**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 endedMarch
                31, 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)Futomic
                Industries, Inc.(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
      [
      ] No





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





State
      the
      number of shares outstanding of each of the issuer’s classes of common stock, as
      of the latest practicable date: 50,906,784 common shares as of March 23,
      2007.





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









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
            13PART
                II - OTHER INFORMATIONItem
                1.
            Legal
                Proceedings
            14Item
                2.
            Unregistered
                Sales of Equity Securities and Use
                of Proceeds
            14Item
                3.
            Defaults
                Upon Senior Securities
            15Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            15Item
                5.
            Other
                Information
            15Item
                6.
            Exhibits
            15


2
 Table
          of Conents


**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 March 31, 2007;F-2
            Statements
                of Operations for the three months endedMarch
                31, 2007 and 2006;F-3
            Statements
                of Cash Flows for the three months ended March 31,
                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 March 31, 2007
      are
      not necessarily indicative of the results that can be expected for the full
      year.


3
 Table
          of Conents




Encryptakey,
      Inc.


formerly
      Futomic Industries, Inc.


(A
      Development Stage Company)




**Balance
      Sheet**


March
                      31,2007(Unaudited)
              
              December
                    31,
                  2006**ASSETS**Current
                  AssetsCash
              
              $
              264,377
              $
              186,554Security
                  Deposits
              
              
              -
              
              -Total
                  Current Assets
              
              
              264,377
              
              186,554Fixed
                  AssetsFurniture
                  and Equipment - Net
              
              
              257,090
              
              60,674Invisidesk
                  Portal - Net
              
              
              550
              
              550Total
                  Long Term Assets
              
              
              257,640
              
              61,224Total
                  Assets
              
              
              $
                  522,017
              
              $
                  247,778**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**LiabilitiesNotes
                  Payable
              
              $
              310,000
              $
              -Accrued
                  Expenses
              
              
              -
              
              -Total
                  Liabilities
              
              
              310,000
              
              -Stockholders'
                  EquityPreferred
                    Stock, authorized
                    20,000,000
                      shares, par value $0.0001,
                      no
                        preferred stock is outstanding
              
              
              -
              
              -Common
                  Stock, authorized
                  100,000,000
                    shares, par value $0.0001,
                    issued
                      and outstanding on March 31, 2007
                      and
                        December 31, 2006 is 51,228,450
                        and
                          49,859,000 shares respectively
              
              
              
              
              5,124
              
              
              4,986Paid
                  in Capital
              
              
              
              
              2,633,887
              
              
              2,223,189Subscriptions
                  Receivable
              
              
              
              
              -
              
              
              (500,000)Accumulated
                  Deficit During
                Development
                  Stage
              
              
              
              
              (2,426,994)
              
              
              (1,480,397)Total
                  Stockholders' Equity
              
              
              
              
              212,017
              
              
              247,778Total
                  Liabilities and Stockholders' Equity
              
              
              
              $
              522,017
              
              $
              247,778




The
        accompanying notes are an integral part of these statements






F-1
 Table
          of Conents




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


Three
                    Months Ended
                  March
                    31,
              
              
              June
                    24, 2003
                  (Inception)
                    to
                  March
                    31,2007
              
              
              2006
              
              
              2006Operating
                  ExpensesGeneral
                    and Administrative
              $
              93,026
              
              $
              3,869
              
              $
              426,000Interest
                  Expense
              
              -
              
              
              -
              
              
              3,523Advertising
                  and Promotion
              
              50,222
              
              
              -
              
              
              180,183Research
                  and Development
              
              700,000
              
              
              -
              
              
              1,766,327Professional
                  Fees
              
              103,349
              
              
              -
              
              
              137,349Total
                  Expenses
              
              946,597
              
              
              3,869
              
              
              2,513,382Net
                  (Loss) before Extraordinary Items
              
              (946,597)
              
              
              (3,869)
              
              
              (2,513,382)Extraordinary
                ItemsGain
                    on Forgiveness of Debt
              
              -
              
              
              -
              
              
              89,832Interest
                  Income
              
              -
              
              
              -
              
              
              44Net
                  Income/(Loss)
              $
              (946,597)
              
              $
              (3,869)
              
              $
              (2,423,506)Basic
                  and Diluted(Loss)
                    per Share
              $
              (0.02)
              
              $
              (0.00)Weighted
                  AverageNumber
                  of Shares
              
