trademark Office issued a certificate of registration, registration no.
2,530,329, to JHL for protection of our exclusive use of the trademark "JC
Tonic". The certificate of registration for "JC Tonic" was issued under Class 6,
18, 44, 46, 51 and 52 for herbal, mineral and vitamin supplements, and shall
remain in force and effect for ten years from the date of issuance.



The Youth Solution



On May 3, 2005, the United States Patent and Trademark
Office issued an application serial no. 78/618,318, registration no. 2625515, to
JHL for protection of our exclusive use of the trademark "The Youth Solution".
The certificate of registration for "The Youth Solution" was issued under Class
3 for body lotions, and shall remain in force and effect for ten years from the
date of issuance.



On September 24, 2002, the United States Patent and Trademark
Office issued a certificate of registration, serial no. 75/703,055, registration
no. 2,625,515, to JHL for protection of our exclusive use of the trademark "The
Youth Solution". The certificate of registration for "The Youth Solution" was
issued under Class 5 and 32 for herbal supplements, and shall remain in force
and effect for ten years from the date of issuance.



Helena



On November 29, 2004, the United States Patent and Trademark
Office accepted JHL's application for registration under serial no. 78/523,794,
for protection of our exclusive use of the trademark "Helena". The application
was filed for "Helena" under Class 3 for non-medicated skin care preparation.
Once final approval is obtained by the United States Patent and Trademark
Office, the trademark shall remain in force and effect for ten years from the
date of issuance.



Vimirex



On January 18, 2005, the United States Patent and Trademark
Office accepted JHL's application for registration under serial no. 78/549,525,
for protection of our exclusive use of the trademark "Vimirex". The application
was filed for "Vimirex" under Class 5 for vitamins and minerals. Once final
approval is obtained by the United States Patent and Trademark Office, the
trademark shall remain in force and effect for ten years from the date of
issuance.





JC Junior



On June 28, 2005, the United States Patent and Trademark
Office accepted JHL's application for registration under serial no. 78/659,837,
for protection of our exclusive use of the trademark "JC Junior". The
application was filed for "JC Junior" under Class 5 and 32 for herbal
supplements. Once final approval is obtained by the United States Patent and
Trademark Office, the trademark shall remain in force and effect for ten years
from the date of issuance.



Take An Ounce and Feel the Bounce



On June 13, 2000, the United States Patent and Trademark
Office issued a certificate of registration, serial no. 76/069,199, registration
no. 2,490,428, to us for protection of our exclusive use of the trademark "Take
An Ounce and Feel the Bounce". The certificate of registration for "Take An
Ounce and Feel the Bounce" was issued under Class 32 for herbal supplements, and
shall remain in force and effect for ten years from the date of issuance.



Ambassador of Health



On May 5, 1999, the United States Patent and Trademark Office
issued a certificate of registration, serial no. 75/702,892, registration no.
2,613,042, to us for protection of our exclusive use of the trademark
"Ambassador of Health". The certificate of registration for "Ambassador of
Health" was issued under Class 16 and 35 for magazines and newsletters on health
and nutrition and for personnel recruitment and business consultation, and shall
remain in force and effect for ten years from the date of issuance.



We may consider filing additional patent applications with
respect to our technologies and any novel aspects of our technology to protect
our intellectual property. Future patents, if issued, may be challenged,
invalidated or circumvented. Thus, any patent that we own or license from
related and third parties may not provide adequate protection against
competitors. The patent applications that we may file in the future may not
result in issued patents. Also, patents may not provide us with adequate
proprietary protection or advantages against competitors with similar or
competing technologies. As a result of potential conflicts with the proprietary
rights of others, we may in the future have to prove that we are not infringing
the patent rights of others or be required to obtain a license to the patent. We
do not know whether such a license would be available on commercially reasonable
terms, or at all.



We also rely on trade secrets and unpatentable know-how that
we seek to protect, in part, by confidentiality agreements. However, it is
possible that parties may breach those agreements, and we may not have adequate
remedies for any breach. It is also possible that our trade secrets or
unpatentable know-how will otherwise become known or be independently developed
by competitors. There can be no assurance that third parties will not assert
infringement or other claims against us with respect to any existing or future
products, or that licenses would be available if our technology were
successfully challenged by a third party, or if it became desirable to use any
third-party technology to enhance our products. Litigation to protect our
proprietary information or to determine the validity of any third-party claims
could result in significant expense to us and divert the efforts of our
technical and management personnel, whether or not we are successful in such
litigation.



While we have no knowledge that we are infringing the
proprietary rights of any third party, there can be no assurance that such
claims will not be asserted in the future with respect to our existing or future
products. Any such assertion by a third party could require us to pay royalties,
to participate in costly litigation and defend licensees in any such suit
pursuant to indemnification agreements, or to refrain from selling an alleged
infringing product or service.



COMPETITION



The business of developing and distributing nutritional
and personal care products such as our products is highly competitive. Numerous
manufacturers, distributors and retailers compete for consumers and, in the case
of other network marketing companies, for distributors. We compete directly with
other entities that develop, manufacture, market and distribute dietary
supplements. We compete with these entities by emphasizing the underlying
science, value and high quality of our products, as well as the convenience and
financial benefits afforded by our network marketing system and compensation
plan. However, many of our competitors may be substantially larger and have
greater financial resources and broader name recognition. Our markets are highly
sensitive to the introduction of new products that may rapidly capture a
significant share of those markets.



The nutritional supplement market is characterized by: (i)
large selection of essentially similar products that may be difficult to
differentiate; (ii) retail consumer emphasis on value pricing; (iii) constantly
changing formulations based on evolving scientific research; (iv) low entry
barriers resulting from low brand loyalty, rapid change, widely available
manufacturing, low regulatory requirements, and ready access to large
distribution channels; and (v) a lack of uniform standards regarding product
ingredient sources, potency, purity, absorption rate, and form.



There can be no assurance that we will be able to effectively
compete in this intensely competitive environment. Nutritional and personal care
products can be purchased in a wide variety of distribution channels, including
retail stores and the fact that our product offering line is relatively limited
compared to the wide variety of products offered by many of our competitors, and
are often premium priced. Our ability to remain competitive depends in part upon
the successful marketing of our premium priced products.



We also compete with other network marketing organizations
for time, attention and commitment of new and current distributors. Our ability
to remain competitive depends, in significant part, on our success in recruiting
and retaining distributors. We believe that we offer a rewarding and unique
compensation plan and attractive benefits and services. To the extent
practicable, our compensation plan is designed to be seamless, permitting
international expansion without re-entry requirements. There can be no assurance
that our program for recruiting and retaining distributors will be successful.
The pool of individuals interested in the business opportunities presented by
network marketing tends to be limited in certain markets, and is reduced to the
extent other network marketing companies successfully recruit these individuals
into their businesses. Although we believe that we offer an attractive
opportunity for our distributors, there can be no assurance that other network
marketing companies will not be able to recruit our existing distributors or
deplete the pool of potential distributors in a given market.



RISK FACTORS





Risks Related to Our Business

We Have a History of Operating Losses and There Can Be No
Assurance We Will Be Profitable in the Future; We Need to Raise Capital to
Continue Our Growth.



We have a history of operating losses, expect to continue to
incur losses, and may never be profitable. We do not expect positive cash flow
from operations in the near term. Further, we have been dependent on sales of
our equity securities and debt financing to meet our cash requirements. We
incurred a net loss of $1,375,969 for the fiscal year ended May 31, 2007, and
have an aggregate net loss of $6,011,234 as of May 31, 2007. As of May 31, 2007,
we had a working capital deficit of $2,094,985. There is no assurance that our
actual cash requirements will not exceed our estimates. In particular,
additional capital may be required in the event that we encounter greater costs
associated with general and administrative expenses, additional resources needed
for our new immune booster product and costs of offering equity securities or
debt financing.



We May Need to Raise Capital to Continue Our Growth.







Our Success Depends on the Ability of Our Suppliers With Whom
We Have Business Arrangements.



We depend on a number of suppliers that produce our products.
Failure to maintain continuous access to these suppliers may have a materially
adverse affect on our business. Such suppliers may experience equipment failures
and service interruptions, of which we have no control, which could adversely
affect customer confidence, our business operations and our reputation.
If we experience a significant increase in demand, we may
have to expand our third party suppliers. We cannot be assured that additional
suppliers will be available to us, or that if available it will be available on
terms that are acceptable to us. If we cannot produce a sufficient quantity of
our products to meet demand or delivery schedules, our customers might reduce
demand, reduce the purchase price they are willing to pay for our product, or
replace our product with the product of a competitor, any of which could have a
materially adverse effect on our financial condition and operations.



We Rely on the Network Marketing System.



We have relied on the network marketing system to distribute,
market and sell our products. We have no long-term contractual relationship with
these distributors. While we believe that the distributors will continue to
provide their services, there can be no assurance that the distributors will be
available in the future, and if available, will be available on terms deemed
acceptable to us. We had approximately 9,400 distributors and 3,300 retail
customers at May 31, 2007 down from 9,900 and 4,300 respectively, at May 31,
2006.

Our Continued Operations Depend on the Successful Marketing of our Jurak
Classic Whole Body Tonic.

Our business plan is based on the marketing and distribution
of primarily one product, the JC Tonic, The Youth Solution. However, we have
added a second product, a personal care skin rejuvenation product, and in the
Fall of 2007 we will be adding our new patented immune booster product. There is
no assurance that we will be successful in implementing our marketing strategies
or that our marketing strategies, even if implemented, will lead to the
successful achievement of our objectives. If we are not able to successfully
implement our marketing strategies, our business operations and financial
performance may be adversely affected. The novelty and the design of our
products is important to our success and competitive position, and if we are
unable to continue to develop and offer such a unique product to our customers,
our business could suffer.

Our Growth Could Harm Our Future Business Results.

As we proceed with the production, marketing and sale of our
existing and anticipated products, we expect to experience significant and rapid
growth of our business. We may need to add staff to manage operations, handle
marketing efforts and perform finance and accounting functions. We may be
required to hire a broad range of additional personnel in order to successfully
advance our operations. This growth is likely to place a strain on our
management and operational resources. The failure to develop and implement
effective operational and financial systems, or to hire and retain sufficient
personnel for the performance of all of the functions necessary to effectively
service and manage our potential business, or the failure to manage growth
effectively, could have a materially adverse affect on our business and
financial condition.

Our Success is Dependent Upon the Acceptance of Our Products
and Our Business.

Our success depends upon our achieving significant market
acceptance of our products. We cannot guarantee that consumers will purchase our
product. Acceptance of herbal supplemental products will depend on the success
of our advertising, promotional and marketing efforts. During our second quarter
for the year ended May 31, 2007, we updated our packaging; engaged a publicity
agent; enhanced the flavor of our consumable products; reintroduced our unit
dose packaging for our liquid herbal supplements; reduced the number of other
sizes available to only one bottle size; released our new online service for
distributors referred to as a Back Office; developed personal replicated
websites for our distributor force; and concluded an agreement with Nordic
Immotech Trading giving us the worldwide rights to market their
immune-stimulatory product.

