**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      DC 20549





**FORM
      10-QSB**





[X]
            Quarterly
                Report pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934For
                the quarterly period endedJune
                30, 2007[
                ]
            Transition
                Report pursuant to 13 or 15(d) of the Securities Exchange Act of
                1934For
                the transition periodto__________Commission
                File Number:000-31361





EncryptaKey,
      Inc


(Exact
      name of small business issuer as specified in its charter)




New
                  Jersey
              22-3720628(State
                  or other jurisdiction of incorporation or organization)
              (IRS
                  Employer Identification No.)




10805
                Holder Street Suite 210, Cypress, CA 90630(Address
                of principal executive offices)





714-821-8093(Issuer’s
                telephone number)_______________________________________________________________(Former
                name, former address and former fiscal year, if changed since last
                report)Check
                whether the issuer (1) filed all reports required to be filed by
                Section
                13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
                12
                months (or for such shorter period that the issuer was required to
                file
                such reports), and (2) has been subject to such filing requirements
                for
                the past 90 days [X] Yes [ ] NoIndicate
                by check mark whether the registrant is a shell company (as defined
                in
                Rule 12b-2 of the Exchange Act). [ ] Yes [ ] NoState
                the number of shares outstanding of each of the issuer’s classes of common
                stock, as of the latest practicable date: 51,228,450 common shares
                as of
                June 30, 2007.Transitional
                Small Business Disclosure Format
                (check one): Yes [ ] No [X]




Table
          of Contents


TABLE
                OF CONTENTS
            PagePART
                I - FINANCIAL INFORMATIONItem
                1.
            Financial
                Statements
            3Item
                2.
            Management’s
                Discussion and Analysis or Plan of
                Operation
            4Item
                3.
            Controls
                and Procedures
            12PART
                II - OTHER INFORMATIONItem
                1.
            Legal
                Proceedings
            14Item
                2.
            Unregistered
                Sales of Equity Securities and Use of
                Proceeds
            14Item
                3.
            Defaults
                Upon Senior Securities
            14Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            14Item
                5.
            Other
                Information
            14Item
                6.
            Exhibits
            14


Table
          of Contents


**PART
      I - FINANCIAL INFORMATION**





**Item
      1.****Financial
      Statements**





Our
                unaudited financial statements included in this Form 10-QSB are as
                follows:F-1
            Balance
                Sheet as of June 30, 2007;F-2
            Statements
                of Operations for thesix
                months ended June 30, 2007 and 2006;F-3
            Statements
                of Cash Flows for the six months ended June 30, 2007
                and 2006;F-4
            Notes
                to Financial
                Statements;





These
      unaudited financial statements have been prepared in accordance with accounting
      principles generally accepted in the United States of America for interim
      financial information and the SEC instructions to Form 10-QSB. In the opinion
      of
      management, all adjustments considered necessary for a fair presentation have
      been included. Operating results for the interim period ended June 30, 2007
      are
      not necessarily indicative of the results that can be expected for the full
      year.


3
 Table
          of Contents




**Encryptakey,
      Inc.**


**formerly
      Futomic Industries, Inc.**


(A
      Development Stage Company)




Balance
      Sheets




June
                          30,
                        2007
                        (Unaudited)
                    
                    December
                          31,2006**ASSETS**Current
                        AssetsCash
                    $
                    17,518
                    
                    $
                    186,554Employee
                        Loan
                    
                    3,697
                    
                    
                    -Security
                        Deposits
                    
                    -
                    
                    
                    -Total
                        Current Assets
                    
                    21,215
                    
                    
                    186,554Long-Term
                        AssetsFurniture
                        and Equipment - Net
                    
                    307,404
                    
                    
                    60,674Intangible
                        Assets
                    
                    509
                    
                    
                    550Invisidesk
                        Portal - NetTotal
                        Long Term Assets
                    
                    307,913
                    
                    
                    61,224Total
                        Assets
                    $
                    329,128
                    
                    $
                    247,778**LIABILITIES
                        AND STOCKHOLDERS' EQUITY**LiabilitiesAccounts
                        Payable
                    $
                    204,321
                    
                    $
                    -Notes
                        Payable - Shareholders
                    
                    1,104,965
                    
                    
                    -Accrued
                        Expenses
                    
                    -
                    
                    
                    -Total
                        Liabilities
                    
                    1,309,286
                    
                    
                    -Stockholders'
                        EquityPreferred
                        Stock, authorized20,000,000
                        shares, par value $0.0001,no preferred stock is
                        outstanding
                    
                    -
                    
                    
                    -Common
                        Stock, authorized100,000,000
                        shares, par value $0.0001,issued
                        and outstanding on June 30, 2007and
                        December 31, 2006 is51,228,450and 49,859,000 shares respectively
                    
                    5,124
                    
                    
                    4,986Paid
                        in Capital
                    
                    2,633,887
                    
                    
                    2,223,189Subscriptions
                        Receivable
                    
                    -
                    
                    
                    (500,000Accumulated
                        Deficit DuringDevelopment
                        Stage
                    
                    (3,619,169)
                    
                    
                    (1,480,397)Total
                        Stockholders' Equity
                    
                    (980,158)
                    
                    
                    247,778Total
                          Liabilities and Stockholders' Equity
                    $
                    329,128
                    
                    $
                    247,778


The
        accompanying notes are an integral part of these statements




F-1
 Table
          of Contents


**Encryptakey,
        Inc.**
 **formerly
        Futomic Industries, Inc.**
 (A
        Development Stage Company)
  Statements
        of
        Operation


Six
                    Months Ended
                  June
                    30,
                
                June
                        24, 2003(Inception)
                      to
                    June
                          30,2006
                
                2007
                
                2007Operating
                    ExpensesGeneral
                    and Administrative
                $
                351,505
                
                $
                3,869
                
                $
                687,926Interest
                    Expense
                
                1,106
                
                
                -
                
                
                4,629Advertising
                    and Promotion
                
                127,651
                
                
                -
                
                
                257,612Research
                    and Development
                
                1,356,000
                
                
                -
                
                
                2,422,327Professional
                    Fees
                
                302,510
                
                
                -
                
                
                336,510Total
                    Expenses
                
                2,138,772
                
                
                3,869
                
                
                3,709,004Net
                    (Loss) before Extraordinary Items
                
                (2,138,772)
                
                
                (3,869)
                
                
                (3,709,004)Extraordinary
                    ItemsGain
                    on Forgiveness of Debt
                
                -
                
                
                -
                
                
                89,832Interest
                    Income
                
                -
                
                
                -
                
                
                44Net
                    Income/(Loss)
                $
                (2,138,772)
                
