**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington
      D. C. 20549





**FORM
      10-QSB**





**QUARTERLY
      REPORT UNDER SECTION 13 or 15 (d)**


**OF
      THE SECURITIES EXCHANGE ACT OF 1934**





For
      the
      quarterly period ended June 30, 2007


*Commission
      file number 000-29461*





**Organetix,
      Inc.**


(Exact
      name of small business issuer as specified in its charter)




Delaware
              73-1556428(State
                  or other jurisdiction of
              (I.R.S.
                  Employerincorporation
                  or organization)
              Identification
                  No.)





c/o
      Sanders, Ortoli, Vaughn-Flam, Rosenstadt LLP


501
      Madison Avenue - 14 th Floor,
      New York, New York 10022


(Address
      of principal executive offices) (Zip Code)


Issuer's
      telephone number: (440) 759-7470


(Address
      of principal executive offices)


c/o
      Rubin, Bailin, Ortoli LLP


405
      Park
      Avenue - 15 th Floor,
      New York, NY 10022


(Former
      name, former address and former fiscal year, if changed since last
      report.)




Check
      whether the issuer (1) has filed all reports required to be filed by Section
      13
      or 15(d) of the Exchange Act during the past 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___




State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the latest practicable date.




The
      number of shares of the issuer’s outstanding common stock, which is the only
      class of its common equity, on June 30, 2007, was 81,349,080.




1





**ORGANETIX,
      INC.**


**A
      Development Stage Company**







**PAGE(S)****PART
              I FINANCIAL INFORMATION**Item 1.
            Financial
                Statements:Balance
                Sheets - June 30, 2007 and December 31, 2006
            F-1Statements
                of Operations - Three months ended June 30, 2007 and 2006, the six
                monthsended
                June 30, 2007 and 2006 and the Period from Inception (May 28, 2003)
                to
                June 30, 2007
            F-2Statements
                of Cash Flows - Six months ended June 30, 2007 and 2006 and
                thePeriod
                from Inception (May 28, 2003) to June 30, 2007
            F-3Notes
                to Interim Financial Statements
            F-4Item 2.
            Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations
            3Item 3.
            Controls
                and Procedures
            6**PART
              II OTHER INFORMATION**Signatures
            9Exhibits
            10





2


**PART
      1 - FINANCIAL INFORMATION**





**ITEM
      1 - FINANCIAL STATEMENTS**




ORGANETIX,
        INC.
 (A
        Development Stage Company)
  BALANCE
        SHEETS




June
                30,
            
            December
                31,2007
            
            2006(Unaudited)ASSETSCURRENT
                ASSETSCash
            
            $
            225,179
            
            $
            -Prepaid
                expenses
            
            
            75,148
            
            
            -Total
                Current Assets
            
            
            300,327
            
            
            -Total
                Assets
            
            $
            300,327
            
            $
            -LIABILITIES
                AND STOCKHOLDERS' EQUITYLIABILITIESAccrued
                expenses
            
            
            55,000
            
            
            -Total
                Liabilities
            
            
            55,000
            
            
            -STOCKHOLDERS'
                EQUITYCommon
                stock, par value $0.0001, authorized150,000,000
                shares, issued and outstanding81,349,080
                and 62,882,447 at June 30, 2007and
                December 31, 2006, respectively
            
            
            8,134
            
            
            6,288Additional
                paid in capital
            
            
            4,614,602
            
            
            4,012,449Deficit
                accumulated during the development stage
            
            
            (4,377,409
            )
            
            (4,018,737
            )Total
                Stockholders' Equity
            
            
            245,327
            
            
            -Total
                Liabilities and Stockholders' Equity
            
            
            300,327
            
            
            -


See
        accompanying notes to financial statements.
  F-1


ORGANETIX,
        INC.
 (A
        Development Stage Company)
  CONSOLIDATED
        STATEMENTS OF OPERATIONS (Unaudited)






For
                thePeriodFromThree
                Months Ended
            
            Six
                Months Ended
            
            May
                28, 2003June
                30,
            
            June
                30,
            
            (Inception
                ) to2007
            
            2006
            
            2007
            
            2006
            
            June
                30, 2007REVENUES
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -COSTS
                AND EXPENSESOperating
                expenses- research facility
            
            
            
            
            
