**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

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

| 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) |

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Table          of Contents

|                                                | TABLE                OF CONTENTS                                                              |   Page |
|-----------------------------------------------------|-----------------------------------------------------------------------------------------------|------------------|
| PART                I - FINANCIAL INFORMATION  |
| Item                1.                              | Financial                Statements                                                           | 3                |
| Item                2.                              | Management’s                Discussion and Analysis or Plan of                Operation | 4                |
| Item                3.                              | Controls                and Procedures                                                        | 9                |
|  PART                II - OTHER INFORMATION    |
| Item                1.                              | Legal                Proceedings                                                              | 10          |
| Item                2.                              | Unregistered                Sales of Equity Securities and Use of                Proceeds     | 10          |
| Item                3.                              | Defaults                Upon Senior Securities                                                | 10          |
| Item                4.                              | Submission                of Matters to a Vote of Security                Holders             | 10          |
| Item                5.                              | Other                Information                                                              | 10          |
| Item                6.                              | Exhibits                                                                                      | 10          |

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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 September 30, 2007; |
|                                                                                                          |   |
| F-2                                                                                                           | Statements                of Operations for the nine month periods                ended September 30, 2007 and 2006, and for the period from June 24,                2003                (Inception) to September 30, 2007; |
|                                                                                                          |   |
| F-3                                                                                                           | Statements                of Stockholders Equity for the period from June 24,                2003 (Inception) to September 30, 2007; |
|                                                                                                          |   |
| F-4                                                                                                           | Statements                of Cash Flow for the nine month periods ended                September 30, 2007 and 2006, and for the period from June 24, 2003                (Inception) to September 30, 2007; |
|                                                                                                          |   |
| F-5                                                                                                           | Notes                to Financial                Statements; |

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Table          of Contents

**Encryptakey,      Inc.**

**formerly      Futomic Industries, Inc.**

**Balance      Sheets**

|                                                                                                                                                                                                                                                                     | September                  30,2007(Unaudited)  |        | December                  31,2006  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|-------------|-----------------------------------------|
| **ASSETS**                                                                                                                                                                                                                                                               |                                                |        |                                    |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |
| Current                  Assets                                                                                                                                                                                                                                          |                                                |        |                                    |
| Cash                                                                                                                                                                                                                                                                     | $                                                   | 2,647       |                                    | $ | 186,554 |
| Employee                  Loan                                                                                                                                                                                                                                           |                                                | 3,897       |                                    |   | - |
| Security                  Deposits                                                                                                                                                                                                                                       |                                                | -           |                                    |   | - |
| Total                  Current Assets                                                                                                                                                                                                                                    |                                                | 6,544       |                                    |   | 186,554 |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Long-Term                  Assets                                                                                                                                                                                                                                        |                                                |        |                                    |   |   |
| Furniture                  and Equipment - Net                                                                                                                                                                                                                           |                                                | 298,223     |                                    |   | 60,674 |
| Intangible                  Assets                                                                                                                                                                                                                                       |                                                |        |                                    |   |   |
| Invisidesk                  Portal - Net                                                                                                                                                                                                                                 |                                                | 495         |                                    |   | 550 |
|                                                                                                                                                                                                                                                                          |                                                |        |                                    |   |   |
| Total                  Long Term Assets                                                                                                                                                                                                                                  |                                                | 298,718     |                                    |   | 61,224 |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Total                  Assets                                                                                                                                                                                                                                            | $                                                   | 305,262     |                                    | $ | 247,778 |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                |                                                |        |                                    |   |   |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Liabilities                                                                                                                                                                                                                                                              |                                                |        |                                    |   |   |
| Accounts                  Payable                                                                                                                                                                                                                                        | $                                                   | 288,919     |                                    | $ | - |
| Notes                  Payable - Shareholders                                                                                                                                                                                                                            |                                                | 1,204,950   |                                    |   | - |
| Accrued                  Expenses                                                                                                                                                                                                                                        |                                                | -           |                                    |   | - |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Total                  Liabilities                                                                                                                                                                                                                                       |                                                | 1,493,869   |                                    |   | - |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Stockholders'                        Equity                                                                                                                                                                                                                              |                                                |        |                                    |   |   |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Preferred                  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 September 30, 2007 and                  December 31, 2006 is 51,228,450 and                  49,859,000 shares respectively |                                                | 5,124       |                                    |   | 4,986 |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Paid                  in Capital                                                                                                                                                                                                                                         |                                                | 2,633,887   |                                    |   | 2,223,189 |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Subscriptions                  Receivable                                                                                                                                                                                                                                |                                                | -           |                                    |   | (500,000) |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Accumulated                  Deficit During                                                                                                                                                                                                                              |                                                |        |                                    |   |   |
| Development                  Stage                                                                                                                                                                                                                                       |                                                | (3,827,618) |                                    |   | (1,480,397) |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Total                  Stockholders' Equity                                                                                                                                                                                                                              |                                                | (1,188,607) |                                    |   | 247,778 |
|                                                                                                                                                                                                                                                                     |                                                |        |                                    |   |   |
| Total                  Liabilities and Stockholders' Equity                                                                                                                                                                                                              | $                                                   | 305,262     |                                    | $ | 247,778 |