Failure to maintain effective internal controls

A failure to maintain effective internal controls could
adversely affect our business. The Company will need to begin the process of
documenting and testing its internal controls as required by the Sarbanes-Oxley
Act of 2002 this coming fiscal year. The Company expects to incur significant
costs in complying with these requirements, including increased staffing costs,
increased accounting, auditing and consulting fees. In addition, the
requirements of Sarbanes-Oxley may limit the ability of the Company to make any
future acquisitions . Failure by the Company to adequately meet the internal
control requirements would be reported in the Company's filings to the
Securities and Exchange Commission - which could negatively impact the Company's
reputation and its stock price.



Loss of Key Management Personnel.

The loss of Mr. Anthony Jurak or Mr. Roger Theriault or any
of our key management personnel would have an adverse impact on our future
development and could impair our ability to succeed. Our performance is
substantially dependent upon the expertise of our Chief Executive Officer, Mr.
Anthony Jurak, and other key management personnel and our ability to continue to
hire and retain such personnel. Mr. Jurak spends substantially all of his time
working for us. It may be difficult to find sufficiently qualified individuals
to replace Mr. Jurak or other key management personnel if we were to lose any
one or more of them. The loss of Mr. Jurak or any of our other key management
personnel could have a materially adverse effect on our business, development,
financial condition, and operating results. We do not maintain "key person" life
insurance on any of our directors or senior executive officers.

Many of Our Competitors Are Larger and Have Greater Financial
and Other Resources Than We Do.

The herbal supplement industry, in general, is intensely
competitive. Our Jurak Classic Whole Body Tonic competes with other herbal
supplemental based products. Such based products are currently marketed by
well-established, successful companies that possess greater financial,
marketing, distribution, personnel and other resources than us. Using these
resources, these companies can implement extensive advertising and promotional
campaigns, both generally and in response to specific marketing efforts by
competitors, to enter into new markets rapidly and to introduce new products.
Competitors with greater financial resources also may be able to enter the
market in direct competition with us, offering attractive marketing tools to
encourage the sale of products that compete with our products or present cost
features which consumers may find attractive.

Government Regulation.

Any changes in regulation by the Federal Trade Commission
("FTC") and/or the U.S. Food and Drug Administration ("FDA") with respect to
labeling and advertising of our products could have an adverse affect on our
business. A change in these requirements could add additional cost to the
production of our products. However, these government regulatory agencies
generally allow companies to make changes when new materials are to be printed
and so the financial effects would be minimal.



RISKS RELATED TO OUR COMMON STOCK



Sale of Restricted Common Stock.



As of May 31, 2007, there are 102,731,791 outstanding shares
of our common stock, of which 97,474,747 are restricted securities as that term
is defined in Rule 144 under the Securities Act of 1933, as amended (the
"Securities Act"). Although the Securities Act and Rule 144 place certain
prohibitions on the sale of restricted securities, restricted securities may be
sold into the public market under certain conditions. As of May 31, 2007, there
are 1,600,000 warrants outstanding. During the years ended May 31, 2007,
1,600,000 shares were issued in a private placement offering. The placement
includes a warrant for each share purchased and is exercisable at $1.25 per
share for one year from that date.



Any significant downward pressure on the price of our common
stock as certain stockholders sell their shares of our common stock may
encourage short sales. Any such short sales could place further downward
pressure on the price of our common stock.



The Trading Price of Our Common Stock on the OTC Bulletin
Board Has Been and May Continue to Fluctuate Significantly and Stockholders May
Have Difficulty Reselling Their Shares.



Our common stock has traded as low as $0.03 and as high as
$1.99. In addition to volatility associated with Bulletin Board securities in
general, the value of your investment could decline due to the impact of any of
the following factors upon the market price of our common stock: (i) changes in
the demand for our products; (ii) disappointing results from our marketing and
sales efforts; (iii) failure to meet our revenue or profit goals or operating
budget; (iv) decline in demand for our common stock; (v) downward revisions in
securities analysts' estimates or changes in general market conditions; (vi)
lack of funding generated for operations; (vii) investor perception of our
industry or our business prospects; and (viii) general economic trends.



In addition, stock markets have experienced extreme price and
volume fluctuations and the market prices of securities have been highly
volatile. These fluctuations are often unrelated to operating performance and
may adversely affect the market price of our common stock. As a result,
investors may be unable to sell their shares at a fair price and you may lose
all or part of your investment.



Additional Issuances of Equity Securities May Result in
Dilution to Our Existing Shareholders.



Our Articles of Incorporation authorize the issuance of
150,000,000 shares of common stock and 50,000,000 shares of preferred stock. The
Board of Directors has the authority to issue additional shares of our capital
stock to provide additional financing in the future and the issuance of any such
shares may result in a reduction of the book value or market price of the
outstanding shares of our common stock. If we do issue any such additional
shares, such issuance also will cause a reduction in the proportionate ownership
and voting power of all other stockholders. As a result of such dilution, if you
acquire shares of our common stock, your proportionate ownership interest and
voting power could be decreased. Further, any such issuances could result in a
change of control.



We are authorized to issue shares of preferred stock. Our
board of directors, without shareholder approval, may issue shares of preferred
stock with rights superior to the rights of the holders of shares of common
stock. As a result, shares of preferred stock could be issued quickly and
easily, adversely affecting the rights of holders of shares of common stock and
could be issued with terms calculated to delay or prevent a change in control or
make removal of management more difficult. Although we have no present plans to
issue shares of preferred stock, the issuance of preferred stock in the future
could adversely affect the rights of the holders of common stock and reduce the
value of the common stock.



Our Common Stock is Classified as a "Penny Stock" under SEC
Rules Which Limits the Market for Our Common Stock.



Because our stock is not traded on a stock exchange or on the
NASDAQ National Market or the NASDAQ Small Cap Market, and because the market
price of the common stock is less than $5 per share, the common stock is
classified as a "penny stock." Our stock has not traded above $5 per share. SEC
Rule 15g-9 under the Exchange Act imposes additional sales practice requirements
on broker-dealers that recommend the purchase or sale of penny stocks to persons
other than those who qualify as an "established customer" or an "accredited
investor." This includes the requirement that a broker-dealer must make a
determination that investments in penny stocks are suitable for the customer and
must make special disclosures to the customers concerning the risk of penny
stocks. Many broker-dealers decline to participate in penny stock transactions
because of the extra requirements imposed on penny stock transactions.
Application of the penny stock rules to our common stock reduces the market
liquidity of our shares, which in turn affects the ability of holders of our
common stock to resell the shares they purchase, and they may not be able to
resell at prices at or above the prices they paid.



A Decline in the Price of Our Common Stock Could Affect Our
Ability to Raise Further Working Capital and Adversely Impact Our Operations.



A decline in the price of our common stock could result in a
reduction in the liquidity of our common stock and a reduction in our ability to
raise additional capital for our operations. Because our operations to date have
been principally financed through the sale of equity securities, a decline in
the price of our common stock could have an adverse effect upon our liquidity
and our continued operations. A reduction in our ability to raise equity capital
in the future would have a materially adverse effect upon our business plan and
operations, including our ability to continue our current operations. If our
stock price declines, we may not be able to raise additional capital or generate
funds from operations sufficient to meet our obligations.



GOVERNMENT REGULATION



In the United States, where we primarily sell our
products, we are subject to laws, regulations, administrative determinations,
court decisions and similar restrictions at the federal, state and local levels,
collectively known as "regulations". These regulations include and pertain to,
among other things: (i) the formulation, manufacturing, packaging, labeling,
advertising, distribution, sale and storage of our product; (ii) our product
claims and advertising, including label claims, direct claims, as well as claims
and advertising by our distributor, for which we may be held responsible; and
(iii) our network marketing organization and activities.



Products



The formulation, manufacturing, packaging, labeling,
advertising, distribution, and sale and storage of our products is subject to
regulation by a number of governmental agencies. The federal agencies include
the Food and Drug Administration ("FDA"), the Consumer Product Safety
Commission, the United States Department of Agriculture, and others. Our
activities are also regulated by various codes and agencies of the states and
localities in which our product is or may be manufactured, distributed or sold.
The FDA, in particular, regulates the formulation, manufacturing and labeling of
dietary and herbal supplements, which includes our product.



The Dietary Supplement Health and Education Act of 1994 ("DSHEA"),
revised the provisions of the Federal Food, Drug and Cosmetic Act ("FFDCA"),
concerning the composition and labeling of dietary supplements, which we believe
is generally favorable to the dietary supplement industry. DSHEA created a new
statutory category of products or "dietary supplements". This new category
includes vitamins, minerals, herbs, amino acids, and other dietary substances
for human use to supplement the diet. However, DSHEA grandfathered, with certain
limitations, dietary ingredients that were on the market before October 15,
1994. A dietary supplement containing a new dietary ingredient ("NDI"), and
placed on the market on or after October 15, 1994, must have a history of use or
other evidence establishing a basis for expected safety. Manufacturers of
dietary supplements using a "structure-function" statement or other claim must
have scientific substantiation that the statement is true, accurate, and not
misleading. Our product, JC Tonic, The Youth Solution, is classified as a
dietary supplement under the FFDCA and DSHEA.



The labeling requirements for dietary supplements with
respect to labels affixed to containers have been set forth in final regulations
effective March 23, 1999. These regulations include the serving size, dietary
ingredient information, and the proper detail and format required for the
"Supplement Facts" box. Our product labels are in compliance with those
regulations. Many states have also recently become active in the regulation of
dietary supplement products. These states may require modification of labeling
of our product sold in those states, e.g., Texas, New York and California.



On January 6, 2000, the FDA published a final rule on
permissible structure/function statements to be placed on labels and in
brochures. Structure/function statements are claims of the benefit or positive
effect of a product or an ingredient on the body's structure or function. This
regulation does not significantly change the way the FDA interprets
structure/function statements. We have not made any substantial label revisions
based on this regulation regarding any of our structure/function product
statements. Subsequently, the FDA published a final rule that the level of
science needed to support a structure/function claim would be raised close to
the current Federal Trade Commission ("FTC") standard, which is "competent and
reliable scientific evidence". We believe that we have adequate substantiation
for all label claims used.



FDA Final Rule - Safe Use of Dietary Supplements

On June 22, 2007, FDA announced a final rule establishing current good
manufacturing practice requirements (CGMPs) for dietary supplements. In
addition, by the end of the year, industry will be required to report all
serious dietary supplement adverse events to FDA.

Ensuring Quality

Under the final rule, manufacturers are required to evaluate
the identity, purity, quality, strength and composition of dietary supplements.
These regulations are intended to provide more accountability in the
manufacturing process so that consumers can be confident that the products they
purchase contain what is on the label.