            18,000
            
            
            -
            
            
            36,600
            
            
            247,659Research
                and development expenses
            
            
            9,999
            
            
            66,000
            
            
            213,999
            
            
            132,139
            
            
            1,478,155Consulting
                fees
            
            
            29,537
            
            
            45,000
            
            
            41,852
            
            
            90,000
            
            
            570,380Professional
                fees
            
            
            55,301
            
            
            18,916
            
            
            103,359
            
            
            30,296
            
            
            469,155Travel
                and accomodations
            
            
            -
            
            
            6,122
            
            
            -
            
            
            9,654
            
            
            130,364Telephone
            
            
            -
            
            
            576
            
            
            -
            
            
            2,828
            
            
            35,528Interest
                expense
            
            
            -
            
            
            1,627
            
            
            -
            
            
            9,157
            
            
            52,670Insurance
            
            
            -
            
            
            11,490
            
            
            -
            
            
            22,816
            
            
            104,188Rent
            
            
            -
            
            
            3,844
            
            
            -
            
            
            7,545
            
            
            42,410Shipping
                expense
            
            
            -
            
            
            326
            
            
            -
            
            
            1,112
            
            
            6,184Office
                and other expense
            
            
            20
            
            
            15,048
            
            
            20
            
            
            29,079
            
            
            167,795Marketing
                and public relations
            
            
            -
            
            
            250
            
            
            -
            
            
            676
            
            
            271,899Depreciation
                and amortization expense
            
            
            -
            
            
            16,187
            
            
            -
            
            
            32,375
            
            
            208,719Loss
                on disposition of assets
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            592,861Total
                Costs and Expenses
            
            
            94,857
            
            
            203,386
            
            
            359,230
            
            
            404,277
            
            
            4,377,967OTHER
                INCOMEInterest
                income
            
            
            -
            
            
            -
            
            
            558
            
            
            -
            
            
            558NET
                LOSS
            
            $
            (94,857
            )
            $
            (203,386
            )
            $
            (358,672
            )
            $
            (404,277
            )
            $
            (4,377,909
            )NET
                LOSS PER COMMONSHARE
                (Basic and Diluted)
            
            $
            (0.01
            )
            $
            (0.01
            )
            $
            (0.01
            )
            $
            (0.01
            )
            $
            (0.06
            )WEIGHTED
                AVERAGE SHARESOUTSTANDING
            
            
            73,993,369
            
            
            86,382,447
            
            
            71,679,389
            
            
            86,382,447
            
            
            78,776,915


See
        accompanying notes to financial statements.


F-2


ORGANETIX,
        INC.
 (A
        Development Stage Company)


CONSOLIDATED
        STATEMENTS OF CASH FLOWS (Unaudited)




For
                the PeriodFromFor
                the Six Months Ended
            
            May
                28, 2003June
                30,
            
            (Inception)
                to2007
            
            2006
            
            June
                30, 2007CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                loss
            
            $
            (358,672
            )
            $
            (404,277
            )
            $
            (4,377,409
            )Adjustments
                to reconcile net loss to net cashprovided
                by operating activitiesDepreciation
                and amortization
            
            
            -
            
            
            32,375
            
            
            208,719Loss
                on disposition of assets
            
            
            -
            
            
            -
            
            
            592,861Compensatory
                shares
            
            
            
            
            
            
            
            
            324,111Amortization
                of prepaid consulting
            
            
            14,852
            
            
            
            
            
            14,852Changes
                in assets and liabilities:Decrease
                in research and development suppliesIncrease
                in prepaid expenses
            
            
            (10,000
            )
            
            (24,555
            )
            
            (53,414
            )Increase
                in accounts payable
            
            
            55,000
            
            
            195,301
            
            
            409,156Increase
                in accrued salaries to officers
            
            
            
            
            
            150,000
            
            
            708,966Increase
                in due to shareholders
            
            
            
            
            
            42,793
            
            
            204,273Increase
                in accrued interest
            
            
            
            
            
            7,396
            
            
            28,239Net
                cash used in operating activities
            
            
            (298,820
            )
            
            (967
            )
            
            (1,939,646
            )CASH
                FLOWS FROM INVESTING ACTIVITIESPayment
                regarding license
            
            
            -
            
            
            -
            
            
            (150,000
            )Capital
                expenditures
            
            
            -
            
            
            -
            
            
            (30,000
            )Net
                cash used in investing activities
            
            
            -
            
            
            -
            
            
            (180,000
            )CASH
                FLOWS FROM FINANCING ACTIVITIESIssuance
                of common stock to founders
            
            
            
            
            
            
            
            
            65,760Issuance
                of common stock in private placement
            
            
            523,999
            
            
            
            
            
            523,999Additional
                contribution of capital
            
            
            
            
            
            
            
            
            1,288,866Issuance
                of note receivable
            
            
            (100,000
            )
            
            
            
            
            (100,000
            )Repayment
                of note receivable
            
            
            100,000
            
            
            
            
            
            100,000Cash
                received in merger
            
            
            
            
            
            
            
            
            300,000Convertible
                note payable
            
            
            
            
            
            
            
            
            150,000Note
                payable to individual
            
            
            
            
            
            
            
            
            16,200Net
                cash provided by financing activities
            
            
            523,999
            
            
            -
            
            
            2,344,825INCREASE
                (DECREASE) IN CASH
            
            
            225,179
            
            
            (967
            )
            
            225,179CASH
                AT BEGINNING OF PERIOD
            
            
            -
            
            
            3,279
            
            
            -CASH
                AT END OF PERIOD
            
            $
            225,179
            
            $
            2,312
            
            $
            225,179


See
        accompanying notes to financial statements.
  F-3


ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO
      FINANCIAL STATEMENTS (Unaudited)


JUNE
      30,
      2007








NOTE
      1 -
      DESCRIPTION OF COMPANY/OPERATIONS, GOING CONCERN AND CHANGE OF
      CONTROL





Organetix,
      Inc. ("the Company" or "Organetix"), a Delaware Corporation, was incorporated
      on
      May 28, 2003.





