**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

**BIO-      MATRIX SCIENTIFIC GROUP, INC.**

| DELAWARE                                                | 33-0824714                                          |
|---------------------------------------------------------|-----------------------------------------------------|
| (State                of Incorporation)                 | (I.R.S.                Employer Identification No.) |
|                                                    |                                                |
|                                                    |                                                |
| 8885                Rehco Road, San Diego, California   | 92121                                               |
| (Address                of Principal Executive Offices) | (Zip                Code)                           |

**.**

----

| **Chang                G. Park, CPA, Ph. D.****t                371 E STREET                t CHULA                VISTA                t CALIFORNIA                91910-2615t****t                TELEPHONE                (858)722-5953 t FAX                (858)                408-2695  t FAX                (858)                764-5480****t E-MAIL                changgpark@gmail.com t**  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Report      of Independent Registered Public Accounting Firm**

----

**BIO-MATRIX      SCIENTIFIC GROUP, INC. AND SUBSIDIARY**

**(FORMERLY      TASCO INTERNATIONAL, INC.)**

**(A      Development Stage Company)**

**Balance      Sheet**

| **ASSETS**                                                      |   |
|-----------------------------------------------------------------|--------|
|                                                            |   |   |   |   |   |   |
|                                                            |   | **As                of June 30, 2007****(unaudited)** |   |  **As              of September 30, 2006**  |
|                                                            |   |    |
|                                                            |   |   |   |
|                                                            |   |   |   |   |
| **CURRENT                ASSETS**                               |   |   |   |   |
|    Cash                                          |   | $ | 1,412 |   | $22,641 |
|    Employee                Receivable            |   |   | - |   |   |
|    Pre-paid                Expenses              |   |   | 13,156 |   |                         20,207 |
|                                                            |   |   |   |   |                                - |
|                                                            |   |   |   |   |   |
| **    Total                Current Assets** |   |   | 14,568 |   |                        42,848 |
|                                                            |   |   |   |   |   |
| **PROPERTY                & EQUIPMENT**                     |   |   | 364,403 |   |                      340,557 |
|                                                            |   |   |   |   |   |
| **GOODWILL**                                                    |   |   |   |   |   |
|                                                            |   |   |   |   |   |
| **Intangible                Assets/Technology**                 |   |   | - |   |   |
|                                                            |   |   |   |   |   |
| **Total                Other Assets**                           |   |   | 23,092 |   |                        29,127 |
|                                                            |   |   |   |   |                                - |
|                                                            |   |   |   |   |   |
| **TOTAL                ASSETS**                                 |   | **$** | **402,063** |   | **$412,532** |
|                                                            |   |   |   |   |   |
|                                                            |   |   |   |   |   |
|                                                            |   |   |   |   |   |

----

| **BIO-MATRIX                SCIENTIFIC GROUP, INC. AND SUBSIDIARY****(FORMERLY                TASCO INTERNATIONAL, INC.)****(A                Development Stage Company)****Balance                Sheet** ** LIABILITIES                AND STOCKHOLDERS' EQUITY** |   |                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|
|                                                                                                                                                                                                                                                                          |   | **As                of June 30, 2007****(unaudited)** |   | **As                of September 30, 2006** |
| **CURRENT                LIABILITIES**                                                                                                                                                                                                                                        |   |                                                  |   |   |   |
|    Accounts                payable                                                                                                                                                                                                                             |   | $                                                     | 5,483 |   | $91,079 |
|    Loans                from former parent                                                                                                                                                                                                                     |   |                                                  | - |   |                    1,195,196 |
|    Due                To/ From New Parent                                                                                                                                                                                                                      |   |                                                  | - |   |                                - |
|    Notes                Payable                                                                                                                                                                                                                                |   |                                                  | 138,846 |   |                      148,952 |