The final rule aims to ensure that dietary supplements do not have:

wrong ingredients

too much or too little of a dietary
        ingredient

improper packaging

improper labeling





All of these guidelines have been followed by the Company
since beginning the marketing of our products.



Product Claims, Advertising and Website



The FDA considers website promotional content to
constitute "labeling", and thus our website must not contain disease claims or
drug claims, but only permissible structure/function claims. The Federal Trade
Commission ("FTC") governs the advertising of dietary supplements in any medium
or vehicle - print ads, radio spots, infomercials, internet ads, and websites.
The fundamental FTC rule is that all material advertising claims, whether
express or implied, must be substantiated by reliable and competent scientific
evidence. Because our website must comply with both FDA and FTC regulations, we
routinely review our web site and our scientific substantiation for particular
claims to determine if it is sufficient to ensure that there are no disease
claims present. We also require our distributors' websites to be in compliance
with FDA and FTC regulations. As such, and to ensure Internet compliance,
distributors may only copy or link to our corporate website. Any independent
websites are unauthorized and their creators are solely liable for defending any
regulatory enforcement actions. Violations of this policy may result in the
termination of the distributor's relationship with the Company.



The FTC issued a guidance document to assist companies in
understanding and complying with the substantiation requirement for advertising
claims for supplements. We have organized the documentation supporting and
substantiating our advertising and promotional practices in compliance with
these guidelines. We have not been notified that we have been or are the subject
of any enforcement action by the FTC. However, any such action in the future by
the FTC could materially adversely affect our ability to successfully market our
product. Therefore, we pay careful attention to new guidelines and recent
investigations launched, complaints filed, and fines imposed by the FTC.



We attempt to remain in full compliance with all applicable
laws and regulations governing the manufacture, labeling, sale, distribution and
advertising of our product.



Network Marketing System



Laws and regulations prevent the use of deceptive or
fraudulent practices that have sometimes been inappropriately associated with
legitimate direct selling and network marketing activities. These laws include
anti-pyramiding, securities, lottery, referral selling, anti-fraud and business
opportunity statutes, regulations and court cases. Illegal schemes, typically
referred to as "pyramid", "chain distribution", or "endless chain" schemes,
compensate participants primarily and solely for the introduction or enrollment
of additional participants into the scheme. Often these schemes are
characterized by large up-front entry or sign-up fees, over-priced products of
low value, little or no emphasis on the sale or use of products, high-pressure
recruiting tactics, and claims of huge and quick financial rewards requiring
little or no effort. Generally, these laws are directed at ensuring that product
sales ultimately are made to consumers and that advancement within sales
organization is based on sales of the enterprise's products, rather than
investments in the organization or other non-retail sales related criteria or
activity. We ensure through counsel that our network marketing system is in
regulatory compliance.



We currently have distributors in all fifty states. In
addition to federal regulation, each state has enacted its own "little FTC Act"
to regulate sales and advertising. We may receive requests to supply information
regarding our network marketing plan to regulatory agencies. We believe that our
network marketing program is in compliance with laws and regulations relating to
network marketing activities in our current markets.



We cannot predict the nature of any future law, regulation,
interpretation, or application, nor can we predict what effect additional
governmental legislation or regulations, judicial decisions or administrative
orders, when and if promulgated, would have on our business in the future. It is
possible that future developments may require that we revise our network
marketing program or our product manufacturing and labeling.



EMPLOYEES



We currently employ nine (9) employees, all of whom are
full-time employees. In addition to our current staff, we also have
approximately 9,400 distributors nationwide. None of the
Company's employees are represented under collective bargaining agreements. The
Company considers its employee relations to be good.



REPORTS TO STOCKHOLDERS

We are currently a reporting issuer in the U.S. and are
subject to reporting requirements under section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended. We are required to file the
following with the U.S. Securities and Exchange Commission (the "SEC"): (i)
quarterly reports on Form 10-QSB; (ii) an annual report on Form 10-KSB; (iii) a
Form 8-K to report the occurrence of certain reportable events; (iv) Forms 3, 4
and 5 to report insider sales and acquisition of our securities; and (v) proxy
statements. We are required to deliver an annual report to our stockholders
prior to or with the distribution of proxy materials relating to annual
stockholder meetings.



ITEM 2. DESCRIPTION OF PROPERTY

We lease our principal office space located at Hughes Airport
Center, 1181 Grier Drive, Suite C, Las Vegas, Nevada 89119. We currently utilize
office space and warehouse. We intend to lease this space pursuant to the terms
and provisions of our lease at approximately $7,000 per month. The lease
agreement expires June 30, 2009.



ITEM 3. LEGAL PROCEEDINGS

On December 13, 2006, a civil suit was filed in the District
Court of Clark County in and for the State of Nevada by Lifequest World
Corporation (formerly Phytolabs, Inc. and Jurak Corporation World Wide, Inc.)
(plaintiffs) and one former employee and her spouse (defendants). The suit
entails that the former employee processed credit refunds to a debit/credit card
held at their banking institution. In addition, the former employee embezzled
funds by setting up a merchant processing system and diverting the charging of
our distributors' credit cards from our merchant processor to their processor.
All is evidenced by information located on the computer used by the former
employee at the Company as well as through other reporting mechanisms and
processing systems. The Company is seeking relief for damages in excess of
$60,000; special damages according to proof; for attorneys' fees and costs of
suit; and for other and further relief as the Court may deem just and proper as
compensation for monies embezzled by the former employee and her spouse. No
answer has been received from the defendant and the Company is seeking a default
judgment granting all of the relief sought.

Management is not aware of any other legal proceedings
contemplated by any governmental authority or any other party involving us or
our properties. As of the date of this Annual Report, no director, officer or
affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an
adverse interest to us in any legal proceedings. Management is not aware of any
other legal proceedings pending or that have been threatened against us or our
properties.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During fiscal year ended May 31, 2007, no matters were
submitted to our stockholders for approval.







|Part II
|-------



ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS

MARKET FOR COMMON EQUITY



The market for our common stock is limited, volatile and
sporadic. The following table sets forth the high and low sales prices relating
to our common stock on a quarterly basis for the last two fiscal years as quoted
by the NASDAQ. These quotations reflect inter-dealer prices without retail
mark-up, markdown or commissions, and may not represent actual transactions.





|Quarter Ended     | High Bid | Low Bid
|----------------- | -------- | -------
|                  |          |        
|May 31, 2007      | $0.90    | $0.40  
|February 28, 2007 | $1.43    | $0.75  
|November 30, 2006 | $1.65    | $0.60  
|August 31, 2006   | $2.00    | $0.14  
|May 31, 2006      | $0.35    | $0.03  
|February 28, 2006 | $0.46    | $0.22  
|November 30, 2005 | $0.43    | $0.24  
|August 31, 2005   | $0.55    | $0.16  
|                  |          |        



As of May 31, 2007, there were approximately 394 shareholders
of record of our common shares as reported by our transfer agent, Signature
Stock Transfer, Inc., which does not include shareholders who shares are held in
street or nominee names. We believe that there are approximately 200 beneficial
owners of our common stock. There are no other classes of shares issued or
outstanding.

DIVIDEND POLICY

No dividends have been declared by the Board of Directors on
our common stock. Our losses do not currently indicate the ability to pay any
cash dividends, and we do not have any intention of paying cash dividends on our
common stock in the foreseeable future. We are trying to increase our sales with
our JC Tonic products and to introduce the new immune-booster product.
Therefore, it is unlikely that we would use profits for the purpose of paying
dividends for the foreseeable future.





SECURITIES AUTHORIZED FOR ISSUANCE UNDER COMPENSATION PLANS





The Company is offering 3,000,000 of its common shares to its
distributors under a plan where the distributors earn certificates based on
sales and bonus points. Each certificate is redeemable for one share of the
Company's common stock three years after the certificate has been earned. The
number of certificates outstanding at May 31, 2007 and 2006 was 103,952 and
95,780, respectively. The liability for the certificates earned of $111,695 and
$103,395 at May 31, 2007 and 2006, respectively, are included in "accrued
compensation and benefits". During the years ended May 31, 2007 and 2006,
respectively, no shares were issued to distributors under this plan. Effective
June 1, 2007 this plan is being discontinued, however the liability will remain
for a period of 3 years relating to the 103,952 shares which were earned but not
yet issued. These shares will be issued assuming the distributor is selling for
the Company after the 3 year vesting period.







|Equity Compensation Plan Information                                                         
|---------------------------------------------------------------------------------------------
|Plan Category                                                                                
|Equity compensation plans
    approved by security holders                                   
|Equity compensation plans not approved by
    security holdersAmbassador Program
    Warrants





RECENT SALES OF UNREGISTERED SECURITIES



Debt Settlement



During fiscal year ended May 31, 2006, we entered into a
settlement of outstanding debt with several of our executive officers and Jurak
Holdings Limited (the "Settlement Agreement"). Pursuant to the terms and
provisions of the Settlement Agreement, we issued 73,070,580 shares of our
restricted common stock at $0.02 per share to settle the principal amount of
$908,874 and accrued interest of $552,537 due and owing.



During fiscal year ended May 31, 2006, we entered into a
settlement of outstanding Accrued Minimum Royalty Fees with one of our executive
officers (the "Settlement Agreement"). Pursuant to the terms and provisions of
the Settlement Agreement, we issued 11,500,000 shares of our restricted common
stock at $0.10 per share to settle the principal amount of $1,150,000 due and
owing for Accrued Minimum Royalty Fees.



The per share price of the shares was determined by our Board
of Directors based upon analysis of certain factors, including but not limited
to, the trading price per share of our common stock on the OTC Bulletin Board,
our stage of development, industry status, investment climate, and perceived
investment risk. We issued shares of our restricted stock in accordance with the
transactional exemption under Section 4(2) of the Securities Act of 1933, as
amended (the "1933 Securities Act"). The executive officer acknowledged that the
securities to be issued have not been registered under the 1933 Securities Act
and that they understood the economic risk of an investment in the securities.



Private Placements



During fiscal year ended May 31, 2007, we executed private
placements of 10,000,000 and 1,600,000 shares of our restricted common stock,
for which we received cash in amounts of $200,000 and $1,599,950, respectively.



During fiscal year ended May 31, 2006, we executed private
placements of 1,900,000 and 10,000,000 shares of our restricted common stock,
for which we received cash in amounts of $269,566 and $200,000, respectively.



Reverse Stock Split



On July 27, 2007, the Board of Directors approved a reverse
split of its common stock on a 1 new share for 3 old shares. Shareholders of
record as of the effective date of August 20, 2007 will receive 1 new share for
3 old shares.



On May 12, 2006, the Board of Directors approved a
one-for-six consolidation (reverse split) of our common stock, effective for
shareholders of record on May 22, 2006.



