**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION **

**Washington,        D.C. 20549**

**FORM        10 - QSB**

**QUARTERLY        REPORT UNDER SECTION 13 OR 15(d) OF**

**THE        SECURITIES EXCHANGE ACT OF 1934.**

**For        the quarterly period ended June 30, 2006.**

**000-26673**

*(Commission        File Number)*

**Vitasti,        Inc.**

| **Delaware**                                                                                            | **98-0207081**                                                                |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| **(State                  or other jurisdiction of****incorporation                  or organization)** | **(IRS                  Employer****Identification                  Number)** |

**10-20172        113B Avenue**

**Maple        Ridge, British Columbia**

**Canada        V2X 0Y9**

*(Address        of principal executive offices including zip code)*

**(604)        460-8487**

*Registrant’s        telephone number, including area code)*

**1**

----

**Quarterly        Report on FORM 10-QSB For The Period Ended**

**June        30, 2006**

**Table        of Contents**

**Vitasti,        Inc. **

|                                    |                                                                                                 | Page   |
|-----------------------------------------|------------------------------------------------------------------------------------------------------|--------|
| Part                  I.                |                                                                                                 |   |
| FINANCIAL                  INFORMATION: |                                                                                                 |   |
|                                    | Item                  1. Financial Statements:                                                       | 3      |
|                                    | Consolidated                  Balance Sheet (Unaudited)                                              | F-1    |
|                                    |                                                                                                 |   |
|                                    | Consolidated                  Statements of Operations (Unaudited)                                   | F-2    |
|                                    |                                                                                                 |   |
|                                    | Consolidated                  Statements of Cash Flows (Unaudited)                                   | F-3    |
|                                    |                                                                                                 |   |
|                                    |                                                                                                 |   |
|                                    | Notes                  to Consolidated Financial Statements                                          | F-4    |
|                                    |                                                                                                 |   |
|                                    | Item                  2. Management's Discussion and Analysis and Plan of                  Operation | 4      |
|                                    |                                                                                                 |   |
|                                    | Item                  3. Controls and Procedures                                                     | 7      |
|                                    |                                                                                                 |   |
| Part                  II.               |                                                                                                 |   |
| OTHER                  INFORMATION:     |                                                                                                 |   |
|                                    | Item                  1. Legal Proceedings                                                           | 8      |
|                                    |                                                                                                 |   |
|                                    | Item                  2. Changes in Securities                                                       | 8      |
|                                    |                                                                                                 |   |
|                                    | Item                  3. Defaults Upon Senior Securities                                             | 8      |
|                                    |                                                                                                 |   |
|                                    | Item                  4. Submission of Matters to a Vote of Security Holders                         | 8      |
|                                    |                                                                                                 |   |
|                                    | Item                  5. Other Information                                                           | 8      |
|                                    |                                                                                                 |   |
|                                    | Item                  6. Exhibits and Reports on Form 8-K                                            |   |
|                                    |                                                                                                 |   |
| SIGNATURES                              |                                                                                                 | 9      |
|                                    |                                                                                                 |   |
| EXHIBITS                                |                                                                                                 |   |

