**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

oTRANSITION        REPORT UNDER        SECTION 13 OR 15(d) OF THE EXCHANGE ACT

| Commission                file number 000-51476                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **SRKP                7, INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (Exact                name of small business issuer as                specified in its                charter)                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Delaware**(State                of organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | **20-2903526** (IRS                Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
| **248                Route 25A No. 2****East                Setauket, New York 11733**                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (Address                of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **(631)                942-7957**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (Issuer’                s telephone number)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **6                Tinker Lane, East Setauket, New York 11733**(Former                Name, Former Address and Former Fiscal Year, if Changed Since Last                Report)                                                                                                                                                                                                                                                                                                                                        |
| Indicate                by check mark whether the issuer (1) has filed all reports required                to be                filed by Section 13 or 15(d) of the Securities Exchange Act of 1934                during                the preceding 12 months (or for such shorter period that the registrant                was required to file such reports), and (2) has been subject to such                filing requirements for the past 90 days.Yes                x  No                o  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act).Yes                o  No x                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Number                of shares outstanding of each of the issuer’s classes of common stock, as                of November                14, 2006:**26,582,183                shares of Common Stock.**                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Transitional                Small Business Disclosure Format (Check one)Yes                o  No                x                                                                                                                                                                                                                                                                                                                                                                                            |

----

**SRKP      7, INC**

**INDEX**

| **PART                I - FINANCIAL INFORMATION**                                                                                                                                                                                                                                                                                       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                    |   |
| Item                1. Condensed Financial Statements                                                                                                                                                                                                                                                                                   | 1      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Condensed                Consolidated Balance Sheets -                                                                                                                                                                                                                                                                                  | 2      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| December 31,                2005 and September 30, 2006 (unaudited)                                                                                                                                                                                                                                                                | 2      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Condensed                Consolidated Statements of Operations (unaudited) -                                                                                                                                                                                                                                                            | 3      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Three                Months Ended September 30, 2006,                Nine                Months Ended September 30, 2006,August 9,                2005 (Inception) to September 30, 2005                and 2005,                and August 9, 2005 (Inception) to September                30, 2006 (Cumulative)   | 3      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Condensed                Consolidated Statement of Stockholders’ Equity (Deficiency) (unaudited) -                                                                                                                                                                                                                                | 4      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| August 9,                2005 (Inception) to December 31, 2005, and January 1, 2006 to                September 30, 2006                                                                                                                                                                                                      | 4      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Condensed                Consolidated Statements of Cash Flows (unaudited) -                                                                                                                                                                                                                                                            | 5      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Nine                Months Ended September 30, 2006 ,                August 9, 2005 (Inception) to September 30, 2005,and                August 9, 2005 (Inception) to September 30, 2006 (Cumulative)                                                                                                              | 5      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Notes                to Condensed Consolidated Financial Statements -                                                                                                                                                                                                                                                                   | 7      |
|                                                                                                                                                                                                                                                                                                                                    |   |
| December 31,                2005 and September 30, 2006 (unaudited)                                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Item                2. Management’s Discussion and Analysis or Plan of                Operation                                                                                                                                                                                                                                   | 14     |
|                                                                                                                                                                                                                                                                                                                                    |   |
| Item                3. Controls and Procedures                                                                                                                                                                                                                                                                                          | 19     |

| **PART                II - OTHER INFORMATION** |   |
|------------------------------------------------|--------|
|                                           |   |   |   |
| Item                6. Exhibits                |   |   |   |
|                                           |   |   |   |
| Signatures                                     |   |   |   |
|                                           |   |   |   |