In the consolidation, each six shares of our common stock
issued and outstanding was converted to one share of common stock. The number of
outstanding shares of common stock was reduced from 45,367,267 shares to
7,561,211 shares. The number of authorized shares of common stock was not
reduced by this consolidation. Fractional shares of stock were rounded up to the
next whole share.



Stock Compensation



During fiscal year ended May 31, 2007, the Company issued
250,000 shares of restricted common stock to an officer/employee and 250,000
shares to an employee at $0.70 per share in lieu of compensation.



During fiscal year ended May 31, 2006, we issued 30,000
shares of restricted common stock to a consultant at $0.22 per share in lieu of
compensation.





ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Lifequest World Corporation, (formerly Phytolabs, Inc. and
Jurak Corporation World Wide, Inc.), a Minnesota corporation incorporated on
November 1, 1997, currently trades on the Over-the-Counter Bulletin Board under
the symbol "LQWC". We are a product-focused company specializing in the herbal
supplement industry and market.



The following discussion and analysis of our results of
operations and financial position should be read in conjunction with our audited
financial statements and the notes thereto, included elsewhere in this Annual
Report. Our financial statements are prepared in accordance with U.S. GAAP.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

In this report and from time to time, in reports filed with
the Securities and Exchange Commission, in press releases, and in other
communications to shareholders or the investing public, there may be "forward
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. The Company may make forward-looking statements concerning
possible or anticipated future financial performance, business activities,
plans, pending claims, investigations or litigation which are typically preceded
by the words "believes", "expects", "anticipates", "intends" or similar
expressions. For such forward-looking statements, the Company claims the
protection of the safe harbor for forward-looking statements contained in
federal securities laws. Shareholders and the investing public should understand
that such forward looking statements are subject to risks and uncertainties
which could cause actual performance, activities, anticipated results, outcomes
or plans to differ significantly from those indicated in the forward-looking
statements. Such risks and uncertainties include, but are not limited to: lower
sales to customers; the introduction of competitive products and technologies;
our ability to successfully reduce operating expenses ; delays in new product
introductions; higher than expected expense related to new sales and marketing
initiatives; availability of adequate supplies of raw materials; and other
factors discussed from time to time in the Company's filings with the Securities
and Exchange Commission. Our actual results could differ materially from the
results discussed in the forward-looking statements.

The following discussion is intended to provide an analysis
of our financial condition and should be read in conjunction with our audited
financial statements and the notes thereto.  The matters discussed in this
section that are not historical or current facts deal with potential future
circumstances and developments.  Such forward-looking statements include,
but are not limited to, the development plans for our growth, trends in the
results of our development, anticipated development plans, operating expenses
and our anticipated capital requirements and capital resources.  Our actual
results could differ materially from the results discussed in the
forward-looking statements.

The accompanying financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of
America, which contemplate continuation of the Company as a going concern.
However, the Company has sustained substantial losses and its liabilities exceed
its assets. The Company intends to generate positive cash flows from operations
through increased sales utilizing the network of distributors in place with
existing products and the new natural immune booster products, issuing
additional stock, and obtaining necessary capital through additional advances
from the Company's

To continue operations, the Company must raise additional
capital. The Company has sold additional stock in private placements during the
year ended May 31, 2007 totaling $1,799,950. However, there can be no assurance
the Company will be able to obtain additional capital from private placements in
the future.

The proceeds of the private placement are used for regular
corporate needs as well as funding the product launch of our recently acquired
rights to the world's most powerful, natural immune booster product as stated by
the scientific research team that developed the product. One group of investors
has invested funds to date and has made a subsequent investment of $700,000
since May 31, 2007. This group required that all future investments be made for
an average of $1.00 per share, with a one-year warrant to purchase an additional
share at $1.25 per share. The Company received $600,000 on December 6, 2006,
$999,950 on March 31, 2007 and $700,000 on July 23, 2007.

With the formal completion of the exclusive global license
and distribution agreement relative to the natural immune booster product, the
Company will accelerate work on the packaging and branding of this new product
to make it widely available to North American and European markets with an
anticipated launch in late 2007.





Critical Accounting Policies and Estimates



Our Management Discussion and Analysis of Financial Condition
and Results of Operations is based upon our consolidated financial statements,
which have been prepared in accordance with generally accepted accounting
principles in the United States of America.  The preparation of these
consolidated financial statements requires us to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
consolidated financial statements, the reported amounts of revenues and expenses
during the reporting period, and related disclosures of contingent assets and
liabilities for the periods indicated.  The notes to the consolidated
financial statements contained herein describe our significant accounting
policies used in the preparation of the consolidated financial statements. 
Several of them have been noted below. On an on-going basis, we evaluate our
estimates, including, but not limited to, those related to our inventory
valuation allowance, the lives and continued usefulness of office furnishings
and equipment and intangible assets and contingencies.  Due to
uncertainties, however, it is at least reasonably possible that management's
estimates will change during the next year, which cannot be estimated.  We
base our estimates on historical experience and on various other assumptions
that we believe to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources.  Actual
results could differ from these estimates under different assumptions or
conditions.

Inventory Valuation: The Company's inventories are valued at
the lower of cost or market. Reserves for overstock and obsolescence are
estimated and recorded to reduce the carrying value to estimated net realizable
value. The amount of the reserve is determined based on projected sales
information, plans for discontinued products and other factors. Though
management considers these reserves adequate and proper, changes in sales
volumes due to unexpected economic or competitive conditions are among the
factors that could materially affect the adequacy of this reserve.

Income Taxes: We account for income taxes in accordance with
the provisions of Statement of Financial Accounting Standards (SFAS) No. 109,
Accounting for Income Taxes. In the preparation of the Company's consolidated
financial statements, management calculates income taxes. This includes
estimating the Company's current tax liability as well as assessing temporary
differences resulting from different treatment of items for tax and book
accounting purposes. These differences result in deferred tax assets and
liabilities, which are recorded on the balance sheet. These assets and
liabilities are analyzed regularly and management assesses the likelihood that
deferred tax assets will be realized from future taxable income. The valuation
allowance for deferred income tax benefits is determined based upon the
expectation of whether the benefits are more likely than not to be realized.
The Company has recorded a full valuation allowance for all
deferred tax assets due to the significance of its continued operating losses.



Revenue Recognition: The Company recognizes revenue
when the earnings process is complete, evidenced by persuasive evidence of an
agreement, delivery has occurred or services have been rendered, the price is
fixed or determinable, and collectability is reasonably assured. The earning
process completion is evidenced through the shipment of goods, as the sales
terms of these segments are FOB shipping point, the risk of loss is transferred
upon shipment and there are no significant obligations subsequent to that point.
There are no significant estimates related to revenue recognition.





RESULTS OF OPERATIONS



|                                 | Years ended May 31, |              
|-------------------------------- | ------------------- | -------------
|                                 | 2007                | 2006         
|Sales                            | $ 1,046,299         | $ 1,445,362  
|Gross Profit                     | $ 788,120           | $ 1,092,623  
|Net Loss                         | $ (1,375,970)       | $ (1,087,846)
|Basic and Diluted Loss per Share | $ (0.04)(1)         | $ (0.49)(1)  
|                                 |                     |              

(1) Reflects the 1 for 3 reverse stock split effective August
20, 2007



















Year Ended May 31, 2007 Compared to Year Ended May 31, 2006



Overview



Total sales for the year ended May 31, 2007 was $1,046,299
compared to $1,445,362 in 2006. Gross profit declined to $788,120 for the year
ended May 31, 2007 compared to $1,092,623 in 2006, as further discussed below.
The net loss for the year ended May 31, 2007 was ($1,375,970) compared to
($1,087,846) in 2006.



Sales and Gross Margins



Sales for the twelve months ended May 31, 2007 decreased by
28% to $1,046,299 compared to $1,445,362 in 2006. The decrease in sales was
related in part to issues associated with the reliability of the Company's
computer systems used to track and account for distributors' sales, which
occurred during fiscal year ended May 31, 2006. The system problems caused
delays in the accumulation of sales data, which affected the timely calculation
and payment of distributor bonuses. These problems caused a decline in sales
activity by the distributors. In May 2006, the Company enhanced and improved the
computer system, which improved the sales data accumulation process, however,
increased distributor activity has been slow in returning. In July 2006, the
Company rolled out a replicated Company website for each of its 9,900
distributors. The replicated websites allow each distributor to advertise to
their specific customers, while providing the product and company information
from the Company's new website. Management is confident the improved computer
system, the replicated websites and new product offerings will result in an
increase in future sales volume. The Company also experienced weaker demand for
its product compared to last year and is actively developing new product
offerings including acquisition of the worldwide exclusive marketing rights to
the world's most powerful, natural immune booster discovered to date, as stated
by the scientific research team that developed the product. These rights are
being acquired from a leading life science company with a successful history of
producing unique, patented products that are distributed on a global scale



Gross profit in the twelve months ended May 31, 2007
decreased to $788,120 compared to $1,092,623 in the same period ended in 2006
due primarily to the decline in product sales. Gross profit as a percentage of
revenue declined slightly to 75% in the twelve months ended May 31, 2007
compared to 76% in the same period ended in 2006. This was due to increased raw
ingredient and packaging costs.





Royalty Expense-Related Party

The minimum royalty expense-related party accrued to Jurak
Holdings Limited (related party) for licenses on the JC Tonic product line
remained consistent for both years at $500,000 in 2007 and $499,264 in 2006.
($125,000 per quarter).



Distribution, Selling, and Administrative Expenses



Total distribution, selling and administrative expenses for
the year ended May 31, 2007 were $1,703,552 compared with $1,586,146 for the
year ended in 2006. The increase is primarily related to a stock compensation
award valued at $350,000 to an officer/employee made in April 2007. Without that
increased expense, selling and administrative expenses decreased by
approximately $232,000. This was reflected in lower overall sales expenses,
payroll and related benefits, consulting fees and contract labor. The Company
incurred a consulting fee of $185,000 during the year ended May 31, 2006, which
was not incurred in the current year. With the decrease in sales, the Company
continues to actively reduce overhead costs.



Other Income and Expense



Other income of $133,382 for the year ended May 31, 2007
consists of the Company's prorata share of a one-time cash distribution gain in
exchange for their membership interest in EIG Mutual Holding Company who is the
Company's primary insurance provider. EIG successfully converted from a mutual
holding company to a publicly traded stock company in February 2007. The Company
received their funds in March 2007.



Interest expense for the year ended May 31, 2007 was $93,920
compared with $95,059 for the year ended in 2006. Current year interest costs
relate to the imputed interest on the installment payable-Nordic License. Prior
year interest costs primarily relate to loans from a principal stockholder and
related entities, which were outstanding during the prior year. The majority of
these loans were converted into common stock or paid off during the fiscal year
ended May 31, 2006.





