**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**









**FORM
      10-QSB/A**





**(Mark
                One)****x**
            
            **QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES****EXCHANGE
                ACT OF 1934****For
                the quarterly period ended   October 31,
                2006****OR****o**
            
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES****EXCHANGE
                ACT OF 1934****For
                the transition period from**




**Commission
      File Number**  **000-29313**




**CRYSTAL
      INTERNATIONAL TRAVEL GROUP, INC.**


(Name
      of
      small business issuer in its charter)





**Delaware**
            
            **20-0121007**(State
                or other jurisdiction of incorporation or
              organization)
            
            (I.R.S.
                Employer Identification No.)




**2160
      Headquarters Plaza, 10**  **th** **Floor,
      Morristown, New Jersey 07960**


(Address
      of principal executive offices & zip code)




**973-644-0900**


Registrant’s
      telephone number, including area code:






(Former
      Name or Former Address, if Changed Since Last Report)




Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. x Yes o No




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




Indicate
      by check mark whether the registrant has filed all documents and reports
      required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange
      Act
      of 1934 subsequent to the distribution of securities under a plan confirmed
      by a
      court. o Yes o No




State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of the latest practicable date: **23,965,290**




Transitional
      Small Business Disclosure Format (Check one): o Yes x No









**Item
      1. Financial Statements.**


**CRYSTAL
        INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**
 **(FORMERLY
        MOBILE REACH INTERNATIONAL, INC.)**
 **(A
        Development Stage Company)**
 **INDEX
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **OCTOBER
          31, 2006**
 
 PagesINDEX
              
              
              F1FINANCIAL
                  STATEMENTS:Condensed
                  Consolidated Balance Sheet
              
              
              F2Condensed
                  Consolidated Statements of Income
              
              
              F3Condensed
                  Consolidated Statement of Stockholders’ Deficit
              
              
              F4Condensed
                  Consolidated Statements of Cash Flows
              
              
              F5Notes
                  to Condensed Consolidated Financial Statements
              
              
              F6
                  - F14
  
  **CRYSTAL
        INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**
 **(FORMERLY
        MOBILE REACH INTERNATIONAL, INC.)**
 **(A
        Development Stage Company)**
 **CONDENSED
        CONSOLIDATED BALANCE SHEET**
 **OCTOBER
          31, 2006**
 **(Unaudited)**
 **ASSETS****CURRENT
                    ASSETS:**Cash
                
                $
                18,061Prepaid
                    insurance
                
                
                85,350Total
                    current assets
                
                
                
                
                $
                103,411**PROPERTY
                    & EQUIPMENT -**net
                    of accumulated depreciation
                
                
                
                
                
                41,686**OTHER
                    ASSETS:**Deposits
                
                
                11,856Intangibles
                    - net of amortization
                
                
                35,203Goodwill
                
                
                80,596127,655$
                272,752**LIABILITIES
                    & STOCKHOLDERS’ EQUITY****CURRENT
                    LIABILITIES:**Current
                    portion long-term debt
                
                $
                30,000Short-term
                    notes payable
                
                
                260,168Accounts
                    payable
                
                
                963,773Notes
                    payable - related parties
                
                
                236,856Accrued
                    liabilities
                
                
                1,427,953Total
                    current liabilities
                
                
                
                
                $
                2,918,750**LONG-TERM
                    LIABILITIES:**Long-term
                    debt
                
                
                5,021,307Convertible
                    debentures
                
                
                2,261,4767,282,783**STOCKHOLDERS’
                    EQUITY:**Preferred
                    stock; $.0001 par value; 100,000,000 shares authorized
                
                
                0Common
                    stock; par value $.001; 500,000,000 shares authorized, 12,347,331
                    issued
                    and outstanding, 58,463 shares to be issued
                
                
                23,068Paid-in
                    capital
                
                
                2,928,650Accumulated
                    deficit
                
                
                (12,880,499
                )(9,928,781
                )$
                272,752
  **See
          Notes to Condensed Consolidated Financial Statements**
  (F2)
 **CRYSTAL
        INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**
 **(FORMERLY
        MOBILE REACH INTERNATIONAL, INC.)**
 **(A
        Development Stage Company)**
 **CONDENSED
        CONSOLIDATED STATEMENTS OF INCOME**
 **(Unaudited)**
  Three
                  Months Ended October 31, 2006
              
              Cumulative
                  December 8, 2005 (Date of Inception) to October 31, 2006**REVENUE:**Sales
                  revenue
              
              $
              27,824
              
              $
              34,452Other
                  revenue
              
              
              0
              
              
              027,824
              
              
              34,452**COST
                  AND EXPENSES:**Cost
                  of goods sold
              
              
              13,833
              
              
              13,833General
                  and administrative expenses
              
              
              641,201
              
              
              7,819,998655,034
              
              
              7,833,831**OPERATING
                  LOSS**
              
              
              (627,210
              )
              
              (7,799,379
              )**OTHER
                  EXPENSES:**Interest
                  expense
              
              
              (1,203,872
              )
              
              (2,581,854
              )Product
                  development costs
              
              
              (22,082
              )
              
              (22,082
              )(1,225,954
              )
              
              (2,603,936
              )**NET
                  LOSS BEFORE INCOME TAXES**
              
              
              (1,853,164
              )
              