|    Accrued                Interest                                                                                                                                                                                                                             |   |                                                  | 5,678 |   |                                1,368 |
|    Accrued                Payroll                                                                                                                                                                                                                              |   |                                                  | - |   | - |
|    Accrued                Payroll Taxes                                                                                                                                                                                                                        |   |                                                  | 36,689 |   | 16,460 |
|    Accrued  expenses                                                                                                                                                                                                                                 |   |                                                  | - |   |                                - |
| **         Total                Current Liabilities**                                                                                                                                                                            |   |                                                  | 186,696 |   |                    1,453,055 |
|                                                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
| **LONG                TERM LIABILITIES**                                                                                                                                                                                                                                      |   |                                                  | - |   |                                - |
| **TOTAL                LIABILITIES**                                                                                                                                                                                                                                          |   |                                                  | 186,696 |   |                    1,453,055 |
|                                                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                                       |   |                                                  |   |   |   |
| Preferred                Stock ($.0001 par value authorized                                                                                                                                                                                                                   |   |                                                  |   |   |   |
| 20,000,000                shares authorized; none                                                                                                                                                                                                                             |   |                                                  |   |   |   |
| issued                and outstanding.)                                                                                                                                                                                                                                       |   |                                                  |   |   |   |
| Common                Stock,  ($.0001  par value authorized                                                                                                                                                                                               |   |                                                  |   |   |   |
| 100,000,000                shares authorized;  13,385,000 & 20,110,179                                                                                                                                                                                          |   |                                                  |   |   |   |
| shares                issued and outstanding as of September 30, 2006 and June 30, 2007,                respectively                                                                                                                                                          |   |                                                  | 2,011 |   | 1339 |
| Additional                paid in Capital                                                                                                                                                                                                                                     |   |                                                  | 33,331,561 |   |                  30,375,584 |
| Deficit                accumulated during the development stage                                                                                                                                                                                                               |   |                                                  | (33,118,205 | ) |                (31,417,446) |
|                                                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
|                                                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
| **     Total                Stockholders' Equity (Deficit)**                                                                                                                                                                                         |   | $                                                     | 215,367 |   | $(1,040,523) |
|                                                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
|                                                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
| **TOTAL                LIABILITIES**                                                                                                                                                                                                                                          |   |                                                  |   |   |   |
| **&                STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                 |   | **$**                                                 | **402,063** |   | **$412,532** |