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Table          of Contents

**Encryptakey,        Inc.**

**formerly        Futomic Industries, Inc.**

**Statements        of Operation**

|                                                          | Nine                  Months EndedSeptember                  30, |        | June                  24, 2003(Inception)                  toSeptember 30,  |
|---------------------------------------------------------------|------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------|
|                                                          | 2007                                                             |        | 2006                                                                                  |   | 2007 |
|                                                          |                                                             |        |                                                                                  |   |   |
| Operating                  Expenses                           |                                                             |        |                                                                                  |   |   |
| General                  and Administrative                   | $                                                                | 425,984     |                                                                                  | $ | 6,297 |   | $ | 762,446 |
| Interest                  Expense                             |                                                             | 10,033      |                                                                                  |   | - |   |   | 13,556 |
| Advertising                  and Promotion                    |                                                             | 161,129     |                                                                                  |   | - |   |   | 291,090 |
| Research                  and Development                     |                                                             | 1,441,000   |                                                                                  |   | - |   |   | 2,507,327 |
| Professional                  Fees                            |                                                             | 309,075     |                                                                                  |   | - |   |   | 343,075 |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Total                  Expenses                               |                                                             | 2,347,221   |                                                                                  |   | 6,297 |   |   | 3,917,494 |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Net                  (Loss) before Extraordinary Items        |                                                             | (2,347,221) |                                                                                  |   | (6,297) |   |   | (3,917,494) |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Extraordinary                  Items                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Gain                  on Forgiveness of Debt                  |                                                             | -           |                                                                                  |   | 88,982 |   |   | 89,832 |
| Interest                  Income                              |                                                             | -           |                                                                                  |   | - |   |   | 44 |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Net                  Income/(Loss)                            | $                                                                | (2,347,221) |                                                                                  | $ | 82,685 |   | $ | (3,827,618) |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Basic                  and Diluted                            |                                                             |        |                                                                                  |   |   |   |   |   |
| (Loss)                  per Share                             | $                                                                | (0.05)      |                                                                                  | $ | 0.00 |   |   |   |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| Weighted                  Average                             |                                                             |        |                                                                                  |   |   |   |   |   |
| Number                  of Shares                             |                                                             | 50,978,771  |                                                                                  |   | 39,450,000 |   |   |   |
|                                                          |                                                             |        |                                                                                  |   |   |   |   |   |
| a                =                Less than ($0.01) per share |                                                             |        |                                                                                  |   |   |   |   |   |