                $
                (3,869)
                
                $
                (3,619,128)Basic
                    and Diluted(Loss)
                    per Share
                $
                (0.04)
                
                $
                (0.00)Weighted
                    AverageNumber
                    of Shares
                
                50,978,771
                
                
                7,615,000a
                    =
                    Less than ($0.01) per share
  The
        accompanying notes are an integral part of these statements
  F-2
 Table
            of Contents





**Encryptakey,
        Inc.**
 **formerly
        Futomic Industries, Inc.**
 (A
        Development Stage Company)
  Statements
        of Cash
        Flow


Six
                    Months EndedJune
                  30,
              
              June
                    24, 2003
                  (Inception)
                    to
                  June
                    30,2007
              
              
              2006
              
              
              2007Operating
                  ActivitiesNet
                  Profit / (Loss)
              $
              (2,138,772)
              
              $
              (3,869)
              
              $
              (3,619,128)Significant
                  Non-Cash TransactionsStock
                  Issued to founders
              
              -
              
              
              -
              
              
              3,002Adjustment
                  for reverse acqusition
              
              -
              
              
              -
              
              
              117,630Stock
                  issued to purchase asset
              
              190,856
              
              
              -
              
              
              191,386Depreciation
                  and Amortization
              
              7,334
              
              
              435
              
              
              7,293Changes
                  in Assets and Liabilities(Increase)/Decrease
                  in Deposits
              
              -
              
              
              -
              
              
              -(Increase)/Decrease
                  in Employee Loans
              
              (3,697)
              
              
              -
              
              
              (3,697)Increase/(Decrease)
                  in Accounts Payable
              
              204,321
              
              
              2,886
              
              
              204,321Increase/(Decrease)
                  in Accrued Liabilities
              
              -
              
              
              -
              
              
              -Increase/(Decrease)
                  in Wages Payable
              
              -
              
              
              (3,000)
              
              
              -Net
                  Cash (Used) by Operating Activities
              
              (1,739,958)
              
              
              (3,548)
              
              
              (3,099,193)Investment
                  ActivitiesPurchase
                  of Invisidesk Portal
              
              -
              
              
              -
              
              
              (550)Equipment
                  Purchase
              
              (254,023)
              
              
              -
              
              
              (314,697)Cash
                  Used by Investment Activities
              
              (254,023)
              
              
              -
              
              
              (315,247)Financing
                  ActivitiesNet
                  Proceeds from loans - Related Parties
              
              1,104,965
              
              
              (27,009)
              
              
              1,104,965Purchase
                  of Treasury Stock
              
              -
              
              
              -
              
              
              (43,207)Proceeds
                  from sale of Common Stock
              
              719,980
              
              
              -
              
              
              2,370,200Cash
                  Provided by Financing Activities
              
              1,824,945
              
              
              (27,009)
              
              
              3,431,958Net
                  Increase/(Decrease) in Cash
              
              (169,036)
              
              
              (30,557)
              
              
              17,518Cash,
                  Beginning of Period
              
              186,554
              
              
              30,665
              
              
              -Cash,
                  End of Period
              $
              17,518
              
              $
              108
              
              $
              17,518Supplemental
                  Information:Interest
                  Paid
              $
              1,106
              
              $
              -
              
              $
              3,523Income
                  Taxes Paid
              $
              -
              
              $
              -
              
              $
              -Significant
                  Non-Cash Transactions1.
                  The company issued 25,000,000 post-split common shares to the founders
                  valued at $3,002.2.
                  The Company issued 56,855,00 common shares valued at $117,630 and
                  decreased the accumulated deficit by $4,502 to effect a reverse
                  acqusition
                  on August 15, 2003.3.
                  On September 28, 2006 the Company issued 5,500,000 common shares
                  at
                  $0.0001 par-value to acquire technology.4.
                  The Company issued 636,120 common shares valued at $190,836 to
                  acquire
                  assets.


The
        accompanying notes are an integral part of these statements
  F-3
 Table
            of Contents




**EncryptaKey,
        Inc.**
 **Formerly
        Futomic Industries, Inc.**
 (A
        Development Stage Company)
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(June
        30, 2007 and December 31, 2006)**
 
 
 **NOTE
        1.**  **GENERAL
        ORGANIZATION AND BUSINESS**
 
 EncryptaKey,
        Inc., (the Company), was incorporated in the state of New Jersey on April
        6,
        2000 as Segway VI Corp. The company has undergone the following name changes:
        on
        August 13, 2003 to 3DLP International Inc., on April 19 2004 to Futomic
        Industries Inc.; and then on February 19, 2007, subsequent to the date of
        these
        statements, to EncryptaKey, Inc.
 
 On
        August
        15, 2003, the Company acquired Selectrics Corporation (Selectrics), a Delaware
        Corporation organized on June 24, 2003, in a one-for-one common stock exchange.
        This transaction resulted in a change of control and was treated as a reverse
        acquisition with EncryptaKey, Inc. being the surviving legal entity and
        Selectrics the surviving accounting acquirer. Accordingly, the equity accounts
        and accumulated deficits prior to the merger have been adjusted to reflect
        those
        of Selectrics. The Company is considered to be in the development
        stage.
 
 The
        company is in the business to develop and market identity and data security
        technologies that enable the highest level of secure commercial and financial
        transaction both in person and over the internet, providing an effective
        shield
        to identity theft.
  **NOTE
        2.**  **SUMMARY
        OF SIGNIFICANT ACCOUNTING PRACTICES**
 
 The
        relevant accounting policies and procedures are listed below.
 
 Accounting
        Basis
 
 The
        statements were prepared following generally accepted accounting principles
        of
        the United States of America consistently applied.
 
 Management
        Certification
 
 The
        financial statements herein are certified by the officers of the Company
        to
        present fairly, in all material respects, the financial position, results
        of
        operations and cash flows for the periods presented, in conformity with
        accounting principles generally accepted in the United States of America,
        consistently applied.
 
 Fiscal
        Year
 
 The
        Company operates on a December 31 st fiscal
        year end.
 
 F-4
 Table
            of Contents
  Research
        and Development Costs
 
 Research
        and Development costs are expensed as incurred in accordance with generally
        accepted accounting principles. Costs in association with the development
        of a
        patented technology when computer software is developed will be capitalized
        when
        technological feasibility is established in accordance with financial accounting
        standard No. 86
 
 Basic
        and Diluted Net Income (Loss) Per Share
 
 The
        Company computes net income (loss) per share in accordance with Statement
        of
        Financial Accounting Standards (“SFAS”) No. 128, " *Earnings
        per Share* ".
        SFAS
        No. 128 requires presentation of both basic and diluted earnings per share
        (EPS)
        on the face of the income statement. Basic EPS is computed by dividing net
        income (loss) available to common shareholders (numerator) by the weighted
        average number of shares outstanding (denominator) during the period. Diluted
        EPS gives effect to all dilutive potential common shares outstanding during
        the
        period using the treasury stock method..
 
