UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                 Quarterly Report under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934

                     For the Period ended September 30, 2008

                        Commission File Number 333-143236


                                 Castillo, Inc.
             (Exact name of Registrant as specified in its charter)

        Nevada                                                   20-8441697
(State of Incorporation)                                (IRS Employer ID Number)

                           771 Jamacha Road, Suite 191
                               El Cajon, CA 92019
                                 (775) 352-4112
          (Address and telephone number of principal executive offices)

                           9880 N. Magnolia Ave. #185
                                Santee, CA 92071
                 (Former Address of principal executive offices)

                           Copies of Communication to:
                         Joseph I. Emas, Attorney at Law
                             1224 Washington Avenue
                              Miami Beach, FL 33139
                            Telephone: (305)531-1174
                               Fax: (305) 531-1274

Indicate by check mark whether the registrant (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 [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company.

Large accelerated filer [ ]                        Accelerated Filer [ ]

Non-accelerated filer [ ]                          Smaller reporting company [X]
(Do Not Check if a Smaller Reporting Company)

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

As of September 30, 2008, the registrant had 9,000,000 shares of common stock,
$0.001 par value, issued and outstanding.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS.

                                 Castillo, Inc.
                          (A Development Stage Company)
                            Balance Sheet (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                         As of              As of
                                                                      September 30,      December 31,
                                                                          2008               2007
                                                                        --------           --------
<S>                                                                     <C>                <C>
                                     ASSETS


CURRENT ASSETS
  Cash                                                                  $  3,251           $  3,519
                                                                        --------           --------
TOTAL CURRENT ASSETS                                                       3,251              3,519

OTHER ASSETS
  Organizational Costs                                                       300                300
  Deposits                                                                 2,145              2,145
                                                                        --------           --------
TOTAL OTHER ASSETS                                                         2,445              2,445
                                                                        --------           --------

      TOTAL ASSETS                                                      $  5,696           $  5,964
                                                                        ========           ========

                       LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts Payable                                                      $  1,600           $     --
  Loan from Director                                                      23,645              7,145
                                                                        --------           --------
TOTAL CURRENT LIABILITIES                                                 25,245              7,145

      TOTAL LIABILITIES                                                   25,245              7,145

STOCKHOLDERS' EQUITY
  Common stock, ($0.001 par value, 50,000,000 shares
   authorized; 9,000,000 shares issued and outstanding
   as of September 30, 2008 and December 31, 2007 respectively             9,000              9,000
  Additional paid-in capital                                              18,000             18,000
  Deficit accumulated during Development stage                           (46,549)           (28,181)
                                                                        --------           --------
TOTAL STOCKHOLDERS' EQUITY                                               (19,549)            (1,181)
                                                                        --------           --------

      TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                          $  5,696           $  5,964
                                                                        ========           ========
</TABLE>


                        See Notes to Financial Statements

                                       2
<PAGE>
                                 Castillo, Inc.
                          (A Development Stage Company)
                       Statement of Operations (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                            February 2, 2007
                                          Three Months     Three Months      Nine Months      Nine Months     (inception)
                                             Ended            Ended            Ended            Ended           through
                                          September 30,    September 30,    September 30,    September 30,    September 30,
                                              2008             2007             2008             2007             2008
                                           ----------       ----------       ----------       ----------       ----------
<S>                                        <C>              <C>              <C>              <C>              <C>
REVENUES
  Revenues                                 $       --       $       --       $       --       $       --       $       --
                                           ----------       ----------       ----------       ----------       ----------
TOTAL REVENUES                                     --               --               --               --               --

GENERAL & ADMINISTRATIVE EXPENSES               5,065           17,292           18,368           23,626           46,549
                                           ----------       ----------       ----------       ----------       ----------
TOTAL GENERAL & ADMINISTRATIVE EXPENSES        (5,065)         (17,292)         (18,368)         (23,626)         (46,549)
                                           ----------       ----------       ----------       ----------       ----------

NET INCOME (LOSS)                          $   (5,065)      $  (17,292)      $  (18,368)      $  (23,626)      $  (46,549)
                                           ==========       ==========       ==========       ==========       ==========