----

**BIO-MATRIX        SCIENTIFIC GROUP, INC. AND SUBSIDIARY**

**(FORMERLY        TASCO INTERNATIONAL, INC.)**

**(A        Development Stage Company)**

**Consolidated        Statement of Operations**
**(Unaudited)**

----

| **Bio-Matrix                    Scientific Group, Inc.**                      |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
|-------------------------------------------------------------------------------|--------|------------------------------------|----------------|--------|------------------------------------|------------|----------------|------------------------------------|--------|------------|------------------------------------|--------|--------|------------------------------------------|----------------|
| **(BMXG/TASCO)**                                                              |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
| **Statements                    of Operations(Unaudited)**                    |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   | **Inception**                            |           |
|                                                                          |   | **BMXG/TASCO**                     |           |   | **TASCO**                          |       |           | **BMXG/TASCO**                     |   |       | **TASCO**                          |   |   | **(October                    6, 1998)** |           |
|                                                                          |   | **3                    Mos Ended** |           |   | **3                    Mos Ended** |       |           | **9                    Mos Ended** |   |       | **9                    Mos Ended** |   |   | **through**                              |           |
|                                                                          |   | **June                    30,**    |           |   | **June                    30,**    |       |           | **June                    30,**    |   |       | **June                    30,**    |   |   | **June                    30,**          |           |
|                                                                          |   | **2007**                           |           |   | **2006**                           |       |           | **2007**                           |   |       | **2006**                           |   |   | **2007**                                 |           |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
| **REVENUES**                                                                  |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |
|    Sales                                                       |   | $                                  | -              |   |                               | $          | -              |                               |   | $          | -                                  |   |   | $                                        | -              |   |   | $ | 1,000 |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **Total                    Revenues**                                         |   |                               | -              |   |                               |       | -              |                               |   |       | -                                  |   |   |                                     | -              |   |   |   | 1,000 |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **COSTS                    AND EXPENSES**                                     |   |                               | -              |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|    Research                    and Development                 |   |                               | 59,337         |   |                               |       |           |                               |   |       | 228,429                            |   |   |                                     |           |   |   |   | 256,104 |   |
|    General                    and administrative               |   |                               | 421,315        |   |                               |       | 1,831          |                               |   |       | 863,078                            |   |   |                                     | 3,714          |   |   |   | 1,689,773 |   |
|    Depreciation                    and amortization            |   |                               | 334            |   |                               |       | -              |                               |   |       | 1,001                              |   |   |                                     | -              |   |   |   | 1,334 |   |
|    Consulting                    and professional fees         |   |                               | 233,763        |   |                               |       | -              |                               |   |       | 587,924                            |   |   |                                     | -              |   |   |   | 1,378,559 |   |
|    Impairment                    of goodwill & intangiblrs |   |                               | -              |   |                               |       |           |                               |   |       | -                                  |   |   |                                     |           |   |   |   | 29,777,222 |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **Total                    Costs and Expenses**                               |   |                               | 714,749        |   |                               |       | 1,831          |                               |   |       | 1,680,432                          |   |   |                                     | 3,714          |   |   |   | 33,102,992 |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **OPERATING                    LOSS**                                         |   |                               | (714,749       | )      |                               |       | (1,831         | )                                  |   |       | (1,680,432                         | )      |   |                                     | (3,714         | ) |   |   | (33,101,992 | ) |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **OTHER                    INCOME & (EXPENSES)**                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|    Interest                    Expense                         |   |                               | (4,206         | )      |                               |       | -              |                               |   |       | (20,560                            | )      |   |                                     | -              |   |   |   | (21,928 | ) |
|    Other                    Expense                            |   |                               | -              |   |                               |       |           |                               |   |       | (73                                | )      |   |                                     |           |   |   |   | (73 | ) |
|    Interest                    Income                          |   |                               | -              |   |                               |       | 1              |                               |   |       | 306                                |   |   |                                     | 14             |   |   |   | 345 |   |
|    Other                    income                             |   |                               | -              |   |                               |       | -              |                               |   |       | -                                  |   |   |                                     | -              |   |   |   | 5,443 |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **Total                    Other Income & (Expenses)**                    |   |                               | (4,206         | )      |                               |       | 1              |                               |   |       | (20,327                            | )      |   |                                     | 14             |   |   |   | (16,213 | ) |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **NET                    INCOME (LOSS)**                                      |   | **$**                              | **(718,955**   | **)**  |                               | **$**      | **(1,830**     | **)**                              |   | ** ** | **(1,700,759**                     | **)**  |   | ** **                               | **(3,700**     | **)** |   | **$** | **(33,118,205** | **)** |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **BASIC                    AND DILUTED EARNINGS (LOSS) PER SHARE**            |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **BASIC                    AND DILUTED EARNINGS (LOSS) PER SHARE**            |   | **$**                              | **(0.04**      | **)**  |                               | **$**      | **(0.00**      | **)**                              |   | ** ** | **(0.10**                          | **)**  |   | ** **                               | **(0.00**      | **)** |   | $ | - |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
|                                                                          |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| **WEIGHTED                    AVERAGE NUMBER OF**                             |   |                               |           |   |                               |       |           |                               |   |       |                               |   |   |                                     |           |   |   |   |   |   |
| ** COMMON                    SHARES OUTSTANDING**                        |   | ** **                         | **19,330,268** |   |                               | ** ** | **12,780,000** |                               |   | ** ** | **17,178,178**                     |   |   | ** **                               | **12,780,000** |   |   |   | - |   |

