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

                                   FORM 10-QSB

[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of  1934

    For the quarterly period ended December 31, 2007.

[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

    For the transition period            to            .
                             ------------  ------------

                        Commission File Number 333-146441

                               STARTALE GROUP INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

            Nevada                                       75-3260541
-------------------------------             ------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporation or organization)

                          4320 Winfield Road, Suite 200
                           Warenville, Illinois 60555
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (630) 836-8710
                           ---------------------------
                           (Issuer's telephone number)

                                      None
         ---------------------------------------------------------------
         (Former name, former address and former fiscal year, if changed
                               since last report)


Check  whether the issuer (1) 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 [ ]

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

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section l2, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court.
                                                             Yes [ ] No [ ]

<page>

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 10,500,000 Shares of $0.001 par value
Common Stock outstanding as of February 4, 2008.

Transitional Small Business Disclosure Format (Check one):   Yes [ ] No [X]


<page>











                               STARTALE GROUP INC.

                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                                December 31, 2007

                                   (Unaudited)















<page>

                               STARTALE GROUP INC.
                          (A Development Stage Company)
                                  BALANCE SHEET
<table>
<caption>
                                                                               December 31,         June 30,
                                                                                   2007               2007
                                                                                   ----               ----
                                                                               (Unaudited)          (Audited)

                                                                          <c>                <c>
                                     ASSETS
                                     ------
Current assets
    Cash                                                                       $       5,981       $      11,293
    Prepaid expenses                                                                   1,500                   -
                                                                                ------------        ------------
       Total current assets                                                            7,481              11,293
                                                                                ------------        ------------
    Property and equipment, net                                                        1,598                   -
    Security deposit                                                                     225                   -
                                                                                ------------        ------------
Total Assets                                                                   $       9,304       $      11,293
                                                                                ============        ============

                       LIABILITIES & STOCKHOLDERS' EQUITY
                       ----------------------------------
Current liabilities
   Accounts payable and accrued liabilities                                    $       2,069       $       3,000
   Due to related parties                                                              5,330               3,886
   Loan payable - related parties                                                     10,343              10,018
                                                                                ------------        ------------
         Total current liabilities                                                    17,742              16,904

 Total Liabilities                                                                    17,742              16,904
                                                                                ------------        ------------

Stockholders' Equity
   Capital stock
       75,000,000 shares authorized, $0.001 par value
       10,500,000 shares issued and outstanding
       (June 30, 2007 - 5,000,000)                                                    10,500               5,000
   Additional paid in capital                                                         24,693                   -
   Deficit accumulated during the development stage                             (     43,631)       (     10,611)
                                                                                ------------        ------------
Total Stockholders' Equity                                                      (      8,438)       (      5,611)
                                                                                ------------        ------------
Total Liabilities and Stockholders' Equity                                     $       9,304       $      11,293
                                                                                ============        ============


</table>




    The accompanying notes are an integral part of these financial statements

<page>

                               STARTALE GROUP INC.
                          (A Development Stage Company)
                             STATEMENT OF OPERATIONS
                                   (Unaudited)

<table>
<caption>

                                                                    Three months             Six months        February 22, 2007
                                                                        Ended                  Ended          (Inception) through
                                                                    December 31,            December 31,          December 31,
                                                                        2007                    2007                  2007
                                                                        ----                    ----                  ----

                                                               <c>                    <c>                     <c>

           Revenue                                                 $           -          $            -          $           -
                                                                    ------------           -------------           ------------

           Expenses:
              Accounting and audit fees                            $         890          $        2,640          $       5,640
              Amortization                                                    24                      24                     24
              Consulting                                                   5,000                   5,000                  5,000
              General and Administrative                                   1,080                   5,121                  6,921
              Management                                                   1,500                   3,000                  5,000
              Organization costs                                               -                       -                    981
              Product development                                          1,000                   3,000                  3,000
              Travel                                                         865                   2,893                  5,705
              Transfer agent                                              11,016                  11,016                 11,016
                                                                    ------------           -------------           ------------
                                                                          21,375                  32,694                 43,287
                                                                    ------------           -------------           ------------
           Loss from operations                                     (     21,375)          (      32,694)          (     43,287)
           Other income (expense)
              Interest expense                                      (        163)          (         326)          (        344)
                                                                    ------------           -------------           ------------
           Income (loss) before provision for income tax            (     21,538)          (      33,020)          (     43,631)
           Provision for income tax                                            -                       -                      -
                                                                    ------------           -------------           ------------
           Net income (loss)                                       $(     21,538)         $(      33,020)         $(     43,631)
                                                                    ============           =============           ============
           Net income (loss) per share                             $(       0.01)         $(        0.01)
                                                                    ============           =============
           Weighted average number of common shares
           outstanding                                                10,500,000               9,207,337
                                                                    ============           =============