 The
        numerators and denominators used in the computations of basic and diluted
        EPS
        are presented in the following table:
  30-June-2007
              2005Numerators for Basic and Diluted
                EPSNet income/(loss) to common
                shareholders
              ($2,138,731)
              ($1,054,117)Denominators for Basic and Diluted
                EPSWeighted average of shares
                outstanding
              50,978,771
              39,818,55Basic and Diluted Earnings/(Loss)
                Per
                Share
              ($0.04)
              ($0.00)
  Dividends
 
 The
        Company has not yet adopted any policy regarding payment of dividends. No
        dividends have been paid during the periods shown.
 
 Use
        of
        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 assets and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the financial statements and the reported amounts of revenue and expenses
        during
        the reporting period. Actual results could differ from those
        estimates.
 
 F-5
 Table
            of Contents
  Property
        and Equipment
 
 Property
        and equipment are carried at cost and depreciated on a straight-line bases
        over
        their useful lives. Office Equipment is depreciated over five years.
 
 Income
        Taxes
 
 The
        provision for income taxes is the total of the current taxes payable and
        the net
        of the change in the deferred income taxes. Provision is made for the deferred
        income taxes where differences exist between the period in which transactions
        affect current taxable income and the period in which they enter into the
        determination of net income in the financial statements.
  **NOTE
        3.**  **GOING
        CONCERN**
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern, which contemplates the realization of its
        assets and the liquidation of its liabilities in the normal course of business.
        However, the Company is in its development stage and has never generated
        revenues. The Company has accumulated a loss of $2,423,506 during its
        development stage. This raises substantial doubt about the Company’s ability to
        continue as a going concern. The financial statements do not include any
        adjustments that might result from this uncertainty.
 
 Managements
        Plan
 
 Management
        has successfully raised $2,105,200 in a private offering that closed on February
        7, 2007. The Company continues to seek funding from its shareholders and
        other
        qualified investors to pursue its business plan.
  **NOTE
        4.**  **STOCKHOLDERS’
        EQUITY**
 
 Preferred
        Stock
 
 The
        Company is authorized 20,000,000 shares of preferred stock at a $0.0001 par
        value and currently has zero shares of preferred stock issued and
        outstanding.
 
 Common
        Stock
 
 The
        Company is authorized to issue 100,000,000 shares of common stock, par value
        $0.0001 per share. As of December 31, 2006, there were 49,859,000 shares
        of
        common stock outstanding. On August 7, 2006, the Company exercised a five
        for
        one forward stock split. All share amounts herein are adjusted to give effect
        to
        the stock split and have also been adjusted to reflect the adjusted equity
        resulting from the August 15, 2003 reverse merger.
 
 F-6
 Table
            of Contents
  During
        2003, the Company issued 81,855,000 post-split shares of common stock in
        the
        following transactions:
 
 ·
            On
                June 24, 2003, the Company issued 25,000,000 shares to its founder
                for
                $3,002. 
 ·
            On
                August 15, 2003 the Company issued 56,855,000 common shares to execute
                the
                acquisition of Selectrics Corporation in a one for one share exchange
                for
                a value of $121,882. This acquisition was recorded as a reverse merger
                with Selectrics the surviving historical accounting company. Accordingly
                the equity and accumulated deficit are adjusted to reflect Seletrics
                history. 
 During
        2004, the Company issued 2,875,000 post-split shares of common stock in the
        following transactions:
 
 ·
            On
                March 15, 2004, the Company issued 375,000 shares for $15,000 cash
                in a
                private placement. 
 ·
            On
                July 23, 2004 the Company issued 2,500,000 shares in a private placement
                for $250,000 cash. 
 During
        2005, the Company received 46,655,000 common shares into its treasury from
        a
        shareholder for cash and other property valued at $43,207.
 
 During
        2006, the Company issued 11,784,000 shares of common stock in the following
        transactions:
 
 ·
            On
                September 28, 2006, the Company entered into an Asset Purchase Agreement
                with Owen Consulting LLC to acquire the right, title and interest
                in
                technology commonly known as the EncryptaKey Secure communication
                Portal
                by issuing 5,500,000 shares of common stock at $0.0001 per share.
                The
                technology and associated intellectual property has been memorialized
                by
                patent application. However, it is still in development and the associated
                costs are expensed to research and development. Because of the limited
                public market for the Company stock, Par-value was used to record
                this
                transaction. 
 ·
            On
                December 12, 2006, the Company issued 6,284,000 common shares in
                a private
                offering at $0.30 per share for $1,385,200 and $500,000 subscriptions
                receivable. The Company extended the closing of the offering to February
                7, 2007 
 During
        2007, the Company issued 1,369,450 common shares in the following
        transactions:
 
 ·
            On
                February 7, 2007 the Company issued 733,330 common shares in a private
                offering at $0.30 per share for $220,000 and received cash on outstanding
                subscription receivable in the amount of
                $500,000. 
 ·
            On
                February 7, 2007 the Company issued 636,120 common shares at $0.30
                per
                share to purchase fixed assets valued at $190,836.  F-7
 Table
            of Contents
  **NOTE
        5.**  **COMMITMENTS
        AND CONTINGENCIES - RELATED PARTY**
 
 Research
        and Development with Owens Consulting, LLC
 
 On
        September 28, 2006, the Company entered into an Asset Purchase Agreement
        with
        Owen Consulting LLC, a California limited liability company with Mr. Kelly
        Owen,
        the Company’s CEO the principle member. Pursuant to that agreement, the Company
        issued 5,500,000 shares of common stock and acquired assets consisting of
        all
        right, title and interest in a biometric security technology commonly known
        as
        the EncryptaKey Secure Communication Portal memorialized in a patent
        application.
 
 On
        October 1, 2006 the Company entered into an associated consulting agreement
        with
        Owen Consulting, LLC to complete the development of the EncryptaKey Secure
        Communication Portal. The terms of the agreement require payment at the rate
        of
        $25.00 per hour for actual hours incurred for research and development. The
        project involves the efforts of over 100 programmers and technicians. As
        of
        December 31, 2006 the Company has been invoiced and paid $890,000 on this
        contract which has been expensed as Research and Development costs.
 