Organetix
      was a biotechnology company with an exclusive worldwide license for the formula
      of a proprietary medical discovery relating to the liver referred to as A4+L.





On
      November 7, 2003 (the "Effective Date"), pursuant to a Share Exchange Agreement
      ("Agreement") between Diamond International Group, Inc. ("Diamond"), a Delaware
      corporation and Organetix, Inc. ("Organetix"), a Delaware corporation and all
      of
      the shareholders of Organetix, Diamond acquired all of the shares of Organetix
      as consideration for the issuance of 64,000,000 restricted shares of Diamond
      to
      the Organetix shareholders. As a result of this Agreement, Diamond International
      Group, Inc. (the legal acquirer) received 100% of the issued and outstanding
      common stock of Organetix, Inc. in exchange for 64,000,000 shares of common
      stock of Diamond. Pursuant to the Agreement, Organetix became a wholly owned
      subsidiary of Diamond which entity filed a Certificate of Amendment with the
      State of Delaware changing its name to Organetix, Inc. This reverse merger
      transaction was treated retroactively as a recapitalization with Organetix,
      Inc.
      being treated as the acquirer for accounting purposes.





Previously,
      the Company devoted its time towards establishing its business and no revenues
      have been generated to date. As such, the Company is considered as being in
      the
      development stage, since its inception, in accordance with Statement of
      Financial Accounting Standards No. 7, and its year-end is December
      31.





Change
      in Control:





On
      August
      18, 2006, AMMA Corporation and other shareholders entered into a stock purchase
      agreement with Lusierna Asset Management, as agent for various purchasers
      ("Stock Purchase Agreement"), whereby AMMA Corporation shall sold 51,546,000
      shares of the Company's common stock. The closing of the Stock Purchase
      Agreement resulted in a change of control. As consideration for the shares
      and
      the assumption of all liabilities of the Company, AMMA Corporation received
      (i)
      cash and (ii) an assignment of certain assets of the Company. The Company did
      not receive any sales proceeds or other consideration in connection with this
      transaction. As a result of this change of control, the Company cancelled
      23,500,040 shares of its common stock. The Company also released or paid in
      cash
      its outstanding liabilities in exchange for the rights to the Company’s
      licensing agreement. Accordingly, a $592,861 loss was recorded on the
      disposition of these assets and liabilities.





Change
      in Management





On
      May
      30, 2007, the Board of Directors appointed Seth Shaw as Interim President and
      Chief Executive Officer.





Going
      Concern:





As
      shown
      in the accompanying financial statements, the Company has incurred net losses
      of
      $4,377,409 since inception. Management's plans include raising of capital
      through the equity markets to fund operations, and the generating of revenue
      through its business. Failure to raise adequate capital and generate adequate
      sales revenues could result in the Company having to curtail or cease
      operations. Additionally, even if the Company does raise sufficient capital
      to
      support its operating expenses and generate adequate revenues, there can be
      no
      assurances that the revenue will be sufficient to enable it to develop to a
      level where it will generate profits and cash flows from operations. These
      matters raise substantial doubt about the Company's ability to




F-4




ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO
      FINANCIAL STATEMENTS (Unaudited)


JUNE
      30,
      2007








NOTE
      1 -
      DESCRIPTION OF COMPANY/OPERATIONS, GOING CONCERN AND CHANGE OF CONTROL
      (CONTINUED)





continue
      as a going concern. However, the accompanying financial statements have been
      prepared on a going concern basis, which contemplates the realization of assets
      and satisfaction of liabilities in the normal course of business. These
      financial statements do not include any adjustments relating to the recovery
      of
      the recorded assets or the classifications of the liabilities that might be
      necessary should the Company be unable to continue as a going
      concern.





NOTE
      2 -
      SHAREHOLDERS' EQUITY:





During
      the six months ended June 30, 2007, the Company sold 17,466,630 shares of its
      common stock at $0.03 in a private placement and received proceeds of $523,999.





On
      February 15, 2007, the Company entered into non-exclusive agreements with Mr.
      David Lewis and Mr. Aaron Foley to serve on the Corporation’s Board of Advisors.
      Messrs. Lewis and Foley shall serve as Advisors until the earlier of February
      15, 2009 or the date that any Advisor is removed from the Board. As compensation
      for participation on the Board of Advisors, Messrs. Lewis and Foley each
      received 500,000 shares of the Corporation’s common stock. Such shares were
      recorded at their fair value of $0.08 per share and are being amortized over
      the
      life of the agreements.





NOTE
      3 -
      LOAN TO UNIPIXEL





In
      January of 2007, the Company loaned $100,000 to Unipixel. This loan plus accrued
      interest was repaid on February 15, 2007.