LIQUIDITY AND CAPITAL RESOURCES

We have historically had more expenses and
cost of sales than revenue in each year of our operations. The accumulated
deficit as of May 31, 2007 was $6,011,234 compared to $4,635,264 as of May 31,
2006. Generally, we have financed operations to date through the proceeds of
private placements of equity and debt securities and sales revenue. In
connection with our business plan, management anticipates that there may be
additional increases in operating expenses and capital expenditures relating to
the new immune booster products. We intend to finance these expenses with
further issuance of our securities and revenues from operations. Therefore, we
expect we may need to raise additional capital and increase our revenues to meet
long-term operating requirements.

We currently have a $3,000,000 private placement offering in
process. The proceeds of the private placement are used for regular corporate
needs as well as funding the product launch and license of our recently acquired
rights to the world's most powerful, natural immune booster product as stated by
the scientific research team that developed the product. One group of investors
has invested funds to date. This group required that all future investments be
made for an average of $1.00 per share, with a one-year warrant to purchase an
additional share of common stock at $1.25 per share. The Company received the
first $600,000 on December 6, 2006, $999,950 on March 31, 2007 and $700,000 on
July 23, 2007.

At May 31, 2007, the Company had $197,338 of unrestricted
cash compared to $44,073 of unrestricted cash at May 31, 2006. The Company had
current assets of $282,824 and current liabilities of $2,377,809 at May 31, 2007
compared to current assets of $110,841 and current liabilities of $604,586 at
May 31, 2006.

Net cash used in operating activities was $621,224 during the
year ended May 31, 2007 compared to net cash used in operating activities of
$412,218 in the year ended May 31, 2006. The increase was due primarily to the
increased operating loss for the year ended May 31, 2007 compared to the
operating loss for the prior year after adjusting for the net decrease in trade
payables and accrued expenses.

Net cash used in investing activities was $1,041,497 in the
year ended May 31, 2007 compared to $9,510 in the year ended in 2006. The change
was caused primarily by the purchase of the immune booster license. The Company
expended $1,067,531 for licensing fees associated with the acquisition of the
worldwide exclusive marketing rights to this license. These rights are being
acquired from a leading life science company with a successful history of
producing unique, patented products that are distributed on a global scale. The
balance of the installment payable discounted for interest related to this
immune booster license was $1,384,513 at May 31, 2007.

Net cash provided by financing activities was $1,815,986 in the year ended
May 31, 2007 compared to net cash provided by financing activities in the year
ended in 2006 of $446,293. Proceeds from the issuance of common stock, net of
issuance costs, was $1,799,950 in the year ended May 31, 2007 compared to
$469,566 in the year ended May 31, 2006. In December 2006 the Company announced
a best efforts private placement of $3,000,000 U.S. at $1.50 per share. The
placement was subsequently cancelled, and a new offering was immediately
introduced for $3,000,000 U.S. at $1.00 per unit. Each unit consists of one
share of common stock and one-year warrant to purchase one share of common stock
at $1.25. The proceeds of the private placement are to be used for regular
corporate needs as well as funding the product launch of our recently acquired
rights to the natural immune booster product. The Company received $600,000 on
December 6, 2006, $999,950 on March 31, 2007 and $700,000 on July 23, 2007.



PLAN OF OPERATION



We have been, since our inception, reliant on external
investment to finance ongoing operations as we are not yet operating profitably.
While we expect that we will achieve profitable operations in the future, there
can be no assurance that our revenue, margins, and profitability will increase
or be sufficient to support our operations in the long term. We expect we will
need to raise additional capital to meet short and long-term operating
requirements. We believe that private placements of equity capital and debt
financing may be adequate to fund our long-term operating requirements. We may
also encounter business endeavors that require significant cash commitments or
unanticipated problems or expenses that could result in a requirement for
additional cash. If we raise additional funds through the issuance of equity or
convertible debt securities other than to current shareholders, the percentage
ownership of our current shareholders would be reduced, and such securities
might have rights, preferences or privileges senior to our common stock.
Additional financing may not be available upon acceptable terms, or at all. If
adequate funds are not available or are not available on acceptable terms, we
may not be able to take advantage of prospective business endeavors or
opportunities, which could significantly and materially restrict our business
operations. We are continuing to pursue external financing alternatives to
improve our working capital position and to grow our business to the greatest
possible extent.



On December 1, 2006, the Company through its wholly owned
subsidiary, Phytolab Solutions Inc., entered into an agreement with Nordic
Immotech Trading whereby Phytolabs acquired the worldwide rights to its powerful
immune-stimulatory extract.

On the same date, Phytolab Solutions Inc., entered into an
agreement with Nordic Immotech Trading appointing them as a sub-licensee to
handle the sales and distribution of its immune-stimulatory product in several
European countries.

The agreement in principal requires that Phytolabs pay a $2.5
million license fee with payments from August 8, 2006 to November 30, 2007. (See
Material Commitments). The Company believes this is a good investment given that
the ingredient extract giving rise to this agreement was developed at the
University of Mississippi over a 10 year period; has enjoyed animal clinical
studies that prove the efficacy and holds US Patent # 7,205,284.

Of late, the immune system in general is receiving a great
deal of attention from traditional medicine as well as alternative medicine
inasmuch as it is the basis for a strong support system and in particular for
avoiding various strains of flu and other viruses. The Company therefore
believes that it will be well positioned in the industry and in the immune
system product market given this extract's potency supported by clinical proof
of efficacy.

The Company researched thoroughly as to the best method of
marketing and has decided on continuing with the direct selling business it is
already in. As of June 6, 2007, it has engaged Mr. David Wood as Chief Operating
Officer to manage the Phytolab Solutions subsidiary.

The product made with the extract in question has been
test-marketed in Denmark and Finland and a North American product launch is
slated for fall of 2007.

MATERIAL COMMITMENTS

A significant commitment for fiscal year ending May 31, 2007
relates to the License Agreement with Jurak Holdings Limited (related party). As
of the fiscal year ended May 31, 2007, an aggregate amount of $631,856 is due
and owing to Jurak Holdings Limited for Accrued Minimum Royalty fees.



On December 1, 2006, the Company, through its wholly owned
subsidiary, Phytolab Solutions, Inc. finalized the closing of this exclusive
global license and distribution agreement with respect to this natural immune
booster product. Phytolab Solutions, Inc. has not yet begun to market or sell
these products, but expects to begin later in 2007. As part of the closing for
this agreement, the Company paid $550,000 per the terms of the agreement on
December 6, 2006 and $500,000 in April 2007. The agreement calls for additional
installment payments totaling $1,450,000 to be paid as follows:



> $500,000     June 30, 2007
>             $500,000     September 30, 2007
>             $450,000     November 30, 2007

The Company has imputed interest on these installments at a
rate of 10%. The discounted value of the licensed asset including legal costs,
totals $2,390,721. The remaining installments payable as of May 31, 2007, net of
the calculated imputed interest, totaled $1,384,513. Since the sales and
marketing of this new immune booster product has not been initiated, no
amortization of the licensed asset has been made for the year ended May 31,
2007.

As part of the license agreement noted above, Nordic Immotech
shall pay a royalty of ten percent (10%) of net sales of products sold by Nordic
and or affiliates to independent third parties.



In a separate agreement, the Company was granted an option to
purchase all the shares in Nordic Immotech (the supplier). Subject to the terms
and conditions of the separate agreement, the Company has the option to purchase
all of the shares of Nordic Immotech (170,000 shares) at a fixed price of $76.47
per share for a total of $13,000,000. The Company may exercise the option
anytime before December 1, 2008.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Annual Report, we do not have any
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources, that are material to our investors. The term
"off-balance sheet arrangement" generally means any transaction, agreement or
other contractual arrangement to which an entity unconsolidated with us is a
party, under which we have: (i) any obligation arising under a guarantee
contract, derivative instrument or variable interest; or (ii) a retained or
contingent interest in assets transferred to such entity or similar arrangement
that serves as credit, liquidity, or market risk support for such assets.



FUTURE OUTLOOK

The demand for our product is largely dependent upon the
level of acceptance and understanding of herbal dietary supplements in the North
American distributor and consumer sectors. Market size for herbal dietary
supplement products and our relative share of this market will be affected by a
number of factors, which include general understanding and awareness, continuing
growth in homeopathic awareness, government regulations and general economic
conditions. We are attempting to mitigate some of these risks through education
and employing well-known persons to endorse our products.

As we continue to expand our operations internationally, we
must be aware of any inherent business risks associated with doing so. We have
attempted to mitigate these risks by establishing a network marketing system
utilizing persons who are familiar with the industry.

ITEM 7. FINANCIAL STATEMENTS



Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak Corporation
World Wide, Inc.)

Audited Financial Statements

May 31, 2007

Index

Report of Independent Registered Public
Accounting Firm dated August 29, 2007

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Stockholders Deficit

Consolidated Statements of Cash Flows

Notes to Financial Statements

---



REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM



To the Board of Directors and Stockholders

Lifequest World Corporation (formerly Phytolabs, Inc. and
Jurak Corporation Word Wide, Inc.)



We have audited the accompanying consolidated balance sheets
of Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak Corporation
World Wide, Inc.) as of May 31, 2007 and 2006, and the related consolidated
statements of operations, stockholders' equity (deficit) and cash flows for the
years then ended. These consolidated financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits.



We conducted our audits in accordance with the standards of
the Public Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. The company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the company's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the consolidated financial statements, assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.



In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects, the financial
position of Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak
Corporation World Wide, Inc.) as of May 31, 2007 and 2006, and the results of
its operations and its cash flows for the years then ended, in conformity with
accounting principles generally accepted in the United States of America.



The accompanying consolidated financial statements have been
prepared assuming the Company will continue as a going concern. As discussed in
Note 2 to the financial statements, the Company has suffered recurring losses
from operations and has a significant deficit in its working capital. These
factors raise substantial doubt about its ability to continue as a going
concern. Management's plans in regard to these matters are also described in
Note 2. The consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty.



/s/ Carver Moquist & O'Connor, LLC

Minneapolis, Minnesota

August 29, 2007

---



---





---











---



---





LIFEQUEST WORLD CORPORATION

(



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

May 31, 2007 and 2006

Note 1. Nature of Business and Summary of Significant Accounting
Policies:

> 



Effective August 20, 2007, the Company changed its name to Lifequest
      World Corporation (formerly Phytolabs, Inc. and Jurak Corporation World
      Wide Inc.) to more reflect the business the company is involved in -- that
      of products designed to positively affect the lives of people worldwide.
      The shares of the Company trade on the Over the Counter Bulletin Board
      under the symbol, "LQWC."



A summary of the Company's significant accounting policies is as
      follows:

> 

The consolidated financial statements include the accounts of Lifequest
      World Corporation and its wholly owned subsidiary. All significant
      inter-company accounts and transactions have been eliminated in
      consolidation.

> Revenue recognition

The Company recognizes revenue when persuasive evidence of an
      arrangement exists, title and risk of ownership passes, the sales price is
      fixed or determinable, and collectibility is probable. Generally, these
      criteria are met at the time product is shipped to our distributors or
      directly to a retail customer.