 During
        the first six months of 2007 the company has be invoiced and paid an additional
        $1,532,327 on this contract and expects that its commitment to complete the
        development of the EncryptaKey technology to exceed $2,500,000.
 
 Gain
        on Forgiveness of Debt
 
 From
        time-to-time shareholders advance the Company its working capital needs.
        The
        balance at December 31, 2006 and 2005 was $0.00 and $95,942 respectively.
        Interest is accrued on these loans at a rate of 3% on an annual
        basis.
  As
        of
        December 31, 2006 the Company recognized forgiveness of related party debt
        in a
        transaction that included the transfer of the Company’s assets. Forgiveness of
        debt amounted to $89,832.
 
 Contingency
 
 On
        September 20, 2006, an Officer of the Company entered into a settlement
        agreement with an individual who was to be employed with the company as the
        result of a planned merger that was cancelled. The settlement agreement
        stipulates the issue of 4,000,000 common shares in settlement of all outstanding
        issues between the parties involved which includes the Company. The Officer
        of
        the Company has agreed to transfer shares from is personal holdings in
        settlement of this contingency.
  F-8
 Table
            of Contents
  **NOTE
        6.**  **PROVISION
        FOR INCOME TAXES**
 
 The
        Company provides for income taxes under Statement of Financial Accounting
        Standards NO. 109, Accounting for Income Taxes. SFAS No. 109 requires the
        use of
        an asset and liability approach in accounting for income taxes.
 
 SFAS
        No.
        109 requires the reduction of deferred tax assets by a valuation allowance
        if,
        based on the weight of available evidence, it is more likely than not that
        some
        or all of the deferred tax assets will not be realized. The total deferred
        tax
        asset is $325,687 as of December 31, 2006 which is calculated by multiplying
        a
        22% estimated tax rate by the cumulative NOL of $860,646 The total valuation
        allowance is a comparable $325,687.
  The
        provision for income taxes for the period ended December 31, 2006 and 2005
        follows:
 
 Year
        Ended December 31,  2006 2005
 Deferred
        Tax Asset  $231,906 $19,216
 Valuation
        Allowance  (231,906) (19,216)
 Current
        Taxes Payable 0.00  0.00
 Income
        Tax Expense $
        0.00  $
        0.00
 
 Below
        is
        a chart showing the estimated federal net operating losses and the years
        in
        which they will expire.
 
 Year Amount Expiration
 2003 $152,649 2023
 2004 186,296 2024
 2005 87,334 2025
 2006 1,054,117 2026
 
 Total $1,480,396
  **NOTE
        7.**  **NOTES
        PAYABLE - SHAREHOLDERS**
 
 During
        the six months ended June 30, 2007 the Company has received a total of
        $1,104,965 in loans from a company shareholder. The Note is a demand note
        and
        carries a 10% interest.
  **NOTE
        8.**  **THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS**
 
 Below
        is
        a listing of the most recent Statement
        of Financial Accounting Standards (SFAS)
        SFAS 155-157 and their effect on the Company.
  F-9
 Table
            of Contents
  **Statement
        No. 155 -** Accounting
        for Certain Hybrid Financial Instruments
 In
        February 2006, the FASB issued SFAS
        No.
        155, *Accounting
        for Certain Hybrid Financial Instruments* ,
        which
        amends SFAS No. 133, *Accounting
        for Derivatives Instruments and Hedging Activities* and SFAS
        No. 140, *Accounting
        for Transfers and Servicing of Financial Assets and Extinguishment of
        Liabilities* .
        SFAS
        No. 155 amends SFAS No. 133 to narrow the scope exception for interest-only
        and
        principal-only strips on debt instruments to include only such strips
        representing rights to receive a specified portion of the contractual interest
        or principle cash flows. SFAS No. 155 also amends SFAS No. 140 to allow
        qualifying special-purpose entities to hold a passive derivative financial
        instrument pertaining to beneficial interests that itself is a derivative
        instrument.
  **Statement
        No. 156 -** *Accounting
        for Servicing of Financial Assets*
  In
        March
        2006, the FASB issued SFAS
        No.
        156, *Accounting
        for Servicing of Financial Assets,* which
        provides an approach to simplify efforts to obtain hedge-like (offset)
        accounting. This Statement amends FASB Statement No. 140, *Accounting
        for Transfers and Servicing of Financial Assets and Extinguishments of
        Liabilities* ,
        with
        respect to the accounting for separately recognized servicing assets and
        servicing liabilities. The Statement (1) requires an entity to recognize
        a
        servicing asset or servicing liability each time it undertakes an obligation
        to
        service a financial asset by entering into a servicing contract in certain
        situations; (2) requires that a separately recognized servicing asset or
        servicing liability be initially measured at fair value, if practicable;
        (3)
        permits an entity to choose either the amortization method or the fair value
        method for subsequent measurement for each class of separately recognized
        servicing assets or servicing liabilities; (4) permits at initial adoption
        a
        one-time reclassification of available-for-sale securities to trading securities
        by an entity with recognized servicing rights, provided the securities
        reclassified offset the entity's exposure to changes in the fair value of
        the
        servicing assets or liabilities; and (5) requires separate presentation of
        servicing assets and servicing liabilities subsequently measured at fair
        value
        in the balance sheet and additional disclosures for all separately recognized
        servicing assets and servicing liabilities. SFAS No. 156 is effective for
        all
        separately recognized servicing assets and liabilities as of the beginning
        of an
        entity's fiscal year that begins after September 15, 2006, with earlier adoption
        permitted in certain circumstances. The Statement also describes the manner
        in
        which it should be initially applied.
  **Statement
        No. 157** - *Fair
        Value Measurements*
  In
        September 2006, the FASB issued SFAS No. 157, *Fair
        Value Measurements* ,
        to
        clarify how to measure fair value and to expand disclosures about fair value
        measurements. The expanded disclosures include the extent to which companies
        measure assets and liabilities at fair value, the information used to measure
        fair value, and the effect of fair value on earnings and is applicable whenever
        other standards require (or permit) assets and liabilities to be measured
        at
        fair value. SFAS 157 is effective for financial statements issued for fiscal
        years beginning after November 15, 2007 and interim periods within those
        fiscal
        years.
  The
        adoption of these new Statements is not expected to have a material effect
        on
        the Company’s current financial position, results or operations, or cash
        flows.