----

**BIO-MATRIX      SCIENTIFIC GROUP INC. AND SUBSIDIARY**

**(FORMERLY      TASCO INTERNATIONAL, INC.)**

**Consolidated      Statement of Stockholders' Equity**

**From      October 6, 1998 through June 30, 2007**

**(Unaudited)**

|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |
|---------------------------------------------------------------------------------------------------|--------|------------|----------------|--------|-------------|------------|-----------|----------------|--------|------------|--------------|--------|--------|------------|-------------|
|                                                                                              |   |       |           |   |        |       |      | **Additional** |   |       |         |   |   |       |        |
|                                                                                              |   | **Common** |           |   | **Paid-in** |       |      | **Retained**   |   |       |         |   |
|                                                                                              |   | **Shares** |           |   | **Amount**  |       |      | **Capital**    |   |       | **Earnings** |   |   | **Total**  |        |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |
| Stock                issued for cash October 6, 1998                                              |   |       | 1,000,000      |   |        |       | 100       |           |   |       | (90          | )      |   |       |        |   |   | 10 |   |
| Stock                issued for cash October 9, 1998                                              |   |       | 1,300,000      |   |        |       | 130       |           |   |       | 1,170        |   |   |       |        |   |   | 1,300 |   |
| Stock                issued for cash October 9, 1998                                              |   |       | 190,000        |   |        |       | 19        |           |   |       | 171          |   |   |       |        |   |   | 190 |   |
| Stock                issued for cash April 1, 1999                                                |   |       | 290,000        |   |        |       | 29        |           |   |       | 261          |   |   |       |        |   |   | 290 |   |
| Net                Loss October 6,1998 (inception)through September 30, 1999                      |   | ** ** |           |   |        | ** ** |      |           |   | ** ** |         |   |   |       | (295        | ) |   |   | (295 | ) |
| **Balance                September 30, 1999**                                                     |   | ** ** | **2,780,000**  |   |        | ** ** | **278**   |           |   | ** ** | **1,512**    |   |   | ** ** | **(295**    | **)** |   | ** ** | **1,495** |   |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   |   |   |
| Stock                issued for cash October 19, 1999                                             |   |       | 10,000,000     |   |        |       | 1,000     |           |   |       | 9,000        |   |   |       |        |   |   |   | 10,000 |   |
| Net                Loss October 1,1999   through September 30,                2000 |   | ** ** |           |   |        | ** ** |      |           |   | ** ** |         |   |   |       | (367        | ) |   |   | (367 | ) |
| **Balance                September 30, 2000**                                                     |   | ** ** | **12,780,000** |   |        | ** ** | **1,278** |           |   | ** ** | **10,512**   |   |   | ** ** | **(662**    | **)** |   | ** ** | **11,128** |   |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   |   |   |
| Net                Loss October 1, 2000  through September 30, 2001                     |   | ** ** |           |   |        | ** ** |      |           |   | ** ** |         |   |   |       | (11,028     | ) |   |   | (11,028 | ) |
| **Balance                September 30, 2001**                                                     |   | ** ** | **12,780,000** |   |        | ** ** | **1,278** |           |   | ** ** | **10,512**   |   |   | ** ** | **(11,690** | **)** |   | ** ** | **100** |   |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   |   |   |
| Net                Loss October 1, 2001                                                           |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   | - |   |
|   through                September 30, 2002                                             |   | ** ** |           |   |        | ** ** |      |           |   | ** ** |         |   |   |       | (4,257      | ) |   |   | (4,257 | ) |
| **Balance                September 30, 2002**                                                     |   | ** ** | **12,780,000** |   |        | ** ** | **1,278** |           |   | ** ** | **10,512**   |   |   | ** ** | **(15,947** | **)** |   | ** ** | **(4,157** | **)** |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   |   |   |
| Net                Loss October 1, 2002                                                           |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   | - |   |
|   through                September 30, 2003                                             |   | ** ** |           |   |        | ** ** |      |           |   | ** ** |         |   |   |       | (4,328      | ) |   |   | (4,328 | ) |
| **Balance                September 30, 2003**                                                     |   | ** ** | **12,780,000** |   |        | ** ** | **1,278** |           |   | ** ** | **10,512**   |   |   | ** ** | **(20,275** | **)** |   | ** ** | **(8,485** | **)** |
|                                                                                              |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   |   |   |
| Contributed                Capital                                                                |   |       |           |   |        |       |      |           |   |       | 12,362       |   |   |       |        |   |   |   | 12,362 |   |
| Net                Loss October 1, 2003                                                           |   |       |           |   |        |       |      |           |   |       |         |   |   |       |        |   |   |   | - |   |
|   through                September 30, 2004                                             |   | ** ** |           |   |        | ** ** |      |           |   | ** ** |         |   |   |       | (7,974      | ) |   |   | (7,974 | ) |
| **Balance                September 30, 2004**                                                     |   | ** ** | **12,780,000** |   |        | ** ** | **1,278** |           |   | ** ** | **22,874**   |   |   | ** ** | **(28,249** | **)** |   | ** ** | **(4,097** | **)** |

