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 September 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 - 14th
      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)





(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___




The
      number of shares of the issuer’s outstanding common stock, which is the only
      class of its common equity, on November 14, 2007, was 95,165,747.





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


Transitional
      Small Business Disclosure Format: Yes x   No
o





1





ORGANETIX,
      INC.


A
      Development Stage Company







PAGEPART
                I FINANCIAL INFORMATIONItem
                1.
            Financial
                Statements:Balance
                Sheets – September 30, 2007 (Unaudited) and December 31,
                2006
            3Statements
                of Operations - Three months ended September 30, 2007 and 2006
                (Unaudited), the nine months ended September 30, 2007 and 2006 (Unaudited)
                and the Period from May 28, 2003 (Inception) to September 30, 2007
                (Unaudited)
            4Statements
                of Cash Flows - Nine months ended September 30, 2007 and 2006 (Unaudited)
                and the Period from May 28, 2003 (Inception) to September 30, 2007
                (Unaudited)
            5Notes
                to Interim Financial Statements (Unaudited)
            7Item
                2.
            Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations
            11Item
                3.
            Controls
                and Procedures
            14PART
                II OTHER INFORMATION
            14Item
                1.
            Legal
                ProceedingsItem
                2.
            Unregistered
                Sales of Equity Securities and Use of ProceedsItem
                3.
            Defaults
                Upon Senior SecuritiesItem
                4.
            Submission
                of Matters to a Vote of Security HoldersItem
                5.
            Other
                InformationItem
                6.
            Signatures
            15


2


ORGANETIX,
      INC.


(A
      Development Stage Company)





BALANCE
                SHEETSSeptember
                30,
            
            
            December
                31,2007
            
            
            2006(Unaudited)ASSETSCURRENT
                ASSETSCash
            
            $
            25,161
            
            
            $Prepaid
                expenses
            
            
            72,611Total
                Current Assets
            
            $
            97,772Total
                Assets
            
            $
            97,772
            
            
            $LIABILITIES
                AND STOCKHOLDERS’ EQUITYLIABILITIESAccrued
                expenses
            
            $
            36,800
            
            
            $Total
                Liabilities
            
            
            36,800STOCKHOLDERS’
                EQUITYCommon
                stock, par value $0.0001, authorized150,000,000
                shares, issued and outstanding90,932,411
                and 62,882,447 at September 30, 2007and
                December 31, 2006, respectively
            
            
            9,093
            
            
            $
            6,288Additional
                paid in capital
            
            
            5,386,893
            
            
            
            4,012,449Deficit
                accumulated during the developmental stage
            
            
            (5,335,014
            )
            
            
            (4,018,737
            )Total
                Stockholders’ Equity
            
            
            60,972Total
                Liabilities and Stockholders’ Equity
            
            $
            97,772
            
            
            $



























































See
      accompanying notes to financial statements.


3


ORGANETIX,
      INC.


(A
      Development Stage Company)




STATEMENTS
                OF OPERATIONS (Unaudited)For
                the PeriodThree
                Months Ended
            
            
            Nine
                Months Ended
            
            
            From
                May 28, 2003September
                30,
            
            
            September
                30,
            
            
            (Inception)
                to2007
            
            
            2006
            
            
            2007
            
            
            2006
            
            
            September
                30, 2007COSTS
                AND EXPENSESOfficers’
                compensation
            
            $
            336,250
            
            
            
            
            
            $
            336,250
            
            
            
            
            
            $
            336,250Operating
                expenses-research facility
            
            
            
            
            
            
            
            
            
            
            
            
            $
            36,600
            
            
            
            247,659Research
                and development expenses
            
            
            84,999
            
            
            $
            15,000
            
            
            
            298,998
            
            
            
            147,139
            
            
            
            1,563,154Consulting
                fees
            
            
            76,037
            
            
            
            60,000
            
            
            
            117,889
            
            
            
            150,000
            
            
            
            646,417Professional
                fees
            
            
            111,662
            
            
            
            25,000
            
            
            
            215,021
            
            
            
            55,296
            
            
            
            580,817Commissions
            
            
            20,000
            
            
            
            
            
            
            
            20,000
            
            
            
            
            
            
            
            20,000Filing
                fees
            
            
            2,000
            
            
            
            
            
            
            
            2,000
            
            
            
            
            
            
            
            2,000Investor
                relations
            
            
            30,000
            
            
            
            
            
            
            
            30,000
            
            
            
            
            