</table>

    The accompanying notes are an integral part of these financial statements

<page>


                               STARTALE GROUP INC.
                          (A Development Stage Company)
                             STATEMENT OF CASH FLOWS
                                   (Unaudited)

<table>
<caption>

                                                                            Six months     February 22, 2007
                                                                              Ended       (Inception) through
                                                                            December 31,      December 31,
                                                                              2007               2007
                                                                              ----               ----

                                                                      <c>                <c>
      Cash Flows From Operating Activities:
         Net income (loss)                                                $(    33,020)      $(   43,631)

         Adjustment  to reconcile  net income to net cash  provided by
         (used for) operating activities:
           Amortization                                                             24                24
           Prepaid expense                                                 (     1,500)       (    1,500)
           Security deposit                                                (       225)       (      225)
           Accounts payable and accrued liabilities                        (       931)            2,069
           Accounts payable related parties                                      1,444             5,330
                                                                           -----------        ----------
                Net cash provided by (used for) operating
                activities                                                 (    34,208)       (   37,933)
                                                                           -----------        ----------
      Cash Flows From Investing  Activities:
         Purchase of fixed assets                                          (     1,622)       (    1,622)
                                                                           -----------        ----------
                Net cash provided by (used for) investing                  (     1,622)       (    1,622)
                activities
                                                                           -----------        ----------

</table>








                          (Continued On Following Page)




    The accompanying notes are an integral part of these financial statements


<page>

                               STARTALE GROUP INC.
                          (A Development Stage Company)
                             STATEMENT OF CASH FLOWS
                                   (Unaudited)

<table>
<caption>

                                                                            Six months    February 22, 2007
                                                                              Ended      (Inception) through
                                                                            December 31,      December 31,
                                                                              2007               2007
                                                                              ----               ----

                                                                      <c>                <c>

      Cash Flows From Financing Activities:
         Loan payable - related party                                              325            10,343
         Proceeds from issuance of common stock (Net)                           30,193            35,193
                                                                           -----------        ----------
                Net cash provided by (used for) financing                       30,518            45,536
                activities
                                                                           -----------        ----------

      Net Increase (Decrease) In Cash                                      (     5,312)            5,981

      Cash At The Beginning Of The Period                                       11,293                 -
                                                                           -----------        ----------
      Cash At The End Of The Period                                       $      5,981       $     5,981
                                                                           ===========        ==========

      Schedule Of Non-Cash Investing And Financing
      --------------------------------------------
      Activities
      ----------

      None

      Supplemental Disclosure
      -----------------------

      Cash paid for:
           Interest                                                       $          -       $         -
                                                                           -----------        ----------
           Income Taxes                                                   $          -       $         -
                                                                           ===========        ==========

</table>



    The accompanying notes are an integral part of these financial statements


<page>

                               STARTALE GROUP INC.
                          (A Development Stage Company)
                        STATEMENT OF STOCKHOLDERS' EQUITY
               February 22, 2007 (Inception) Through December 31, 2007
                                   (Unaudited)
<table>
<caption>
                                                                                                      Deficit
                                                                                                      Accumulated
                                                                                                      During the
                                                           Common Shares               Paid In        Development
                                                           -------------
                                                       Number         Par Value        Capital           Stage           Total
                                                       ------         ---------        -------           -----           -----

                                                <c>            <c>             <c>              <c>             <c>
Balances, February 22, 2007                                   -   $            -  $            -   $            -  $            -

Issued for cash:
Common stock June, 2006 - at $0.001                   5,000,000            5,000               -                -           5,000
Net gain (loss) for the period ended June 30, 2007            -                -               -      (    10,611)    (    10,611)
                                                     ----------      -----------       ---------        ---------        ---------
Balances, June 30, 2007                               5,000,000            5,000               -      (    10,611)    (     5,611)

Issued for cash:
Common stock August, 2007 - at $0.001                 1,000,000            1,000               -                -           1,000
Common stock August, 2007 - at $0.008 (Net)           4,500,000            4,500          24,693                -          29,193
Net gain(loss)for the period ended December 31,2007           -                -               -      (    33,020)    (    33,020)
                                                     ----------      -----------       ---------        ----------       ---------
Balances, December 31, 2007                          10,500,000   $       10,500  $       24,693   $  (    43,631)  $ (     8,438)
                                                     ==========      ===========      ==========       ===========       =========
</table>

    The accompanying notes are an integral part of these financial statements

<page>



                               STARTALE GROUP INC.
                          (A Development Stage Company)
                        NOTES TO THE FINANCIAL STATEMENTS
                                December 31, 2007
                                   (Unaudited)

Note 1        Nature and Continuance of Operations
              ------------------------------------
              Organization
              ------------
              The Company was incorporated in the State of Nevada, United States
              of America on February 22,2007 and its fiscal year end is June 30.
              The Company is engaged in the design, manufacture and distribution
              of lifestyle inspired apparel,which will be sold through a network
              of wholesale accounts and retail outlets.