----

|                                                       |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       |           |   |
|------------------------------------------------------------|--------|------------|----------------|--------|--------|------------|-----------|--------|--------|------------|----------------|--------|--------|------------|-----------------|--------|--------|------------|----------------|--------|
| Contributed                Capital                         |   |       |           |   |   |       |      |   |   |       | 9,021          |   |   |       |            |   |   |       | 9,021          |   |
| Net                Loss October 1, 2004                    |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       | 0              |   |
|   through                September 30, 2005      |   | ** ** |           |   |   | ** ** |      |   |   | ** ** |           |   |   |       | (6,667          | )      |   |       | (6,667         | )      |
| **Balance                September 30, 2005**              |   | ** ** | **12,780,000** |   |   | ** ** | **1,278** |   |   | ** ** | **31,895**     |   |   | ** ** | **(34,916**     | **)**  |   | ** ** | **(1,743**     | **)**  |
|                                                       |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       |           |   |
| Stock                Cancelled June 13, 2006               |   |       | (10,000,000    | )      |   |       | (1,000    | )      |   |       |           |   |   |       |            |   |   |       | (1,000         | )      |
| Stock                issued June 13, 2006                  |   |       | 10,000,000     |   |   |       | 1,000     |   |   |       | 28,999,000     |   |   |       |            |   |   |       | 29,000,000     |   |
| Stock                issued for services                   |   |       | 305,000        |   |   |       | 31        |   |   |       | 759,719        |   |   |       |            |   |   |       | 759,750        |   |
| Stock                issued for Compensation               |   |       | 300,000        |   |   |       | 30        |   |   |       | 584,970        |   |   |       |            |   |   |       | 585,000        |   |
| Net                Loss October 1, 2005                    |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       | 0              |   |
|   through                September 30, 2006      |   |       |           |   |   |       |      |   |   |       |           |   |   |       | (31,382,530     | )      |   |       | (31,382,530    | )      |
| **Balance                September 30, 2006**              |   | ** ** | **13,385,000** |   |   | ** ** | **1,339** |   |   | ** ** | **30,375,584** |   |   | ** ** | **(31,417,446** | **)**  |   | ** ** | **(1,040,523** | **)**  |
|                                                       |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       |           |   |
| Stock                issued for services                   |   |       | 100,184        |   |   |       | 10        |   |   |       | 112,524        |   |   |       |            |   |   |       | 112,534        |   |
| Stock                issued for Compensation               |   |       | 153,700        |   |   |       | 15        |   |   |       | 101,465        |   |   |       |            |   |   |       | 101,480        |   |
| Stock                issued in exchange for canceling debt |   |       | 2,854,505      |   |   |       | 284       |   |   |       | 1,446,120      |   |   |       |            |   |   |       | 1,446,404      |   |
| Net                Loss October 1, 2006                    |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       | 0              |   |
|   through                December 31, 2006       |   |       |           |   |   |       |      |   |   |       |           |   |   |       | (466,179        | )      |   |       | (466,179       | )      |
| **Balance                December 31, 2006**               |   | ** ** | **16,493,389** |   |   | ** ** | **1,649** |   |   | ** ** | **32,035,693** |   |   | ** ** | **(31,883,625** | **)**  |   | ** ** | **153,717**    |   |
|                                                       |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       |           |   |
| Stock                issued for cash                       |   |       | 500,000        |   |   |       | 50        |   |   |       | 124,950        |   |   |       |            |   |   |       | 125,000        |   |
| Stock                issued for services                   |   |       | 359,310        |   |   |       | 36        |   |   |       | 235,042        |   |   |       |            |   |   |       | 235,078        |   |
| Stock                issued for Compensation               |   |       | 143,920        |   |   |       | 14        |   |   |       | 88,400         |   |   |       |            |   |   |       | 88,414         |   |
| Stock                issued in exchange for canceling debt |   |       | 500,000        |   |   |       | 50        |   |   |       | 124,950        |   |   |       |            |   |   |       | 125,000        |   |
| Net                Loss January 1, 2007                    |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       | 0              |   |
|   through                March 31, 2007          |   |       |           |   |   |       |      |   |   |       |           |   |   |       | (515,624        | )      |   |       | (515,624       | )      |
| **Balance                March 31, 2007**                  |   | ** ** | **17,996,619** |   |   | ** ** | **1,800** |   |   | ** ** | **32,609,035** |   |   | ** ** | **(32,399,249** | **)**  |   | ** ** | **211,585**    |   |
|                                                       |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       |           |   |
| Stock                issued for cash                       |   |       | 240,666        |   |   |       | 24        |   |   |       | 60,142         |   |   |       |            |   |   |       | 60,166         |   |
| Stock                issued for services                   |   |       | 406,129        |   |   |       | 41        |   |   |       | 222,889        |   |   |       |            |   |   |       | 222,930        |   |
| Stock                issued for Compensation               |   |       | 150,000        |   |   |       | 15        |   |   |       | 110,435        |   |   |       |            |   |   |       | 110,450        |   |
| Stock                issued in exchange for canceling debt |   |       | 1,316,765      |   |   |       | 132       |   |   |       | 329,059        |   |   |       |            |   |   |       | 329,191        |   |
| Net                Loss April 1, 2007                      |   |       |           |   |   |       |      |   |   |       |           |   |   |       |            |   |   |       | 0              |   |
|   through                June 30, 2007           |   |       |           |   |   |       |      |   |   |       |           |   |   |       | (718,955        | )      |   |       | (718,955       | )      |
| **Balance                June 30, 2007**                   |   | ** ** | **20,110,179** |   |   | ** ** | **2,011** |   |   | ** ** | **33,331,560** |   |   | ** ** | **(33,118,204** | **)**  |   | ** ** | **215,367**    |   |