            
            
            30,000Lock-up
                fee
            
            
            25,000
            
            
            
            
            
            
            
            25,000
            
            
            
            
            
            
            
            25,000Website
                expense
            
            
            14,200
            
            
            
            
            
            
            
            14,200
            
            
            
            
            
            
            
            14,200State
                political contribution
            
            
            10,000
            
            
            
            
            
            
            
            10,000
            
            
            
            
            
            
            
            10,000Travel
                and accommodations
            
            
            34,158
            
            
            
            
            
            
            
            34,158
            
            
            
            9,654
            
            
            
            164,522Telephone
            
            
            400
            
            
            
            228
            
            
            
            400
            
            
            
            3,056
            
            
            
            35,928Interest
                expense
            
            
            
            
            
            
            5,123
            
            
            
            
            
            
            
            14,280
            
            
            
            52,670Insurance
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            22,816
            
            
            
            104,188Rent
            
            
            
            
            
            
            1,800
            
            
            
            
            
            
            
            9,345
            
            
            
            42,410Shipping
                expense
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            1,112
            
            
            
            6,184Office
                and other expense
            
            
            59,956
            
            
            
            1,986
            
            
            
            59,976
            
            
            
            31,065
            
            
            
            227,751Marketing
                and public relations
            
            
            152,943
            
            
            
            8,094
            
            
            
            152,943
            
            
            
            676
            
            
            
            424,842Depreciation
                and amortization expense
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            40,469
            
            
            
            208,719Loss
                on disposition of assets
            
            
            
            
            
            
            592,861
            
            
            
            
            
            
            
            592,861
            
            
            
            592,861Total
                Costs and Expenses
            
            
            957,605
            
            
            
            710,092
            
            
            
            1,316,835
            
            
            
            1,114,369
            
            
            
            5,335,572OTHER
                INCOMEInterest
                income
            
            
            
            
            
            
            
            
            
            
            558
            
            
            
            
            
            
            
            558NET
                LOSS
            
            $
            (957,605
            )
            
            $
            (710,092
            )
            
            $
            (1,316,277
            )
            
            $
            (1,114,369
            )
            
            $
            (5,335,014
            )NET
                LOSS PER COMMON SHARE(Basic
                and Diluted)
            
            $
            (0.01
            )
            
            $
            (0.01
            )
            
            $
            (0.02
            )
            
            $
            (0.01
            )
            
            $
            (0.07
            )WEIGHTED
                AVERAGE SHARESOUTSTANDING
            
            
            90,932,412
            
            
            
            76,311,018
            
            
            
            78,161,784
            
            
            
            83,012,962
            
            
            
            79,377,864




See
      accompanying notes to financial statements.


4


ORGANETIX,
      INC.


(A
      Development Stage Company)





STATEMENTS
                OF CASH FLOWS (Unaudited)For
                the PeriodNine
                Months Ended
            
            
            From
                May 28, 2003September
                30,
            
            
            (Inception)
                to2007
            
            
            2006
            
            
            September
                30, 2007CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                loss
            
            $
            (1,316,277
            )
            
            $
            (1,114,369
            )
            
            $
            (5,335,014
            )Adjustments
                to reconcile net loss to net cashprovided
                by operating activities:Depreciation
                and amortization
            
            
            
            
            
            
            32,375
            
            
            
            208,719Loss
                on disposition of assets
            
            
            
            
            
            
            682,878
            
            
            
            592,861Stock
                based compensation
            
            
            338,250
            
            
            
            
            
            
            
            338,250Compensatory
                shares
            
            
            
            
            
            
            
            
            
            
            324,111Amortization
                of prepaid consulting
            
            
            24,889
            
            
            
            
            
            
            
            24,889Changes
                in assets and liabilities:Increase
                in prepaid expenses
            
            
            (17,500
            )
            
            
            (24,555
            )
            
            
            (60,914
            )Increase
                in accounts payable
            
            
            91,800
            
            
            
            195,203
            
            
            
            445,956Increase
                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
            
            
            (878,838
            )
            
            
            (28,279
            )
            
            
            (2,519,664
            )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
            
            
            903,999
            
            
            
            
            
            
            
            903,999Additional
                contribution of capital
            
            
            
            
            
            
            25,000
            
            
            
            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
            
            
            903,999
            
            
            
            25,000
            
            
            
            2,724,825INCREASE
                (DECREASE IN) CASH
            
            
            25,161
            
            
            
            (3,279
            )
            
            
            25,161CASH
                AT BEGINNING OF PERIOD
            
            
            
            
            
            
            3,279CASH
                AT END OF PERIOD
            
            $
            25,161
            
            
            $
            
            
            
            $
            25,161





5


ORGANETIX,
      INC.