BASIC EARNINGS PER SHARE                   $    (0.00)      $    (0.00)      $    (0.00)      $    (0.01)
                                           ==========       ==========       ==========       ==========
WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING                  9,000,000        6,652,174        9,000,000        4,423,729
                                           ==========       ==========       ==========       ==========
</TABLE>


                        See Notes to Financial Statements

                                       3
<PAGE>
                                 Castillo, Inc.
                          (A Development Stage Company)
                       Statement of Cash Flows (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                      February 2, 2007
                                                                   Nine Months        Nine Months       (inception)
                                                                     Ended              Ended             through
                                                                  September 30,      September 30,      September 30,
                                                                      2008               2007               2008
                                                                    --------           --------           --------
<S>                                                                 <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                 $(18,368)          $(23,626)          $(46,549)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:

  Changes in operating assets and liabilities:
    (Increase) Decrease in Deposits                                       --               (300)              (300)
    (Increase) Decrease in Organization Costs                             --                 --             (2,145)
    Increase (Decrease) in Accounts Payable                            1,600              2,500              1,600
    Increase (Decrease) in Loan from Director                         16,500                 --             23,645
                                                                    --------           --------           --------
          NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES           (268)           (21,426)           (23,749)

CASH FLOWS FROM INVESTING ACTIVITIES

          NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES             --                 --                 --

CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of common stock                                                --              6,000              9,000
  Additional paid-in capital                                              --             12,000             18,000
                                                                    --------           --------           --------
          NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES             --             18,000             27,000
                                                                    --------           --------           --------

NET INCREASE (DECREASE) IN CASH                                         (268)            (3,426)             3,251

CASH AT BEGINNING OF PERIOD                                            3,519              8,925                 --
                                                                    --------           --------           --------

CASH AT END OF PERIOD                                               $  3,251           $  5,499           $  3,251
                                                                    ========           ========           ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during year for:
  Interest                                                          $     --           $     --           $     --
                                                                    ========           ========           ========

  Income Taxes                                                      $     --           $     --           $     --
                                                                    ========           ========           ========
</TABLE>


                        See Notes to Financial Statements

                                       4
<PAGE>
                                 CASTILLO, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 2008
--------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

     Castillo,  Inc. (the "Company") was  incorporated in the State of Nevada on
     February 2, 2007.  The Company is a development  stage company that intends
     to  open  and  operate  retail  establishments  selling  perfume  and  body
     products.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     A. BASIS OF PRESENTATION

     The  accounting  and  reporting  policies  of the  Company  conform to U.S.
     generally accepted  accounting  principles  applicable to development stage
     enterprises.

     B. FISCAL PERIODS

     The Company's fiscal year end is December 31.

     C. USE OF ESTIMATES

     The preparation of financial  statements in conformity with U.S.  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements  and the  reported  amount of revenues  and  expenses
     during  the  reporting  period.  Actual  results  could  differ  from those
     estimates.

     D. CASH AND CASH EQUIVALENTS

     Cash and cash  equivalents  include cash in banks,  money market funds, and
     certificates  of term  deposits  with  maturities of less than three months
     from inception,  which are readily convertible to known amounts of cash and
     which, in the opinion of management,  are subject to an insignificant  risk
     of loss in value.  The Company had $3,251 in cash and cash  equivalents  at
     September 30, 2008.

     E. START-UP COSTS

     In accordance with the American  Institute of Certified Public  Accountants
     Statement  of  Position   98-5,   "REPORTING   ON  THE  COSTS  OF  START-UP
     ACTIVITIES", the Company expenses all costs incurred in connection with the
     start-up and organization of the Company.

     F. FAIR VALUE OF FINANCIAL INSTRUMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS

     The  Company  has  adopted  Statement  of  Financial  Accounting  Standards
     ("SFAS") Number 119, "Disclosure About Derivative Financial Instruments and
     Fair  Value of  Financial  Instruments."  The  carrying  amount of  accrued
     liabilities  approximates  its fair value because of the short  maturity of
     this item.  Certain  fair value  estimates  may be subject to and  involve,
     uncertainties and matters of significant judgement, and, therefore,  cannot

                                       5
<PAGE>
                                 CASTILLO, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 2008
--------------------------------------------------------------------------------

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     be determined with precision.  Changes in assumptions  could  significantly
     affect  these  estimates.  The  Company  does not  hold or issue  financial
     instruments  for  trading   purposes,   nor  does  it  utilize   derivative
     instruments in the management of its foreign  exchange,  commodity price or
     interest rate market risks.