NOTE
      4-
      AGREEMENT WITH VOLIUS, INC.





On
      September 26, 2006, the Company entered into a letter of intent with Volius,
      Inc. ("Volius") to acquire all of Volius' assets in exchange for 50.5% of the
      company's shares of common stock or approximately 63,511,270 shares.
      Contemporaneous with the effectiveness of the merger, the Company was required
      to raise between $4 and $6 million dollars to fund the operations of the newly
      merged company on mutually agreeable terms.





On
      January 18, 2007, the Company terminated its Letter of Intent to merge with
      Volius because the Company and Volius could not agree on the amount of capital
      to be raised, the valuation of Volius, and the timing of the ultimate
      transaction.





NOTE
      5-
      AGREEMENT WITH ADAO TELECOM, INC. (“ADAO”)





On
      January 24, 2007, Organetix executed a definitive agreement to acquire
      ADAO.  ADAO is a telephony engineering and design firm specializing in the
      development of cellular technologies that target the low-end user market
      segment.  Under the terms of the agreement, the Company was required to
      invest an aggregate of $300,000 in ADAO prior to the closing, which was to
      be
      used specifically to develop a prototype to be owned by the Company. Upon
      successful completion of the prototype and other conditions in the proposed
      exchange transaction, at Closing, the Company would issue 73,500,000 ($.0001
      par
      value per share) restricted shares of common stock of the Company equal to
      53.5%
      of the outstanding shares of common stock to the shareholders of ADAO.




F-5




ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO
      FINANCIAL STATEMENTS (Unaudited)


JUNE
      30,
      2007








NOTE
      5-
      AGREEMENT WITH ADAO TELECOM, INC. (CONTINUED)





During
      the six months ended June 30, 2007, the Company transferred $213,999 to ADAO
      as
      part of the agreement. This payment is included with Research and Development
      Expenses in the Consolidated Statement of Operations.





On
      July
      3, 2007, the Company and ADAO terminated the Exchange Agreement and executed
      a
      Mutual Termination Agreement. As part of such termination, the Company received
      a 7.5% convertible promissory note for $279,000 with interest accruing beginning
      on August 1, 2007. In the event ADAO is unable to pay back any principal and
      interest pursuant to the terms of the Note within 12 months, the Note will
      convert into 12.5% of the outstanding shares of Common Stock of ADAO. The
      Company and ADAO mutually agreed to terminate the ADAO Exchange Agreement
      because of the difficulty in agreeing on the amount of capital to be raised,
      the
      valuation of ADAO and the timing of the ultimate transaction.





NOTE
      6-
      SUBSEQUENT EVENTS





On
      July
      26, 2007, the Company appointed Edward Caravalho as Interim Chief Financial
      Officer.





In
      July
      and August of 2007, the Company sold 5,446,666 shares in a private placement
      at
      $0.06 per share for proceeds of $328,000.





On
      July
      6, 2007, the Company authorized and issued 500,000 shares of common stock at
      $0.11 per share for payment of professional fees.





On
      August
      13, 2007, the Company entered into a Definitive Exchange Agreement with
      KidFitness, Inc. (“KidFitness”) to acquire all of KidFitness’s shares in
      exchange for 64% of the Company’s shares of common stock prior to the Financing
      as defined below (“Exchange”). Upon completion of the Exchange, KidFitness will
      be a wholly-owned subsidiary of the Company and will be the Company’s sole
      business focus.





In
      addition to the satisfaction of customary due diligence review and necessary
      shareholder consents, the following specific conditions must be met at or prior
      to the closing of the Exchange:





|· | The
              Company’s articles of incorporation must be amended to (i) increase the
              number of authorized shares of common stock from 150,000,000 to
              500,000,000 and (ii) change the name of the Company to “KidFitness, Inc.”
              or another name mutually acceptable to Organetix and
              KidFitness.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|· | The
              Company and KidFitness must agree on the final terms and documentation
              related to a financing of $7,000,000 to $12,000,000 through the sale
              of
              the Company’s common stock in a private placement (“Financing”) and the
              Financing minimum must close contemporaneous with the closing of the
              Exchange. The proceeds of the Financing will be used for the operation
              and
              continued growth of the combined company as well as to pay off existing
              debts of KidFitness.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|· | Messrs.
              Paul Neville and Anthony Barrasso must be appointed to the Board of
              Directors of the Company.
|- | ---------------------------------------------------------------------------------------------------------------------------------




|· | The
              Company must enter into employment contracts with KidFitness management,
              the terms of which shall be mutually acceptable to all
              parties.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