> 

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



Cash:

The Company considers all highly liquid debt instruments with original
      maturities of three months or less to be cash equivalents.



The Company maintains its cash in a high quality financial institution.
      The balances at times may exceed the federally insured limits.

Accounts Receivable:

The Company collects payments from its customers almost entirely from
      credit cards. Primarily, any accounts receivable balance at the end of the
      reporting period is due to a two or three day lag in receiving the funds
      from the credit card processors.

Inventories:

Inventories are valued at the lower of cost or market, using the
      first-in, first-out method (FIFO). Inventories are reported at their net
      amounts, and consist of the following:



> May 312007
>             
>             2006Raw materials
>             $ 26,571
>             
>             $ 18,392Finished goods and supplies
>             56,050
>             
>             71,653Allowance for Obsolescence
>             (18,611)
>             
>             (31,891)$ 64,010
>             
>             $ 58,154
>       Office furnishings and equipment:

Office furnishings and equipment are recorded at cost and depreciated
      on a straight-line basis over their estimated useful life of three to
      seven years. Maintenance and minor renewals are expensed when incurred.



> 







Long-lived assets, such as property and equipment and intangible assets
      are reviewed for impairment whenever changes in circumstances indicate
      that the carrying amount of an asset may not be recoverable.
      Recoverability of assets to be held and used is measured by comparison of
      the carrying amount of an asset to estimated undiscounted future cash
      flows expected to be generated by the asset. If the carrying amount of an
      asset exceeds its estimated future cash flows, an impairment charge is
      recognized in the amount by which the carrying amount of the assets
      exceeds the fair value of the asset.

> Income taxes:

Deferred taxes are provided on a liability method whereby deferred tax
      assets are recognized for deductible temporary differences and operating
      loss and tax credit

carryforwards and deferred tax liabilities are recognized for taxable
      temporary differences. Temporary differences are the differences between
      the reported amounts of assets and liabilities and their tax basis.
      Deferred tax assets are reduced by a valuation allowance when, in the
      opinion of management, it is more likely than not that some portion or all
      of the deferred tax assets will not be realized. Deferred tax assets and
      liabilities are adjusted for the effects of changes in tax laws and rates
      on the date of the enactment.The Company has
      recorded a full valuation allowance for all deferred tax assets due to the
      significance of its continued operating losses.

Advertising:

The Company expenses advertising costs as they are incurred.
      Advertising costs were $58,758 and $345 for the year ended May 31, 2007
      and 2006 respectively.

.

> Shipping and handling costs:





The carrying value of the Company's financial instruments approximates
      fair value at May 31, 2007 and 2006. The carrying amounts for cash,
      accounts payable, accrued liabilities and notes payable approximate fair
      value due to the short maturity of these instruments.

> Segment Reporting:

The Company operates as one reporting segment.









In July 2006, Financial Accounting Standards Board (FASB) issued
      Interpretation No. 48, Accounting for Uncertainty in Income Taxes - An
      Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the
      accounting treatment (recognition and measurement) for an income tax
      position taken in a tax return and recognized in a company's financial
      statements. The new standard also contains guidance on "derecognition,
      classification, interest and penalties, accounting in interim periods,
      disclosure, and transition". The provisions of FIN 48 are effective for
      fiscal years beginning after December 15, 2006. We are currently
      evaluating the impact of this statement but we believe the adoption of FIN
      48 will not have a material impact on our consolidated financial position
      or results of operations. This pronouncement is effective for our fiscal
      year beginning June 1, 2007.

In September 2006, the U.S. Securities and Exchange Commission staff
      issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior
      Year Misstatements when Quantifying Misstatements in Current Year
      Financial Statements ("SAB 108"). This SAB addresses diversity in practice
      of quantifying financial statement misstatements. It establishes an
      approach that requires quantification of financial statement misstatements
      based on the effects of the misstatements on each of the company's
      financial statements and the related financial statement disclosures. The
      SAB is effective for financial statements issued for fiscal years ending
      after November 15, 2006. The adoption of SAB 108 did not have an impact on
      our consolidated financial position or results of operations.

In September 2006, the Financial Accounting Standards Board (FASB)
      issued Statement of Financial Accounting Standards No. 157, Fair Value
      Measurements ("SFAS No. 157"). This standard clarifies the principle that
      fair value should be based on the assumptions that market participants
      would use when pricing an asset or liability. Additionally, it establishes
      a fair value hierarchy that prioritizes the information used to develop
      those assumptions. This standard is effective for financial statements
      issued for fiscal years beginning after November 15, 2007. We are
      currently evaluating the impact of this statement. We believe the adoption
      of SFAS No. 157 will not have a material impact on our consolidated
      financial position or results of operations.

Note 2. Company's Continued Existence:

The accompanying consolidated financial statements have been prepared
      in conformity with accounting principles generally accepted in the United
      States of America, which contemplate continuation of the Company as a
      going concern. However, the Company has sustained substantial losses and
      has a significant working capital deficit. The Company intends to generate
      positive cash flows from operations through increased sales utilizing the
      network of distributors in place and from financing activities by issuing
      additional stock, and obtaining necessary capital through additional
      advances from the Company's principal stockholder or through private
      placements.

To continue operations, the Company must raise
      additional capital. During fiscal year ended May 31, 2007, the Company
      executed private placements of 10,000,000 and 1,600,000 shares of our
      restricted common stock, for which cash was received in amounts of
      $200,000 and $1,599,950. However, there can be no assurance the Company
      will be able to obtain additional capital from private placements in the
      future. The Company has no other committed sources or arrangements for
      additional financing.

The financial statements do not include any adjustment relating to
      recoverability and classification of recorded assets, or the amounts and
      classification of liabilities that might be necessary should the Company
      be unable to continue to exist. Management believes that actions presently
      being taken provide the opportunity for the Company to continue as a going
      concern.

Note 3. Other Asset - Immune Booster License

During the year ended May 31, 2007, the Company made payments of
      $1,067,531 for licensing fees associated with an exclusive license and
      distribution agreement to acquire the worldwide marketing rights to the
      world's most powerful, natural immune booster discovered to date, as
      stated by the scientific research team that developed the product. These
      rights are being acquired from Nordic Immotech Trading APS, a leading life
      science company with a successful history of producing unique, patented
      products that are distributed on a global scale. On December 1, 2006, the
      Company, through its wholly owned subsidiary, Phytolab Solutions, Inc.
      finalized the closing of this exclusive global license and distribution
      agreement with respect to this natural immune booster product. Phytolab
      Solutions, Inc. has not yet begun to market or sell these products,
      therefore, no amortization has been recorded as of May 31, 2007. As part
      of the closing for this agreement, the Company paid $550,000 per the terms
      of the agreement on December 6, 2006 and an additional payment in April
      2007. The agreement calls for additional installment payments totaling
      $1,450,000 to be paid as follows:

$500,000                
            June 30, 2007

$500,000                
            September 30, 2007

$450,000                
            November 30, 2007

The Company has imputed interest on these installments at a rate of
      10%. The discounted value of the licensed asset totals $2,373,190.
      Additional costs for legal were also incurred which totaled $17,531. The
      remaining installments payable, net of the calculated imputed interest,
      totaling of $1,384,513 has been recorded as a liability as of May 31,
      2007. Since the sales and marketing of this new immune booster product has
      not been initiated, no amortization of the licensed asset has been made
      for the year ended May 31, 2007.

> As part of the license agreement noted above Nordic Immotech shall pay
>       a royalty of ten percent (10%) of net sales of products sold by Nordic and
>       or affiliates to independent third parties.
>       In a separate agreement, the Company was granted an option to purchase
>       all the shares in Nordic Immotech (the supplier). Subject to the terms and
>       conditions of the separate agreement the Company has the option to
>       purchase all of the shares of Nordic Immotech (170,000 shares) at a fixed
>       price of $76.47 per share for a total of $13,000,000. The Company may
>       exercise the option anytime before December 1, 2008.

Note 4.



> The Company has capital leases for new computer equipment, expiring
>       through October 2008. The leases bear interest ranging from 5% to 25%. The
>       obligations are collateralized by the equipment under lease. Total cost
>       and accumulated amortization of the lease equipment was $20,406 and
>       $20,406 at May 31, 2007 and $20,406 and $14,263 at May 31, 2006,
>       respectively. Amortization expense on the leased assets is included with
>       depreciation expense.  Future minimum lease payments under capital
>       leases and the net present value of the future minimum lease payments are
>       as follows for the years ending May 31:



> 2008
>                   9742009
>                   321Total Future Minimum Lease Payments
>                   1,295Less Amount Representing Interest
>                   ( 42)Present value of Future Minimum Lease
>                   Payments
>                   1,253Less Current Portion
>                   ( 932)Long-Term Capital Lease Obligations
>                   $ 321



Note 5 Stockholders Equity:

> In June 2006, we executed a private placement of
>       10,000,000 shares of our restricted common stock at $0.02 per share, for
>       which we received cash of $200,000.



> In December 2006, we initiated a private placement offering of
>       3,000,000 shares of our common stock and for each share purchased a
>       warrant (one year term) to purchased one share of our common stock at an
>       exercise price of $1.25. The unit was sold at $1.00. As of May 31, 2007 we
>       had sold 1,600,000 shares and received $1,599,950 in proceeds, net of
>       transaction costs.



> In April 2007, we issued 250,000 shares of our
>       restricted common stock to an officer/employee and 250,000 shares of
>       restricted stock to an employee as compensation for services provided. The
>       shares were valued at their fair value of $0.70 per share for a total
>       compensation charge of $350,000.

During the year ended May 31, 2006 the Company completed two private
      placement totaling 11,900,000 shares of restricted common stock in
      exchange for which it received $469,566.  In November 2005, we issued
      5,000 shares of our restricted common stock to a vendor as compensation
      for services rendered. The shares were valued at their fair value of $1.34
      per share for a total compensation charge of $6,720.



During the years ended May 31, 2007 and 2006, no shares were issued to
      our distributors under the Company's distributor bonus plan (Note 8).



The Company completed a one-for-six reverse stock split on May 22,
      2006. All per share information including prior periods reflects the
      effect of this stock reverse stock split.

Additionally, on July 27, 2007, the Board of Directors approved a
      reverse split of its common stock on a 1 new share for each 3 old shares.
      Shareholders of record as of the effective date of August 20, 2007 will
      receive 1 new share for three old shares outstanding. Only the EPS
      calculation in the statement of operations has been adjusted for this
      reverse stock split.