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**Item
      2.     Management’s Discussion and Analysis
      or Plan of Operation**





**Forward-Looking
      Statements**





Certain
      statements, other than purely historical information, including estimates,
      projections, statements relating to our business plans, objectives, and expected
      operating results, and the assumptions upon which those statements are based,
      are “forward-looking statements” within the meaning of the Private Securities
      Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933
      and Section 21E of the Securities Exchange Act of 1934. These
      forward-looking statements generally are identified by the words “believes,”
“project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,”
“may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and
      similar expressions. We
      intend
      such forward-looking statements to be covered by the safe-harbor provisions
      for
      forward-looking statements contained in the Private Securities Litigation Reform
      Act of 1995, and are including this statement for purposes of complying with
      those safe-harbor provisions. Forward-looking
      statements are based on current expectations and assumptions that are subject
      to
      risks and uncertainties which may cause actual results to differ materially
      from
      the forward-looking statements. Our
      ability to predict results or the actual effect of future plans or strategies
      is
      inherently uncertain. Factors which could have a material adverse affect on
      our
      operations and future prospects on a consolidated basis include, but are not
      limited to: changes in economic conditions, legislative/regulatory changes,
      availability of capital, interest rates, competition, and generally accepted
      accounting principles. These risks and uncertainties should also be considered
      in evaluating forward-looking statements and undue reliance should not be placed
      on such statements. We
      undertake no obligation to update or revise publicly any forward-looking
      statements, whether as a result of new information, future events or otherwise. Further
      information concerning our business, including additional factors that could
      materially affect our financial results, is included herein and in our other
      filings with the SEC.





**Business
      Development**





We
      were
      incorporated in the State of New Jersey on April 6, 2000 under the name “Segway
      VI Corp.” On August 13, 2003, we changed our name to 3DLP International Inc. In
      June of 2004, we changed our name to Futomic Industries, Inc. and subsequently
      filed Articles of Amendment with the State of New Jersey formally implementing
      that name change on October 15, 2005. On February 19, 2007, our Board of
      Directors unanimously resolved to amend our articles of incorporation to change
      our name to EncryptaKey, Inc.





Our
      current business plan is focused upon the research, development, manufacture
      and
      sale of the biometric security technology we acquired from Owen Consulting,
      LLC,
      an entity owned and controlled by our current CEO and director, Kelly Owen.
      On
      September 28, 2006, we entered into an Asset Purchase Agreement with Owen
      Consulting LLC, a California limited liability company. Pursuant to that
      agreement, we acquired technology called the “EncryptaKey Secure Communication
      Portal” as described in a patent application pending before the Patent and
      Trademark Office as application no. 60745514, filed April 24, 2006, titled
      “Invisidesk Private Communication, Authentication and Connection Portal” and the
      related intellectual property in




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exchange
      for 5,500,000 shares of our restricted common stock. Our business plan is
      focused upon the development of sophisticated biometric devices that use the
      EncryptaKey technology.





On
      October 1, 2006, we retained Owen Consulting, LLC, to develop the EncryptaKey
      technology into a marketable product. We paid Owen Consulting $890,000 during
      2006, $700,000 during the three month period ended March 31, 2007 and a total
      of
      $1,356,000 during the six month period ending June 30, 2007 pursuant to this
      contract. Owen Consulting, LLC, in turn, paid $853,380 in 2006, $700,000 in
      the
      three month period ended March 31, 2007 and a total of $1,356,000 during the
      six
      month period ending June 30, 2007, to a single subcontractor in connection
      with
      development efforts on our primary product. As of June 30, 2007, we do not
      owe
      Owen Consulting any monies.





On
      February 5, 2007, we entered into an Asset Purchase Agreement with Owen
      Consulting Inc., a Nevada Corporation. Pursuant to that agreement, we acquired
      assets consisting of all right, title and interest in server hardware and
      software in exchange for 636,120 shares of our restricted common stock. We
      do
      not anticipate that we will need to acquire a plant or purchase any additional,
      significant equipment during 2007.





**Description
      of Business and Plan of Operation**





Our
      objective for our new technology is to have our first anticipated hardware
      product, which we have preliminarily called “EncryptaKey,” function so as to
      allow a user to (1) manage his finances, (2) shop online, and (3) access his
      home or work computer remotely and securely. The EncryptaKey hardware device
      is
      presently in the development stage only and many significant technical and
      financial challenges remain before we anticipate being able to deliver a viable
      product to market. We anticipate that, provided we are successful in raising
      the
      funding necessary to do so, we will be able to finalize all functions of the
      system and test-market working prototypes by the end of 2007. It is our plan
      that, when development is complete, the EncryptaKey hardware will utilize
      biometric data to secure personal and financial information.





We
      believe that EncryptaKey offers the first solution to bridge both the virtual,
      or online digital world and the in person, point of transaction world and serve
      both equally well in addressing the large number of security issues plaguing
      financial services institutions retailers, healthcare organizations and
      corporate enterprises alike. According to a Gartner study released March 6,
      2007, from mid-2005 until mid-2006, about 15 million Americans were victims
      of
      fraud that stemmed from identity theft, an increase of more than 50 percent
      from
      the estimated 9.9 million in 2003. The research firm found that identity theft
      victims are losing more money and getting less of it back. The average loss
      of
      funds in a case of identity theft was $3,257 in 2006, up from $1,408 in 2005.
      Additionally, the average loss in the opening of a fraudulent new account has
      more than doubled over that time, from $2,678 to $5,962. According to Gartner,
      identity theft victims are also recovering less of the lost cash. In 2005,
      an
      average of 87 percent of funds was recovered; in 2006, that had dropped to
      61
      percent. Finally, as reported at Consumeraffairrs.com, the Federal Trade
      Commission reports the 2006 total identity fraud losses reported to the FTC
      topped $1.1 billion, with the median money individual loss placed at $500.
      We
      believe that EncryptaKey technology has the potential to become a cost effective
      means for businesses and consumers to reduce these losses.




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As
      presently designed, a production version of the EncryptaKey hardware device
      will
      be approximately the size of a larger USB “Thumb Drive” (4” x 1” x .25”) and
      will contain both a pad which will read and verify a user’s thumbprint and an
      active RFID transmitter which can only be activated by the user. Inside the
      physical casing will be a 1 Gigabyte flash drive that will hold user data as
      well as the proprietary operating system. This flash drive will be partitioned
      so that the data is kept separate from the operating system. The system is
      designed so that, should anyone attempt to physically access the flash drive,
      the memory is immediately and completely erased. Further, attempts to hack
      the
      data from a lost or stolen EncryptaKey will be fruitless as the user’s
      fingerprint is required to replicate the unique access code.