F-6


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





**CAUTIONARY
      STATEMENT REGARDING FORWARD LOOKING STATEMENTS**


****


It
      should
      be noted that this Management's Discussion and Analysis of Financial Condition
      and Results of Operations may contain "forward-looking statements." The terms
      "believe," "anticipate," "intend," "goal," "expect," and similar expressions
      may
      identify forward-looking statements. These forward-looking statements represent
      the Company's current expectations or beliefs concerning future events. The
      matters covered by these statements are subject to certain risks and
      uncertainties that could cause actual results to differ materially from those
      set forth in the forward-looking statements, including the Company's dependence
      on weather-related factors, introduction and customer acceptance of new
      products, the impact of competition and price erosion, as well as supply and
      manufacturing restraints and other risks and uncertainties. The foregoing list
      should not be construed as exhaustive, and the Company disclaims any obligation
      subsequently to revise any forward-looking statements to reflect events or
      circumstances after the date of such statements, or to reflect the occurrence
      of
      anticipated or unanticipated events. In light of the significant uncertainties
      inherent in the forward-looking information included herein, the inclusion
      of
      such information should not be regarded as a representation that the strategy,
      objectives or other plans of the Company will be achieved. The Company wishes
      to
      caution readers not to place undue reliance on any such forward-looking
      statements, which speak only as of the date made.





On
      January 24, 2007, Organetix executed a definitive agreement to acquire
      ADAO.  ADAO is a telephony engineering and design firm specializing in the
      development of cellular technologies that target the low-end user market
      segment.  The transaction is expected to close in the 2 nd calendar
      quarter of 2007 (“Closing”). Under the terms of the agreement, the Company is
      required to invest an aggregate of $300,000 in ADAO prior to the closing, which
      shall be used specifically to develop a prototype to be owned by the Company.
      Upon successful completion of the prototype and other conditions in the proposed
      exchange transaction, at Closing, the Company will issue 73,500,000 ($.0001
      par
      value per share) restricted shares of common stock of the Company equal to
      53.5%
      of the outstanding shares of common stock to the shareholders of ADAO. As
      further consideration, the Company has agreed that, subsequent to Closing,
      it
      will increase its authorized number of shares of common stock from
      150,000,000 to 300,000,000 and change its name to ADAO Wireless, Inc. ADAO
      will then receive an additional 17,000,000 shares of the Company’s common stock.





In
      January of 2007, the Company loaned $100,000 to Unipixel. This loan plus accrued
      interest was repaid on February 15, 2007.




On
      February 15, 2007, Organetix entered into non-exclusive agreements with
      Ambassador Thomas Graham, Jr., Mr. David Lewis and Mr. Aaron Foley to serve
      on
      the Co mpany’s
      Board of Advisors. However, subsequent to that date, Ambassador Graham and
      the
      Company mutually agreed to terminate that agreement and as a result, Ambassador
      Graham is not a member of the Company’s Board of Advisors. Thus, the Company’s
      Board of Advisors consists of Messrs. Lewis and Foley and each shall serve
      until
      the earlier of February 15, 2009 or the date that either Advisor is removed
      from
      the Board. As compensation for participation on the Board of Advisors, each
      member received 500,000 shares of the Company’s common stock.




During
      the three months ended June 30, 2007, the Company transferred $204,000 to ADAO
      as part of the agreement. This payment is included with Research and Development
      Expenses on the Consolidated Statement of Operations.





On
      May
      30, 2007, the board of directors of the Company appointed Seth Shaw as Interim
      President and Chief Executive Officer effective immediately.  Mr. Shaw's
      duties and responsibilities as Interim President and Chief Executive Officer
      will be those that are customary to the office.





During
      the six months ended June 30, 2007, the Company transferred $213,999 to ADAO
      as
      part of the agreement. This payment is included with Research and Development
      Expenses in the Consolidated Statement of Operations.





On
      July
      3, 2007, Organetix and ADAO terminated the Exchange Agreement dated January
      26,
      2007 to which both Organetix and ADAO were parties. Evidencing the terms of
      such
      termination, Organetix and ADAO executed a Mutual Termination Agreement. As
      part
      of such termination, Organetix agreed to reclassify its $279,000 investment
      in
      ADAO as a loan in the form of a convertible promissory note at 7.5% interest
      which begins to accrue on August 1, 2007. In the event ADAO is unable to pay
      back any principal and interest pursuant to the terms of the Note within 12
      months, the Note will convert into 12.5% of the outstanding shares of Common
      Stock of ADAO. Organetix and ADAO mutually agreed to terminate the ADAO Exchange
      Agreement because of the difficulty, if not impossibility, in agreeing on the
      amount of capital to be raised, the valuation of ADAO and the timing of the
      ultimate transaction.





3


On
      June
      25, 2007 it completed the sale of 16,966,667 shares of its common stock at
      a
      price of $0.03 per share to 22 shareholders of Organetix for an aggregate of
      $509,000 (“Private Placement”). The Private Placement was exempt from
      registration pursuant to Rule 506 of Regulation D of the Securities Act of
      1933,
      as amended. There was no underwriter to the Private Placement and no commissions
      were paid to any party. The proceeds of the Private Placement shall be used
      for
      general corporate purposes.





***Subsequent
      Events***





On
      July
      26, 2007, the Company appointed Edward Caravalho as Interim Chief Financial
      Officer.