              39,818,551
              
              
              7,615,000a
                  =
                  Less than ($0.01) per share


The
        accompanying notes are an integral part of these statements




F-2
 Table
          of Conents




Encryptakey,
        Inc.
 formerly
        Futomic Industries, Inc.
 (A
        Development Stage Company)
  **Statements
        of Cash Flow**
  Three
                      Months EndedMarch 31,
                
                June
                        24, 2003(Inception) toMarch 31,2007
                
                2006
                
                2007Operating
                    ActivitiesNet
                    Profit / (Loss)
                $
                (946,597)
                
                $
                (3,869)
                
                $
                (2,423,506)Significant
                    Non-Cash TransactionsStock
                    Issued to founders
                
                -
                
                
                -
                
                
                3,002Adjustment
                    for reverse acqusition
                
                -
                
                
                -
                
                
                117,630Stock
                    issued to purchase asset
                
                190,856
                
                
                -
                
                
                191,406Depreciation
                
                3,487
                
                
                435
                
                
                5,280Changes
                    in Assets and Liabilities(Increase)/Decrease
                    in Deposits
                
                -
                
                
                -
                
                
                -Increase/(Decrease)
                    in Accounts Payable
                
                -
                
                
                2,886
                
                
                -Increase/(Decrease)
                    in Accrued Liabilities
                
                -
                
                
                -
                
                
                -Increase/(Decrease)
                    in Wages Payable
                
                -
                
                
                (3,000)
                
                
                -Net
                    Cash (Used) by Operating Activities
                
                (752,254)
                
                
                (3,548)
                
                
                (2,106,188)Investment
                    ActivitiesPurchase
                    of Invisidesk Portal
                
                -
                
                
                -
                
                
                (550)Equipment
                    Purchase
                
                (199,903)
                
                
                -
                
                
                (265,858)Cash
                    Used by Investment Activities
                
                (199,903)
                
                
                -
                
                
                (266,408)Financing
                    ActivitiesNet
                    Proceeds from loans - Related Parties
                
                310,000
                
                
                (27,009)
                
                
                310,000Purchase
                    of Treasury Stock
                
                -
                
                
                -
                
                
                (43,207)Proceeds
                    from sale of Common Stock
                
                719,980
                
                
                -
                
                
                2,370,180Cash
                    Provided by Financing Activities
                
                1,029,980
                
                
                (27,009)
                
                
                2,636,973Net
                    Increase/(Decrease) in Cash
                
                77,823
                
                
                (30,557)
                
                
                264,377Cash,
                    Beginning of Period
                
                186,554
                
                
                30,665
                
                
                -Cash,
                    End of Period
                $
                264,377
                
                $
                108
                
                $
                264,377Supplemental
                    Information:Interest
                    Paid
                $
                -
                
                $
                -
                
                $
                3,523Income
                    Taxes Paid
                $
                -
                
                $
                -
                
                $
                -
  Significant
        Non-Cash Transactions


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 Conents




**EncryptaKey,
      Inc.**


**Formerly
        Futomic Industries, Inc.**
 (A
        Development Stage Company)
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(March
        31, 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 Conents
  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:
 
 31-Mar-2007
              2005Numerators for Basic and Diluted EPS
                Net
                  income/(loss) to common shareholders
              ($946,597)
              ($1,054,117)Denominators
                  for Basic and Diluted EPS
                Weighted
                  average of shares outstanding
              50,726,318
              39,818,55Basic and DilutedEarnings/(Loss)
                Per
                Share
              ($0.02)
              ($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 Conents
  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.
 
 Management ’ s
        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 Conents
  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 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 Conents
  **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 quarter of 2007 the company has be invoiced and paid an additional
        $700,000 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.
 
 
 **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.
  F-8
 Table
            of Conents
  The
        provision for income taxes for the period ended December 31, 2006 and 2005
        follows:
 
 Year
                  Ended December 31,
              2006
              2005Deferred
                  Tax Asset
              $231,906
              $19,216Valuation
                  Allowance
              (231,906)
              (19,216)Current
                  Taxes Payable
              0.00
              0.00Income
                  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
              Expiration2003
              $152,649
              20232004
              186,296
              20242005
              87,334
              20252006
              1,054,117
              2006Total
              $1,480,396
   **NOTE
        7.**  **COMMITMENTS
        AND CONTINGENCIES**
 
 On
        October 1, 2006 the Company entered into a 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 actual hour incurred for research and development through
        September 30, 2007. The project currently 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.
 