----

**PART      I**

**FINANCIAL      INFORMATION**

**ITEM      1.**
**Condensed      Financial Statements**

**SRKP      7, INC. AND SUBSIDIARY**

**CONDENSED      CONSOLIDATED FINANCIAL STATEMENTS **

**December      31, 2005 and September 30, 2006 (unaudited)**

|                                                                                                                                                                                                                                                                                                                       |   |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
| Condensed                Consolidated Balance Sheets -                                                                                                                                                                                                                                                                     |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| December 31,                2005 and September 30, 2006 (unaudited)                                                                                                                                                                                                                                                   |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| Condensed                Consolidated Statements of Operations (unaudited) -                                                                                                                                                                                                                                               |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| Three                Months Ended September 30, 2006, Nine Months Ended September 30,                2006,                August 9,                2005 (Inception)                to September 30, 2005,                and August 9, 2005 (Inception) to September 30, 2006 (Cumulative)                  |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| Condensed                Consolidated Statement of Stockholders’ Equity (Deficiency) (unaudited) -                                                                                                                                                                                                                   |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| August 9,                2005 (Inception) to December 31, 2005, and January 1, 2006 to                September 30, 2006                                                                                                                                                                                         |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| Condensed                Consolidated Statements of Cash Flows (unaudited) -                                                                                                                                                                                                                                               |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| Nine                Months Ended June 30, 2006, August 9,                2005 (Inception) to September 30, 2005,                and                August 9, 2005 (Inception) to September 30, 2006 (Cumulative)                                                                                            |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| Notes                to Condensed Consolidated Financial Statements -                                                                                                                                                                                                                                                      |   |                                 |
|                                                                                                                                                                                                                                                                                                                       |   |                                 |
| December 31,                2005 and September 30, 2006 (unaudited)                                                                                                                                                                                                                                                   |   |                                 |

----

**SRKP      7, INC. AND SUBSIDIARY**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                                     |   | **December 31,****2005** |    | **September                30,****2006** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|------------------------------------------|--------|
|                                                                                                                                                                                                                                                     |   |                          |    | (Unaudited)                              |   |
| ASSETS                                                                                                                                                                                                                                                   |   |                          |    |                                     |   |
| Current                assets:                                                                                                                                                                                                                           |   |                          |    |                                     |   |
| Cash                and cash equivalents                                                                                                                                                                                                                 |   | $                             | 4,946   |                                     | $      | 723,737 |   |
| Advances                on research and development contract services,                net                                                                                                                                                                |   |                          | ---     |                                     |   | 100,000 |   |
| Prepaid                insurance                                                                                                                                                                                                                         |   |                          | ---     |                                     |   | 27,552 |   |
| Total                current assets                                                                                                                                                                                                                      |   |                          | 4,946   |                                     |   | 851,289 |   |
| Office                equipment**,**                net of accumulated depreciation of $113 at December 31, 2005 and                $457 at September 30, 2006                                                                                           |   |                          | 1,026   |                                     |   | 920 |   |
| Total                assets                                                                                                                                                                                                                              |   | $                             | 5,972   |                                     | $      | 852,209 |   |
|                                                                                                                                                                                                                                                     |   |                          |    |                                     |   |   |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY (DEFICIENCY)                                                                                                                                                                                   |   |                          |    |                                     |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                      |   |                          |    |                                     |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                     |   | $                             | 14,650  |                                     | $      | 17,229 |   |
| Due                to stockholder                                                                                                                                                                                                                        |   |                          | 5,946   |                                     |   | 92,717 |   |
| Total                current liabilities                                                                                                                                                                                                                 |   |                          | 20,596  |                                     |   | 109,946 |   |
|                                                                                                                                                                                                                                                     |   |                          |    |                                     |   |   |   |
| Commitments                and contingencies                                                                                                                                                                                                             |   |                          |    |                                     |   |   |   |
|                                                                                                                                                                                                                                                     |   |                          |    |                                     |   |   |   |
| Stockholders’                equity (deficiency):                                                                                                                                                                                                  |   |                          |    |                                     |   |   |   |
| Preferred                stock, $0.0001 par value; authorized                - 10,000,000 shares; issued - none                                                                                                                                          |   |                          | ---     |                                     |   | --- |   |
| Common                stock, $0.0001 par value; authorized                - 100,000,000 shares; issued and outstanding - 19,021,786 shares                at                December 31, 2005 and 26,582,183 shares at September 30,                2006 |   |                          | 1,902   |                                     |   | 2,658 |   |
| Additional                paid-in capital                                                                                                                                                                                                                |   |                          | (402    | )                                        |   | 1,100,689 |   |
| Deficit                accumulated during the development stage                                                                                                                                                                                          |   |                          | (16,124 | )                                        |   | (361,084 | ) |
| Total                stockholders’ equity (deficiency)                                                                                                                                                                                             |   |                          | (14,624 | )                                        |   | 742,263 |   |
| Total                liabilities and stockholders’ equity (deficiency)                                                                                                                                                                             |   | $                             | 5,972   |                                     | $      | 852,209 |   |