**2**

----

**ITEM        1. FINANCIAL STATEMENTS**

**F            - 1**

----

|                                                                                                                                   |   |   | June                  30,2006$ |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|
|                                                                                                                                   |   |   |                           |
| ASSETS                                                                                                                                 |   |   |                           |
|                                                                                                                                   |   |   |                           |
| Current                  Assets                                                                                                        |   |   |                           |
|                                                                                                                                   |   |   |                           |
| Cash                                                                                                                                   |   |   | 4,451                          |
| Accounts                  receivable                                                                                                   |   |   | 8,978                          |
| Inventory                                                                                                                              |   |   | 930                            |
| Prepaid                  expenses (Note 5)                                                                                             |   |   | 394,399                        |
|                                                                                                                                   |   |   |                           |
| Total                  Current Assets                                                                                                  |   |   | 408,758                        |
|                                                                                                                                   |   |   |                           |
| Deposit                  (Note 7(b))                                                                                                   |   |   | 2,099,206                      |
| Property                  and equipment, net (Note 2 (h))                                                                              |   |   | 5,100                          |
|                                                                                                                                   |   |   |                           |
| Total                  Assets                                                                                                          |   |   | 2,513,064                      |
|                                                                                                                                   |   |   |                           |
| LIABILITIES                  AND STOCKHOLDERS’ EQUITY                                                                            |   |   |                           |
|                                                                                                                                   |   |   |                           |
| Liabilities                                                                                                                            |   |   |                           |
|                                                                                                                                   |   |   |                           |
| Accounts                  payable                                                                                                      |   |   | 51,980                         |
| Accrued                  liabilities (Note 3)                                                                                          |   |   | 39,731                         |
| Due                  to related parties (Note 4)                                                                                       |   |   | 444,874                        |
|                                                                                                                                   |   |   |                           |
| Total                  Liabilities                                                                                                     |   |   | 536,585                        |
|                                                                                                                                   |   |   |                           |
| Commitments                  and Contingencies (Notes 1 and 6)                                                                         |   |   |                           |
|                                                                                                                                   |   |   |                           |
| Stockholders’                  Equity                                                                                            |   |   |                           |
|                                                                                                                                   |   |   |                           |
| Preferred                  Stock:                                                                                                      |   |   |                           |
| Authorized:                  10,000,000 shares, US$0.0001 par value Issued                  and outstanding: NIL shares                |   |   | -                              |
|                                                                                                                                   |   |   |                           |
| Common                  Stock:                                                                                                         |   |   |                           |
| Authorized:                  90,000,000 shares, US$0.0000029 par value Issued                  and outstanding: 69,213,289 shares |   |   | 237                            |
|                                                                                                                                   |   |   |                           |
| Additional                  paid-in capital                                                                                            |   |   | 8,464,398                      |
|                                                                                                                                   |   |   |                           |
| Stock                  subscriptions receivable                                                                                        |   |   | (78,241)                       |
|                                                                                                                                   |   |   |                           |
| Accumulated                  deficit                                                                                                   |   |   | (6,409,915)                    |
|                                                                                                                                   |   |   |                           |
| Total                  Stockholders’ Equity                                                                                      |   |   | 1,976,479                      |
|                                                                                                                                   |   |   |                           |
| Total                  Liabilities and Stockholders’ Equity                                                                      |   |   | 2,513,064                      |

**F            - 2**

----

|                                                                  |   | For                  theThree                  MonthsEndedJune                  30,2006$ | For                  theThree                  MonthsEndedJune                  30,2005$ | For                  theSix                  Months EndedJune                  30,2006$ | For                  the Six                  Months Ended June                  30, 2005$ |
|-----------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Revenue                                                               |   | 33,353                                                                                   | 86,255                                                                                   | 70,881                                                                                  | 186,741                                                                                    |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Cost                  of sales                                        |   | (11,274)                                                                                 | (56,982)                                                                                 | (19,620)                                                                                | (89,436)                                                                                   |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Gross                  profit                                         |   | 22,079                                                                                   | 29,273                                                                                   | 51,261                                                                                  | 97,305                                                                                     |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Operating                  expenses                                   |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| General                  and administrative                           |   | 595,087                                                                                  | 1,738,863                                                                                | 785,630                                                                                 | 2,073,680                                                                                  |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Loss                  from continuing operations                      |   | 573,008                                                                                  | 1,709,590                                                                                | 734,369                                                                                 | 1,976,375                                                                                  |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Other                  expenses                                       |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Loss                  on settlement of debt                           |   | 94,517                                                                                   | -                                                                                        | 94,517                                                                                  | -                                                                                          |
| Interest                  expense                                     |   | -                                                                                        | -                                                                                        | -                                                                                       | 52,068                                                                                     |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Loss                  before discontinued operations                  |   | (667,525)                                                                                | (1,709,590)                                                                              | (828,886)                                                                               | (2,028,443)                                                                                |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Discontinued                  operations                              |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Loss                  from operations of discontinued segment         |   | -                                                                                        | (3,256)                                                                                  | -                                                                                       | (3,256)                                                                                    |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Net                  loss                                             |   | (667,525)                                                                                | (1,712,846)                                                                              | (828,886)                                                                               | (2,031,699)                                                                                |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Net                  loss per common share - basic and fully diluted  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Continuing                  operations                                |   | (0.01)                                                                                   | (0.06)                                                                                   | (0.01)                                                                                  | (0.07)                                                                                     |
| Discontinued                  operations                              |   | -                                                                                        | -                                                                                        | -                                                                                       | -                                                                                          |
| Net                  loss per common share                            |   | (0.01)                                                                                   | (0.06)                                                                                   | (0.01)                                                                                  | (0.07)                                                                                     |
|                                                                  |   |                                                                                     |                                                                                     |                                                                                    |                                                                                       |
| Weighted                  average number of common shares outstanding |   | 65,486,000                                                                               |  29,558,580                                                                         | 57,447,000                                                                              |  27,070,804                                                                           |