 During
        the first quarter of 2007 the company has be invoiced and paid an additional
        $700,000. The Company expects that its commitment to complete the development
        of
        the EncryptaKey technology to exceed $2,500,000.
 
 
 **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.
 
 **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.
  F-9
 Table
            of Conents
  **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.


F-10
 Table
          of Conents





**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. Subsequently, a majority of our shareholders,
      acting by written consent, consented to the name change and the amendment to
      our
      articles of incorporation necessary to effect that change. Under our
      articles and bylaws, no other approvals are necessary or required. On February
      22, 2007 we filed a Form DEF 14C with the SEC effecting the above actions.
      On
      March 13, 2007 we filed a Certificate of Amendment to our Articles of
      Incorporation with the Division of Revenue of the State of New Jersey effecting
      the name change.





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          of Conents





Previously,
      we were engaged in the research, development and distribution of various
      technologies including a 3D Adapter for the Sony Playstation II, and an
      incomplete 3D Laser projection system to display 3D images. On June 20, 2005,
      we
      sold our video game related technologies to SplitFish Gameware Inc. of Edmonton,
      Canada, a company owned by Mr. Ken Tetterington who was formerly our
      principal shareholder, officer and director. As a result of this transaction,
      we
      are no longer in the video game hardware business. The primary reason for
      exiting this business was to allow us to focus on our other business, the
      research and development of smart card technology related to the biometric
      security industry. However, we lacked the funding to pursue this line of
      business and were forced to shelve it until such time as we were able to acquire
      the necessary capital to proceed. At present, and for the foreseeable future,
      our smart card related security business plan remains on hold.





Our
      current business plan is focused upon the research, development, manufacture
      and
      sale of the biometric security technology we recently 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 exchange for 5,500,000 shares of our
      restricted common stock. As a result of our acquisition of the EncryptaKey
      technology, we have changed the focus of our efforts in the security products
      business away from smart cards and towards more sophisticated biometric devices
      that use the EncryptaKey technology.





Also
      on
      September 28, 2006, our Board of Directors resolved to expand the size of the
      Board to two members and appointed Kelly Owen to fill the newly created seat.
      Our Board also appointed Mr. Owen to act as our sole officer, serving as each
      of
      CEO, CFO, President, Secretary and Treasurer. Our Board believes that Mr. Owen
      is best suited to develop products based on the EncryptaKey technology and
      to
      develop, market, and sell applications utilizing this technology to government,
      institutional, commercial, and individual consumers.





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 and $700,000 during the three month period ended March 31, 2007 pursuant
      to
      this contract.





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. The
      equipment and software we acquired will allow us to continue development of
      our
      primary product. We do not anticipate that we will need to acquire a plant
      or
      purchase any additional, significant equipment during 2007.





On
      February 19, 2007, our Board of Directors unanimously resolved to amend our
      articles of incorporation to change our name to EncryptaKey, Inc. Subsequently,
      a majority of our shareholders, acting by written consent, consented to the
      name
      change and the amendment to our




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          of Conents




articles
      of incorporation necessary to effect that change. Under our articles and
      bylaws, no other approvals are necessary or required. On February 22, 2007
      we
      filed a Form DEF 14C with the SEC effecting the above actions. On March 13,
      2007
      we filed a Certificate of Amendment to our Articles of Incorporation with the
      Division of Revenue of the State of New Jersey effecting the name
      change.





**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 our EncryptaKey technology has the potential to effectively address
      a number of security issues plaguing financial institutions and individuals
      alike. Industry research suggests that identity fraud victimized nine million
      adults in the United States during 2005, resulting in $56.6 Billion in losses
      for financial institutions and retailers, and endless frustration for consumers.
      We believe that EncryptaKey technology has the potential to become a cost
      effective means for businesses and consumers to reduce these
      losses.





As
      presently designed, an EncryptaKey hardware device will be approximately the
      size of a 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.





6
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          of Conents




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 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.





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          of Conents




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
      4th
      Quarter of 2006, we raised $1,135,200 through an ongoing private placement
      of
      our common stock. Also during the 4th Quarter, we spent approximately $845,000
      of those funds on operations related to the development of the Encryptakey
      technology. During the three month period ended March 31, 2007, we raised an
      additional $969,985.20 in that same private placement, which closed February
      7,
      2007. During the three month period ended March 31, 2007, we spent approximately
      $700,000 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.