As
      designed, when an end-user receives or purchases an EncryptaKey hardware device,
      he or she will first load it with personal and financial information. This
      will
      be done by plugging the EncryptaKey directly into the USB port of the user’s
      personal computer. The computer will then reboot to EncryptaKey’s proprietary
      operating system and will connect through our web portal to the user’s financial
      institutions to download information or perform online financial activities.
      Once the device is set up with the user’s fingerprint, thereafter the
      EncryptaKey will know who has logged on because a unique key will have been
      created using biometric data from the user’s fingerprint as well as his or her
      login name and password. This will not be able to be duplicated by anyone but
      the user because of the universal uniqueness of the user’s thumbprint.





Our
      plan
      is to partner with financial institutions and online retailers who will adapt
      their current systems to recognize users authenticated with an EncryptaKey.
      We
      believe that they will do so because of the ability of EncryptaKey, as designed,
      to reduce fraudulent transactions in general, and particularly those based
      on
      identity theft. There can be no assurance, however, that we will be successful
      in convincing financial institutions and online retailers to allow their online
      transaction systems to work with EncryptaKey.





In
      addition to providing secure transactions for online financial and retail
      transactions, we also intend for EncryptaKey to allow a user to securely access
      home or work computers over the internet as an alternative to storing sensitive
      information on a portable laptop. We believe that secure remote access features
      will appeal to our target customers because the ability to remotely access
      home
      and work computers greatly reduces the security risks associated with the
      potential for having a laptop containing sensitive information on the internal
      hard drive lost or stolen while traveling. Because sensitive information will
      no
      longer need to be kept on the laptop in order for EncryptaKey users to have
      access to the information, there is no security risk if the laptop is lost
      or
      stolen. Users can remotely and securely access their computers either from
      laptops or public terminals. No information ever resides on the hard drive
      of
      the laptop or terminal, nor is it transmitted over the internet. Therefore,
      it
      cannot be intercepted or mined later.





We
      further believe that, over the longer term, the EncryptaKey could potentially
      supplant traditional credit cards in many face to face retail purchase
      transactions because of its security features. Despite the recent growth of
      online retail purchase transactions, a vast number of credit card sales are
      still face-to-face Point of Service (POS) transactions. We intend to design
      the
      EncryptaKey such that, once a user’s credit card information is loaded into the
      EncryptaKey as




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described
      above, it can be used for secure POS transactions, provided the retailer has
      the
      appropriate hardware and software systems to recognize EncryptaKey.





Our
      long
      term goal with our technology is to have a system in widespread use that will
      allow a user, when paying for merchandise at a retail counter, to pull out
      his
      EncryptaKey instead of reaching for a credit card. We believe such a use has
      considerable potential because, whereas credit cards can be lost or stolen
      and
      used by others to run up charges, EncryptaKey cannot be used by anyone but
      the
      primary user because of the built in biometric security features. In order
      to
      pay for merchandise, a user would place his or her thumb on the thumb pad of
      the
      EncryptaKey. The EncryptaKey would read and verify that the thumb print matches
      the one on file for the registered user. This unlocks the EncryptaKey and allows
      the user to select which credit or debit card he wishes to use in order to
      pay
      for the merchandise, just as if the user was sitting at his or her desktop
      computer making an online purchase. The user will then press a transmit button
      while holding the EncryptaKey near the sensor pad of an Automated Teller Machine
      or Wireless POS Terminal. The EncryptaKey’s low power active RFID transmitter
      then transmits the requisite information to confirm payment with the merchant
      and the bank. We have not yet designed or built, even in the prototype phase,
      the hardware devices and supporting software systems that would allow
      EncryptaKey to be used in POS transactions. There can be no assurance that
      we
      will be able to do so or that we would be able to convince any retail or
      financial institutions to adopt such systems.





Our
      first
      product, the hardware EncryptaKey, is presently still under development. We
      anticipate that, provided we are successful in raising the funding necessary
      to
      do so, we will be able to finalize all functions of the system and test-market
      working prototypes by the end of 2007. There can be no assurance that we will
      successfully complete the design and testing of any products, including the
      EncryptaKey hardware device. We do not have any facilities or equipment capable
      of manufacturing the EncryptaKey in commercial quantities, nor do we have a
      contract with a third party manufacturer. There can be no assurance that we
      will
      be able to manufacture or contract for the manufacture of the EncryptaKey at
      a
      reasonable cost, or at all.





Although
      we have not yet built a working model of the EncryptaKey that includes the
      thumbprint and active RFID security features we intend to include in our final
      production model, we have successfully built a beta version of our proprietary
      operating system and successfully installed it on a flash drive. We displayed
      this working prototype at the Consumer Electronics Show in Las Vegas during
      the
      4th Quarter of 2006. We were pleased with the acceptance of our prototype and
      were recognized by the trade show organizers with the Best of Show - New
      Innovations award.





We
      do not
      presently have any customers or contracts for sales or licensing of any product
      using the EncryptaKey technology, including the EncryptaKey hardware device
      presently under development. There can be no assurance that there will be any
      market demand for any product we may develop.





We
      presently lack the funds necessary to complete our business plan. During the
      six
      month period ended June 30, 2007, we raised $2,105,200 in a private placement,
      which closed February 7, 2007. During the six month period ended June 30, 2007,
      we spent approximately $2,138,772




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on
      operations related to the development of the Encryptakey technology. Despite
      this additional capital, we will need to raise additional funds over the next
      twelve months, through borrowing or through sales of securities, in order to
      continue to pursue our business plan in 2007.





Since
      acquiring the EncryptaKey technology in September 2006 and through June 30,
      2007, we have spent over two million dollars on its development. We currently
      have forecasted the expenditure of an additional approximately $2,500,000 during
      the next twelve months in order to further develop the EncryptaKey technology,
      for sales and marketing, for general and administrative expenses, and for
      working capital requirements, including the anticipated cost of compliance
      with
      the reporting requirements of the Securities Exchange Act of 1934. These
      estimates do not include any unanticipated capital requirements that may be
      needed should we identify any products or business acquisitions that may add
      value to our current products.





The
      completion of our business plan for the next 12 months is contingent upon us
      obtaining additional financing. If we are unable to obtain sufficient financing,
      our business plan will be significantly impaired. We do not have any formal
      commitments or arrangements for the sales of stock or the advancement or loan
      of
      funds. Without the necessary financing, we will not be able to pursue our plan
      of operations until such time as the necessary funds are raised. There can
      be no
      assurance that additional financing will be available to us when needed or,
      if
      available that it can be obtained on commercially reasonable terms. If we are
      not able to obtain the additional funding on a timely basis, if and when it
      is
      needed, we will be forced to scale down or perhaps even cease operation of
      our
      business.