----

**BIO-MATRIX      SCIENTIFIC GROUP, INC. AND SUBSIDIARY**

**(FORMERLY      TASCO INTERNATIONAL, INC.)**

**(      A Development stage Company)**

**Consolidated      Statements of Cash Flows **
**(Unaudited)**

|                                                                                                                  |   | **9                Months Ended** |         |   | **9                Months Ended** |       |       | **3                Months Ended** |   |       | **3                Months Ended** |   |   | **October                6, 1998 (inception)****through** |       |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------------|--------|-----------------------------------|------------|------------|-----------------------------------|--------|------------|-----------------------------------|--------|--------|-----------------------------------------------------------|------------|
|                                                                                                                  |   | **June                30,**       |         |   | **June                30,**       |       |       | **June                30,**       |   |       | **June                30,**       |   |   | **June                30,**                               |       |
|                                                                                                                  |   | **2007**                          |         |   | **2006**                          |       |       | **2007**                          |   |       | **2006**                          |   |   | **2007**                                                  |       |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                               |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |
|     Net                (loss)                                                                     |   | $                                 | (1,700,759   | )      |                              | $          | (3,700     | )                                 |   | $          | (718,955                          | )      |   |                                                      | (1,830     | ) |   | $ | (33,118,205 | ) |
|     Adjustments                to reconcile net loss to net cash (used in) provided               |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
|       by                operating activities:                                           |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
|        Impairment                of goodwill and intangible asset                  |   |                              | -            |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   | 29,777,222 |   |
|       Depreciation                expense                                               |   |                              | 1,000        |   |                              |       | -          |                              |   |       | 333                               |   |   |                                                      | -          |   |   |   | 1,333 |   |
|       Stock                issued for compensation                                      |   |                              | 300,344      |   |                              |       | -          |                              |   |       | 110,450                           |   |   |                                                      | -          |   |   |   | 885,344 |   |
|       Stock                issued for services                                          |   |                              | 570,542      |   |                              |       | -          |                              |   |       | 222,930                           |   |   |                                                      | -          |   |   |   | 1,330,292 |   |
|       Cancellation                of Debt                                               |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   | (5,443 | ) |
|       Stock                issued to cancel debt plus accrued interest                  |   |                              | 705,400      |   |                              |       |       |                              |   |       | 329,191                           |   |   |                                                      |       |   |   |   | 705,400 |   |
|    Changes                in operating assets and liabilities:                                         |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      | -          |   |   |   |   |   |
|       (Increase)                decrease in receivables                                 |   |                              | -            |   |                              |       |       |                              |   |       | 3,000                             |   |   |                                                      |       |   |   |   | - |   |
|       (Increase)                decrease in prepaid expenses                            |   |                              | 7,051        |   |                              |       |       |                              |   |       | 10,571                            |   |   |                                                      |       |   |   |   | (13,156 | ) |
|       Increase                (Decrease) in Accounts Payable                            |   |                              | (85,596      | )      |                              |       | (1,600     | )                                 |   |       | 1,538                             |   |   |                                                      | -          |   |   |   | 5,483 |   |
|       Increase                (Decrease) in Accrued Expenses                            |   |                              | 24,541       |   |                              |       | -          |                              |   |       | 14,565                            |   |   |                                                      | -          |   |   |   | 42,369 |   |
|      (                Increase) Decrease in Deposits                                         |   |                              | 6,035        |   |                              |       |       |                              |   |       | 2,634                             |   |   |                                                      |       |   |   |   | (23,092 | ) |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
| ***     Net                Cash Provided by (Used in) Operating                Activities*** |   | ** **                        | **(171,442** | **)**  |                              | ** ** | **(5,300** | **)**                             |   | ** ** | **(23,743**                       | **)**  |   | ** **                                                | **(1,830** | **)** |   | ** ** | **(412,453** | **)** |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                               |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
|       Purchases                of fixed assets                                          |   |                              | (24,847      | )      |                              |       | -          |                              |   |       | -                                 |   |   |                                                      | -          |   |   |   | (365,737 | ) |
|       Purchases                of Intangible assets                                     |   |                              |         |   |                              |       | -          |                              |   |       | -                                 |   |   |                                                      | -          |   |   |   | (29,777,222 | ) |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
|                                                                                                                  |   |                              |         |   |                              |       |       |                              |   |       |                              |   |   |                                                      |       |   |   |   |   |   |
| ***     Net                Cash Provided by (Used in) Investing                Activities*** |   | ** **                        | **(24,847**  | **)**  |                              | ** ** | **-**      |                              |   | ** ** | **-**                             |   |   | ** **                                                | **-**      |   |   | ** ** | **(30,142,959** | **)** |