              (10,403,315
              )**INCOME
                  TAX (EXPENSE) BENEFIT**
              
              
              0
              
              
              0**NET
                  LOSS**
              
              $
              (1,853,164
              )
              $
              (10,403,315
              )**WEIGHTED
                  AVERAGE NUMBER OF SHARES**
              
              
              12,247,401
              
              
              9,863,401**LOSS
                  PER SHARE - BASIC AND DILUTED**
              
              $
              (0.15
              )
              $
              (1.05
              )
 
 
 See
        Notes to Condensed Consolidated Financial
        Statements
 (F3)
   **CRYSTAL
        INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**
 **(FORMERLY
        MOBILE REACH INTERNATIONAL, INC.)**
 **(A
        Development Stage Company)**
 **CONDENSED
        CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT**
 **(Unaudited)**
  Common
                  StockShares
              
              Amount
              
              Paid-in
                  Capital
              
              Accumulated
                  Deficit
              
              Total**Balance
                  at December 8, 2005 (Date of inception)**
              
              
              0
              
              $
              0
              
              $
              0
              
              $
              0
              
              $
              0Common
                  shares issued in formation of Crystal Hospitality Holdings,
                  Inc.
              
              
              200
              
              
              23,012
              
              
              0
              
              
              0
              
              
              23,012Shares
                  exchanged for common shares of Mobile Reach International,
                  Inc.
              
              
              (200
              )
              
              0
              
              
              0
              
              
              0
              
              
              0Common
                  shares issued to Crystal Hospitality Holdings, Inc.
                  stockholders
              
              
              7,100,000
              
              
              0
              
              
              0
              
              
              0
              
              
              0Common
                  shares owned by Mobile Reach International, Inc.
                  stockholders
              
              
              4,743,276
              
              
              0
              
              
              0
              
              
              0
              
              
              0Net
                  liabilities in excess of assets acquired in share exchange
              
              
              0
              
              
              0
              
              
              0
              
              
              (2,477,311
              )
              
              (2,477,311
              )Fair
                  market value of warrants attached to short-term debt
                  issued
              
              
              0
              
              
              0
              
              
              68,000
              
              
              0
              
              
              68,000Fair
                  market value of beneficial conversion feature of convertible
                  debentures
              
              
              0
              
              
              0
              
              
              1,990,711
              
              
              0
              
              
              1,990,711Net
                  loss
              
              
              0
              
              
              0
              
              
              0
              
              
              (8,550,024
              )
              
              (8,550,024
              )**Balance
                  at July 31, 2006**
              
              
              11,843,276
              
              
              23,012
              
              
              2,058,711
              
              
              (11,027,335
              )
              
              (8,945,612
              )Share
                  based compensation arrangement
              
              
              0
              
              
              0
              
              
              11,160
              
              
              0
              
              
              11,160Common
                  shares issued in connection with conversion of debentures
              
              
              562,518
              
              
              56
              
              
              228,779
              
              
              0
              
              
              228,835Fair
                  market value of beneficial conversion feature of convertible
                  debentures
              
              
              0
              
              
              0
              
              
              630,000
              
              
              0
              
              
              630,000Net
                  loss
              
              
              0
              
              
              0
              
              
              0
              
              
              (1,853,164
              )
              
              (1,853,164
              )**Balance
                  at October 31, 2006**
              
              
              12,405,794
              
              $
              23,068
              
              $
              2,928,650
              
              $
              (12,880,499
              )
              $
              (9,928,781
              )
 See
        Notes to Condensed Consolidated Financial
        Statements
  (F4)
  **CRYSTAL
        INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES (FORMERLY MOBILE REACH
        INTERNATIONAL, INC.)**
 **(A
        Development Stage Company)**
 **CONDENSED
        CONSOLIDATED STATEMENTS OF CASH FLOWS**
 **(Unaudited)**
  Three
                  Months Ended October 31, 2006
              
              Cumulative
                  December 8, 2005 (Date of Inception) to October 31, 2006**Net
                  loss**
              
              $
              (1,853,164
              )
              $
              (10,403,315
              )**Adjustments
                  to reconcile net income to net cash used in operating
                  activities**
              
              
              1,412,448
              
              
              8,882,576**Net
                  cash used in operating activities**
              
              
              (440,716
              )
              
              (1,520,739
              )**Cash
                  flows used in investing activities**
              
              
              (153,529
              )
              
              (170,760
              )**Cash
                  flows provided by financing activities**
              
              
              576,817
              
              
              1,709,560**Net
                  (decrease) increase in cash**
              
              
              (17,428
              )
              
              18,061**Cash
                  - beginning of period**
              
              
              35,489
              
              
              0**Cash
                  - end of period**
              
              $
              18,061
              
              $
              18,061
 
 **SUPPLEMENTAL
        DISCLOSURE OF CASH FLOW INFORMATION:**
  **Non-cash
                  activities:**Conversion
                  of debentures for common stock
              
              $
              228,835
              
              $
              228,835**Acquisition
                  of Travel House, Inc.**Purchase
                  price
              
              
              123,500
              
              
              123,500Add:Cash
              
              
              1,132
              
              
              1,132Subtract:Accounts
                  payable
              
              
              (3,804
              )
              