In
      the
      long-term, our ability to continue as a going concern is dependent upon
      successful and sufficient market acceptance of our product offerings and any
      new
      product offerings that we may introduce, the continuing successful development
      of our products and related technologies, and finally achieving a profitable
      level of operations. The issuance of additional equity securities by us could
      result in a significant dilution of equity interest of our current stockholders.
      Obtaining commercial loans, assuming those loans would be available, would
      increase our liabilities and future cash commitments.




**Results
      of Operations for the six months ended June 30, 2007 and
      2006**





We
      did
      not earn any revenue for the six month periods ended June 30, 2007, nor did
      we
      earn any revenue for the six month period ended June 30, 2006.





We
      incurred expenses in the amount of $2,138,772 for the six month period ended
      June 30, 2007, compared to $3,869 for the same six month period in 2006. The
      increase in expenses can be attributed to changing our business strategy to
      the
      acquisition and development of our EncryptaKey technology, which we acquired
      September 28, 2006. The main component of our expenses for the six month period
      ended June 30, 2007 was Research and Development Costs in the amounts of
      $1,356,000 and $0 for the six months ended June 30, 2007 for a total of
      $2,422,327 since our inception. Our remaining expenses were primarily
      attributable to developing and marketing the EncryptaKey technology, and
      providing general and administrative support for the business.




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**Liquidity
      and Capital Resources**





As
      of
      June 30, 2007, we had current assets in the amount of $329,128 and $1,309,286
      in
      current liabilities, resulting in a working capital deficit in the amount of
      $980,158. As discussed above, the completion of our business plan for the next
      12 months is contingent upon us obtaining additional financing. If we are unable
      to obtain additional financing, our business plan will be significantly
      impaired. We do not have any formal commitments or arrangements for the sales
      of
      stock or the advancement or loan of funds. Without the necessary cash flow,
      we
      will not be able to pursue our plan of operations until such time as the
      necessary funds are raised in the equity securities market.





We
      currently do not have enough cash to satisfy our minimum cash requirements
      for
      the next twelve months. This raises substantial doubt about our ability to
      continue as a going concern. Our ability to continue as a going concern is
      dependent on our ability to raise additional capital based upon the company’s
      desired plan of operation. The financial statements do not include any
      adjustments that might be necessary if we are unable to continue as a going
      concern.





**Off
      Balance Sheet Arrangements**





As
      of
      June 30, 2007, there were no off balance sheet arrangements.





**Going
      Concern**





We
      have
      incurred an accumulated total net loss of $3,619,128 for the period from
      inception (June 24, 2003) through June 30, 2007 and are not presently generating
      any revenue. We do not anticipate generating any meaningful revenue in 2007.
      Our
      future is dependent upon successful and sufficient market acceptance of our
      product offerings and any new product offerings that we may introduce, the
      continuing successful development of our products and related technologies,
      and
      finally , achieving a profitable level of operations. We plan to seek additional financing
      in a private equity offering to secure funding for our operations. There can
      be
      no assurance that such additional financing will be available to us on
      acceptable terms or at all. These factors, among others, raise substantial
      doubt
      about our ability to continue as a going concern.





**Critical
      Accounting Policies**





In
      December 2001, the SEC requested that all registrants list their most “critical
      accounting polices” in the Management Discussion and Analysis. The SEC indicated
      that a “critical accounting policy” is one which is both important to the
      portrayal of a company’s financial condition and results, and requires
      management’s most difficult, subjective or complex judgments, often as a result
      of the need to make estimates about the effect of matters that are inherently
      uncertain. We believe that the following accounting policies fit this
      definition.





*Accounting
      Basis*





The
      statements were prepared following generally accepted accounting principles
      of
      the United States of America consistently applied.





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*Management
      Certification*





The
      financial statements herein are certified by the officers of the Company to
      present fairly, in all material respects, the financial position, results of
      operations and cash flows for the periods presented, in conformity with
      accounting principles generally accepted in the United States of America,
      consistently applied.





*Fiscal
      Year*





The
      Company operates on a December 31 st fiscal
      year end.





*Research
      and Development Costs*





Research
      and Development costs are expensed as incurred in accordance with generally
      accepted accounting principles. Costs in association with the development of
      a
      patented technology when computer software is developed will be capitalized
      when
      technological feasibility is established in accordance with financial accounting
      standard No. 86





*Basic
      and Diluted Net Income (Loss) Per Share*





The
      Company computes net income (loss) per share in accordance with Statement of
      Financial Accounting Standards (“SFAS”) No. 128, " *Earnings
      per Share* ".
      SFAS
      No. 128 requires presentation of both basic and diluted earnings per share
      (EPS)
      on the face of the income statement. Basic EPS is computed by dividing net
      income (loss) available to common shareholders (numerator) by the weighted
      average number of shares outstanding (denominator) during the period. Diluted
      EPS gives effect to all dilutive potential common shares outstanding during
      the
      period using the treasury stock method.





*Dividends*





The
      Company has not yet adopted any policy regarding payment of dividends. No
      dividends have been paid during the periods shown.





*Use
      of 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 assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenue and expenses during
      the reporting period. Actual results could differ from those
      estimates.





*Property
      and Equipment*





Property
      and equipment are carried at cost and depreciated on a straight-line basis
      over
      their useful lives. Office Equipment is depreciated over five years.





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*Income
      Taxes*





The
      provision for income taxes is the total of the current taxes payable and the
      net
      of the change in the deferred income taxes. Provision is made for the deferred
      income taxes where differences exist between the period in which transactions
      affect current taxable income and the period in which they enter into the
      determination of net income in the financial statements.





**Recently
      Issued Accounting Pronouncements**





Below
      is
      a listing of the most recent Statement of Financial Accounting Standards (SFAS)
      SFAS 155-157 and their effect on the Company.








***Statement
      No. 155*** **-** *Accounting
      for Certain Hybrid Financial Instruments*


In
      February 2006, the FASB issued SFAS No. 155, *Accounting
      for Certain Hybrid Financial Instruments* ,
      which
      amends SFAS No. 133, *Accounting
      for Derivatives Instruments and Hedging Activities* and SFAS
      No. 140, *Accounting
      for Transfers and Servicing of Financial Assets and Extinguishment of
      Liabilities* .
      SFAS
      No. 155 amends SFAS No. 133 to narrow the scope exception for interest-only
      and
      principal-only strips on debt instruments to include only such strips
      representing rights to receive a specified portion of the contractual interest
      or principle cash flows. SFAS No. 155 also amends SFAS No. 140 to allow
      qualifying special-purpose entities to hold a passive derivative financial
      instrument pertaining to beneficial interests that itself is a derivative
      instrument.