**F            - 3**

----

|                                                                                                          |   | Six                  Months EndedJune                  30,2006$ | Six                  Months EndedJune                  30,2005$ |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|-----------------------------------------------------------------|
|                                                                                                          |   |                                                            |                                                            |
|                                                                                                          |   |                                                            |                                                            |
| Operating                  activities                                                                         |   |                                                            |                                                            |
|                                                                                                          |   |                                                            |                                                            |
| Net                  loss for the period                                                                      |   | (828,886)                                                       | (2,031,699)                                                     |
|                                                                                                          |   |                                                            |                                                            |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities: |   |                                                            |                                                            |
| Amortization                                                                                                  |   | -                                                               | 11,015                                                          |
| Loss                  from discontinued operations                                                            |   | -                                                               | 3,256                                                           |
| Loss                  on settlement of debt                                                                   |   | 94,517                                                          | 146,680                                                         |
| Stock-based                  compensation                                                                     |   | 434,995                                                         | 1,667,087                                                       |
|                                                                                                          |   |                                                            |                                                            |
| Changes                  in operating assets and liabilities:                                                 |   |                                                            |                                                            |
| Accounts                  receivable                                                                          |   | 495                                                             | (4,375)                                                         |
| Notes                  receivable                                                                             |   | -                                                               | (9,000)                                                         |
| Inventory                                                                                                     |   | 1,791                                                           | 18,351                                                          |
| Prepaid                  expenses                                                                             |   | (13,170)                                                        | (293)                                                           |
| Bank                  overdraft                                                                               |   | -                                                               | (2,772)                                                         |
| Accounts                  payable and accrued liabilities                                                     |   | 72,818                                                          | 56,167                                                          |
|                                                                                                          |   |                                                            |                                                            |
| Net                  cash flows used in operating activities                                                  |   | (237,440)                                                       | (145,583)                                                       |
|                                                                                                          |   |                                                            |                                                            |
| Investing                  activities                                                                         |   |                                                            |                                                            |
| Proceeds                  from sale of equipment                                                              |   | 5,500                                                           | -                                                               |
| Payment                  on deposit                                                                           |   | (78,550)                                                        | -                                                               |
| Proceeds                  from sale of discontinued segment assets                                            |   | -                                                               | 25,000                                                          |
|                                                                                                          |   |                                                            |                                                            |
| Net                  cash flows (used in) provided by investing activities                                    |   | (73,050)                                                        | 25,000                                                          |
|                                                                                                          |   |                                                            |                                                            |
| Financing                  activities                                                                         |   |                                                            |                                                            |
| Proceeds                  from issuance of common shares                                                      |   | 112,892                                                         | -                                                               |
| Proceeds                  from loans from shareholders                                                        |   | 201,250                                                         | 105,927                                                         |
|                                                                                                          |   |                                                            |                                                            |
| Net                  cash flows provided by financing activities                                              |   | 314,142                                                         | 105,927                                                         |
|                                                                                                          |   |                                                            |                                                            |
| Increase                  (decrease) in cash                                                                  |   | 3,652                                                           | (14,656)                                                        |
|                                                                                                          |   |                                                            |                                                            |
| Cash                  - beginning of period                                                                   |   | 799                                                             | 14,768                                                          |
|                                                                                                          |   |                                                            |                                                            |
| Cash                  - end of period                                                                         |   | 4,451                                                           | 112                                                             |
|                                                                                                          |   |                                                            |                                                            |
| Non-cash                  investing and financing activities                                                  |   |                                                            |                                                            |
| Issuance                  of common stock for settlement of debt                                              |   | 103,109                                                         | 23,320                                                          |
| Issuance                  of common stock to convert debt                                                     |   | -                                                               | 218,430                                                         |
|                                                                                                          |   |                                                            |                                                            |
| Supplementary                  disclosures                                                                    |   |                                                            |                                                            |
| Interest                  paid                                                                                |   | -                                                               | -                                                               |
| Income                  taxes paid                                                                            |   | -                                                               | -                                                               |
|                                                                                                          |   |                                                            |                                                            |