     G. SEGMENTED REPORTING

     SFAS Number 131,  "Disclosure  About  Segments of an Enterprise and Related
     Information",  changed the way public  companies report  information  about
     segments  of  their   business  in  their   quarterly   reports  issued  to
     shareholders.  It also requires entity-wide  disclosures about the products
     and services an entity provides,  the material  countries in which it holds
     assets and reports revenues and its major  customers.  The company plans to
     open and operate its retail establishments in Mexico.

     H. FEDERAL INCOME TAXES

     Deferred income taxes are reported for timing differences  between items of
     income or expense  reported in the financial  statements and those reported
     for income tax purposes in accordance with SFAS Number 109, "ACCOUNTING FOR
     INCOME  TAXES",  which  requires the use of the  asset/liability  method of
     accounting  for income  taxes.  Deferred  income taxes and tax benefits are
     recognized  for the future tax  consequences  attributable  to  differences
     between the financial  statement  carrying  amounts of existing  assets and
     liabilities  and their  respective  tax bases,  and for tax loss and credit
     carryforwards.  Deferred  tax assets and  liabilities  are  measured  using
     enacted tax rates expected to apply to taxable income in the years in which
     those temporary  differences  are expected to be recovered or settled.  The
     Company  provides for deferred  taxes for the estimated  future tax effects
     attributable to temporary differences and carryforwards when realization is
     more likely than not.

     I. EARNINGS (LOSS) PER SHARE

     The Company has  adopted  Financial  Accounting  Standards  Board  ("FASB")
     Statement  Number  128,   "Earnings  per  Share,"  ("EPS")  which  requires
     presentation  of basic and diluted EPS on the face of the income  statement
     for  all  entities  with  complex   capital   structures   and  requires  a
     reconciliation   of  the  numerator  and   denominator  of  the  basic  EPS
     computation   to  the  numerator  and   denominator   of  the  diluted  EPS
     computation.  In the  accompanying  financial  statements,  basic  earnings
     (loss) per share is computed by dividing  net  income/loss  by the weighted
     average number of shares of common stock outstanding during the period.

     J. FOREIGN CURRENCY TRANSACTIONS

     The Company's  functional  currency will be the Mexican Peso. The Company's
     reporting  currency  is the U.S.  Dollar.  All  transactions  initiated  in
     Mexican Pesos are translated to U.S. Dollars in accordance with SFAS No. 52
     "Foreign Currency Translation" as follows:

                                       6
<PAGE>
                                 CASTILLO, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 2008
--------------------------------------------------------------------------------

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

          (i)  Monetary assets and liabilities at the rate of exchange in effect
               at the balance sheet date;
          (ii) Equity at historical rates; and
          (iii)Revenue  and  expense  items  at the  average  rate  of  exchange
               prevailing during the period.

     Adjustments  arising from such  translations are deferred until realization
     and are  included  as a separate  component  of  stockholders'  equity as a
     component  of  comprehensive   income  or  loss.   Therefore,   translation
     adjustments  are not included in determining net income (loss) but reported
     as other comprehensive income.

     For foreign currency transactions,  the Company translates these amounts to
     the Company's  functional  currency at the exchange  rate  effective on the
     invoice date. If the exchange rate changes between the time of purchase and
     the time actual  payment is made, a foreign  exchange  transaction  gain or
     loss results which is included in determining net income for the period.

     No  significant  realized  exchange  gains or  losses  were  recorded  from
     inception (February 2, 2007) to September 30, 2008.

     K. STOCK-BASED COMPENSATION

     The Company  adopted the  provisions  of Statement of Financial  Accounting
     Standards  ("SFAS") No. 123(R),  "SHARE-BASED  PAYMENT",  which establishes
     accounting for equity instruments  exchanged for employee  services.  Under
     the provisions of SFAS 123(R), stock-based compensation cost is measured at
     the grant date,  based on the  calculated  fair value of the award,  and is
     recognized  as an expense  over the  employees'  requisite  service  period
     (generally the vesting period of the equity  grant).  The Company  accounts
     for share-based payments to non-employees,  in accordance with SFAS 123 (as
     originally   issued)  and  Emerging  Issues  Task  force  Issue  No  96-18,
     "ACCOUNTING FOR EQUITY  INSTRUMENTS THAT ARE ISSUED TO OTHER THAN EMPLOYEES
     FOR ACQUIRING, OR IN CONJUNCTION WITH SELLING, GOODS OR SERVICES".