----

|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------|-------------|--------|--------|------------|-----------|--------|--------|------------|--------------|--------|--------|------------|-----------|--------|--------|------------|----------------|--------|
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                               |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|      Common                stock issued for cash                                             |   |       | 74          |   |   |       |      |   |   |       | 24           |   |   |       |      |   |   |       | 1,352          |   |
|      Additional                paid in Capital                                               |   |       | 185,092     |   |   |       | -         |   |   |       | 60,142       |   |   |       | -         |   |   |       | 29,221,430     |   |
|      Principal                borrowings on notes                                            |   |       | (10,106     | )      |   |       | -         |   |   |       | (182,716     | )      |   |       | -         |   |   |       | 138,846        |   |
|      Net                borrowings from related parties                                      |   |       |        |   |   |       | 5,300     |   |   |       | -            |   |   |       | 1,800     |   |   |       | 1,195,196      |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
| ***     Net                Cash Provided by (Used in) Financing                Activities*** |   | ** ** | **175,060** |   |   | ** ** | **5,300** |   |   | ** ** | **(122,550** | **)**  |   | ** ** | **1,800** |   |   | ** ** | **30,556,824** |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|                                                                                                                  |   | ** ** |        |   |   | ** ** |      |   |   | ** ** |         |   |   | ** ** |      |   |   | ** ** |           |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
| ***    Net                Increase (Decrease) in Cash***                                          |   | ** ** | **(21,229** | **)**  |   | ** ** | **-**     |   |   | ** ** | **(146,293** | **)**  |   | ** ** | **(30**   | **)**  |   | ** ** | **1,412**      |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
| ***    Cash                at Beginning of Period***                                              |   | ** ** | **22,641**  |   |   | ** ** | **-**     |   |   | ** ** | **147,705**  |   |   | ** ** | **30**    |   |   | ** ** | **-**          |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
| ***    Cash                at End of Period***                                                    |   | **$**      | **1,412**   |   |   | ** ** | **-**     |   |   | **$**      | **1,412**    |   |   | ** ** | **-**     |   |   | ** ** | **(1,412**     | **)**  |
|                                                                                                                  |   | ** ** |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   | ** ** |           |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
| ***    Supplemental  Cash                Flow Disclosures:***                           |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|     Cash                paid during period for interest                                           |   | $          | -           |   |   |       | -         |   |   | $          | -            |   |   |       | -         |   |   | $          | -              |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |
|     Cash                paid during period for taxes                                              |   | $          | -           |   |   |       | -         |   |   | $          | -            |   |   |       | -         |   |   | $          | 800            |   |
|                                                                                                                  |   |       |        |   |   |       |      |   |   |       |         |   |   |       |      |   |   |       |           |   |

----

----

| Acquisition                cost:             |   |   |   |    |
|----------------------------------------------|--------|--------|--------|---------|
| Production                Equipment          | US$    |   |   | 93,315  |   |
| Production                Clean room         |   |   |   | 78,264  |   |
| Leasehold                improvement         |   |   |   | 188,981 |   |
| Office                equipment              |   |   |   | 3,057   |   |
| Computer                                     |   |   |   | 2,120   |   |
|                                         |   |   |   |    |   |
| Subtotal                                     |   |   |   | 365,737 |   |
| Less                accumulated depreciation |   |   |   | (1,334  | ) |
| Total                                        | US$    |   |   | 364,403 |   |

|                                            |   | As                of June 30 , 2007 |        |
|-------------------------------------------------|--------|-------------------------------------|-------------|
| Deferred                tax assets:             |   |                                |        |
| Net                operating tax carry forwards |   | $                                   | 11,260,190  |   |
| Other                                           |   |                                | 0           |   |
|                                            |   |                                |        |   |
| Gross                deferred tax assets        |   |                                | 11,260,190  |   |
| Valuation                allowance              |   |                                | (11,260,190 | ) |
|                                            |   |                                |        |   |
| Net                deferred tax assets          |   | $                                   | 0           |   |

----

| 1998                Net Operating Loss                                                                 |   | $      | (295        | ) |
|--------------------------------------------------------------------------------------------------------|--------|--------|-------------|---|
| 1999                Net Operating Loss                                                                 |   |   | (367        | ) |
| 2000                Net Operating Loss                                                                 |   |   | (11,028     | ) |
| 2001                Net Operating Loss                                                                 |   |   | (4,257      | ) |
| 2002                Net Operating Loss                                                                 |   |   | (4,328      | ) |
| 2003                Net Operating Loss                                                                 |   |   | (7,974      | ) |
| 2004                Net Operating Loss                                                                 |   |   | (6,667      | ) |
| 2005                Net Operating Loss                                                                 |   |   | (31,382,530 | ) |
|  Nine  Months                Ended June 30, 2007 Net Operating                Loss |   |   | (1,700,759  | ) |
|                                                                                                   |   |   |        | ) |
| Net                Operating Loss                                                                      |   | $      | (33,118,205 | ) |

----

----

----

| 2007 |   | $ | 232,842 |   |
|------|--------|---|---------|--------|
| 2008 |   | $ | 239,936 |   |
| 2009 |   | $ | 247,038 |   |
| 2010 |   | $ | 254,444 |   |
| 2011 |   | $ | 42,614  |   |

----

|                                                                                                     |   | **Number                of** |      |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                     |   | **Shares**                   |      |
| **As                of June 30, 2007:**                                                                  |   |                         |      |
|                                                                       |   |                         |      |
| Granted                                                                                                  |   |                         | 1,454,772 | * |
| Remaining                shares available for issuance under the Plan as of June 30,                2007 |   |                         | 45,228    |   |