**F            - 4**

----

| a)   | Use                  of Estimates |
|----------------|-----------------------------------|

| b)   | Basis                  of Presentation |
|----------------|----------------------------------------|

| c)   | Interim                  Financial Statements |
|----------------|-----------------------------------------------|

| d)   | Cash                  and Cash Equivalents |
|----------------|--------------------------------------------|

| e)   | Accounts                  Receivable |
|----------------|--------------------------------------|

| f)   | Reclassifications |
|----------------|-------------------|

**F            - 5**

----

| g)   | Inventory                  and Cost of Sales |
|----------------|----------------------------------------------|

| h)   | Property                  and Equipment |
|----------------|-----------------------------------------|

| Furniture                  and fixtures |   | $ 2,600                   |
|-----------------------------------------|--------|--------------------------------|
| Computer                  equipment     |   | 2,500                          |
|                                    |   |  $                  5,100 |

| i)   | Long-Lived                  Assets |
|----------------|------------------------------------|

*“Accounting        for the Impairment or Disposal of Long-Lived Assets”*

| j)   | Foreign                  Currency Translation |
|----------------|-----------------------------------------------|

| k)   | Revenue                  Recognition |
|----------------|--------------------------------------|

*“Revenue        Recognition in Financial Statements”*

| l)   | Basic                  and Diluted Net Income (Loss) Per                  Share |
|----------------|---------------------------------------------------------------------------------|

*Earnings        per Share*

| m)   | Comprehensive                  Loss |
|----------------|-------------------------------------|

*“Reporting        Comprehensive Income,”*

**F            - 6**

----

| n)   | Stock-based                  Compensation |
|----------------|-------------------------------------------|

| o)   | Financial                  Instruments |
|----------------|----------------------------------------|

| p)   | Income                  Taxes |
|----------------|-------------------------------|

| q)   | Recent                  Accounting Pronouncements |
|----------------|---------------------------------------------------|

| r)   | Interim                  Financial Statements |
|----------------|-----------------------------------------------|