              (3,804
              )Total
              
              $
              120,828
              
              $
              120,828
 See
        Notes to Condensed Consolidated Financial
        Statements
  (F5)
   **CRYSTAL
        INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**
 **(FORMERLY
        MOBILE REACH INTERNATIONAL, INC.)**
 **(A
        Development Stage Company)**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(Unaudited)**
  **Note
        1 - Summary of Accounting Policies:**
  **General:**
  The
        accompanying unaudited condensed consolidated financial statements have been
        prepared in accordance with the instructions to Form 10-QSB, and therefore,
        do
        not include all the information necessary for a fair presentation of financial
        position, results of operations and cash flows in conformity with accounting
        principles generally accepted in the United States of America.
  In
        the
        opinion of management, all adjustments (consisting of normal recurring accruals)
        considered necessary for a fair presentation have been included. Accordingly,
        the results from operations for the three month period ended October 31,
        2006
        are not necessarily indicative of the results that may be expected for the
        year
        ended July 31, 2007. The unaudited consolidated financial statements should
        be
        read in conjunction with the July 31, 2006 financial statements and footnotes
        thereto included in the Company's SEC Form 10-KSB.
  **Business:**
  The
        Company was originally organized to develop and sell mobility software products
        and services in the United States and Europe. Its offices were located in
        Cary,
        North Carolina until the Exchange Agreement discussed below. Since the effective
        date of the Exchange Agreement, the Company moved its operations to Chatham,
        New
        Jersey. The principal focus of operations has been the development of travel
        products and services for sale to the general public in the United States
        through the utilization of registered agents and internet website booking
        services.
  Subsequent
        to the share exchange mentioned below, Mobile Reach International, Inc. changed
        its name to Crystal International Travel Group, Inc.
  **Basis
        of presentation:**
  On
        April
        17, 2006, effective April 29, 2006, Crystal International Travel Group, Inc.
        and
        Subsidiaries (formerly Mobile Reach International, Inc.) (the "Company")
        completed a share exchange with the stockholders of Crystal Hospitality
        Holdings, Inc., a Delaware corporation ("CHH"), pursuant to a Share Exchange
        Agreement (the "Exchange Agreement"), by and among the Company, CHH and the
        holders of the outstanding capital stock of CHH (the "CHH Stockholders").
        As a
        result, CHH is now a wholly-owned subsidiary of the Company. The Company
        has
        accounted for this share exchange using the purchase method of accounting
        as
        prescribed by Statement of Financial Accounting Standards ("SFAS") No. 141,
        "Business Combinations". The share exchange has been treated as a reverse
        acquisition of the Company by CHH, due to the stockholders of CHH receiving
        60.4
        percent of the voting rights of the combined entity. The condensed consolidated
        financial statements include the results from operations for both companies
        from
        August 1, 2006 through October 31, 2006.
  (F6)
  During
        the quarter ended October 31, 2006, the Company established a subsidiary
        named
        Platinum Hospitality Holdings, Inc. (“PHH”), a Delaware corporation. Effective
        August 1, 2006, PHH purchased all of the outstanding stock of JRM, Inc. dba
        The
        Travel House (“TH”) for $123,500. TH is a New Jersey corporation that has been
        operating as a full service travel agency. The Company purchased TH in order
        to
        establish a direct retail outlet for the travel products it is developing
        or
        plans to develop. The Company accounted for this acquisition as prescribed
        by
        SFAS No. 141, “Business Combinations”. The Company recorded $80,596 in goodwill
        for this acquisition. The condensed consolidated financial statements include
        the results of operations for TH from August 4, 2006 to October 31, 2006.
  **Development
        stage operations:**
  Since
        December 8, 2005 (date of inception), the Company has been concentrating
        its
        effort on raising capital and developing new travel related products for
        the
        retail market. As defined by SFAS No. 7 “Accounting and Reporting by Development
        Stage Enterprises”, the Company is a development stage company. Under SFAS No.
        7, a development stage enterprise is subject to the same accounting principles
        as a normal enterprise but is required to present a cumulative income statement
        showing revenues and expenses from inception.
  **Concentrations
        of credit risk:**
  The
        Company has no significant off-balance-sheet concentration of credit risk
        such
        as foreign exchange contracts, options contracts or other foreign hedging
        arrangements.
  The
        Company maintains its cash balances with multiple reputable financial
        institutions in the form of demand deposits.
  **Intangible
        assets:**
  The
        Company accounts for intangible assets under SFAS No. 142, “Goodwill and Other
        Intangible Assets”. Intangible assets are recorded at cost. Intangible assets
        subject to amortization include customer lists from business purchases. These
        costs are amortized over the assets estimated useful life of 24 months.
        Intangible assets not subject to amortization include goodwill from business
        purchases. These costs are evaluated annually for impairment.
  **Income
        taxes:**
  Deferred
        income taxes provide for temporary differences between the basis of the
        Company's assets and liabilities for financial reporting and income tax
        purposes. As of October 31, 2006, any deferred tax asset resulting from the
        three months of operating losses would be fully offset by a valuation allowance
        due to the uncertainty of realizing future tax benefits.
  (F7)
  **Fair
        value of financial instruments:**
  At
        October 31, 2006, the Company did not have any outstanding financial derivative
        instruments. The carrying amount of cash, receivables, payables and current
        liabilities approximate fair value due to the short maturity of these
        instruments.
  **Use
        of accounting estimates:**
  The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        estimates and assumptions that affect the reported amounts of certain assets
        and
        liabilities and disclosures. Accordingly, the actual amounts could differ
        from
        those estimates. Any adjustments applied to estimated amounts are recognized
        in