***Statement
      No. 156*** **-** *Accounting
      for Servicing of Financial Assets*




In
      March
      2006, the FASB issued SFAS No. 156, *Accounting
      for Servicing of Financial Assets,* which
      provides an approach to simplify efforts to obtain hedge-like (offset)
      accounting. This Statement amends FASB Statement No. 140, *Accounting
      for Transfers and Servicing of Financial Assets and Extinguishments of
      Liabilities* ,
      with
      respect to the accounting for separately recognized servicing assets and
      servicing liabilities. The Statement (1) requires an entity to recognize a
      servicing asset or servicing liability each time it undertakes an obligation
      to
      service a financial asset by entering into a servicing contract in certain
      situations; (2) requires that a separately recognized servicing asset or
      servicing liability be initially measured at fair value, if practicable; (3)
      permits an entity to choose either the amortization method or the fair value
      method for subsequent measurement for each class of separately recognized
      servicing assets or servicing liabilities; (4) permits at initial adoption
      a
      one-time reclassification of available-for-sale securities to trading securities
      by an entity with recognized servicing rights, provided the securities
      reclassified offset the entity's exposure to changes in the fair value of the
      servicing assets or liabilities; and (5) requires separate presentation of
      servicing assets and servicing liabilities subsequently measured at fair value
      in the balance sheet and additional disclosures for all separately recognized
      servicing assets and servicing liabilities. SFAS No. 156 is effective for all
      separately recognized servicing assets and liabilities as of the beginning
      of an
      entity's fiscal year that begins after September 15, 2006, with earlier adoption
      permitted in certain circumstances. The Statement also describes the manner
      in
      which it should be initially applied.




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***Statement
      No. 157*** - *Fair
      Value Measurements*




In
      September 2006, the FASB issued SFAS No. 157, *Fair
      Value Measurements* ,
      to
      clarify how to measure fair value and to expand disclosures about fair value
      measurements. The expanded disclosures include the extent to which companies
      measure assets and liabilities at fair value, the information used to measure
      fair value, and the effect of fair value on earnings and is applicable whenever
      other standards require (or permit) assets and liabilities to be measured at
      fair value. SFAS 157 is effective for financial statements issued for fiscal
      years beginning after November 15, 2007 and interim periods within those fiscal
      years.




The
      adoption of these new Statements is not expected to have a material effect
      on
      the Company’s current financial position, results or operations, or cash
      flows.




**Item
      3.     Controls and Procedures**





We
      carried out an evaluation of the effectiveness of the design and operation
      of
      our disclosure controls and procedures (as defined in Exchange Act Rules
      13a-15(e) and 15d-15(e)) as of June 30, 2007. This evaluation was carried out
      under the supervision and with the participation of our Chief Executive Officer
      and Chief Financial Officer, Mr. Kelly Owen. Based upon that evaluation, our
      Chief Executive Officer and Chief Financial Officer concluded that, as of June
      30, 2007, our disclosure controls and procedures are effective. There have
      been
      no changes in our internal controls over financial reporting during the quarter
      ended June 30, 2007.





Disclosure
      controls and procedures are controls and other procedures that are designed
      to
      ensure that information required to be disclosed in our reports filed or
      submitted under the Exchange Act are recorded, processed, summarized and
      reported, within the time periods specified in the SEC's rules and forms.
      Disclosure controls and procedures include, without limitation, controls and
      procedures designed to ensure that information required to be disclosed in
      our
      reports filed under the Exchange Act is accumulated and communicated to
      management, including our Chief Executive Officer and Chief Financial Officer,
      to allow timely decisions regarding required disclosure.





Limitations
      on the Effectiveness of Internal Controls





Our
      management does not expect that our disclosure controls and procedures or our
      internal control over financial reporting will necessarily prevent all fraud
      and
      material error. Our disclosure controls and procedures are designed to provide
      reasonable assurance of achieving our objectives and our Chief Executive Officer
      and Chief Financial Officer concluded that our disclosure controls and
      procedures are effective at that reasonable assurance level. Further, the design
      of a control system must reflect the fact that there are resource constraints,
      and the benefits of controls must be considered relative to their costs. Because
      of the inherent limitations in all control systems, no evaluation of controls
      can provide absolute assurance that all control issues and instances of fraud,
      if any, within the Company have been detected. These inherent limitations
      include the realities that judgments in decision-making can be faulty, and
      that
      breakdowns can occur because of simple error or mistake. Additionally, controls
      can be circumvented by the individual acts of some persons, by collusion of
      two
      or more people, or by


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management
      override of the internal control. The design of any system of controls also
      is
      based in part upon certain assumptions about the likelihood of future events,
      and there can be no assurance that any design will succeed in achieving its
      stated goals under all potential future conditions. Over time, control may
      become inadequate because of changes in conditions, or the degree of compliance
      with the policies or procedures may deteriorate.




**PART
      II - OTHER INFORMATION**





**Item
      1.     Legal
      Proceedings**





We
      are
      not a party to any pending legal proceedings. We are not aware of any pending
      legal proceeding to which any of our officers, directors, or any beneficial
      holders of 5% or more of our voting securities are adverse to us or have a
      material interest adverse to us.





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





None.





**Item
      3.     Defaults upon Senior
      Securities**





None





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





No
      matters have been submitted to our security holders for a vote, through the
      solicitation of proxies or otherwise, during the quarterly period ended June
      30,
      2007.





**Item
      5.     Other
      Information**





None





**Item
      6.      Exhibits**





**Exhibit**
              **Number**
            **Description
                of Exhibit**31.1
            Certification
                of Chief Executive Officer pursuant to 18
                U.S.C. Section 1350, as adopted pursuant to Section 302 of the
                Sarbanes-Oxley Act of 200231.2
            Certification
                of Chief Financial Officer pursuant to 18
                U.S.C. Section 1350, as adopted pursuant to Section 302 of the
                Sarbanes-Oxley Act of 200232.1
            Certification
                of Chief Executive Officer and Chief
                Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
                pursuant
                to Section 906 of the Sarbanes-Oxley Act of
                2002




13
 Table
          of Contents





**SIGNATURES**





In
      accordance with the requirements of the Securities and Exchange Act of 1934,
      the
      Registrant has duly caused this report to be signed on its behalf by the
      undersigned, thereunto duly authorized.





**EncryptaKey,
                Inc**Date:
            October
                12, 2007By:       /s/
                Kelly Owen
              Kelly
                Owen
              Title:**Chief
                Executive Officer and
                Director**