(A
      Development Stage Company)





STATEMENTS
                OF CASH FLOWS (CONTINUED) (Unaudited)For
                the PeriodNine
                Months Ended
            From
                May 28, 2003September
                30,
            (Inception)
                to2007
            2006
            September
                30, 2007SUPPLEMENTAL
                DISCLOSURES OF CASH FLOWINFORMATIONNON-CASH
                FINANCING ACTIVITIESCancellation
                of common stock
            
            
            2,350Issuance
                of common stock to settle liabilities
            55,000
            
            55,000


































See
      accompanying notes to financial statements.




6


ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO FINANCIAL STATEMENTS (Unaudited)


SEPTEMBER
      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, 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 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.





On
      July 1, 2007, the Company appointed Edward Caravalho as Interim Chief Financial
      Officer. The consulting agreement is effective thru December 31, 2007 and renews
      automatically for three month intervals unless terminated by either
      party.  The agreement calls for the issuance of 1,600,000 shares upon
      inception and 250,000 shares per month over the life of the agreement.
      Subsequently, Mr. Caravalho and the Company have agreed that Mr. Caravalho
      shall
      serve in a consulting capacity and not as Interim Chief Financial Officer.
      Thus,
      Mr. Shaw is serving as the Company’s Chief Financial Officer until further
      notice.





7





ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO FINANCIAL STATEMENTS (Unaudited)


SEPTEMBER
      30, 2007








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





Going
      Concern:





As
      shown in the accompanying financial statements, the Company has incurred net
      losses of $5,335,014 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 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 nine months ended September, 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
      and 6,333,335 shares of its common stock at $0.06 in a private placement and
      received proceeds of $380,000.





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.





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.





During
      the three months ended September 30, 2007, $292,750 was accrued as Officers
      Compensation representing fair value of the 2,100,000 shares of common stock
      to
      be issued to the Chief Financial Officer under the consulting
      agreement.





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.





8


ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO FINANCIAL STATEMENTS (Unaudited)


SEPTEMBER
      30, 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 $4,000,000 and $6,000,000 to fund the operations of the newly
      merged company on mutually agreeable terms.








NOTE
      4- AGREEMENT WITH VOLIUS, INC. (CONTINUED)





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.





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.  As further consideration, the Company has agreed
      that, subsequent to Closing, it would 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 would then receive an additional 17,000,000 shares
      of the Company’s common stock.





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 – AGREEMENT WITH KIDFITNESS, INC.





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.





9


ORGANETIX,
      INC.


(A
      Development Stage Company)





NOTES
      TO FINANCIAL STATEMENTS (Unaudited)


SEPTEMBER
      30, 2007





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.








NOTE
      6 - AGREEMENT WITH KIDFITNESS, INC. (CONTINUED)





·
            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.





NOTE
      7 – SUBSEQUENT EVENTS





On
      October 5, 2007, the Company and KidFitness, Inc. terminated the Share Exchange
      Agreement and executed a Mutual Termination Agreement (“Termination Agreement”).
      Pursuant to the Termination Agreement, the parties thereto agreed to mutually
      release each other from any and all liabilities related to the Exchange
      Agreement.  The Company and KidFitness, Inc. agreed to terminate the
      Exchange Agreement because of the difficulty, if not impossibility, of
      satisfying the necessary conditions in the Exchange Agreement.





On
      November 5, 2007, the Company borrowed $100,000 in exchange for a convertible
      promissory note (“Note”) pursuant to which the holder may convert the principal
      and interest under the Note into shares of common stock of the Company at a
      price of $.07 per share. The Note carries an interest rate of 11% and matures
      on
      November 5, 2008. The proceeds of the above loan will be used for working
      capital purposes including expenses related to finding a suitable business
      or
      asset to acquire. We may borrow additional capital on similar terms if we deem
      such a capital raise necessary to continue the operations of the
      Company.








10


Item
      2. Management's Discussion and Analysis and Plan 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.





Results
      of Operations





Operating
      costs for the period from inception to September 30, 2007 aggregated $5,335,572.
      This includes officers’ compensation of $336,250, costs incurred in research and
      development of $1,563,154, consulting fees of $646,417, professional fees of
      $580,817 and marketing and public relations fees of $424,842. As a result of
      the
      above we realized a net loss of $(5,353,014) for the period from inception
      to
      September 30, 2007.