----

|                                                                                                     |   | **Number                of** |      |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                     |   | **Shares**                   |      |
| **As                of June 30, 2007:**                                                                  |   |                         |      |
|                                                                       |   |                         |      |
| Granted                                                                                                  |   |                         | 458,540   |   |
| Remaining                shares available for issuance under the Plan as of June 30,                2007 |   |                         | 1,041,460 |   |

**Item      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS      OF      OPERATIONS.**

----

**CERTAIN      FORWARD-LOOKING INFORMATION**

**CONDITION      AND RESULTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2007**

**PLAN      OF OPERATION**

----

| Laboratory                information systems         |   | $ | 30,000  |   |
|-------------------------------------------------------|--------|---|---------|--------|
| Laminar                flow hoods (2 ea) 4ft          |   | $ | 10,000  |   |
| Sepax                Cell Separation Device           |   | $ | 50,000  |   |
| Blood                processing equipment             |   | $ | 80,000  |   |
| Bar                code labeling equipment            |   | $ | 3,000   |   |
| Tube                heat sealers (2 ea)               |   | $ | 4,000   |   |
| Bench                top centrifuges (2) refrigerated |   | $ | 12,000  |   |
| Cell                Therapy Software                  |   | $ | 30,000  |   |
| Cryo                Tracking Software                 |   | $ | 28,000  |   |
| Cryo                Tracking Equipment                |   | $ | 45,000  |   |
| Hematology                analyzer                    |   | $ | 15,000  |   |
| Flow                Cytometer                         |   | $ | 150,000 |   |
| BacTec                Microbiology equipment          |   | $ | 20,000  |   |
| Small                equipment (lab set-up)           |   | $ | 10,000  |   |
| Microscope                                            |   | $ | 5,000   |   |
| CO2                Incubator                          |   | $ | 4,000   |   |
| Lab                benches                            |   | $ | 30,000  |   |
| Supplies                / reagents*                   |   | $ | 100,000 |   |
| Total                                                 |   | $ | 626,000 |   |

**Equipment                                                          Estimated      cost**

| Computer                system / Lab & offices |   | $ | 100,000 |   |
|----------------------------------------------------|--------|---|---------|--------|
| Medical                Software                    |   | $ | 45,000  |   |
| Misc                equipment                      |   | $ | 30,000  |   |
| Phone                system                        |   | $ | 30,000  |   |
| Back-up                generator                   |   | $ | 50,000  |   |
| Security                system                     |   | $ | 20,000  |   |
|    Total                            |   | $ | 275,000 |   |

----

**Title                                                                                  Estimated      Annual**

**      Compensation**

| *Director  of                Labs*                    |   | $ | 120,000 |   |
|-----------------------------------------------------------------|--------|---|---------|--------|
| *Director  of                Quality & Assurance* |   | $ | 75,000  |   |
| *Adm.                Director*                                  |   | $ | 75,000  |   |
| *Dir.                Of Engineering / Production*               |   | $ | 85,000  |   |
| *Lab                Tech*                                       |   | $ | 65,000  |   |
| *Lab                Tech*                                       |   | $ | 65,000  |   |
| *Customer                Service Representative.*               |   | $ | 45,000  |   |
| *Director                of Market & Sales*                 |   | $ | 100,000 |   |
| *Facility                Manager / Receiving & Shipping*    |   | $ | 60,000  |   |
| *Support                Staff*                                  |   | $ | 50,000  |   |
|      Total                             |   | $ | 740,000 |   |

**Item      3. CONTROLS AND PROCEDURES**

**PART      II.**

**Item      1: LEGAL PROCEEDINGS**

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

----

in connection with the abovementioned      transactions  contained a legend stating that the securities have not      been registered under the Securities Act and setting forth the restrictions      on      the transferability and the sale of the securities.

----

**Item      3. DEFAULTS UPON SENIOR SECURITIES**

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

**Item      5. OTHER INFORMATION**

**Item      6. EXHIBITS**

| 31.1   | Certification                of Chief Executive Officer                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                       |
| 31.2   | Certification                of Acting Chief Financial Officer                                                                             |
|   |                                                                                                                                       |
| 32.1   | Certification                of Chief Executive Officer under Section 906 of the Sarbanes-Oxley                Act of                2002. |
|   |                                                                                                                                       |
| 32.2   | Certification                of Acting Chief Financial Officer under Section 906 of the Sarbanes-Oxley                Act of 2002.         |

**SIGNATURES**

|      | Bio-                Matrix Scientific Group, Inc. |
|-----------|---------------------------------------------------|
|      | a                Delaware corporation             |
| By:  | /s/                David R. Koos                  |
|      | David                R. Koos                 |
|      | Chief                Executive Officer            |
|      | Date:                August 8, 2007               |