        the year in which such adjustments are determined.
  **New
        accounting pronouncements:**
  In
        February 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No.
        155, “Accounting for Certain Hybrid Financial Instruments - an amendment of FASB
        Statements No. 133 and 140” which applies to certain "hybrid financial
        instruments", which are instruments that contain embedded derivatives. The
        new
        standard establishes a requirement to evaluate beneficial interests in
        securitized financial assets to determine if the interests represent
        freestanding derivatives or are hybrid financial instruments containing embedded
        derivatives requiring bifurcation. This new standard also permits an election
        for fair value remeasurement of any hybrid financial instrument containing
        an
        embedded derivative that otherwise would require bifurcation under SFAS No.
        133.
        The fair value election can be applied on an instrument by instrument basis
        to
        existing instruments at the date of adoption and can be applied to new
        instruments on a prospective basis. Management is currently evaluating the
        potential impact of SFAS No. 155 on the Company’s financial position and results
        of operations and does not believe the impact of the application of this
        guidance will be material.
  In
        March
        2006, the FASB issued SFAS No. 156, “Accounting for Servicing of Financial
        Assets - an amendment to FASB Statement No. 140”. SFAS No. 156 requires that an
        entity recognize a servicing asset or servicing liability each time it
        undertakes an obligation to service a financial asset by entering into a
        service
        contract under certain situations. The new standard is effective for fiscal
        years beginning after September 15, 2006. Management is currently evaluating
        the
        potential impact of SFAS No. 156 on the Company’s financial position and results
        of operations and does not believe the impact of the application of this
        guidance will be material.
  In
        September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. This
        statement defines fair value, establishes a framework for measuring fair
        value
        in generally accepted accounting principles ("GAAP"), and expands disclosures
        about fair value measurements. This Statement applies under other accounting
        pronouncements that require or permit fair value measurements, the Board
        having
        previously concluded in those accounting pronouncements that fair value is
        the
        relevant measurement attribute. Accordingly, this Statement does not require
        any
        new fair value measurements. However, for some entities, the application
        of this
        Statement will change current practice. This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. Management is currently
        evaluating the potential impact of SFAS No. 157 on the Company’s financial
        position and results of operations and does not believe the impact of the
        application of this guidance will be material.
  (F8)
  In
        June
        2006, the FASB issued FASB Interpretation (“FIN”) No. 48, “Accounting for
        Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109”. FIN
        48 prescribes a recognition threshold and measurement attribute for financial
        statement recognition and measurement of a tax position taken or expected
        to be
        taken in a tax return, and also provides guidance on de-recognition,
        classification, interest and penalties, accounting in interim periods,
        disclosure, and transition. FIN 48 is effective for fiscal years beginning
        after
        December 15, 2006. Management is currently evaluating the potential impact
        of
        FIN 48 on the Company’s financial position and results of operations and does
        not believe the impact of the application of this guidance will be material.
  In
        September 2006, the Security and Exchange Commission (“SEC”) staff issued Staff
        Accounting Bulletin (“SAB”) No. 108, “Considering the Effects of Prior Year
        Misstatements when Quantifying Misstatements in Current Year Financial
        Statements”. SAB 108 was issued in order to eliminate the diversity of practice
        in how public companies quantify misstatements of financial statements,
        including misstatements that were not material to prior years’ financial
        statements. Management is currently evaluating the potential impact of SAB
        108
        on the Company’s financial position and results of operations and does not
        believe the impact of the application of this guidance will be
        material.
  **Note
        2 - Going Concern:**
  The
        accompanying financial statements have been prepared in conformity with
        accounting principles generally accepted in the United States of America,
        which
        contemplates continuation of Crystal International Travel Group, Inc. and
        subsidiaries as a going concern. However, as a result of the merger discussed
        in
        Note 1, the Company has acquired debt on certain notes payable that are in
        default, payroll taxes and other payables owed by the acquired company.
        Additionally, the Company has used substantial amounts of working capital
        in
        start-up operations and has generated an operating loss leading to an
        accumulated stockholders’ deficit of $9,928,781 at October 31, 2006. Further, at
        October 31, 2006, the Company’s current liabilities exceeded current assets by
        $2,815,339. Based on these factors, the Company may not be able to continue
        as a
        going concern.
  With
        the
        merger discussed in Note 1, the Company’s management has taken over management
        of the acquired company and is changing the acquired company’s focus of
        operations. Plans include licensing out all software development and
        concentrating on the Company’s core business of providing travel packages to
        individuals. Management also plans on additional financing through the issuance
        of convertible debentures. However, no assurance can be given that the Company
        will continue as a going concern without the successful completion of additional
        financing and the commencement of management’s planned changes in operations.
        The accompanying financial statements do not include any adjustments that
        might
        be necessary if the Company is unable to continue as a going
        concern.
  (F9)
  As
        a
        result of delinquencies and defaults, the Company may be subject to collection
        actions whenever agreements cannot be reached, including, but not limited
        to,
        litigation, foreclosure and/or seizure of assets and bank accounts.
  **Note
        3 - Property and Equipment:**
  The
        principal categories and estimated useful lives of property and equipment
        are as
        follows:
  October
                  31, 2006
              