In
      July
      and August of 2007, the Company sold 5,446,666 shares in a private placement
      at
      $0.06 per share for proceeds of $328,000.





On
      July
      6, 2007, the Company authorized and issued 500,000 shares of common stock at
      $0.11 per share for payment of professional fees.





On
      August
      13, 2007, the Company entered into a Definitive Exchange Agreement with
      KidFitness, Inc. (“KidFitness”) to acquire all of KidFitness’s shares in
      exchange for 64% of the Company’s shares of common stock prior to the Financing
      as defined below (“Exchange”). Upon completion of the Exchange, KidFitness will
      be a wholly-owned subsidiary of the Company and will be the Company’s sole
      business focus.





In
      addition to the satisfaction of customary due diligence review and necessary
      shareholder consents, the following specific conditions must be met at or prior
      to the closing of the Exchange:





|· | The
              Company’s articles of incorporation must be amended to (i) increase the
              number of authorized shares of common stock from 150,000,000 to
              500,000,000 and (ii) change the name of the Company to “KidFitness, Inc.”
              or another name mutually acceptable to Organetix and
              KidFitness.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|· | The
              Company and KidFitness must agree on the final terms and documentation
              related to a financing of $7,000,000 to $12,000,000 through the sale
              of
              the Company’s common stock in a private placement (“Financing”) and the
              Financing minimum must close contemporaneous with the closing of the
              Exchange. The proceeds of the Financing will be used for the operation
              and
              continued growth of the combined company as well as to pay off existing
              debts of KidFitness.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|· | Messrs.
              Paul Neville and Anthony Barrasso must be appointed to the Board of
              Directors of the Company.
|- | ---------------------------------------------------------------------------------------------------------------------------------




|· | The
              Company must enter into employment contracts with KidFitness management,
              the terms of which shall be mutually acceptable to all
              parties.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




**RESULTS
      OF OPERATIONS**





Operating
      costs for the period from inception to June 30, 2007 aggregated $4,377,967.
      This
      includes costs incurred in research and development of $1,478,155, consulting
      fees of $570,380 and professional fees of $469,155. As a result of the above
      we
      realized a net loss of $4,377,909 for the period from inception to June 30,
      2007.





Operating
      costs for the three-month period ended June 30, 2006 aggregated $203,386. This
      includes research and development expenses of $66,000, consulting fees of
      $45,000 and professional fees of $18,916. As a result of the above we realized
      a
      net loss of $(203,386) for the three-month period ended June 30,
      2006.





4


Operating
      costs for the three-month period ended June 30, 2007 aggregated $94,857. This
      includes research and development expenses of $9,999, professional fees of
      $55,301 and consulting fees of $29,537. As a result of the above we realized
      a
      net loss of $(94,857) for the three-month period ended June 30, 2007.





For
      the
      period from inception (May 28, 2003) to June 30, 2007, net cash used to fund
      operating activities totaled $(1,939,646), net cash used in investing activities
      totaled $(180,000) and net cash provided by financing activities totaled
      $2,344,825.





For
      the
      three month period ended June 30, 2006, net cash used to fund operating
      activities totaled $(967). During this period, no net cash was used in investing
      activities and no net cash was provided by financing activities.





For
      the
      three month period ended June 30, 2007, net cash used to fund operating
      activities totaled $(298,820) and net cash provided by financing activities
      totaled $523,999. During this period, no net cash was used in investing
      activities. As of June 30, 2007, there was $225,179 on hand.





**FUND
      RAISING ACTIVITIES**


Commencing
      January 11, 2007, the Company began selling shares of its common stock for
      $0.03
      per share. To date, the Company has sold 11,133,333 shares for a total of
      $334,000. The Company plans on raising an additional $75,000, the terms of
      which
      have yet to be determined.





In
      July
      and August of 2007, the Company sold 5,446,666 shares in a private placement
      at
      $0.06 per share for proceeds of $328,000.





**HISTORY**


Prior
      to
      November 7, 2003, Organetix, Inc. (the “Company”) was in the direct mail
      business and was named Diamond International Group, Inc. However, on such date,
      pursuant to a share exchange agreement among Diamond, Organetix, Inc. and all
      of
      the shareholders of Organetix (“Exchange Agreement"), Diamond acquired all of
      the shares of Organetix, Inc. from its shareholders in consideration for the
      issuance of 64,000,000 restricted shares of Diamond to the Organetix, Inc.
      shareholders (this transaction is referred to herein as the “Exchange”).
      Pursuant to the Exchange Agreement: (i) Organetix, Inc. became a wholly-owned
      subsidiary of Diamond; (ii) and Diamond divested itself of all of its
      pre-Exchange assets to the pre-Exchange shareholders; (iii) Diamond changed
      its
      name to Organetix, Inc.; (iv) Diamond changed its symbol to “OGTX.OB”; and (v)
      Sylvio Martini resigned as the sole director and officer of the Company and
      L.B.
      (Brad) Clarke was appointed to the Board of Directors and named as President,
      President and Chief Financial Officer of Diamond. On August 16, 2006, Mr. Clarke
      appointed David F. Hostelley to the Board and subsequently resigned from all
      officer and director positions. The present company shall sometimes be referred
      to as Organetix or the Company.