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Table          of Contents

**Encryptakey,        Inc.**

**formerly        Futomic Industries, Inc.**

**Statement        of Stockholders'        Equity**

|                                                                                                                                                                                                                                                                                                                             | IssueDate |      | PricePerShare |   | Common                    StockShares                                       Amount |   | Paid                  inCaptial |         | SubscriptionsReceivable |   | DeficitAccumulatedDuring                        theDevelopmentStage |   | Total                  Equity |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------|-------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------|
| **Balance                  at inception, June 24, 2003**                                                                                                                                                                                                                                                                         |      |      |          |   |                                                                                                                                                                              |   |                            | 25,000,000   |                    | $      | 2,500                                                               |   | $                             | 502 |   | $ | - |   | $ | (4,502) |   | $ | (1,500) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Adjustment                    effected in reverseacqusition                                                                                                                                                                                                                                                                      |      | 15-Aug-03 |          | $      | 0.002                                                                                                                                                                             |   |                            | 56,855,000   |                    |   | 5,686                                                               |   |                          | 111,944 |   |   |   |   |   | 4,502 |   |   | 122,132 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Net                  (Loss)                                                                                                                                                                                                                                                                                                      |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   | (152,649) |   |   | (152,649) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  December 31, 2003**                                                                                                                                                                                                                                                                                  |      |      |          |   |                                                                                                                                                                              |   |                            | 81,855,000   |                    |   | 8,186                                                               |   |                          | 112,446 |   |   | - |   |   | (152,649) |   |   | (32,017) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash                                                                                                                                                                                                                                                                                   |      | 15-Mar-04 |          | $      | 0.04                                                                                                                                                                              |   |                            | 375,000      |                    |   | 38                                                                  |   |                          | 14,962 |   |   |   |   |   |   |   |   | 15,000 |
| Common                  shares issued for cash                                                                                                                                                                                                                                                                                   |      | 15-Jul-04 |          | $      | 0.10                                                                                                                                                                              |   |                            | 2,500,000    |                    |   | 250                                                                 |   |                          | 249,750 |   |   |   |   |   |   |   |   | 250,000 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Net                  (Loss)                                                                                                                                                                                                                                                                                                      |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   | (186,297) |   |   | (186,297) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  December 31, 2004**                                                                                                                                                                                                                                                                                  |      |      |          |   |                                                                                                                                                                              |   |                            | 84,730,000   |                    |   | 8,474                                                               |   |                          | 377,158 |   |   | - |   |   | (338,946) |   |   | 46,686 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Common                  shares re-purchased by the                                                                                                                                                                                                                                                                               |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Company                  and retired                                                                                                                                                                                                                                                                                             |      | 01-Jan-05 |          | $      | 0.001                                                                                                                                                                             |   |                            | (46,655,000) |                    |   | (4,666)                                                             |   |                          | (38,541) |   |   |   |   |   |   |   |   | (43,207) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Net                  (Loss)                                                                                                                                                                                                                                                                                                      |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   | (87,334) |   |   | (87,334) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  December 31, 2005**                                                                                                                                                                                                                                                                                  |      |      |          |   |                                                                                                                                                                              |   |                            | 38,075,000   |                    |   | 3,808                                                               |   |                          | 338,617 |   |   | - |   |   | (426,280) |   |   | (83,855) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for purchase                                                                                                                                                                                                                                                                               |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| of                  technology                                                                                                                                                                                                                                                                                                   |      | 28-Sep-06 |          | $      | 0.0001                                                                                                                                                                            |   |                            | 5,500,000    |                    |   | 550                                                                 |   |                          |   |   |   |   |   |   |   |   |   | 550 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash                                                                                                                                                                                                                                                                                   |      | 12-Dec-06 |          | $      | 0.30                                                                                                                                                                              |   |                            | 6,284,000    |                    |   | 628                                                                 |   |                          | 1,884,572 |   |   | (500,000) |   |   |   |   |   | 1,385,200 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Net                  (Loss)                                                                                                                                                                                                                                                                                                      |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   | (1,054,117) |   |   | (1,054,117) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  December 31, 2006**                                                                                                                                                                                                                                                                                  |      |      |          |   |                                                                                                                                                                              |   |                            | 49,859,000   |                    |   | 4,986                                                               |   |                          | 2,223,189 |   |   | (500,000) |   |   | (1,480,397) |   |   | 247,778 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Cash                  received on subscriptions                                                                                                                                                                                                                                                                                  |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   | 500,000 |   |   |   |   |   | 500,000 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash                                                                                                                                                                                                                                                                                   |      | 07-Feb-07 |          | $      | 0.30                                                                                                                                                                              |   |                            | 733,330      |                    |   | 74                                                                  |   |                          | 219,926 |   |   |   |   |   |   |   |   | 220,000 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued to purchase assets                                                                                                                                                                                                                                                                         |      | 07-Feb-07 |          | $      | 0.30                                                                                                                                                                              |   |                            | 636,120      |                    |   | 64                                                                  |   |                          | 190,772 |   |   |   |   |   |   |   |   | 190,836 |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Net                  (Loss)                                                                                                                                                                                                                                                                                                      |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   | (2,347,221) |   |   | (2,347,221) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| **Balance,                  September 30, 2007**                                                                                                                                                                                                                                                                                 |      |      |          |   |                                                                                                                                                                              |   |                            | 51,228,450   |                    | $      | 5,124                                                               |   | $                             | 2,633,887 |   | $ | - |   | $ | (3,827,618) |   | $ | (1,188,607) |
|                                                                                                                                                                                                                                                                                                                             |      |      |          |   |                                                                                                                                                                              |   |                            |         |                    |   |                                                                |   |                          |   |   |   |   |   |   |   |   |   |
| On                  August 7, 2006 the Company exercised a 5:1 forward stock split                  that has                  been retroactively applied to this schedule thereby increasing                  the number                  of shares                  issued and decreasing the price per                  share. |