              Estimated
                  Useful LivesOffice
                  and computer equipment
              
              $
              44,960
              
              
              3
                  to 7 yearsLess:
                  accumulated depreciation
              
              
              (3,274
              )$
              41,686
  Depreciation
        expense amounted to $2,039 for the three months ended October 31, 2006 and
        $3,274 for the period from December 8, 2005 (date of inception) through October
        31, 2006.
  **Note
        4 - Intangible Assets:**
  In
        August
        2006, the Company purchased all the outstanding shares of a fully operational
        travel agency for $123,500 in cash. At the time of the purchase, the Company
        was
        seeking to expedite the regulatory licensing process for travel agencies by
        purchasing an already licensed agency. In the exchange, the Company received
        an
        established customer database. Management valued the database at $40,232
        by
        discounting the estimated cash flow from commissions on sales to repeat
        customers. This customer database is amortized over an estimated useful life
        of
        twenty-four months.
  Intangible
        assets at October 31, 2006, consisted of the following:
  October
                  31, 2006
              
              Estimated
                  Useful LivesAmortized
                  intangibles:Customer
                  database
              
              $
              40,232
              
              
              2
                  yearsLess:
                  accumulated amortization
              
              
              (5,029
              )$
              35,203Unamortized
                  intangibles:Goodwill
                  - Travel House
              
              $
              80,596
  Amortization expense
        amounted to $5,029 for the three months ended October 31, 2006 and $5,029
        for
        the period from December 8, 2005 (date of inception) through October 31,
        2006.
  (F10)
  **Note
        5 - Accrued Liabilities:**
  At
        October 31, 2006, accrued expenses consisted of the following
        items:
  Salary
                  and wages payable
              
              $
              207,178Accrued
                  and withheld taxes
              
              
              515,839Accrued
                  interest
              
              
              298,481Accrued
                  service expense
              
              
              395,480Other
                  accrued expenses
              
              
              10,975Total
                  accrued expenses
              
              $
              1,427,953
  Accrued
        and withheld taxes primarily consist of delinquent payroll taxes withheld
        and
        accrued on employees of Mobile Reach International, Inc (“MRI”). Penalties and
        interest calculated through October 31, 2006 are included.
  **Note
        6 - Convertible Debentures:**
  During
        the three months ended October 31, 2006, the Company issued an additional
        $630,000 in six percent convertible debentures as part of the June 2006
        debenture issuance. This series of convertible debentures matures in 2009
        or
        three years from the date of the actual issuance and has an interest rate
        of
        five percent. This series has a variable conversion price that is fifty to
        sixty-five percent of the average of the three lowest daily trading prices
        for
        twenty trading days prior to the trading day before the day of conversion.
        Interest accrues from the date of issuance and may be paid in cash or in
        the
        Company’s common stock.
  As
        required by Emerging Issues Task Force (“EITF”) Issue No. 98-5 “Accounting for
        Securities with Beneficial Conversion Features or Contingently Adjustable
        Conversion Ratios”, the Company recognized $256,600 in interest expense and
        recorded $373,400 as a discount on the debentures issued. The intrinsic value
        of
        the conversion feature embedded in the debentures was calculated as the
        difference between the fair value of the debenture if converted on the
        commitment date and the conversion price as stated in the agreement. Accounting
        for this feature using EITF 98-5 resulted in the total value of the additional
        debenture issue of $630,000 being recorded as paid-in capital.
  On
        August
        9, 2006, debentures of $9,000 from the June 2006 issuance were converted
        at the
        conversion price of $ 0.18 per share and 50,000 shares of common stock were
        issued.
  On
        August
        10, 2006, debentures of $199,500 from the February 2004 issuance and debentures
        of $5,000 from the June 2006 issuance were converted at the conversion price
        of
        $ 0.80 per share and 270,782 shares of common stock were issued.
  On
        August
        21, 2006, debentures of $3,000 from the June 2006 issuance were converted
        at the
        conversion price of $ 0.12 per share and 25,000 shares of common stock were
        issued.
  On
        August
        25, 2006, debentures of $3,000 from the June 2006 issuance were converted
        at the
        conversion price of $0.07 per share and 42,253 shares of common stock were
        issued.
  (F11)
  On
        September 28, 2006, debentures of $4,335 from the June 2006 issuance were
        converted at the conversion price of $0.06 per share and 73,473 shares of
        common
        stock were issued.
  On
        September 29, 2006, debentures of $5,000 from the June 2006 issuance were
        converted at the conversion price of $0.05 per share and 101,010 shares of
        common stock were issued.
  Under
        the
        Security Agreement attached to the debentures issued under the June 2006
        debenture offering, all of the Company’s assets are pledged as collateral.
  **Note
        7 - Stockholders’ Equity:**
  For
        the
        period ended October 31, 2006, the Company’s common stock issued and outstanding
        was 12,347,331 with an additional 58,463 shares to be issued. During the
        period,
        the Company issued 562,518 common shares in connection with converted debentures
        (Note 6).
  **Note
        8 - Stock Options:**
  The
        Company records stock options as required by Statement of Financial Accounting
        Standards No. 123(R), “Share-Based Payments”. This Statement requires the
        Company “to measure the cost of employee services received in exchange for an
        award of equity instruments based on the grant-date fair value of the award.
        The
        cost will be recognized over the period during which an employee is required
        to
        provide service in exchange for the award.”
  During
        the period ended October 31, 2006, the Company issued options to an employee
        of
        the Company. The options granted total 400,000 shares of common stock with
        an
        option price of $.26 per share. The Company determined that the options issued
        had a value of $37,200 using the Black-Scholes pricing model and a thirty
        percent volatility factor at the date of the grant. The options become vested
        over a period of three years and expire five years after the agreement date.
        No
        options had been exercised, forfeited or had expired as of October 31,
        2006.
  Compensation
        expense related to these options is recorded in the period in which the holders
        become vested. For the period ended October 31, 2006, $11,160 of compensation
        expense was recorded related to these options. Future compensation expense
        related to these options is expected to be as follows:
  Year
                  ending July 31,2008
              