We
      currently have forecasted the expenditure of approximately $3,600,000 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 that 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




8
 Table
          of Conents




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 three months ended March 31, 2007 and
      2006**





We
      did
      not earn any revenue for the three month period ended March 31, 2007, nor did
      we
      earn any revenue for the three month period ended March 31, 2006.





We
      incurred expenses in the amount of $946,597 for the three month period ended
      March 31, 2007, compared to $3,869 for the same period the prior year. The
      increase in expenses can be attributed to changing our business strategy to
      the
      acquisition and development of our EncryptaKey technology since the end of
      the
      three month period ended March 31, 2006. The main component of our expenses
      for
      the three month period ended March 31, 2007 was Research and Development Costs
      in the amount of $700,000. Our other expenses were attributable to developing
      and marketing the EncryptaKey technology, and providing general and
      administrative support for the business.




**Liquidity
      and Capital Resources**





As
      of
      March 31, 2007, we had current assets in the amount of $264,377 and $0 in
      current liabilities, resulting in working capital in the amount of $264,377.
      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
      March 31, 2007, there were no off balance sheet arrangements.





9
 Table
          of Conents




**Going
      Concern**




We
      have
      incurred an accumulated total net loss of $3,459,979 or the period from
      inception (June 24, 2003) through March 31, 2007 and are not presently
      generating any revenue. We do not anticipate generating any 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.





*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





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 Table
          of Conents




*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 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.





**Recently
      Issued Accounting Pronouncements**





Below
      is
      a listing of the most recent accounting standards SFAS 150-154 and their effect
      on the Company.





***Statement
      No. 150***  *Accounting
      for Certain Financial Instruments with Characteristics of both Liabilities
      and
      Equity* (Issued
      5/03)





This
      Statement establishes standards for how an issuer classifies and measures
      certain financial instruments with characteristics of both liabilities and
      equity.





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***Statement
      No. 151***  *Inventory
      Costs* -an
      amendment of ARB No. 43, Chapter 4 (Issued 11/04)





This
      statement amends the guidance in ARB No. 43, Chapter 4, *Inventory
      Pricing* ,
      to
      clarify the accounting for abnormal amounts of idle facility expense, freight,
      handling costs, and wasted material (spoilage). Paragraph 5 of ARB 43, Chapter
      4, previously stated that “...under some circumstances, items such as idle
      facility expense, excessive spoilage, double freight and re-handling costs
      may
      be so abnormal ass to require treatment as current period charges....” This
      Statement requires that those items be recognized as current-period charges
      regardless of whether they meet the criterion of “so abnormal.” In addition,
      this Statement requires that allocation of fixed production overheads to the
      costs of conversion be based on the normal capacity of the production
      facilities.





***Statement
      No. 152***  *Accounting
      for Real Estate Time-Sharing Transactions* (an
      amendment of FASB Statements No. 66 and 67)





This
      Statement amends FASB Statement No. 66, *Accounting
      for Sales of Real Estate* ,
      to
      reference the financial accounting and reporting guidance for real estate
      time-sharing transactions that is provided in AICPA Statement of Position (SOP)
      04-2, *Accounting
      for Real Estate Time-Sharing Transactions* .





This
      Statement also amends FASB Statement No. 67, Accounting *for
      Costs and Initial Rental Operations of Real Estate Projects* ,
      states
      that the guidance for (a) incidental operations and (b) costs incurred to sell
      real estate projects does not apply to real estate time-sharing transactions.
      The accounting for those operations and costs is subject to the guidance in
      SOP
      04-2.





***Statement
      No. 153***  *Exchanges
      of Non-monetary Assets* (an
      amendment of APB Opinion No. 29)





The
      guidance in APB Opinion No. 29, *Accounting
      for Non-monetary Transactions* ,
      is
      based on the principle that exchanges of non-monetary assets should be measured
      based on the fair value of the assets exchanged. The guidance in that Opinion,
      however, includes certain exceptions to the principle. This Statement amends
      Opinion 29 to eliminate the exception for non-monetary exchanges of similar
      productive assts and replaces it with a general exception for exchanges of
      non-monetary assets that do not have commercial substance. A non-monetary
      exchange has commercial substance if the future cash flows of the entity are
      expected to change significantly as a result of the exchange.