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Table          of Contents

**Encryptakey,          Inc.**

**formerly          Futomic Industries, Inc.**

**Statements          of  Cash          Flow**

|                                                                                                                                                                                                                                    |  Nine                  Months EndedSeptember                  30, |        | June                  24, 2003(Inception)                  toSeptember                  30,  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                    | 2007                                                                   |        | 2006                                                                                              |   | 2007 |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |
| Operating                  Activities                                                                                                                                                                                                   |                                                                   |        |                                                                                              |   |   |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |
| Net                  Profit / (Loss)                                                                                                                                                                                                    | $                                                                      | (2,347,221) |                                                                                              | $ | 82,685 |   | $ | (3,827,618) |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Significant                  Non-Cash Transactions                                                                                                                                                                                      |                                                                   |        |                                                                                              |   |   |   |   |   |
| Stock                  Issued to founders                                                                                                                                                                                               |                                                                   | -           |                                                                                              |   | - |   |   | 3,002 |
| Adjustment                  for reverse acqusition                                                                                                                                                                                      |                                                                   | -           |                                                                                              |   | - |   |   | 117,630 |
| Stock                  issued to purchase asset                                                                                                                                                                                         |                                                                   | 190,836     |                                                                                              |   | - |   |   | 191,386 |
| Foreigh                  currency translation adjustment                                                                                                                                                                                |                                                                   |        |                                                                                              |   | 319 |   |   |   |
| Depreciation                  and Amortization                                                                                                                                                                                          |                                                                   | 16,529      |                                                                                              |   | 1,070 |   |   | 16,529 |
| Changes                  in Assets and Liabilities                                                                                                                                                                                      |                                                                   |        |                                                                                              |   |   |   |   |   |
| (Increase)/Decrease                  in Employee Loans                                                                                                                                                                                  |                                                                   | (3,897)     |                                                                                              |   | - |   |   | (3,897) |
| Increase/(Decrease)                  in Accounts Payable                                                                                                                                                                                |                                                                   | 288,919     |                                                                                              |   | (2,775) |   |   | 288,919 |
| Increase/(Decrease)                  in Wages Payable                                                                                                                                                                                   |                                                                   | -           |                                                                                              |   | (18,711) |   |   | - |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Net                  Cash (Used) by Operating Activities                                                                                                                                                                                |                                                                   | (1,854,834) |                                                                                              |   | 62,588 |   |   | (3,214,049) |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Investment                  Activities                                                                                                                                                                                                  |                                                                   |        |                                                                                              |   |   |   |   |   |
| Purchase                  of Invisidesk Portal                                                                                                                                                                                          |                                                                   | -           |                                                                                              |   | - |   |   | (550) |
| Equipment                  Purchase                                                                                                                                                                                                     |                                                                   | (254,023)   |                                                                                              |   | 2,688 |   |   | (314,697) |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Cash                  Used by Investment Activities                                                                                                                                                                                     |                                                                   | (254,023)   |                                                                                              |   | 2,688 |   |   | (315,247) |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Financing                  Activities                                                                                                                                                                                                   |                                                                   |        |                                                                                              |   |   |   |   |   |
| Net                  Proceeds from loans - Related Parties                                                                                                                                                                              |                                                                   | 1,204,950   |                                                                                              |   | (95,941) |   |   | 1,204,950 |
| Purchase                  of Treasury Stock                                                                                                                                                                                             |                                                                   | -           |                                                                                              |   | - |   |   | (43,207) |
| Proceeds                  from sale of Common Stock                                                                                                                                                                                     |                                                                   | 720,000     |                                                                                              |   | - |   |   | 2,370,200 |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Cash                  Provided by Financing Activities                                                                                                                                                                                  |                                                                   | 1,924,950   |                                                                                              |   | (95,9410 |   |   | 3,531,943 |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Net                  Increase/(Decrease) in Cash                                                                                                                                                                                        |                                                                   | (183,907)   |                                                                                              |   | (30,665) |   |   | 2,647 |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Cash,                  Beginning of Period                                                                                                                                                                                              |                                                                   | 186,554     |                                                                                              |   | 30,665 |   |   | - |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Cash,                  End of Period                                                                                                                                                                                                    | $                                                                      | 2,647       |                                                                                              | $ | - |   | $ | 2,647 |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Supplemental                  Information:                                                                                                                                                                                              |                                                                   |        |                                                                                              |   |   |   |   |   |
| Interest                  Paid                                                                                                                                                                                                          | $                                                                      | 10,033      |                                                                                              | $ | - |   | $ | 13,556 |
| Income                  Taxes Paid                                                                                                                                                                                                      | $                                                                      | -           |                                                                                              | $ | - |   | $ | - |
|                                                                                                                                                                                                                                    |                                                                   |        |                                                                                              |   |   |   |   |   |
| Significant                  Non-Cash Transactions                                                                                                                                                                                      |                                                                   |        |                                                                                              |   |   |   |   |   |
| 1.                  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.                                                                                                    |