              $
              11,1602009
              
              
              14,880Thereafter
              
              
              0$
              26,040
  (F12)
  **Note****9
        - Loss Per Share:**
  A
        reconciliation of basic loss per share to diluted earnings per share is
        presented below:
  Net
                  Loss
              
              Shares
              
              Per
                  Share
                AmountPeriod
                  from December 8, 2005 (date of inception) through October 31,
                  2006:Basic
                  EPSLoss
                  available to common shareholders
              
              $
              (1,853,164
              )
              
              12,247,401
              
              $
              (0.15
              )Effect
                  of dilutive securities:Stock
                  options and warrants
              
              
              0
              
              
              0
              
              
              0Total
                  basic and diluted
              
              $
              (1,853,164
              )
              
              12,247,401
              
              $
              (0.15
              )
  **Note
        10 - Related Party Transactions:**
  During
        the period ended October 31, 2006, a limited liability company related through
        common ownership and another corporation that is a stockholder in the Company
        had made advances to the Company. Principal and interest of five percent
        is due
        on each note one year from the date of the note. The balance of these notes
        at
        October 31, 2006 is $236,856. Interest accrued on these notes through October
        31, 2006 is $7,787 and is included in accrued expenses.
  **Note
        11 - Pro-Forma Financial Information:**
  The
        following pro-forma data summarized the results of operations for the period
        ended October 31, 2006, as if the merger between MRI and CHH had been completed
        August 1, 2005:
  October
                  31, 2006
              
              October
                  31, 2005Net
                  revenues
              
              $
              27,824
              
              $
              155,941Operating
                  loss
              
              
              (1,853,164
              )
              
              (244,054
              )Loss
                  per share - basic and diluted
              
              
              (0.15
              )
              
              (0.02
              )
  **Note
        12 - Other Matters:**
  **Legal
        proceedings:**
  During
        the quarter ended October 31, 2006, a former officer of a former subsidiary
        of
        MRI filed suit against the Company alleging breach of contract. Management
        and
        counsel are currently in negotiations to settle this dispute. All amounts
        related to the original agreement signed by the Company and the former officer
        have been included in notes payable and accrued expenses.
  (F13)
  **Unsecured
        creditors of the company:**
  The
        Company is delinquent with a number of unsecured creditors for which no payment
        arrangements exist or for which no agreement to forestall collection action
        has
        been agreed upon. Whenever feasible the Company negotiates with these creditors
        to reach settlement agreements that are acceptable to the Company.
  As
        a
        result of the delinquencies and defaults, the Company may be subject to
        collection actions whenever agreements cannot be reached, including, but
        not
        limited to, litigation, foreclosure and/or seizure of assets and bank
        accounts.
  (F14)




**Item
      2. Management’s Discussion and Analysis of Financial Condition and Results of
      Operations.**




You
      should read the following discussion of the Company’s business and results of
      operations in conjunction with the consolidated financial statements attached
      herein. The results shown in this 10-QSB are not necessarily indicative of
      the
      results it will achieve in any future periods.




Financial
      Discussion




We
      are a
      development stage company.




On
      April
      17, 2006 the Company completed a reverse merger with Crystal Hospitality
      Holding, Inc. (Crystal).  The shareholders of Crystal acquired
      approximately 60.4% of the voting shares of the Company.  As discussed in
      the Liquidity and Capital Resources section above, the new management has
      arranged for short term financing and is actively working to complete a new
      equity offering.  No other equity in the Company has been sold. 
Management of the Company has been able to stabilize the operations of the
      Company and no new defaults on existing Mobile Reach debts have occurred. 
Significant market risk exists as a result of the previously existing financial
      issues of the Company and the change in ownership and business
      focus.





As
      of the
      date of this Quarterly Report, we have not gained complete control over the
      intangible assets associated with our purchase of FS SunTours’ intellectual
      property. The customer database has not been delivered; the phone numbers and
      the trademarks are still in control of FS SunTours. Therefore, we recorded
      an
      asset impairment charge of $4,896,666 in relation to these assets for the year
      ended July 31, 2006. Our lack of complete control over the SunTrips assets
      has
      had a material impact on our business plan relating to the use of these assets.
      We have been able to operate and derive marginal revenue from the web portal.
      We
      are attempting to secure complete control of the intangible assets. On December
      8, 2006, the United States Bankruptcy Court of the Western District of Texas
      entered an order requiring the return of the SunTrips assets in question, which
      we expected to occur no later than December 31, 2006 but due to the complexity
      of the bankruptcy case this has not yet occurred. It is difficult to estimate
      when the assets will be returned. As of the date of this filing we have serious
      concerns as to whether we will be able to acquire any of the additional assets.
      In the event the assets are not returned, our operations will continue to be
      materially adversely affected and it increases the likelihood we will not
      continue as a going concern.





Due
      to
      the asset impairment and in attempt to maximize shareholder value, we have
      been
      developing a product we call “IntelliFares”. IntelliFares is owned by
      IntelliFares Limited, a registered company in the Democratic Republic of Ireland
      and is a wholly-owned subsidiary of ours. IntelliFares offers travelers who
      participate in predictable, recurring travel patterns, such as timeshare or
      second homeowners, college students, business travelers and the like will be
      able to purchase five years of future air travel at or below comparable open
      market air ticket prices, and fix that price for the five year period, by
      contracting with IntelliFares to arrange for the purchase of airfare on their
      behalf, after depositing the full five years of payment with
      IntelliFares .