*See      accompanying notes to condensed consolidated financial      statements.*

----

**SRKP      7, INC. AND SUBSIDIARY**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)**

|                                                                                                                                                                                                                                                                  |   |   |   **Three****Months****Ended****September                  30,****2006** |     |  **Nine****Months****Ended****September                  30,****2006** |    | **Period from****August 9,****2005****(Inception)                  to****September 30,****2005** |       | **Period from****August 9,****2005****(Inception)                  to****September 30,****2006****(Cumulative)** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------------------|-----------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                  |   |   |                                                                               |               |                                                                        |    |                                                                                                            |       |                                                                                                                            |   |   |   |   |   |   |
| Revenues                                                                                                                                                                                                                                                              |   |   |                                                                               | $                  | ---                                                                         |    | $                                                                                                               | ---        |                                                                                                                            | $      | --- |   | $ | --- |   |
|                                                                                                                                                                                                                                                                  |   |   |                                                                               |               |                                                                        |    |                                                                                                            |       |                                                                                                                            |   |   |   |   |   |   |
| Costs                  and expenses:                                                                                                                                                                                                                                  |   |   |                                                                               |               |                                                                        |    |                                                                                                            |       |                                                                                                                            |   |   |   |   |   |   |
| General                  and administrative (including stock-based                  compensation to director of                  $8,917 and $88,483 during the three                  months and nine months ended September                  30, 2006, respectively) |   |   |                                                                               |               | 65,251                                                                      |    |                                                                                                            | 201,104    |                                                                                                                            |   | 333 |   |   | 217,115 |   |
| Depreciation                                                                                                                                                                                                                                                          |   |   |                                                                               |               | 115                                                                         |    |                                                                                                            | 344        |                                                                                                                            |   | --- |   |   | 457 |   |
| Research                  and development costs                                                                                                                                                                                                                       |   |   |                                                                               |               | 50,100                                                                      |    |                                                                                                            | 100,100    |                                                                                                                            |   | --- |   |   | 100,100 |   |
| Reverse                  merger costs                                                                                                                                                                                                                                 |   |   |                                                                               |               | ---                                                                         |    |                                                                                                            | 50,000     |                                                                                                                            |   | --- |   |   | 50,000 |   |
| Interest                  income                                                                                                                                                                                                                                      |   |   |                                                                               |               | (6,588                                                                      | )       |                                                                                                            | (6,588     | )                                                                                                                               |   | --- |   |   | (6,588 | ) |
| Total                  costs and expenses                                                                                                                                                                                                                             |   |   |                                                                               |               | 108,878                                                                     |    |                                                                                                            | 344,960    |                                                                                                                            |   | 333 |   |   | 361,084 |   |
| Net                  loss                                                                                                                                                                                                                                             |   |   |                                                                               | $                  | (108,878                                                                    | )       | $                                                                                                               | (344,960   | )                                                                                                                               | $      | (333 | ) | $ | (361,084 | ) |
| Net                  loss per common share - basic                  and diluted                                                                                                                                                                                       |   |   |                                                                               | $                  | (0.00                                                                       |  ) | $                                                                                                               | (0.02      | )                                                                                                                               | $      | (0.00 | ) |   |   |   |
| Weighted                  average number of common shares                  outstanding - basic                  and diluted                                                                                                                                           |   |   |                                                                               |               | 26,152,469                                                                  |    |                                                                                                            | 21,458,613 |                                                                                                                            |   | 19,021,786 |   |   |   |   |

*See      accompanying notes to condensed consolidated financial      statements.*