              Going Concern
              -------------
              These  financial  statements have been prepared on a going concern
              basis.  The Company has a working  capital  deficiency of $10,261,
              and has  accumulated  deficit  of  $43,631  since  inception.  Its
              ability  to  continue  as a going  concern is  dependent  upon the
              ability of the Company to generate  profitable  operations  in the
              future  and/or  to  obtain  the  necessary  financing  to meet its
              obligations and repay its liabilities arising from normal business
              operations when they come due. The outcome of these matters cannot
              be predicted with any certainty at this time.  These factors raise
              substantial  doubt that the company  will be able to continue as a
              going  concern.  The  Company  to  date  has  funded  its  initial
              operations  through the issuance of  10,500,000  shares of capital
              stock for  proceeds  of  $42,000  and loans from  director  in the
              amount of $10,000. Management plans to continue to provide for its
              capital  needs by the issuance of common  stock and related  party
              advances.   These   financial   statements   do  not  include  any
              adjustments  to the  amounts  and  classification  of  assets  and
              liabilities  that may be necessary should the Company be unable to
              continue as a going concern.

              Unaudited Interim Financial Statements
              --------------------------------------
              The accompanying  unaudited interim financial statements have been
              prepared  in  accordance  with  placecountry-regionUnited   States
              generally  accepted  accounting  principles for interim  financial
              information and with the instructions to Form 10-QSB of Regulation
              S-B.  Certain  information  and  footnote   disclosures   normally
              included  in  financial  statements  prepared in  accordance  with
              accounting     principles     generally     accepted     in    the
              United States of America have been condensed or  omitted  pursuant
              to  such  rules  and  regulations. However, except  as   disclosed
              herein, there have been no  material  changes  in  the information
              disclosed in the notes to the financial statements for    the year
              ended June 30, 2007 included in the  Company's   SB-2  filed  with
              the  Securities  and  Exchange Commission.  The interim  unaudited
              financial  statements should  be read in  conjunction  with  those
              financial  statements included in the Form SB-2. In the opinion of
              Management,  all  adjustments  considered  necessary  for  a  fair
              presentation, consisting solely of normal recurring   adjustments,
              have  been  made. Operating  results  for  the  six  months  ended
              December 31, 2007 are not necessarily  indicative of  the  results
              that may be expected for the year ending June 30, 2008.

Note 2        Summary of Significant Accounting Policies
              ------------------------------------------
              The  financial  statements  of the Company  have been  prepared in
              accordance with generally  accepted  accounting  principles in the
              United States of America. Because a precise determination  of many
              assets  and   liabilities  is   dependent   upon   future  events,
              the preparation

<page>

Startale Group Inc.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 2007
(Unaudited)  - Page 2



Note 2        Summary of Significant Accounting Policies - (cont'd)
              ------------------------------------------

              of  financial statements for a period necessarily involves the use
              of estimates which have been made using careful judgement.  Actual
              results may vary from these estimates.

              The financial  statements  have,  in  management's  opinion,  been
              properly  prepared  within  reasonable  limits of materiality  and
              within  the  framework  of  the  significant  accounting  policies
              summarized below:

              Development Stage Company
              -------------------------
              The Company  complies with  Financial  Accounting  Standard  Board
              Statement ("FAS") No. 7 and The Securities and Exchange Commission
              Act Guide 7 for its characterization of the Company as development
              stage.

              Revenue Recognition
              -------------------
              Sales are  recognized  when revenue is realized or realizable  and
              has been earned. The Company's policy is to recognize revenue when
              risk of loss and title to the product  transfers to the  customer.
              Net sales is comprised of gross  revenues less  expected  returns,
              trade  discounts  and customer  allowances,  which  include  costs
              associated with off-invoice mark-downs and other price reductions,
              as well as trade promotions and coupons. These incentive costs are
              recognized  at  the  later  of  the  date  on  which  the  Company
              recognizes  the  related  revenue or the date on which the Company
              offers the incentive.