Sources
      of Revenue




Revenue
      for the period August 1 2006 to October 31 2006 were generated from the sale
      of
      travel and travel related products. Our revenue for this current period was
      $27,824 compared with revenues of $155,941 for the period ending October 31
      2005. Revenue from the period ending October 31 2005 was generated through
      the
      sale of services and products related to Mobile Reach
      Technologies.


12


Critical
      Accounting Policies




In
      preparing the consolidated financial statements in conformity with accounting
      principles generally accepted in the United States, the Company makes estimates,
      assumptions and judgments that can have a material impact on its net revenue,
      operating income and net income (loss), as well as on the value of certain
      assets on its consolidated balance sheet. The Company believes that the
      estimates, assumptions and judgments involved in the accounting policies
      described below have the greatest potential impact on its consolidated financial
      statements. The Company considers these to be its critical accounting
      policies.  The policies described below are not intended to be a
      comprehensive list of all the Company’s accounting policies. In many cases, the
      accounting treatment of a particular transaction is specifically dictated by
      generally accepted accounting principles, with no need for management judgment
      in their application.  There are also areas in which management judgment in
      selecting any available alternative would not produce a materially different
      result. The Company’s audited consolidated financial statements and notes
      thereto contain significant accounting policies and other disclosures required
      by generally accepted accounting principles. The accounting policies that are
      considered critical to an understanding of the consolidated financial statements
      are highlighted below.




RESULTS
      OF OPERATIONS




Revenues
      and expenses presented on the consolidated statement of income for October
      31,
      2006, represent the results of operations for Crystal International for the
      period August 1 2006 through October 31 2006, the results of operations for
      Mobile Reach International, Inc. for the period August 1 2006 through October
      31
      2006 and the results of operations for Crystal Hospitality Holdings, Inc. for
      the period August 1 2006 through October 31 2006.




QUARTER
      ENDING OCTOBER 31, 2006 COMPARED TO OCTOBER 31, 2005




Revenues:




Crystal’s
      revenues in the quarter ending October 31, 2006 were generated from the sale
      of
      travel related services provided as compared to fiscal year 2005 when revenues
      were primarily comprised of licensing, services fees and product sales, which
      are recognized as revenue when the product or services are provided to the
      client.  The unaudited consolidated financial data is provided for
      comparative purpose only and does not claim to be indicative of the actual
      financial position or results of the Company’s carry forward
      operations.


13




General
      and Administrative Expenses:




Combined
      general and administrative expenses of Crystal and Mobile Reach International
      for the quarter ending October 31, 2006 was $641,201.  General and
      administrative consisting primarily of compensation, Professional fees including
      both legal and accounting, costs associated with Securities agreements and
      compliance reporting.




Liquidity
      and Capital Resources:




As
      of
      October 31, 2006, the Company had an accumulated deficit of $12,864,310 and
      a
      working capital deficit of $2,917,490. Our independent auditors, who audited
      our
      financial statements for the period ended July 31, 2006, have expressed
      substantial doubt about the Company’s ability to continue as a going concern
      given our recurring losses from operations, negative working capital and net
      stockholders’ deficit. In addition, the Company must deal with the litigation
      and claims described in Part II Item I of this Form 10-QSB under the heading
      “Legal Proceedings.”




**Item
      3. Controls and Procedures.**




EVALUATION
      OF OUR DISCLOSURE CONTROLS AND PROCEDURES




As
      of the
      end of the period covered by this report, we carried out an evaluation of the
      effectiveness of the design and operation of our disclosure controls and
      procedures (as defined in Exchange Act Rule 13-d-15(e) and 15d-15(e)). Based
      upon that evaluation and management’s assessment of the potential effect of the
      material weakness described below, our Chief Executive Officer (and Principal
      Accounting Officer) concluded that as of the end of the period covered by this
      Quarterly Report on Form 10-QSB our disclosure controls and procedures were
      effective to enable us to record, process, summarize and report information
      required to be included in our periodic SEC filings within the required time
      period.




DISCLOSURE
      CONTROLS AND INTERNAL CONTROLS




Disclosure
      Controls are procedures that are designed with the objective of ensuring that
      information required to be disclosed in our reports filed under the Securities
      Exchange Act of 1934 (“Exchange Act”), such as this quarterly report, is
      recorded, processed, summarized and reported within the time periods specified
      in the SEC’s rules and forms. Disclosure Controls are also designed with the
      objective of ensuring that such information is accumulated and communicated,
      as
      appropriate to allow timely decisions regarding required disclosure. Internal
      Controls are procedures which are designed with the objective of providing
      reasonable assurance that (1) our transactions are properly authorized, recorded
      and reported; and (2) our financial statements are presented in conformity
      with
      generally accepted accounting principles.


14


Our
      company is not an accelerated filer (as defined in the Securities Exchange
      Act)
      and is currently not required to deliver management’s report on our internal
      control over financial reporting until our fiscal year ended July 31st,
      2005.