Note 6. Income Taxes:

The provision for income taxes differs from the amount computed by
      applying the U.S. federal income tax rate to loss before income taxes as
      follows:

|                                     | May 31
|------------------------------------ | ------
|                                     | 2007  
|Expected (benefit) at statutory rate | 34%   
|State taxes                          | -     
|Increase in valuation allowance      | (34% )
|Effective tax rate                   | 0%    

> The income tax provision consists of the following for the years ended
>       May 31:



|                              | 2007                             |  | 2006                            
|----------------------------- | -------------------------------- |  | --------------------------------
|Current tax provision         | $           
                -   |  | $           
                -  
|Deferred tax (benefit)        | (346,000)                        |  | (330,000)                       
|Change in valuation allowance | 346,000                          |  | 330,000                         
|                              | $           
                  - |  | $           
                  -

> The following is a summary of the significant components of the
>       Company's deferred tax, assets and liabilities:

|                       | May 31      
|---------------------- | ------------
|                       | 2007        
|Deferred tax assets:   |             
|Net operating loss     | $  1,644,000
|Related party accruals | 252,000     
|Valuation allowance    | $(1,896,000)





> Tax law provides for limitation on the use of future net operating loss
>       carryovers should significant ownership changes occur. The Company has net
>       operating loss carry forwards of approximately $4,800,000 that expire
>       through the year 2026.

Note 7. Related Party Transactions:

> The principal stockholder and related entities have advances to the
>       Company totaling $26,374 and $4,993 as of May 31, 2007 and 2006,
>       respectively. Interest on the advances is at 8%. Interest totaling $0 and
>       $84,491 was charged to operations for the years ended May 31, 2007 and
>       2006, respectively.
>       The minimum royalty expense-related party
>       accrued to Jurak Holdings Limited (related party owned by our
>       CEO/Stockholder) for licenses on the JC Tonic product line remained
>       consistent for both years at $500,000 in 2007 and $499,264 in 2006.
>       ($125,000 per quarter).See Note 8 for additional
>       information.

Note 8 Commitments:

> 

The Company rents office and warehouse space in Las Vegas, Nevada under
      terms of an operating lease which calls for an initial base monthly rental
      of approximately $6,700, increasing annually, plus common area operating
      expenses, through June 2009. Rent expense plus common area operating
      expenses under this agreement for the years ended May 31, 2007 and 2006
      was $106,091 and $101,689, respectively.

> Minimum lease payments are as follows for the years ending May 31:



2008                                                                                
                87,446

2009                                                                                
                90,069

2010                                                                                 
                7,524

Total Future Minimum Lease Payments                        
                $185,039







In December 2006, the Company acquired the worldwide marketing rights
      to the world's most powerful, natural immune booster discovered to date,
      as stated by the scientific research team that developed the product.
      These rights are being acquired from Nordic Immotech Trading APS, a
      leading life science company with a successful history of producing
      unique, patented products that are distributed on a global scale. On
      December 1, 2006, the Company, through its wholly owned subsidiary,
      Phytolab Solutions, Inc. finalized the closing of this exclusive global
      license and distribution agreement with respect to this natural immune
      booster product. As part of the closing for this agreement, the Company
      paid $550,000 per the terms of the agreement on December 6, 2006, $500,000
      on March 31, 2007 and associated legal costs of $17,531. The agreement
      calls for additional non-interest bearing installment payments totaling
      $1,450,000 to be paid as follows:



> 

$500,000                                                          
                September 30, 2007

$450,000                                                           
                November 30, 2007

The Company has imputed interest on these installments at a rate of
      10%. The discounted value of the licensed asset totals $2,373,190. The
      remaining installments payable as of May 31, 2007, net of the calculated
      imputed interest, totaled $1,384,513.

As part of the license agreement noted above Nordic Immotech shall pay
      a royalty of ten percent (10%) of net sales of products sold by Nordic and
      or affiliates to independent third parties. No royalty payments have been
      earned as of May 31, 2007.

In a separate agreement, the Company was granted an option to purchase
      all the shares in Nordic Immotech (the supplier). Subject to the terms and
      conditions of the separate agreement the Company has the option to
      purchase all of the shares of Nordic Immotech (170,000 shares) at a fixed
      price of $76.47 per share for a total of $13,000,000. The Company may
      exercise the option anytime before December 1, 2008.





Prior to June 1, 2007, The Company offered to its distributors a plan
      whereby the distributors could earn a stock bonus based on sales and
      "bonus points." Distributors earned certificates redeemable for one share
      of the Company's common stock three years after the certificate has been
      earned. The number of certificates outstanding at May 31, 2007 and 2006
      were 103,952 and 95,780, respectively. The liability for the bonus points
      of $111,695 and $103,395 at May 31, 2007 and 2006, respectively, is
      included in accrued compensation and benefits. These amounts are
      redeemable into common stock at a fair market value on the date that they
      are fully earned and redeemed. During the years ended May 31, 2007 and
      2006, respectively, no shares were issued to various distributors under
      this plan. Effective June 1, 2007 this plan was discontinued, however the
      liability will remain for a period of 3 years relating to the 95,780
      shares which were earned but not yet issued.

Restricted Cash:

In 2006, the Company has entered into several agreements with banks
      whereby a certain amount must be deposited into a restricted cash account
      in exchange for credit card processing services. The balance of restricted
      cash was $0 and $26,034 at May 31, 2007 and 2006, respectively.



The Company has entered into an intellectual property license agreement
      with an entity owned by the principal stockholder. The agreement calls for
      royalty payments to the entity that total 8% of "net sales price", subject
      to a minimum annual royalty fee of $500,000 and other conditions as
      defined by the agreement. Pursuant to the terms and provisions of the
      License Agreement, we are required to pay the greater of $500,000 for
      fiscal year 2003 and each calendar year thereafter, during the first ten
      years of the License Agreement (the "Minimum Royalty Fee"), or eight
      percent of the net sales price of all license products sold under the
      License Agreement (the "Continuing Royalty Fee"). After fiscal 2013, we
      are required to make payments in the amount of the Continuing Royalty Fee.

The minimum royalty fees expensed for the years ended May 31, 2007 and
      2006 were $500,000. Accrued royalties due under this license agreement are
      $631,856 and $250,000 at May 31, 2007 and 2006, respectively. On May 29,
      2006 accrued royalties totaling $1,150,000 were converted to common stock.



Note 9. Subsequent events:

As a continuation to the Company's private placement offering initiated
      in December 2006, the Company issued an additional 700,000 restricted
      common shares in exchange for $700,000 cash on July 23, 2007.



On July 27, 2007, the Board of Directors approved a reverse split of
      its common stock on a 1 new share for each 3 old shares. Shareholders of
      record as of the effective date of August 20, 2007 will receive 1 new
      share for each 3 shares outstanding. In conjunction with the reverse
      split, the Company also approved a change in the Company's name to
      Lifequest World Corporation. The name change and stock split became
      effective August 20, 2007 and the Company was issued the new stock symbol
      of LQWC.

---



ITEM 8. CHANGES IN AND DISAGREEMENT WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 8A. CONTROLS
AND PROCEDURES

The Company's management, Anthony Carl Jurak, our Chief Executive Officer and
acting Chief Accounting Officer, Roger Theriault, our President, and Maria
Guedes, our Vice President of Operations/Assistant Secretary, conducted an
evaluation of the effectiveness of the Company's disclosure controls and
procedures, as defined in Exchange Act Rule 13a-15(e), as of May 31, 2007 (the
"Disclosure Controls Evaluation"). Based on that evaluation, the Company's chief
executive officer and chief accounting officer, President and Vice President of
Operations/Assistant Secretary concluded that as of the end of the period
covered by this report the Company's disclosure controls and procedures were
effective to provide a reasonable level of assurance that: (i) information
required to be disclosed by the Company in the reports the Company files or
submits under the Exchange Act is recorded, processed, summarized and reported
within the specific time periods in the Securities and Exchange Commission's
rules and forms and (ii) information required to be disclosed in the reports the
Company files or submits under Exchange Act are accumulated and communicated to
management, including the chief executive officer and chief accounting officer,
to allow timely decisions regarding required disclosure, all in accordance with
Exchange Act Rule 13a-15(e).

There were no changes in the Company's internal control over
financial reporting, as defined in Exchange Act Rule 13a-15(f), during the
quarter ended May 31, 2007, that have materially affected, or are reasonably
likely to materially affect, the Company's internal control over financial
reporting.

A control system, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control system
are met. Further, the design of a control system must reflect the fact that
there are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within the Company have been
detected. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.



AUDIT COMMITTEE REPORT



The audit committee operates under a written charter adopted by the Board of
Directors during June 2004. As of the date of this Annual Report, Anthony Jurak
has been appointed to our audit committee. Mr. Jurak is not "independent" within
the meaning of Rule 10A-3 under the Exchange Act. The Board of Directors has
determined that there is not a financial expert serving on the audit committee.
We are currently involved in appointing a financial expert to the audit
committee, but haven't finalized such appointment as of the date of this Annual
Report.



The audit committee has reviewed and discussed with
management our audited financial statements as of and for fiscal year ended May
31, 2007. The audit committee has also discussed with Carver Moquist & O'Connor
LLC the matters required to be discussed by Statement on Auditing Standards No.
61, Communication with Audit Committees, as amended, by the Auditing Standards
Board of the American Institute of Certified Public Accountants. The audit
committee has received and reviewed the written disclosures and the letter from
Carver Moquist & O'Connor LLC required by Independence Standards Board Standard
No. 1, Independence Discussions with Audit Committees, as amended, and has
discussed with Carver Moquist & O'Connor LLC their independence.



Based on the reviews and discussions referred to above, the
audit committee has recommended to our Board of Directors that the audited
financial statements referred to above be included in our Annual Report on Form
10-KSB for fiscal year ended May 31, 2007 to be filed with the Securities and
Exchange Commission.

ITEM 8B. OTHER
INFORMATION



Not applicable.





|Part III
|--------





ITEM 9. DIRECTORS, EXECUTIVE OFFICERS,
PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT



IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS



All of our directors hold office until the next annual
general meeting of the shareholders or until their successors are elected and
qualified. Our officers are appointed by our Board of Directors and hold office
until their earlier death, retirement, resignation or removal.



As of the date of this Annual Report, our directors and
executive officers, their ages and positions held are as follows:



|NAME                 | AGE | OFFICES HELD                                                             
|-------------------- | --- | -------------------------------------------------------------------------
|Anthony C.
    Jurak | 69  | Director,
    Chairman of the Board and Chief Executive Officer/Secretary
|Roger Theriault      | 61  | Director, President                                                      
|Maria J.
    Guedes  | 38  | Vice
    President of Operations/AssistantSecretary                      



BIOGRAPHIES

The backgrounds of our directors and executive officers are
as follows:



Anthony C. Jurak. Mr. Jurak is the founder of our
company, and a director and Chairman of the Board and our Chief Executive
Officer/Secretary. Mr. Jurak was also a co-chairman and secretary/treasurer for
more than the five years of Matol Partners Corporation, terminating his position
in February 1997, and since has worked primarily for us. While with Matol
Partners Corporation, Mr. Jurak was in charge of finances and then committed his
time to marketing and sales. Mr. Jurak has broad marketing and financial
experience, including wholesale and retail companies.