**F            - 7**

----

| a)   | As                  at June 30, 2006, the balance due to a shareholder amounted to                  $378,283.                  The amount is unsecured, non-interest bearing, and payable on                  demand. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | As                  at June 30, 2006, the President of the Company is owed $66,591                  for                  management fees. The amount is unsecured, non-interest bearing,                  and                  payable on demand. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On                  May 25, 2006, the Company issued 500,000 shares of common stock                  to the                  spouse of the President of the Company at a price of US$0.17 per                  share for                  consulting services valued at $95,413 (US$85,000). At June 30,                  2006,                  $63,608 is included in prepaid expenses. Refer to Note                  5(i) |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | On                  January 11, 2006, the Company issued 200,000 shares of common stock                  at a                  price of US$0.0144 per share for consulting services valued at                  $3,336                  (US$2,880). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On                  January 20, 2006, the Company issued 2,000,000 shares of common                  stock at a                  price of US$0.014 per share for consulting services valued at $32,813                  (US$28,000). At June 30, 2006, $7,767 is included in prepaid expenses. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On                  February 15, 2006, the Company issued 4,400,000 shares of common                  stock at                  a price of US$0.028 per share for consulting services valued at                  $142,395                  (US$123,200). As at June 30, 2006, $64,725 (US$56,000) is recorded                  as                  stock subscriptions receivable, representing the return of 2,000,000                  shares of common stock to treasury for cancellation. To date, these                  shares                  have not been returned. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | On                  April 5, 2006, the Company issued 38,462 shares of common stock                  at a price                  of US$0.182 per share for consulting services valued at $8,555                  (US$7,000). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | On                  April 6, 2006, the Company issued 2,000,000 shares of common stock                  at a                  price of US$0.12 per share for consulting services valued at $279,096                  (US$240,000). At June 30, 2006, $232,580 is included in prepaid                  expenses. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | On                  April 11, 2006, the Company issued 11,000,000 shares of common                  stock at a                  price of US$0.16 per share valued at $2,020,656 (US$1,760,000)                  pursuant to                  a Share Exchange Agreement, as described in Note                  7. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | On                  April 24, 2006, the Company issued 1,500,000 shares of common stock                  upon                  the exercise of 1,500,000 stock purchase warrants at a price of                  US$0.05                  per share for proceeds of $83,192                  (US$75,000). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | On                  May 25, 2006, the Company issued 550,000 shares of common stock                  upon the                  exercise of 550,000 stock options at a price of US$0.07 per share                  for                  proceeds of $43,216 (US$38,500), of which $13,516 is receivable                  at June                  30, 2006. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | On                  May 25, 2006, the Company issued 500,000 shares of common stock                  to the                  spouse of the President of the Company at a price of US$0.17 per                  share for                  consulting services valued at $95,413 (US$85,000). At June 30,                  2006,                  $63,608 is included in prepaid                  expenses. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | On                  May 26, 2006, the Company issued 200,000 shares of common stock                  at a price                  of US$0.16 per share for consulting services valued at $35,709                  (US$32,000). At June 30, 2006, $29,757 is included in prepaid                  expenses. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k)   | On                  May 26, 2006, the Company issued 53,333 shares of common stock                  at a price                  of US$0.15 per share for legal services valued at $8,927                  (US$8,000). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l)   | On                  June 12, 2006, the Company issued 500,000 shares of common stock                  at a                  price of US$0.10 per share for consulting services valued at $55,335                  (US$50,000). At June 30, 2006, $46,113 is included in prepaid                  expenses. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m)   | On                  June 12, 2006, the Company issued 770,000 shares of common stock                  at a                  price of US$0.12 per share in settlement of debt of $8,592 (US$7,700)                  resulting in a loss on settlement of debt of                  $94,517. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| n)   | On                  June 21, 2006, the Company issued 65,000 shares of common stock                  at a price                  of US$0.10 per share for legal services valued at $7,280                  (US$6,500). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**F            - 8**

----

|                                         |   | Number                  ofWarrants |   | WeightedAverageExercisePrice |
|----------------------------------------------|--------|------------------------------------|--------|------------------------------|
|                                         |   |                               |   |                         |
| Balance,                  December 31, 2005  |   | 391,863                            |   | US$                  0.15    |
| Granted                  during the period   |   | 1,500,000                          |   | US$                  0.05    |
| Exercised                  during the period |   | (1,500,000)                        |   | US$                  0.05    |
|                                         |   |                               |   |                         |
| Balance,                  June 30, 2006      |   | 391,863                            |   | US$                  0.15    |

|                                                 |   | Number                  ofWarrants |   | Expiry                  Date       |
|------------------------------------------------------|--------|------------------------------------|--------|------------------------------------|
|                                                 |   |                               |   |                               |
| Warrants                  outstanding, June 30, 2006 |   | 391,863                            |   | November                  30, 2007 |

| a)   | On                  March 16, 2006, the Company entered into a consulting agreement                  for the                  provision of legal services for a twelve month term at US$60,000                  per year.                  On June 21, 2006, the Company issued 65,000 shares of common stock                  at a                  price of US$0.10 per share for legal services valued at $7,280                  (US$6,500).                  On May 26, 2006, the Company issued 53,333 shares of common stock                  at a                  price of US$0.15 per share for legal services valued at $8,927                  (US$8,000). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On                  April 5, 2006, the Company entered into an agreement for the provision                  of                  consulting services for a twelve month term at US$3,500 per month,                  with                  the first and last month payment due upon signing of the agreement,                  and                  the issuance of US$2,000 in equivalent shares of common stock every                  quarter. On April 5, 2006, the Company issued 10,989 shares of                  common                  stock in consideration of the first quarterly stock instalment                  with a fair                  value of $2,444 (US$2,000). In addition, on April 5, 2006, the                  Company                  issued 27,473 shares of common stock with a fair value of $6,111                  (US$5,000) as a one time fee. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On                  April 5, 2006, the Company entered into an agreement for the provision                  of                  consulting services for a twelve month term at US$240,000 per year.                  On                  April 6, 2006, the Company issued 2,000,000 shares of common stock                  at a                  price of US$0.12 per share for consulting services valued at $279,096                  (US$240,000). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**F            - 9**