     L. COMPREHENSIVE INCOME (LOSS)

     SFAS No. 130, "Reporting  Comprehensive Income",  establishes standards for
     reporting and display of comprehensive  income and its components in a full
     set of general-purpose financial statements. For the period ended September
     30,  2008,  the  Company  had  no  items  of  other  comprehensive  income.
     Therefore,  net  loss  equals  comprehensive  loss  for  the  period  ended
     September 30, 2008.

                                       7
<PAGE>
                                 CASTILLO, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 2008
--------------------------------------------------------------------------------

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     M. REVENUE RECOGNITION

     The Company recognizes revenue from the sale of products in accordance with
     the Securities and Exchange  Commission Staff  Accounting  Bulletin No. 104
     ("SAB 104"),  "Revenue  Recognition in Financial  Statements." Revenue will
     consist of retail sales income and will be recognized  only when all of the
     following criteria have been met:

          (i)   Evidence of a retail sales ticket exists;
          (ii)  Delivery has occurred; and
          (iii) Revenue is reasonably assured.

NOTE 3 - CAPITAL STOCK

     A) AUTHORIZED STOCK:

     The Company has  authorized  50,000,000  common  shares with a par value of
     $0.001 per share.  Each common share  entitles  the holder to one vote,  in
     person or proxy,  on any matter on which action of the  stockholder  of the
     corporation is sought.

     B) SHARE ISSUANCE:

     From inception of the Company (February 2, 2007) to September 30, 2008, the
     Company  issued  9,000,000  common  shares  at  $0.003  per share for total
     proceeds  of $27,000  being  $9,000 for par value  shares and  $18,000  for
     additional  paid in capital.  3,000,000  shares were issued to the director
     and  officer  of  the  Company  and  6,000,000  shares  were  issued  to 36
     un-affiliated investors pursuant to a SB-2 Registration Statement.

NOTE 4 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS

     The accompanying  financial statements have been prepared assuming that the
     Company  will  continue  as  a  going  concern,   which   contemplates  the
     realization  of assets and the  liquidation  of  liabilities  in the normal
     course  of  business.  As  at  September  30,  2008,  the  Company  has  an
     accumulated deficit of $46,549, working capital of $3,251 and has earned no
     revenues since  inception.  The Company intends to fund operations  through
     equity  financing  arrangements,  which  may be  insufficient  to fund  its
     capital expenditures, working capital and other cash requirements.

     The  ability  of the  Company  to  emerge  from  the  development  stage is
     dependent  upon,  among other  things,  obtaining  additional  financing to
     continue operations, and implementation of its business plan.

                                       8
<PAGE>
                                 CASTILLO, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                               September 30, 2008
--------------------------------------------------------------------------------

NOTE 4 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS(continued)

     These factors,  among others,  raise  substantial doubt about the Company's
     ability  to  continue  as  a  going  concern.  The  accompanying  financial
     statements  do not  include  any  adjustments  that might  result  from the
     outcome of this uncertainty.

NOTE 5 - INCOME TAXES

     The Company has incurred  operating losses of $46,549,  which, if utilized,
     will  begin to expire in 2028.  Future tax  benefits,  which may arise as a
     result  of  these  losses,  have  not been  recognized  in these  financial
     statements, and have been off set by a valuation allowance.

     Details of future income tax assets are as follows:

                                                                   September 30,
                                                                       2008
                                                                     --------
     Future income tax assets:
       Net operating loss (from inception to September 30, 2008)     $ 46,549
       Statutory tax rate (combined federal and state)                     34%
                                                                     --------
       Non-capital tax loss                                            15,827
       Valuation allowance                                            (15,827)
                                                                     --------
                                                                     $     --
                                                                     ========

     The potential  future tax benefits of these losses have not been recognized
     in these financial statements due to uncertainty of their realization. When
     the future  utilization of some portion of the  carryforwards is determined
     not to be "more  likely  than not," a  valuation  allowance  is provided to
     reduce the recorded tax benefits from such assets.