----

**SRKP      7, INC. AND SUBSIDIARY**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIENCY)      (unaudited)**

|                                                                                                |   |                            |       | **Additional** |   |                  **Deficit****Accumulated****During                the** |   | **Total                Stockholders’** |      |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|----------------|--------|-------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|
|                                                                                                |   | **Common                Stock** |       | **Paid-in**    |   | **Development**                                                               |   | **Equity**                                   |      |
|                                                                                                |   | **Shares**                      |       | **Amount**     |   | **Capital**                                                                   |   | **Stage**                                    |      | **(Deficiency)** |   |
|                                                                                                |   |                            |       |      |   |                                                                     |   |                                    |      |    |   |
| Balance,                August 9, 2005 (inception)                                                  |   |                            | ---        |           | $      | ---                                                                           |   | $                                            | ---       |   | $ | --- |   | $ | --- |   |
| Shares                issued to founding stockholder                                                |   |                            | 19,021,786 |           |   | 1,902                                                                         |   |                                         | (402      | ) |   | --- |   |   | 1,500 |   |
| Net                loss                                                                             |   |                            | ---        |           |   | ---                                                                           |   |                                         | ---       |   |   | (16,124 | ) |   | (16,124 | ) |
|                                                                                                |   |                            |       |           |   |                                                                          |   |                                         |      |   |   |   |   |   |   |   |
| Balance,                December 31, 2005                                                           |   |                            | 19,021,786 |           |   | 1,902                                                                         |   |                                         | (402      | ) |   | (16,124 | ) |   | (14,624 | ) |
| Shares                issued in connection with reverse merger                transaction           |   |                            | 4,005,177  |           |   | 401                                                                           |   |                                         | 62,099    |   |   | --- |   |   | 62,500 |   |
| Shares                issued in private placement, net of offering                costs of $233,025 |   |                            | 3,555,220  |           |   | 355                                                                           |   |                                         | 950,509   |   |   | --- |   |   | 950,864 |   |
| Stock-based                compensation                                                             |   |                            | ---        |           |   | ---                                                                           |   |                                         | 88,483    |   |   | --- |   |   | 88,483 |   |
| Net                loss                                                                             |   |                            | ---        |           |   | ---                                                                           |   |                                         | ---       |   |   | (344,960 | ) |   | (344,960 | ) |
|                                                                                                |   |                            |            |           |   |                                                                               |   |                                         |           |   |   |  |   |   |  |   |
| Balance,                September 30, 2006                                                          |   |                            | 26,582,183 |           | $      | 2,658                                                                         |   | $                                            | 1,100,689 |   | $ | (361,084 | ) | $ | 742,263 |   |

*See      accompanying notes to condensed consolidated financial      statements.*

----

**SRKP      7, INC. AND SUBSIDIARY**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)**

|                                                                                                      |   |   | **Nine****Months****Ended****September                30,****2006**  |   |   | **Period from****August 9,****2005****(Inception)                to****September 30,****2005**  |   |   | **Period from****August 9,****2005****(Inception)                to****September                30,****2006****(Cumulative)**  |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Cash                flows from operating                activities                                        |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Net                loss                                                                                   |   | $      | (344,960                                                                  | )      | $      | (333                                                                                                                | )      | $      | (361,084                                                                                                                                      | )      |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Depreciation                                                                                              |   |   | 344                                                                       |   |   | ---                                                                                                                 |   |   | 457                                                                                                                                           |   |
| Stock-based                compensation                                                                   |   |   | 88,483                                                                    |   |   | ---                                                                                                                 |   |   | 88,483                                                                                                                                        |   |
| Changes                in operating assets and liabilities:                                               |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Decrease                in -                                                                              |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Advances                on research and development contract services                                     |   |   | (100,000                                                                  | )      |   | ---                                                                                                                 |   |   | (100,000                                                                                                                                      | )      |
| Prepaid                insurance                                                                          |   |   | (27,552                                                                   | )      |   | ---                                                                                                                 |   |   | (27,552                                                                                                                                       | )      |
| Increase                in -                                                                              |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Accounts                payable and accrued expenses                                                      |   |   | 2,579                                                                     |   |   | ---                                                                                                                 |   |   | 17,229                                                                                                                                        |   |
| Net                cash used in operating activities                                                      |   |   | (381,106                                                                  | )      |   | (333                                                                                                                | )      |   | (382,467                                                                                                                                      | )      |
|                                                                                                      |   |   |                                                                           |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Cash                flows from investing activities                                                       |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Purchase                of office equipment                                                               |   |   | (238                                                                      | )      |   | (649                                                                                                                | )      |   | (1,377                                                                                                                                        | )      |
| Net                cash used in investing activities                                                      |   |   | (238                                                                      | )      |   | (649                                                                                                                | )      |   | (1,377                                                                                                                                        | )      |
|                                                                                                      |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Cash                flows from financing activities                                                       |   |   |                                                                           |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Proceeds                from sale of common stock to founder                                              |   |   | ---                                                                       |   |   | ---                                                                                                                 |   |   | 1,500                                                                                                                                         |   |
| Cash                acquired in reverse merger transaction                                                |   |   | 62,500                                                                    |   |   | ---                                                                                                                 |   |   | 62,500                                                                                                                                        |   |
| Gross                proceeds from sale of common stock                                                   |   |   | 1,183,889                                                                 |   |   | ---                                                                                                                 |   |   | 1,183,889                                                                                                                                     |   |
| Payment                of private placement offering costs                                                |   |   | (233,025                                                                  | )      |   | ---                                                                                                                 |   |   | (233,025                                                                                                                                      | )      |
| Advances                from stockholder                                                                  |   |   | 86,771                                                                    |   |   | 982                                                                                                                 |   |   | 92,717                                                                                                                                        |   |
| Net                cash provided by financing activities                                                  |   |   | 1,100,135                                                                 |   |   | 982                                                                                                                 |   |   | 1,107,581                                                                                                                                     |   |
|                                                                                                      |   |   |                                                                           |   |   |                                                                                                                |   |   |                                                                                                                                          |   |
| Net                increase in cash                                                                       |   |   | 718,791                                                                   |   |   | ---                                                                                                                 |   |   | 723,737                                                                                                                                       |   |
| Cash** **at                beginning of period                                                       |   |   | 4,946                                                                     |   |   | ---                                                                                                                 |   |   | ---                                                                                                                                           |   |
| Cash                at                end of period                                                       |   | $      | 723,737                                                                   |   | $      | ---                                                                                                                 |   | $      | 723,737                                                                                                                                       |   |
|                                                                                                      |   |   |                                                                      |   |   |                                                                                                                |   |   |                                                                                                                                          |   |