----

| d)   | On                  April 13, 2006, the Company entered into an agreement with the                  spouse of                  the President of the Company for the provision of consulting services                  for                  a six month term at US$85,000 over the term of the agreement. On                  May 25,                  2006, the Company issued 500,000 shares of common stock at a price                  of                  US$0.17 per share for consulting services valued at $95,413 (US$85,000).                  At June 30, 2006, $63,608 is recorded as prepaid expense. Refer                  to Note 5                  (i). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | On                  May 22, 2006, the Company entered into an agreement for the provision                  of                  consulting services for a six month term at US$32,000 over the                  term of the                  agreement. On May 26, 2006, the Company issued 200,000 shares of                  common                  stock at a price of US$0.16 per share for consulting services valued                  at                  $35,709 (US$32,000). At June 30, 2006, $29,757 is recorded as prepaid                  expense. Refer to Note 5 (j). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | On                  June 12, 2006, the Company entered into an agreement for the provision                  of                  consulting services for a six month term at US$50,000 over the                  term of the                  agreement. On June 12, 2006, the Company issued 500,000 shares                  of common                  stock at a price of US$0.10 per share for consulting services valued                  at                  $55,335 (US$50,000). At June 30, 2006, $46,113 is recorded as prepaid                  expense. Refer to Note 5 (l). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | On                  July 17, 2006, the Company entered into a Business Development                  Agreement                  with the spouse of the President of the Company to provide consulting                  services related to future acquisitions and developments over an eighteen                  month term, for consideration of US$600,000. The fee is to be paid                  by the                  issue of 6,000,000 restricted shares of common stock at a price                  of US$0.10                  per share. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On                  April 11, 2006, the Company entered into an Asset Purchase Agreement,                  subsequently replaced by a Share Exchange Agreement (the “Agreement”) with                  Welwind Energy International Corporation (“WEIC”), a private Canadian                  company, to acquire 100% of the outstanding and issued share capital                  of                  WEIC in exchange for 11,000,000 restricted shares of the Company.                  WEIC was                  founded in 2005 to build, own and operate wind farms on an international                  scale. During the period ended June 30, 2006, the Company advanced                  $78,550                  to WEIC as a non-interest bearing loan towards the development                  of its                  business. On April 11, 2006, the Company issued 11,000,000 shares                  of                  common stock with a fair value of $2,020,656, which are being held                  in the                  trust account of WEIC’s legal counsel, pending the closing of the                  transaction. On August 17, 2006, the transaction                  closed. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**F            - 10**

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**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF        OPERATION**

*This        discussion and analysis should be read in conjunction with the accompanying        Consolidated Financial Statements and related notes. Our discussion and analysis        of our financial condition and results of operations are based upon our        consolidated financial statements, which have been prepared in accordance        with        accounting principles generally accepted in the United States. The preparation        of financial statements in conformity with accounting principles generally        accepted in the United States of America requires us to make estimates and        assumptions that affect the reported amounts of assets and liabilities,        disclosure of any contingent liabilities at the financial statement date        and        reported amounts of revenue and expenses during the reporting period. On        an        on-going basis we review our estimates and assumptions. Our estimates were        based        on our historical experience and other assumptions that we believe to be        reasonable under the circumstances. Actual results are likely to differ from        those estimates under different assumptions or conditions, but we do not        believe        such differences will materially affect our financial position or results        of        operations. Our critical accounting policies, the policies we believe are        most        important to the presentation of our financial statements and require the        most        difficult, subjective and complex judgments, are outlined below in‘‘—Critical        Accounting Policies,’’ and have not changed significantly. *

*In        addition, certain statements made in this report may constitute “forward-looking        statements”. These forward-looking statements involve known or unknown risks,        uncertainties and other factors that may cause the actual results, performance,        or achievements of the Company to be materially different from any future        results, performance or achievements expressed or implied by the forward-looking        statements. Specifically, 1) our ability to obtain necessary regulatory        approvals for our products; and 2) our ability to increase revenues and        operating income, is dependent upon our ability to develop and sell our        products, general economic conditions, and other factors. You can identify        forward-looking statements by terminology such as "may," "will," "should,"        "expects," "intends," "plans," "anticipates," "believes," "estimates,"        "predicts," "potential," "continues" or the negative of these terms or other        comparable terminology. Although we believe that the expectations reflected-in        the forward-looking statements are reasonable, we cannot guarantee future        results, levels of activity, performance or achievements. *