NOTE 6 - RECENT ACCOUNTING PRONOUNCEMENTS

     The Company  does not expect the  adoption of  recently  issued  accounting
     pronouncements  to have a significant  impact on the  Company's  results of
     operations, financial position, or cash flow.

     As new accounting  pronouncements  are issued, the Company will adopt those
     that are applicable under the circumstances.

NOTE 7 - RELATED PARTY TRANSACTIONS

     Ms. Ochoa receives a monthly management fee from the Company of $500. While
     the company is in its organizational phase, Ms. Ochoa has advanced funds to
     the company to pay for costs incurred by it. These funds are interest free.
     The balance due Ms. Ochoa was $23,645 on September 30, 2008.

                                       9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Some of the statements contained in this Form 10-Q that are not historical facts
are "forward-looking statements" which can be identified by the use of
terminology such as "estimates," "projects," "plans," "believes," "expects,"
"anticipates," "intends," or the negative or other variations, or by discussions
of strategy that involve risks and uncertainties. We urge you to be cautious of
the forward-looking statements, that such statements, which are contained in
this Form 10-Q, reflect our current beliefs with respect to future events and
involve known and unknown risks, uncertainties and other factors affecting our
operations, market growth, services, products and licenses. No assurances can be
given regarding the achievement of future results, as actual results may differ
materially as a result of the risks we face, and actual events may differ from
the assumptions underlying the statements that have been made regarding
anticipated events.

All written forward-looking statements made in connection with this Form 10-Q
that are attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. Given the
uncertainties that surround such statements, you are cautioned not to place
undue reliance on such forward-looking statements.

The safe harbours of forward-looking statements provided by the Securities
Litigation Reform Act of 1995 are unavailable to issuers not subject to the
reporting requirements set forth under Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended. As we have not registered our securities
pursuant to Section 12 of the Exchange Act, such safe harbours set forth under
the Reform Act are unavailable to us.

BUSINESS

The following description of our business plan is predicated on our ability to
generate sufficient cash inflows to implement our plan. We have relied upon our
director to loan funds necessary to advance our business plan. We are now
seeking outside sources of funding to replace loans provided by our director.
While we seek additional funding, we will continue to maintain limited
operations and remain current in our corporate filings and obligations while
financial resources are available. While we are considering raising additional
capital through sales of our equity securities or loans, we recognize the
current turmoil in world financial markets make these funding options
impractical at this time. Therefore, as we seek additional funding, we plan to
preserve our existing cash by slowing our business plan implementation.

We are a start-up company planning to market and sell fragrance based products
in Mexico. Should additional funding become available next year, we intend to
open retail locations and utilize the business experience of management to
develop product lines and marketing strategies for our stores. Our primary
target market is women seeking perfumes and other aromatic products for personal
use. Our secondary market is men seeking colognes for themselves, or gift items
for loved ones.

Our director has spent time designing the labels and packaging for our
proprietary products, researching various distributors of perfumes, body
products and scent formulations, as well as determining the layout and design of
a retail space. We have been paying $300 per month for our retail space and paid
$300 as a security deposit. Our director receives compensation of $500 per
month.

Should world financial conditions improve next year, we plan to complete the
design of our retail space and begin preparing the property for our first store
opening. We plan to utilize neutral color paint and fixtures with clear glass
display shelving and wall mirror placement that will showcase the products and
allow us to change out color schemes with relative ease. The color-coordinated
packaging of our products as well as the fresh flower arrangements will be the
focus of the space. Our director is aware of three companies in the Tijuana and

                                       10
<PAGE>
San Diego area who specialize in refurbished or "gently used" retail
merchandizing displays and will attempt to purchase as many of the required
displays from one of them as it will lower set-up costs significantly from
having to purchase new.

If we are able to secure additional funding next year, we will purchase our
retail inventory and also complete the formulation of our proprietary products.
Labels and packaging will be completed and gift baskets will be designed and
assembled. Final finishes will be completed on our store set-up. Our director
will decide on the best marketing and advertising plan which could include grand
opening flyers/brochures, newspaper advertising, or possibly placement of some
of our gift baskets or brochures in other retail establishments such as spas,
salons or hotels in the area. With additional funding, we intend to conduct
interviews with potential staff and hire one person to assist our director with
our store opening and begin our marketing and advertising programs. We estimate
our estimated costs for opening our first retail location will be approximately
$17,000.