*(continued)*

----

**SRKP      7, INC. AND SUBSIDIARY**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)      (continued)**

|                                                              |   |                **Nine****Months****Ended****September                30,****2006** |   |                **Period from****August 9,****2005****(Inception)                to****September 30,****2005** |   | **Period from****August 9,****2005****(Inception)                to****September                30,****2006****(Cumulative)**  |   |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                              |   |                                                                                    |   |                                                                                                                              |   |                                                                                                                                          |   |
| Supplemental                disclosures of cash flow information: |   |                                                                                    |   |                                                                                                                         |   |                                                                                                                                     |   |
| Cash                paid for -                                    |   |                                                                                    |   |                                                                                                                         |   |                                                                                                                                     |   |
| Interest                                                          |   | $                                                                                       | ---    |                                                                                                                              | $      | ---                                                                                                                                           |   | $ | --- |   |
| Income                taxes                                       |   | $                                                                                       | ---    |                                                                                                                              | $      | ---                                                                                                                                           |   | $ | --- |   |

*See      accompanying notes to condensed consolidated financial      statements.*

----

**SRKP      7, INC. AND SUBSIDIARY**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)**

**December      31, 2005 and September 30, 2006**

**1.      Organization and Basis of **
**Presentation**

**2.      Business Operations and Summary of Significant Accounting      Policies**

***Nature      of Operations***

----

***Going      Concern***

----

***Principles      of Consolidation ***

***Cash      and Cash Equivalents and Concentrations ***

***Income      Taxes***

***Stock-      Based Compensation***

----

|                                                                  |   | NumberofShares |    | Weighted                Average                Exercise                Price |   | Weighted                Average                Remaining                Contractual Life                (Years) |   |
|-----------------------------------------------------------------------|--------|----------------|---------|------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                  |   |           |    |                                                                         |   |                                                                                                                 |   |
| Options                and warrants outstanding at December 31, 2005  |   | ---            |    | $---                                                                         |   | ---                                                                                                                  |   |
| Granted                                                               |   |           | 916,626 |                                                                         |   | 0.333                                                                                                                |   |   | 5.00 |   |
| Exercised                                                             |   |           | ---     |                                                                         |   | ---                                                                                                                  |   |   | --- |   |
| Cancelled                                                             |   |           | ---     |                                                                         |   | ---                                                                                                                  |   |   | --- |   |
| Options                and warrants outstanding at September 30, 2006 |   |           | 916,626 |                                                                         | $      | 0.333                                                                                                                |   |   | 4.77 |   |
| Options                and warrants exercisable at September 30, 2006 |   |           | 683,292 |                                                                         | $      | 0.333                                                                                                                |   |   | 4.77 |   |