***Statement
      No. 154*** *Accounting
      Changes and Error Corrections (a replacement of APB Opinion No. 20 and FASB
      Statement No. 3)*





This
      Statement replaces APB Opinion No. 20, *Accounting
      Changes,* and FASB
      Statement No. 3, *Reporting
      Accounting Changes in Interim Financial Statements,* and
      changes the requirements for the accounting for and reporting of a change in
      accounting principle. This Statement applies to all voluntary changes in
      accounting principle. It also applies to changes required by an accounting
      pronouncement in the unusual instance that the pronouncement does not include




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          of Conents




specific
      transition provisions. When a pronouncement includes specific transition
      provisions, those provisions should be followed.





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 March 31, 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 March
      31, 2007, our disclosure controls and procedures are effective. There have
      been
      no changes in our internal controls over financial reporting during the quarter
      ended March 31, 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 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.




13
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          of Conents





**PART
      II - OTHER INFORMATION**





**Item
      1.     Legal
      Proceedings**





We
      are
      not a party to any pending legal proceeding. 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**





The
      information set forth below relates to our issuances of securities without
      registration under the Securities Act during the reporting period which were
      not
      previously included in a Current Report on Form 8-K.





On
      December 13, 2006 we filed a Form 8-K announcing the close of an unregistered
      private placement of 6,284,000 shares of our common stock at $0.30 for total
      gross proceeds of $1,885,200. We were unable to collect all payments by the
      January 15, 2007 deadline and decided it was in the best interest of the Company
      to extend the offering to allow for additional interested investors to submit
      subscription agreements and payments until February 7, 2007.





On
      February 7, 2007, we closed the unregistered private placement of 6,900,664
      shares of our common stock at $0.30 per share for total gross proceeds of
      $2,070,185.70. All subscription agreements and funds have been received and
      approved.





Shares
      in
      this offering were sold by directors, officers and employees of the Company
      without commissions or other compensation.





In
      making
      this offering, we relied on the exemptions provided by Section 4(2) of the
      United States Securities Act of 1933, as amended (the “Securities Act”), and
      Rule 506 of Regulation D Promulgated thereunder. The Units were offered only
      to
      institutional or other investors who are “accredited investors” (as defined
      under Rule 501(a) of Regulation D under the Securities Act). Investors
      represented in writing that they were given adequate information about us to
      make an informed investment decision and that they have had an opportunity
      to
      ask questions of and receive answers from representatives of our Company with
      respect to our Company and its business, the shares and the offering. Investors
      were also required to represent that they are accredited investors and have
      such
      knowledge and experience in financial and business matters as to be capable
      of
      evaluating the merits and risks of an investment in the shares and that they
      are
      able to withstand a complete loss of their investment. Investors were also
      required to represent that they were acquiring the shares for investment only
      and not with a view towards distribution. The shares, when issued, will be
      subject to restrictions on transferability and may not be resold or otherwise
      transferred unless the sales or transfers have been registered, or are exempt
      from registration, under the Securities Act and applicable state laws. We did
      not engage in any general solicitation or advertising.





14
 Table
          of Conents





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.





**Item
      3.     Defaults upon Senior
      Securities**





None





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





Except
      as
      described below, no matters have been submitted to our security holders for
      a
      vote, through the solicitation of proxies or otherwise, during the quarterly
      period ended March 31, 2007.





On
      February 19, 2007, our Board of Directors unanimously resolved to amend our
      articles of incorporation to change our name to EncryptaKey, Inc. Subsequently,
      a majority of our shareholders, acting by written consent, consented to the
      name
      change and the amendment to our articles of incorporation necessary to effect
      that change. Under our articles and bylaws, no other approvals are
      necessary or required. On February 22, 2007 we filed a Form DEF 14C with the
      SEC
      effecting the above actions. On March 13, 2007 we filed a Certificate of
      Amendment to our Articles of Incorporation with the Division of Revenue of
      the
      State of New Jersey effecting the name change.





**Item
      5.     Other
      Information**





None.





**Item
      6.      Exhibits**





**Exhibit**
              **Number**
            **Description
                of Exhibit**10.1
            Consulting
                Agreement with Owen Consulting, Inc. dated
                October 1, 2006.31.1
            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





15
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          of Conents





**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:
            June
                25, 2007By:       /s/
                Kelly Owen
              Kelly
                Owen
              Title:**Chief
                Executive Officer and Director**