**LEGAL
      PROCEEDINGS**


The
      Company is not a party to any material pending legal proceedings or government
      actions, including any bankruptcy, receivership, or similar proceedings.
      Management of the Company does not believe that there are any proceedings to
      which any director, officer, or affiliate of the Company, any owner of record
      of
      the beneficially or more than five percent of the common stock of the Company,
      or any associate of any such director, officer, affiliate of the Company, or
      security holder is a party adverse to the Company or has a material interest
      adverse to the Company.





**CRITICAL
      ACCOUNTING POLICIES AND ESTIMATES**


The
      Company’s discussion and analysis of its financial condition and results of
      operations are based upon its financial statements, which have been prepared
      in
      accordance with accounting principles generally accepted in the United States.
      The preparation of these financial statements requires the Company to make
      estimates and judgments that affect the reported amounts of assets, liabilities,
      revenues and expenses, and related disclosure of contingent assets and
      liabilities. On an on-going basis, the Company evaluates its estimates,
      including those related to bad debts, income taxes and contingencies and
      litigation. The Company bases its estimates on historical experience and on
      various other assumptions that are believed to be reasonable under the
      circumstances, the results of which form the basis for making judgments about
      carrying values of assets and liabilities that are not readily apparent from
      other sources. Actual results may differ from these estimates under different
      assumptions or conditions.




5





***RECENT
      ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY***


In
      June 2006, the Financial Accounting Standards Board (“FASB”) issued
      Interpretation 48, “Accounting for Income
      Tax Uncertainties” (“FIN 48”). FIN 48 defines the threshold for recognizing the
      benefits of tax return positions in the financial statements as
“more-likely-than-not” to be sustained by the taxing authority. Recently issued
      literature also provides guidance on the derecognition, measurement and
      classification of income tax uncertainties, along with any related interest
      and
      penalties. FIN 48 also includes guidance concerning accounting for income tax
      uncertainties in interim periods and increases the level of disclosures
      associated with any recorded income tax uncertainties. FIN 48 is effective
      for
      fiscal years beginning after December 15, 2006. The Company expects to
      adopt the provisions of FIN 48 beginning in the first quarter of 2007. The
      Company is currently in the process of determining the impact, if any, of
      adopting the provisions of FIN 48 on its financial position, results of
      operations and liquidity.




In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements,” which
      defines fair value, establishes a framework for measuring fair value under
      other
      accounting pronouncements that permit or require fair value measurements,
      changes the methods used to measure fair value and expands disclosures about
      fair value measurements. In particular, disclosures are required to provide
      information on the extent to which fair value is used to measure assets and
      liabilities; the inputs used to develop measurements; and the effect of certain
      of the measurements on earnings (or changes in net assets). SFAS No. 157 is
      effective for fiscal years beginning after November 15, 2007 and interim periods
      within those fiscal years. Early adoption, as of the beginning of an entity’s
      fiscal year, is also permitted, provided interim financial statements have
      not
      yet been issued. The Company expects to adopt the provisions of FIN 48 beginning
      in the first quarter of 2008. The Company is currently evaluating the potential
      impact, if any, that the adoption of SFAS No. 157 will have on its consolidated
      financial statements.





In
      September 2006, the Securities and Exchange Commission issued Staff Accounting
      Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when
      Quantifying Misstatements in Current Year Financial Statements” (“SAB No. 108”).
      SAB No. 108 provides guidance on how prior year misstatements should be
      considered when quantifying misstatements in the current year financial
      statements. SAB No. 108 requires registrants to quantify misstatements using
      both a balance sheet and an income statement approach and evaluate whether
      either approach results in quantifying a misstatement that, when all relevant
      quantitative and qualitative factors are considered, is material. SAB No. 108
      does not change the guidance in SAB No. 99, “Materiality,” when evaluating the
      materiality of misstatements.





SAB
      No.
      108 is effective for fiscal years ending after November 15, 2006. Upon initial
      application, SAB No. 108 permits a one-time cumulative effect adjustment to
      beginning retained earnings. The Company adopted SAB No. 108 for the fiscal
      year
      ended December 31, 2006. Adoption of SAB No. 108 did not have a material impact
      on the consolidated financial statements.





In
      February 2007, the FASB issued SFAS No. 159, *The
      Fair Value Option for Financial Assets and Financial Liabilities* (“SFAS 159”).
      SFAS 159 allows entities to measure at fair value many financial
      instruments and certain other assets and liabilities that are not otherwise
      required to be measured at fair value. SFAS 159 is effective for fiscal
      years beginning after November 15, 2007. We have not determined what
      impact, if any, that adoption will have on our results of operations, cash
      flows
      or financial position.