***Recent      Accounting Pronouncements***

*** Loss      per Common Share***

***Research      and Development***

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***Use      of Estimates***

***Equipment***

***Reclassification***

**3.      Share Exchange Agreement and Private Placement**

***Share      Exchange Agreement***

***Private      Placement***

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***Stock      Options***

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**4.      Related Party Transactions**

**5.      Common Stock and Preferred Stock**

**      Commitments and Contingencies**

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

**Forward-Looking      Statements**

**Recent      Events**

**Overview**

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**Critical      Accounting Policies and Estimates**

----

**Research      and Development**

**Stock-Based      Compensation**

**Income      Taxes**

**Results      of Operations - Three Months and Nine Months Ended September 30,      2006**

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**Liquidity      and Capital Resources - September 30, 2006**

**Going      Concern**

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**Principal      Commitments**

**Off-Balance      Sheet Arrangements**

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**Recent      Accounting Pronouncements**

**ITEM      **

| **3.                CONTROLS AND PROCEDURES** |
|-----------------------------------------------|

| (a)    | Evaluation                of Disclosure Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Disclosure                Controls and procedures are designed to ensure that information required                to be disclosed in the reports filed or submitted under the Exchange                Act                is recorded, processed, summarized and reported, within the time                periods                specified in the SEC’s rules and forms. Disclosure controls and procedures                include, without limitation, controls and procedures designed to                ensure                that information required to be disclosed in the reports filed under                the                Exchange Act is accumulated and communicated to                management.                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | As                of September 30, 2006, our chief executive officer and chief financial                officer (who is the same individual) evaluated the effectiveness                of the                design and operation of the Company’s disclosure controls and procedures.                Based upon and as of the date of that evaluation, the Chief Executive                Officer and Chief Financial Officer concluded that the Company’s                disclosure controls and procedures are effective to ensure that the                information required to be disclosed in the reports the Company files                and                submits under the exchange act is recorded, processed, summarized,                and                reported as and when required. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (b)    | Changes                in Internal Controls                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | There                were no changes in the Company’s internal controls or in other factors                that could have significantly affected those controls during the                quarter                ended September 30, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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**PART      II**

**OTHER      INFORMATION**

**ITEM      6**
**.      EXHIBITS**

|  | 2.1 | Share                Exchange Agreement dated as of June 8, 2006 among the Company, John                S.                Kovach and Lixte Biotechnology, Inc.1 |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 2.2 | Securities Purchase Agreement among              the              Company and the investors with respect to the sale of the Company's              Common              Stock3 |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 2.3 | Registration Rights Agreement among the              Company and the investors with respect to the sale of the Company's              Common              Stock3 |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 3.1 | Certificate                of Incorporation, as filed with the Delaware Secretary of State on                May 24,                20052 |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 3.2 | Bylaws2 |
|--------|-----|---------|
|   |   |   |
|--------|--------|--------|
|   | 31 | Certification Pursuant to Section 302              of the              Sarbanes-Oxley Act of 2002 |
|--------|----|---------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | 32 | Certification Pursuant to Section 906              of the              Sarbanes-Oxley Act of 2002 |
|--------|----|---------------------------------------------------------------------------------------------------|

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| 1 | Filed                as an Exhibit to the Company’s Current Report on Form 8-K as filed with                the Securities and Exchange Commission on July 7, 2006, and incorporated                herein by reference.                            |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2 | Filed                as an Exhibit to the Company’s Registration Statement on Form 10-SB, as                filed with the Securities and Exchange Commission on August 3, 2005                and                incorporated herein by reference. |
| 3 | Filed as an              Exhibit to              the Company's Registration Statement on Form S-1 as filed with the              Securities and Exchange Commission on September 8,              2006                                                     |

**SIGNATURES**

|                                   |   | **SRKP                7, INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date:                November 14, 2006 | By:    | /s/                John S.                Kovach                                                                 John                S. KovachChief                Executive Officer and Chief Financial Officer (principal                financial and accounting officer) |

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