**Overview**

**3**

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**SECOND        QUARTER HIGHLIGHTS**

| (1)   | On                  April 5, 2006, the Company filed a form 8-K announcing that, Shannon                  deDelley and David Wing Yiu Cho had been appointed as Directors                  of the                  Company. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | On                  or about April 11, 2006, the Company announced that it has signed                  an                  agreement with Welwind Energy International Corporation (WEIC)                  for 100% of                  WEIC's assets in exchange for 11,000,000 restricted shares of Vitasti.                  WEIC was founded in 2005 to build, own and operate wind farms on                  an                  international scale. Their current project is to bridge the North                  America-China link by building wind farms in China beginning along                  the                  South China Sea. Management                  of both companies took a recent trip to China where two contracts                  were                  signed by WEIC with the cities of Yangxi and Zhanjiang in the Province                  of                  Guangdong. The signed contracts allow WEIC to build 1000 Megawatts                  of wind                  power in Guangdong Province with a 50 year Purchase Power Agreement                  ("PPA"). The EPC contractor, China Machine International Building                  Corp.,                  has agreed to provide the engineering, procurement and construction                  on the                  projects along with performance bonds. The Zhanjiang Project already                  has 3                  years data for the area and WEIC will conduct due diligence with                  an                  engineer to verify the information.  Several                  other Provinces were visited during the trip and various opportunities                  are                  currently being considered for additional wind farm                  development. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | On                  April 18, 2006, the Company filed a form 8-K announcing that the                  firm of                  Armando C. Ibarra, CPA (“Ibarra”) was dismissed as the independent                  registered public accounting firm and the Registrant’s Board of Directors                  approved the engagement of Manning Elliott, LLP Chartered Accountants                  (“ME”) as the Registrant’s independent registered public accounting                  firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|  (4)       |  On                  June 15 & 16, 2006, management of WEIC and the company attended the                  Renewable Energy Finance Asia Conference in Hong Kong. The investment                  forum brought together International Industry leaders and presented                  networking discussions from Carbon markets and alternative energy.                  Investors, Fund managers, Utilities Government, Asian Development                  Banks,                  The World Bank and the United Nations (http://www.energyefficiencyasia.org)                  were among those in attendance, providing experience and perspective                  to                  this growing market. The event clearly solidifies the confidence                  of                  renewable energy in Asia and provided WEIC with numerous networking                  opportunities.  WEIC                  was able to spend one on one time with representatives of the                  International Finance Corporation/World Bank (http://www.gcgf.org)                  to discuss international developments and economic growth of the                  company. While                  in China, WEIC formally signed the commitment for a land lease                  pertaining                  to the Zhanjiang wind farm. As announced earlier, wind data has                  already                  been gathered for this property and build out of the project is                  now                  proceeding. The installation of the demonstration turbine is to                  occur                  within 90 days and the company being in receipt of concurrent funding.                   WEIC                  plans to build forty-nine (49) megawatts in the first phase of                  a six                  hundred (600) megawatt wind farm on this property. Construction                  will begin                  with the arrival of one demonstration wind turbine which will produce                  enough electricity to power more than one thousand (1000) homes.                  In                  regards to the Yangxi wind farm project, the base is now complete                  for the                  installation of the 100 meter meteorological tower. The data collected                  over the next year will provide the necessary information required                  to                  build out the wind farm. The Yangxi wind farm will start as a 49                  megawatt                  project building out to 400                  megawatts. |

**Change        in Reporting Currency**

**Liquidity        and Capital Resources**

**4**

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**FINANCIAL        CONDITION AND CHANGES IN FINANCIAL CONDITION**

***Overall        Operating Results - Comparison of Period Ended June 30, 2006 to Period Ended        June 30, 2005***

| ·       | Accounting,                  audit and legal fees of approximately $39,951                                                               |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------|
|  · | Business                  consulting fees of $433,859 (including stock-based compensation                  of                  $321,147) |
| ·       | Other                  expenses of $121,277                                                                                              |