Roger Theriault. Mr. Theriault is our President and a
director. Mr. Theriault was also the director of national sales for Shaklee
Canada from 1979 to 1984. During that time, he was primarily involved in
marketing and sales and responsible for three regional sales managers and more
than 100,000 distributors. Mr. Theriault was the founder of Nova Sante Pacific
International where he worked from 1989 to 1994. Since 1995, he has been a
consultant to Triple Gold (Ecuador), Radical Advance Technologies and CiDem
(France).



Maria J. Guedes. Ms. Guedes is our Vice-President of
Operations, Assistant Secretary since 1997. Ms. Guedes is a graduate of Notre
Dame College (Canada) with a degree in business. Ms. Guedes provides human
resource management, maintains and oversees the development of our customized
computer databases, oversees inventory control systems, reviews accounting
practices and acts as the office manager/administrator.



FAMILY RELATIONSHIPS

There are no family relationships among our directors or
officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

During the past five years, none of our directors, executive
officers or persons that may be deemed promoters is or have been involved in any
legal proceeding concerning (i) any bankruptcy petition filed by or against any
business of which such person was a general partner or executive officer either
at the time of the bankruptcy or within two years prior to that time; (ii) any
conviction in a criminal proceeding or being subject to a pending criminal
proceeding (excluding traffic violations and other minor offenses); (iii) being
subject to any order, judgment or decree, not subsequently reversed, suspended,
or vacated, of any court of competent jurisdiction permanently or temporarily
enjoining, barring, suspending or otherwise limiting involvement in any type of
business, securities or banking activity; or (iv) being found by a court, the
Securities and Exchange Commission or the Commodity Futures Trading Commission
to have violated a federal or state securities or commodities law (and the
judgment has not been reversed, suspended or vacated).



COMMITTEES OF THE BOARD OF DIRECTORS



Audit Committee



The audit committee operates under a written charter adopted by the Board of
Directors during June 2004. As of the date of this Annual Report, Anthony Jurak
has been appointed to our audit committee. Mr. Jurak is not "independent" within
the meaning of Rule 10A-3 under the Exchange Act. The Board of Directors has
determined that there is not a financial expert serving on the audit committee.
We are currently involved in appointing a financial expert to the audit
committee, but haven't finalized such appointment as of the date of this Annual
Report.



The audit committee's primary function is to provide advice
with respect to our financial matters and to assist the Board of Directors in
fulfilling its oversight responsibilities regarding finance, accounting, and
legal compliance. The audit committee's primary duties and responsibilities will
be to: (i) serve as an independent and objective party to monitor our financial
reporting process and internal control system; (ii) review and appraise the
audit efforts of our independent accountants; (iii) evaluate our quarterly
financial performance as well as our compliance with laws and regulations; (iv)
oversee management's establishment and enforcement of financial policies and
business practices; and (v) provide an open avenue of communication among the
independent accountants, management, and the Board of Directors.



COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Section 16(a) of the Exchange Act requires directors and
officers, and the persons who beneficially own more than 10% of common stock of
certain companies, to file reports of ownership and changes in ownership with
the Securities and Exchange Commission. We are not required to file reports
under Section 16 of the Exchange Act.



ITEM 10. EXECUTIVE COMPENSATION

During fiscal years ended May 31, 2007 and 2006, certain
officers were compensated for their role as executive officers. As of the date
of this Annual Report, we do not have any stock option, pension, annuity,
insurance, profit sharing or similar benefit plans. Executive compensation is
subject to change concurrent with our requirements. We do not have employment
agreements with any of our officers.



Generally, our directors do not receive salaries or fees for
serving as directors nor do they receive any compensation for attending meetings
of the Board of Directors. However, we may adopt a director compensation policy
in the future. We do not currently have any standard arrangement pursuant to
which our directors are compensated for services provided as a director or for
committee participation or special assignments. Directors are, however, entitled
to reimbursement of expenses incurred in attending meetings.



SUMMARY COMPENSATION TABLE



Compensation



We do not currently have a compensation committee.
Compensation decisions are made from time-to-time by our Board of Directors with
no established policies or formulas. The following table sets forth the
compensation received by the officers of the Company.



SUMMARY COMPENSATION TABLE

|Name and Principal
    Position                                                                                                                                                                             | Year                                                        | Salary
    ($)                                                           | Bonus
    ($)                                   | Stock
    Awards
    ($)                         | Option
    Awards
    ($)                               | Non-Equity
    Incentive Plan Comp.
    ($)                 | Nonqual.
    Deferred Comp. Earnings.
    ($)    | All Other
    Comp.
    ($)                      | Total
    ($)                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------ | ----------------------------------------------- | ------------------------------------------------ | ------------------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------ | --------------------------------------------------------------------
|Anthony Jurak 
    Chief Executive Officer/ Secretary, Chairman of the Board, DirectorRoger
    Theriault
    President, Director
    Maria J. Guedes
    Vice President, Assistant Secretary,
    Director | 20072006
    
    
    
    2007
    2006
    2007
    2006 | $57,188$56,787
    
    
    $50,248
    $49,216
    $67,708
    $65,208 | NilNil
    
    Nil
    Nil
    $10,000
    Nil | NilNil
    
    Nil
    Nil
    $175,000
    Nil | NoneNone
    
    
    
    Nil
    Nil
    Nil
    Nil | NoneNone
    
    
    
    None
    None
    None
    None | NilNil
    
    
    Nil
    Nil
    Nil
    Nil | NilNil
    
    
    Nil
    Nil
    Nil
    Nil | $57,188$56,787
    
    $50,248
    $49,216
    $252,708
    $65,208





Stock Options/SAR Grants In Fiscal Year Ended May 31, 2007

As of the date of this Annual Report, we do not have a stock
option plan in effect. The following reflects the information for fiscal year
ended May 31, 2007 regarding stock options. No stock options were granted in the
current fiscal year or any previous fiscal years.

Long Term Incentive Plan ("LTIP") Awards Table

We have no long-term incentive plans in place and therefore
there were no awards made under any long-term incentive plan to any of the above
executive officers during fiscal year ended May 31, 2007.









EMPLOYMENT AGREEMENTS



As of the date of this Annual Report, we do not have any
employment agreements with our executive officers, but we intend to enter into
such agreements with our senior executive officers in the future.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

As of the date of this Annual Report, the following table
sets forth certain information with respect to the beneficial ownership of our
common stock by each stockholder known by us to be the beneficial owner of more
than 5% of our common stock and by each of our current directors and executive
officers. Each person has sole voting and investment power with respect to the
shares of common stock, except as otherwise indicated. Beneficial ownership
consists of a direct interest in the shares of common stock, except as otherwise
indicated. As of May 31, 2007, there are 102,731,791 shares of common stock
issued and outstanding.





|Title of Class | Name and Address of Beneficial
    Owner    | Amount and Nature of
    Beneficial Ownership | Percentage
    of Class
|-------------- | ------------------------------------------- | --------------------------------------------- | -----------------------
|Common         | Anthony C.
    Jurak(1) (2) (3)             | 68,482,885                                    | 66.66%                 
|Common         | Roger Theriault
    (1)                     | 7,096,037                                     | 6.91%                  
|Common         | Maria Guedes(1)                             | 575,570                                       | 0.56%                  
|Common         | Executive Officers/Directors as
    a group | 76,154,492                                    | 74.13%                 
|               |                                             |                                               |                        





(1) The address for all management is 1181 Grier Drive, Suite C, Las Vegas,
Nevada 89119.

(2) 29,511,797 shares held in trust by Jurak Holdings Limited, 4478 97th
    Street, Edmonton, Alberta, Canada T6E 5R9, of which Anthony Jurak is the
    sole beneficiary.

(3) 18,788,675 shares held in trust by 152581 Canada Ltd., c/o 1181 Grier
    Drive, Suite C, Las Vegas, Nevada 89119, of which Anthony Jurak is the sole
    beneficiary



CHANGES IN CONTROL

Our Board of Directors is unaware of any arrangement or
understanding among the individuals listed in the beneficial ownership table
with respect to election of our directors or other matters. We are unaware of
any contract or other arrangement the operation of which may at a subsequent
date result in a change in control of our company.

ITEM 12.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

On approximately January 1, 1999, we entered into an
intellectual property license agreement (the "License Agreement") with Jurak
Holdings Limited, a corporation organized under the laws of the Province of
Alberta and an affiliate of our Chief Executive Office and one of our directors,
Anthony Jurak. Pursuant to the terms and provisions of the License Agreement,
beginning with fiscal year 2003, for a term of ten (10) years, we are required
to pay annually the greater of $500,000 ("Minimum Royalty Fee") or eight percent
(8%) of the net sales revenue ("Continuing Royalty Fee") of all licensed
products sold under the license agreement. After fiscal 2013, we are required to
make payments in the amount of the Continuing Royalty Fee. As of the date of
this Annual Report, the amount of the Accrued Minimum Royalty Fee due and owing
is $631,856.



ITEM 13. EXHIBITS

(a) Exhibit List

31.1     Certificate pursuant to Rule 13a-14(a)



32.1     Certificate pursuant to 18 U.S.C.
Subsection 1350



ITEM 14. PRINCIPAL
ACCOUNTANT FEES AND SERVICES

AUDIT AND NON-AUDIT FEES

The following table presents fees for audit and other services provided by
Carver Moquist & O'Connor, LLC for the years ended May 31, 2007 and 2006



|                       |  | Year Ended |       
|---------------------- |  | ---------- | ------
|                       |  | May 31,    |       
|                       |  | 2007       |       
|                       |  |            |       
|Audit fees (1)         |  | $          | 34,708
|Audit-related fees (2) |  | 10,049     |       
|Tax fees (3)           |  | 7,154      |       
|All other fees (4)     |  | --         |       
|Total Fees             |  | $          | 51,911



(1)      Audit fees consist of fees for services
    provided in connection with the audit of our financial statements and
    reviews of our quarterly financial statements.

(2)      Audit-related fees consist of assurance
    and related services that include, but are not limited to, consultation
    concerning financial accounting and reporting standards and regulatory
    filing reviews.

(3)      Tax fees consist of the aggregate fees
    billed for professional services rendered by Carver Moquist & O'Connor, LLC
    for tax compliance, tax advice, and tax planning.

(4) All Other Fees relate to services rendered that do not meet the above
    category descriptions.  We did not engage the services of Carver
    Moquist & O'Connor, LLC to render other professional services



SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak Corporation
World Wide, Inc.(Registrant)



By /s/ Anthony Jurak
    Anthony Jurak 
    Chairman, Chief Executive Officer, Director and acting Chief Accounting
    Officer

Date            
September 10, 2007



In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.

By /s/ Anthony Jurak
    Anthony Jurak 
    Chairman, Chief Executive Officer, Director and acting Chief Accounting
    Officer

Date            
September 10, 2007