              Impairment of Long-lived Assets
              -------------------------------
              Capital assets are reviewed for impairment in accordance  with FAS
              No. 144,  "Accounting for the Impairment or Disposal of Long-lived
              Assets", which was adopted effective January 1,2002. Under FAS No.
              144, these assets are tested for recoverability   whenever  events
              or changes in  circumstances indicate that their carrying  amounts
              may not be recoverable. An impairment charge is recognized for the
              amount, if any, which the carrying value of the asset  exceeds the
              fair value.

              Research and Development
              ------------------------
              Research and development expenditures are expensed as incurred.

              Foreign Currency Translation
              ----------------------------
              The financial statements are presented in United  States  dollars.
              In accordance with Statement  of  Financial  Accounting  Standards
              No. 52, "Foreign Currency  Translation",  since   the   functional
              currency of the Company is  U.S.  dollars,  the  foreign  currency
              financial statements of the Company's subsidiaries are re-measured
              into U.S.dollars. Monetary assets and liabilities  are re-measured
              using the foreign exchange rate  that  prevailed  at  the  balance
              sheet date.Revenue and expenses are translated at weighted average
              rates of exchange during the year and stockholders'equity accounts
              and furniture and equipment are  translated  by  using  historical
              exchange  rates. Any  re-measurement  gain  or  loss  incurred  is
              reported in the income statement.

<page>

Startale Group Inc.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 2007
(Unaudited)  - Page 3



Note 2        Summary of Significant Accounting Policies - (cont'd)
              ------------------------------------------

              Net Loss per Share
              ------------------
              Basic loss per share  includes  no  dilution  and is  computed  by
              dividing  loss  available to common  stockholders  by the weighted
              average  number  of  common  shares  outstanding  for the  period.
              Dilutive  losses per share  reflects  the  potential  dilution  of
              securities that could share in the losses of the Company.  Because
              the Company does not have any potentially dilutive securities, the
              accompanying presentation is only of basic loss per share.

              Stock-based Compensation
              ------------------------
              The  Company  has not  adopted  a stock  option  plan  and has not
              granted any stock options. Accordingly no stock-based compensation
              has been recorded to date.

              Income Taxes
              ------------
              The Company uses the asset and liability  method of accounting for
              income taxes in accordance with FAS No. 109 "Accounting for Income
              Taxes". Under this method, deferred tax assets and liabilities are
              recognized  for  the  future  tax  consequences   attributable  to
              temporary  differences  between the financial  statements carrying
              amounts of existing assets and liabilities and loss  carryforwards
              and  their   respective   tax  bases.   Deferred  tax  assets  and
              liabilities are measured using enacted tax rates expected to apply
              to  taxable   income  in  the  years  in  which  those   temporary
              differences are expected to be recovered or settled.

              Fair Value of Financial Instruments
              -----------------------------------
              The  carrying  value  of  the  Company's   financial   instruments
              consisting  of cash,  accounts  payable and  accrued  liabilities,
              agreement  payable  and due to  related  party  approximate  their
              carrying value due to the short-term maturity of such instruments.
              Unless  otherwise  noted,  it is  management's  opinion  that  the
              Company is not exposed to significant interest, currency or credit
              risks arising from these financial instruments.

              Recent Accounting Pronouncements
              --------------------------------
              In  September  2006,  the FASB issued  SFAS No.  157,  "Fair Value
              Measures".  This  Statement  defines  fair  value,  establishes  a
              framework   for  measuring   fair  value  in  generally   accepted
              accounting principles (GAAP), expands disclosures about fair value
              measurements,  and applies under other  accounting  pronouncements
              that require or permit fair value measurements.  SFAS No. 157 does
              not require  any new fair value  measurements.  However,  the FASB
              anticipates  that for some entities,  the  application of SFAS No.
              157 will change  current  practice.  SFAS No. 157 is effective for
              financial  statements  issued for  fiscal  years  beginning  after
              November 15, 2007,  which for the Company would be the fiscal year
              beginning  February 1, 2008.  The Company is currently  evaluating
              the impact of SFAS No. 157 but does not expect that it will have a
              material impact on its financial statements.

              In  September  2006,  the FASB issued  SFAS No.  158,  "Employers'
              Accounting for Defined  Benefit  Pension and Other  Postretirement
              Plans." This Statement  requires an employer to recognize the over
              funded or under funded status of a defined benefit post retirement
              plan (other than a multiemployer plan) as an asset or liability in
              its statement of financial  position,  and to recognize changes in
              that funded status in the year in

<page>

Startale Group Inc.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 2007
(Unaudited)  - Page 4

Note 2        Summary of Significant Accounting Policies - (cont'd)
              ------------------------------------------

              Recent Accounting Pronouncements - (cont'd)
              ---------------------------------

              which the changes occur through comprehensive income. SFAS No. 158
              is     effective     for     fiscal     years     ending     after
              December  15, 2006 which for the Company would be February 1,2007.
              The Company does  not  expect  that  the  implementation  of  SFAS
              No.158 will have any material impact on  its  financial   position
              and results of operations.