**Plan        of Operation for The Next Twelve Months**

| · | Development                  of several private label products currently being sold under the                  brand                  name “Carb Craver Alternatives”                          |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Successfully                  launched our line of Amazon Acai Berry Granolas currently for sale                  in                  various retail chains including Whole Foods                  Markets |

| · | Completed                  significant research and development paving the way for future                  leading                  edge products including the development of a line of nutrition                  bars |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Developed                  a business model to pursue development of wind energy projects                  in China                                                                                                      |

**Going        Concern**

**Critical        Accounting Policies**

**5**

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**ITEM        3. CONTROLS AND PROCEDURES**

*Evaluation        of Disclosure Controls and Procedures*

***Inadequate        financial statement preparation and review procedures.***

| · | We                  have begun to identify a list of key policies and procedures needed                  to                  improve our financial statement preparation and review                  process |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Significant                  transactions are reviewed and approved by a supervisor before recording                  in                  the accounting records and financial statements                    |

| · | We                  have enhanced our internal procedures for journal entry recording                  and                  approvals on a timely basis and for efficient and accurate consolidations                  and reporting                      |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | We                  have added to our review procedures on, and documentation of, our                  accounts, including the preparation of memoranda to support our                  significant judgments and estimates each                  quarter |

*** Inadequate        controls over equity transactions.***

| · | Significant                  transactions are reviewed and approved by senior management before                  recording in the accounting records and financial statements |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Inadequate        entity level controls.***

| (i)    | weaknesses                  in the risk assessment controls, including the lack of adequate                  mechanisms                  for anticipating and identifying financial reporting risks; and                  for                  reacting to changes in the operating environment that could have                  a                  potential effect on financial reporting;                                                                                  |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | weaknesses                  in monitoring controls, including the lack of adequate staffing                  and                  procedures to ensure periodic evaluations of internal controls                  to ensure                  that appropriate personnel regularly obtain evidence that controls                  are                  functioning effectively and that identified control deficiencies                  are                  timely remedied. |

| · | To                  address the lack of adequate accounting and finance resources and                  lack of                  effective segregation of duties, we will implement an increased                  level of                  internal reviews and approvals. These procedures include review                  and                  approval by senior management of significant transactions with                  financial                  reporting risk. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*** Inadequate        segregation of duties.***    We        do not have adequate procedures and controls in place to ensure proper        segregation of duties. As a result, adjustments in the financial statements        could occur and not be prevented or detected by our controls in a timely        manner.

| · | Refer                  to above section on inadequate entity level controls for planned                  response                  by senior management. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

*Changes        In Internal Controls Over Financial Reporting*

**6**

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**PART        II.**

**ITEM        1. LEGAL PROCEEDINGS**

**ITEM        2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF        PROCEEDS**

**ITEM        3. DEFAULTS UPON SENIOR SECURITIES**

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

**ITEM        5. OTHER INFORMATION**

**7**

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**ITEM          6. EXHIBITS AND REPORTS ON FORM 8-K**

| EXHIBIT                    NUMBER | DESCRIPTION                                                     | LOCATION                                                                                                                                                                  |
|-----------------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                    - 3.2      | Articles                    of Incorporation and Bylaws         | Incorporated                    by reference as Exhibits to the Form 8-K filed on December 12,                    2004 as                    amended on February 3, 2005. |
| 31.1                              | Rule                    13a-14(a)/15d-14(a) Certification (CEO) | Filed                    herewith                                                                                                                                         |
| 31.2                              | Rule                    13a-14(a)/15d-14(a) Certification (CFO) | Filed                    herewith                                                                                                                                         |
| 32.1                              | Section                    1350 Certification (CEO)             | Filed                    herewith                                                                                                                                         |
| 32.2                              | Section                    1350 Certification (CFO)             | Filed                    herewith                                                                                                                                         |
| 99.1                              | Common                    Stock Purchase Warrant                | Filed                    herewith                                                                                                                                         |
| 99.2                              | Share                    Exchange Agreement                     | Filed                    herewith                                                                                                                                         |

| (a)                             | Form                    8-K filed on April 5, 2005;  |
|-------------------------------------------|------------------------------------------------------|
|                      (b)   | Form                    8-K filed on April 18, 2005; |
| (c)                                       | Form                    8-K filed on July 21, 2006.  |
|                                      |                                                 |

**8**

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**Vitasti,          Inc.**

**SIGNATURES**** **

*CEO*

**9**

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