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**EncryptaKey,      Inc.**

**Formerly        Futomic Industries, Inc.**

**NOTES        TO FINANCIAL STATEMENTS**

**(September        30, 2007 and December 31, 2006)**

**NOTE        1.**
**GENERAL        ORGANIZATION AND BUSINESS**

**NOTE        2.**
**SUMMARY        OF SIGNIFICANT ACCOUNTING PRACTICES**

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*Earnings        per Share*

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**NOTE        3.**
**GOING        CONCERN**

**NOTE        4.**
**STOCKHOLDERS’        EQUITY**

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| ·   | 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. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | 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. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|
| ·   | 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 |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | 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. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**NOTE        5.**
**COMMITMENTS        AND CONTINGENCIES - RELATED PARTY**

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**NOTE        6.**
**PROVISION        FOR INCOME TAXES**

| 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 |

| 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**

**NOTE        8. **
**        THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS**

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**Statement        No. 155 - **

*Accounting        for Certain Hybrid Financial Instruments*
*Accounting        for Derivatives Instruments and Hedging Activities*
*Accounting        for Transfers and Servicing of Financial Assets and Extinguishment of        Liabilities*

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

*Accounting        for Servicing of Financial Assets,*
*Accounting        for Transfers and Servicing of Financial Assets and Extinguishments of        Liabilities*

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

*Fair        Value Measurements*

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**Item      2.      Plan of      Operation**

**Forward-Looking      Statements**

**Business      Overview**

**Plan      of Operation in the Next 12 Months**

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**Results      of Operations for the nine months ended September 30, 2007 and      2006**

**Liquidity      and Capital Resources**

**Off      Balance Sheet Arrangements **

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**Going      Concern**

**Critical      Accounting Policies**

*Earnings      per Share*

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**Recently      Issued Accounting Pronouncements**

**Statement      No. 155 - **

*Accounting      for Certain Hybrid Financial Instruments*
*Accounting      for Derivatives Instruments and Hedging Activities*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishment of      Liabilities*

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

*Accounting      for Servicing of Financial Assets,*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*

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

*Fair      Value Measurements*

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**Item      3.     Controls and Procedures**

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**PART      II - OTHER INFORMATION**

**Item      1.     Legal      Proceedings**

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

**Item      3.     Defaults upon Senior      Securities**

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

**Item      5.     Other      Information**

**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 2002                                                           |
| 31.2                  | 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 2002                                                           |
| 32.1                  | 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 |

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**SIGNATURES**

|   | **EncryptaKey,                Inc**                                                                                                                                                                                                                                                                                       |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                      |
| Date:  | November                14, 2007                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                      |
|   | By:      /s/                Kelly Owen                    Kelly                OwenTitle:**    Chief                Executive Officer and                Director** |