LIQUIDITY AND CAPITAL RESOURCES

Our cash balance at September 30, 2008 was $3,251. We believe our existing cash
balance plus loans from our director will be sufficient to fund our minor level
of operations for the next twelve months. Our director loaned the company a
total of $23,645 as of September 30, 2008 and will continue to loan the company
funds on a month by month basis as needed. In the event our director does not
provide such funding our business will likely fail, cease operations, and
investors will likely lose their money. We are a development stage company and
have generated no revenue to date. We have sold $27,000 in equity securities to
pay for our operations.

RESULTS OF OPERATIONS

We have generated no revenues since inception and have incurred $46,549 in
expenses through September 30, 2008. For the three month period ended September
30, 2008 we incurred $5,065 in expenses. We incurred operating expenses of
$17,292 for the same three-month period ended September 30, 2007. These costs
consisted of general and administrative expenses.

The following table provides selected financial data about our company for the
period ended September 30, 2008.

                    Balance Sheet Data:            9/30/08
                    -------------------            -------

                    Cash                          $  3,251
                    Total assets                  $  5,696
                    Total liabilities             $ 25,245
                    Shareholders' equity          $(19,549)

There was $5,000 cash provided from operating activities for the quarter ended
September 30, 2008, a loan from our director. From inception through September
30, 2008 the director has loaned the company $23,645, for which there are no
specific terms of repayment. Cash provided by financing since inception was
$27,000, consisting of $9,000 from the sale of shares to our officer and
director and $18,000 resulting from the sale of our common stock to 36
un-affiliated investors.

The Company's financial resources have been substantially depleted. We will
continue to maintain limited operations and remain current in our corporate
filings and obligations while financial resources are available. We need to
raise additional monies through sales of our equity securities or through loans
from banks or third parties to continue our business plans. No assurances can be
given that we will be able to raise additional funds to satisfy our financial
requirements. We may decide that we cannot continue with our business operations

                                       11
<PAGE>
as detailed in our original business plan because of this lack of financial
resources. We may look for other potential business opportunities that might be
available to the Company. There can be no certainties that there will be any
other business opportunities available; nor the nature of the business
opportunity; nor any indication of the financial resources required of any
possible business opportunity.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

ITEM 4. CONTROLS AND PROCEDURES.

(a) Based on the evaluation of our "disclosure controls and procedures" (as
defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e))
required by paragraph (b) of Rules 13a-15 or 15d-15, our president and our chief
financial officer have concluded that, as of September 30, 2008, our disclosure
controls and procedures were effective in ensuring that information required to
be disclosed by the Company in reports that it files under the Exchange Act is
recorded, processed, summarized and reported within the time periods required by
governing rules and forms.

(b) There have been no changes in our internal control over financial reporting
identified in connection with the evaluation required by paragraph (d) of
Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter
that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.

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<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1A. RISK FACTORS.

There have been no material changes to the risk factors previously discussed in
Item 1A of the Company's Form 10-K for the year ended December 31, 2007.

ITEM 6. EXHIBITS.

                                                      Incorporated by Reference/
Exhibit No.           Exhibit                              Filed Herewith
-----------           -------                              --------------
   3.1       Articles of Incorporation             Incorporated by reference
                                                   to the Registration Statement
                                                   on Form SB-2 filed with the
                                                   SEC on May 24, 2007, File No.
                                                   333-143236

   3.2       Bylaws                                Incorporated by reference to
                                                   the Registration Statement on
                                                   Form SB-2 filed with the SEC
                                                   on May 24, 2007, File No.
                                                   333-143236

   31.1      Section 302 Certification of Chief    Filed herewith
             Executive Officer

   31.2      Section 302 Certification of Chief    Filed herewith
             Financial Officer

   32        Section 906 Certification of Chief    Filed herewith
             Executive Officer and Chief
             Financial Officer

                                   SIGNATURES

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

Castillo, Inc. (Registrant)


/s/ Emilia Ochoa
-----------------------------------
Emilia Ochoa
President, Chief Executive Officer,
Chief Financial Officer, Principal
Accounting Officer and Director

Date: November 3, 2008

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