**ITEM
      3 - CONTROLS AND PROCEDURES**




**Evaluation
      of Disclosure Controls and Procedures** .


As
      of
      June 30, 2007, the Company’s management carried out an evaluation, under the
      supervision of the Company’s President and the Chief Financial Officer of the
      effectiveness of the design and operation of the Company’s system of disclosure
      controls and procedures pursuant to the Securities and Exchange Act , Rule
      13a-15(e) and 15d-15(e) under the Exchange Act.  Based upon that
      evaluation, the President and Chief Financial Officer concluded that the
      Company’s disclosure controls and procedures were effective, as of the date of
      their evaluation, for the purposes of recording, processing, summarizing and
      timely reporting material information required to be disclosed in reports filed
      by the Company under the Securities Exchange Act of 1934.





**Changes
      in internal controls** .


There
      were no changes in internal controls over financial reporting, known to the
      President or Chief Financial Officer that occurred during the period covered
      by
      this report that has materially affected, or is likely to materially effect,
      the
      Company’s internal control over financial reporting.





6




**PART
      II**




**Item
      1. Legal Proceedings**


None





**Item
      2. Changes in Securities**


None





**Item
      3. Defaults Upon Senior Securities**


None





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


None





**Item
      5. Other Information**


None





**Item
      6. Exhibits**




On
      June
      11, 2007, the Company filed Form 8-K to announce that on May 30, 2007, the
      board
      of directors of the Company appointed Seth Shaw as Interim President and Chief
      Executive Officer effective immediately.  Mr. Shaw's duties and
      responsibilities as Interim President and Chief Executive Officer will be those
      that are customary to the office.





On
      July
      11, 2007, the Company filed Form 8-K to announce that on July 3, 2007, Organetix
      and ADAO Telecom, Inc. (“ADAO”) terminated the Exchange Agreement dated January
      26, 2007 to which both Organetix and ADAO were parties (“ADAO Exchange
      Agreement”). Evidencing the terms of such termination, Organetix and ADAO
      executed a Mutual Termination Agreement. As part of such termination, Organetix
      agreed to reclassify its $279,000 investment in ADAO as a loan in the form
      of a
      convertible promissory note at 7.5% interest which begins to accrue on August
      1,
      2007. In the event ADAO is unable to pay back any principal and interest
      pursuant to the terms of the Note within 12 months, the Note will convert into
      12.5% of the outstanding shares of Common Stock of ADAO. Organetix and ADAO
      mutually agreed to terminate the ADAO Exchange Agreement because of the
      difficulty, if not impossibility, in agreeing on the amount of capital to be
      raised, the valuation of ADAO and the timing of the ultimate
      transaction.





Also
      on
      July 11, 2007, the Company reported that on June 25, 2007 it completed the
      sale
      of 16,966,667 shares of its common stock at a price of $0.03 per share to 22
      shareholders of Organetix for an aggregate of $509,000 (“Private Placement”).
      The Private Placement was exempt from registration pursuant to Rule 506 of
      Regulation D of the Securities Act of 1933, as amended. There was no underwriter
      to the Private Placement and no commissions were paid to any party. The proceeds
      of the Private Placement shall be used for general corporate purposes.





On
      July
      27, 2007, the Company reported that on July 26, 2007, the board of directors
      of
      the Company appointed Mr. Edward M. Caravalho, CPA as Interim Chief Financial
      Officer ("CFO") effective immediately. Mr. Caravalho's duties and
      responsibilities as Interim Chief Financial Officer will be those that are
      customary to the office.





On
      August
      17, 2007, the Company reported that on August 13, 2007, it entered into a
      Definitive Exchange Agreement with KidFitness, Inc. (“KidFitness”) to acquire
      all of KidFitness’s shares in exchange for 64% of the Company’s shares of common
      stock prior to the Financing as defined below (“Exchange”). Upon completion of
      the Exchange, KidFitness will be a wholly-owned subsidiary of the Company and
      will be the Company’s sole business focus.





7





Exhibit
      31.1 Certification of President


Exhibit
      31.2 Certification of Principal Financial Officer


Exhibit
      32.1 Certification of President


Exhibit
      32.2 Certification of Principal Financial Officer


Exhibit
      99.1 8-K announcing the Appointment of Seth Shaw as Interim President and Chief
      Executive Officer filed on June 11, 2007*


Exhibit
      99.2 8-K announcing the Termination of the ADAO Exchange Agreement filed on
      July
      11, 2007*


Exhibit
      99.3 8-K announcing the Appointment of Edward M. Caravalho as the Company’s
      Interim Chief Financial Officer filed on July 27, 2007*


Exhibit
      99.4 8-K announcing the Definitive Exchange Agreement with KidFitness filed
      on
      August 17, 2007*





*Previously
      filed and incorporated by reference into this Item 6.






**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly authorized.







**ORGANETIX,
      INC.**




/s/
      Seth
      Shaw


Name:
      Seth Shaw


Title:
      President


Date:
      August 20, 2007





8