15




**PART
      II - OTHER INFORMATION**




**Item
      1. Legal Proceedings.**




From
      time
      to time the Company subject to litigation which, if successful, could exceed
      applicable insurance coverage. With the exception of the below, the Company
      is
      not currently a party to any legal proceedings which are not incidental to
      the
      Company’s routine business or that the Company believes will have a material
      adverse affect on its results of operations.




On
      July 26, 2006 in the United States District Court for the Middle District
      of Florida, Michael J. Hewitt filed a Complaint and Demand for Jury Trial
      against the Company alleging that on or about August 4, 2004 he was
      terminated by the Company without just cause. Mr. Hewitt is seeking
      approximately $1.1 million in damages. The Company believes this suit to be
      without merit and plan to defend it vigorously.




On
      September 20, 2006 in the Circuit Court of the Seventh Judicial Circuit in
      and for St. Johns County, Florida, Paige Bendixsen, a former executive officer
      of the Company, filed a Summons for a demand for jury trial alleging that from
      the period beginning in 2003 to date, the Company has breached a number of
      agreements between Mr. Bendixson and the Company, including an agreement
      and plan of merger, an employment agreement and a settlement agreement.
      Mr. Bendixsen is seeking no less than $75,000 in damages. The Company
      believes this suit is without merit and plan to defend it vigorously.




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




Not
      applicable




**Item
      3. Defaults Upon Senior Securities.**




Not
      applicable




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




Not
      applicable




**Item
      5. Other Information.**




In
      August
      2005, the Company executed an agreement and plan of merger with Objective
      Spectrum, Inc. (“Objective”).  The Company purchased all of Objective’s
      issued and


16




outstanding
      common stock for 375,000 shares of the Company’s restricted common stock. At the
      date of the agreement, a current director and officer of the Company owned
      approximately ninety-two percent of Objective’s common stock.  As a result
      of the acquisition, the Company obtained intellectual property rights to source
      code for use with the Company’s Splitware product.




On
      March
      3, 2006 Crystal Hospitality Holdings Inc., (Crystal) consummated a transaction
      with F.S. SunTours, Inc., a wholly owned subsidiary of One Travel Holdings,
      Inc., whereby Crystal purchased various assets, including but not limited to,
      the brand name SunTrips, the domain name Suntrips.com, 1 800 Sun Trips and
      customer lists.  As consideration for the transaction, Crystal agreed to
      pay $100,000 per month for 84 months for a total of 8.4 million
      dollars.




At
      the
      time of the consummation of the transaction, F.S. SunTours, Inc, had substantial
      debt.  Crystal received the right, but not the obligation to settle with
      various creditors of F.S. SunTours, Inc., which settlements would result in
      a
      credit to Crystal against the purchase price.  As a condition of the
      transaction, Crystal a settlement agreement with one such creditor MyTravel
      USA
      Holdings, Inc. (“MyTravel”).  As a result of the settlement with MyTravel,
      Crystal received a credit of approximately 1.9 million dollars against the
      purchase price, and no additional payment is due until November 2008. 
Crystal is currently in negotiations with various other creditors of F.S.
      SunTours and may receive additional credits against the purchase
      price.




MyTravel
      Canada Holidays, Inc.- On March 8 th , 2006
      Crystal entered into a services agreement with MyTravel, a wholly owned
      subsidiary of MyTravel Holdings, PLC. MyTravel provided various services to
      F.S.
      SunTours, Inc., including but not limited to purchase of bulk hotel rooms and
      coordination of ground transportation services for passengers.  As a
      condition of the purchase agreement with F.S. SunTours, Inc.  Crystal was
      required to obtain a release from MyTravel in favor of F.S. SunTours, Inc.
      As
      consideration for the release and for receipt of ongoing services from MyTravel,
      Crystal entered into a services agreement with MyTravel.




The
      services agreement provides Crystal to make aggregate payment to MyTravel of
      $5,115,000.00 over a term beginning on the date of the agreement and ending
      on
      October 1, 2011. To date Crystal and MyTravel have failed to fully agree upon
      all of the services to be provided to Crystal, however, the services are
      expected to include but not be limited to services similar to those provided
      by
      MyTravel to F.S SunTours.  To date the Company has not made any payments to
      MyTravel, nor has Company received significant services from
      MyTravel.




The
      Company may be in default of the agreement however; the Company is involved
      in
      ongoing discussion with MyTravel and is attempting to reach a mutually
      acceptable resolution.




On
      March
      15, 2006, Crystal entered into an agreement with N-Porta to provide a fully
      hosted solution for Crystal to offer on-line travel services including but
      not
      limited to


17




airline
      reservation and booking, hotel reservation and car rental services. The
      agreement provides for the aggregate payment of $3,000,000.00 over a term of
      60
      months at a cost of $50,000 per month.




N-Porta
      provided various services through third parties and has not been able to provide
      a full accounting of the transaction generated by the SunTrips.com website.
      The
      Company is in discussion with N-Porta regarding the services to be provided
      and
      terms of this Agreement, which may result in significant changes to the
      relationship.




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





EX-31.1
            
            CERTIFICATION
                OF CEO PER SECTION 302EX-31.2
            
            CERTIFICATION
                OF CFO PER SECTION 302EX-32.1
            
            CERTIFICATION
                OF CEO PER SECTION 906EX-32.2
            
            CERTIFICATION
                OF CFO PER SECTION 906




18




**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





Date:
                July 2, 2007
            
            By:
            
            */s/
                Fabrizzio Busso Campana*Fabrizzio
                Busso Campana
              Chief
                Executive Officer




19