Operating
      costs for the three-month period ended September 30, 2006 aggregated $710,092.
      This includes the loss on disposition of assets of $592,861, consulting fees
      of
      $60,000 and professional fees of $25,000. As a result of the above we realized
      a
      net loss of $(710,092) for the three-month period ended September 30,
      2006.





Operating
      costs for the three-month period ended September 30, 2007 aggregated $957,605.
      This includes officers’ compensation of $336,250, research and development
      expenses of $84,999, consulting fees of $76,037, professional fees of $111,662
      and marketing and public relations expenses of $152,943. The majority of the
      expenses and fees incurred in this reporting period were related to our failed
      acquisition of KitFitness, Inc. As a result of the above we realized a net
      loss
      of $(957,605) for the three-month period ended September 30, 2007.





For
      the period from inception (May 28, 2003) to September 30, 2007, net cash used
      to
      fund operating activities totaled $(2,519,664), net cash used in investing
      activities totaled $(180,000) and net cash provided by financing activities
      totaled $2,724,825.






11





For
      the nine month period ended September 30, 2006, net cash used to fund operating
      activities totaled $(28,279). During this period, no net cash was used in
      investing activities and net cash provided by financing activities totaled
      $25,000.





For
      the nine month period ended September 30, 2007, net cash used to fund operating
      activities totaled $(878,838) and net cash provided by financing activities
      totaled $903,999. During this period, no net cash was used in investing
      activities. As of September 30, 2007, there was $25,161 on hand.





Subsequent
      Events





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





On
      October 5, 2007, the Company and KidFitness terminated the Share Exchange
      Agreement. Evidencing the terms of such termination, the Company and KidFitness
      executed a Mutual Termination Agreement. Pursuant to the Termination Agreement,
      the parties thereto agreed to mutually release each other from any and all
      liabilities related to the Share Exchange Agreement. We and KidFitness agreed
      to
      terminate the Share Exchange Agreement because of the difficulty, if not
      impossibility, of satisfying the necessary conditions in the Share Exchange
      Agreement.





On
      November 5, 2007, the Company borrowed $75,000 in exchange for a convertible
      promissory note (“Note”) pursuant to which the holder may convert the principal
      and interest under the Note into shares of common stock of the Company at a
      price of $.07 per share. The Note carries an interest rate of 11% and matures
      on
      November 5, 2008. The proceeds of the above loan will be used for working
      capital purposes including expenses related to finding a suitable business
      or
      asset to acquire. The Company may borrow additional capital on similar terms
      if
      it deems such a capital raise necessary to continue its operations.





Critical
      Accounting Policies and Estimates





The
      Company’s discussion and analysis of its financial condition and plan 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.







12


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 SFAS 157
      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.





13


Item
      3. Controls and Procedures




Evaluation
      of Disclosure Controls and
      Procedures.




Within
      90 days of September 30, 2007, the Company’s management carried out an
      evaluation, under the supervision of the Company’s President and the Interim
      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 the Interim 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 and 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.







PART
      II




Item
      1. Legal Proceedings




None.





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





On
      October 25, 2007, we completed the sale of 6,333,335 shares of our common stock
      at a price of $0.06 per share to 15 of our shareholders for an aggregate of
      $380,000 (“Private Placement”). Although we began selling shares in the Private
      Placement on July 5, 2007, our management kept the Private Placement open for
      an
      extended period of time to allow additional funds to be raised in the event
      such
      funds were necessary to close the now terminated KidFitness, Inc. acquisition.
      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 were used for general corporate purposes.





Item
      3. Defaults Upon Senior Securities




None.





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




None.





14


Item
      5. Other Information




None.





Item
      6. Exhibits





Exhibit
      10.1 Share Exchange Agreement (1)


Exhibit
      10.2 Termination Agreement (2)


Exhibit
      31.1 Certification of Chief Executive Officer and Chief Financial
      Officer


Exhibit
      32.1 Certification of Chief Executive Officer and Chief Financial
      Officer





(1)  Incorporated
      by reference to Exhibit 99.1 to our Current Report filed on Form 8-K on August
      18, 2007.


(2)  Incorporated
      by reference to Exhibit 2.1 to our Current Report filed on Form 8-K on October
      9, 2007.








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:
      November 19, 2007






15