              In  September  2006,  the SEC  issued  Staff  Accounting  Bulletin
              ("SAB")   No.  108,   "Considering   the  Effects  of  Prior  Year
              Misstatements  when  Quantifying  Misstatements  in  Current  Year
              Financial  Statements."  SAB No. 108  addresses how the effects of
              prior year  uncorrected  misstatements  should be considered  when
              quantifying  misstatements  in current year financial  statements.
              SAB No. 108 requires companies to quantify  misstatements  using a
              balance  sheet  and  income  statement  approach  and to  evaluate
              whether  either  approach  results in quantifying an error that is
              material  in  light  of  relevant   quantitative  and  qualitative
              factors.  SAB  No.  108 is  effective  for  periods  ending  after
              November 15,2006 which for the Company would be February  1, 2007.
              The  Company  is  currently  evaluating  the  impact  of  adopting
              SAB No. 108 but does not expect  that  it  will  have  a  material
              effect on its  financial statements.

              In February  2007,  the FASB issued SFAS No. 159,  "The Fair Value
              Option for  Financial  Assets  and  Financial  Liabilities".  This
              Statement  permits  entities to choose to measure  many  financial
              assets and financial  liabilities at fair value.  Unrealized gains
              and  losses  on items for which  the fair  value  option  has been
              elected are  reported in earnings.  SFAS No. 159 is effective  for
              fiscal  years  beginning  after November 15, 2007. The  Company is
              currently  assessing  the impact of SFAS No.159 on  its  financial
              position and results of operations.


Note 3        Capital Stock
              -------------
              The total number of common shares authorized that may be issued by
              the Company is 75,000,000  shares with a par value of one tenth of
              one cent  ($0.001)  per  share  and no other  class of  shares  is
              authorized.

              During    the   period   from   February 22,2007  (inception)   to
              June 30,2007, the Company issued 5,000,000 shares of  common stock
              to its directors for total proceeds of $5,000.

              During the six months ended December 31, 2007, the Company issued:
               - 1,000,000 common shares at $0.001 per share to its director for
                 proceeds of $1,000; and
               - 4,500,000  common shares at $0.008 per share for proceeds of
                 $36,000.

              To  December  31,  2007,  the  Company  has not  granted any stock
              options and has not recorded any stock-based compensation.

<page>

Startale Group Inc.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 2007
(Unaudited)  - Page 5


Note 4        Related Party Transactions
              --------------------------
              a)  The President of the Company provides  management  services to
                  the  Company at $500 per month.  During the  six-month  period
                  ended  December 31, 2007  management  services of $3,000 (June
                  30, 2007 - $2,000) were charged to operations.  As at December
                  31,  2007,  the Company  owed $2,500 to the  President  of the
                  Company for management services.

              b)  During the period ended  date June 30, 2007, the  President of
                  the Company provided a $10,000 loan to the Company.  The  loan
                  payable is unsecured, bears  interest at 6.45% per annum,  and
                  consists of $10,000 of principal due on June 20, 2008,and $343
                  of accrued interest payable as of December 31, 2007.

              c)  As at December  31,  2007,  the Company  owed $2,830 (June 30,
                  2007 - $1,886) to the  President  of the Company for  expenses
                  incurred on behalf of the Company.






<page>


Forward-Looking Statements
--------------------------

This Form 10-QSB includes "forward-looking statements" within the meaning of the
"safe-harbor"  provisions  of the Private  Securities  Litigation  Reform Act of
1995.  Such statements are based on management's  current  expectations  and are
subject to a number of factors and uncertainties that could cause actual results
to differ materially from those described in the forward-looking statements.

All statements  other than  historical  facts  included in this Form,  including
without  limitation,   statements  under  "Plan  of  Operation",  regarding  our
financial  position,  business strategy,  and plans and objectives of management
for the future operations, are forward-looking statements.

Although we believe  that the  expectations  reflected  in such  forward-looking
statements are reasonable,  it can give no assurance that such expectations will
prove to have been correct. Important factors that could cause actual results to
differ materially from our expectations  include, but are not limited to, market
conditions, competition and the ability to successfully complete financing.

Item 2. Plan of Operation

For the next twelve months we intend to accomplish the following:

Complete packaging design for outerwear and underwear collections. We anticipate
that the  completion of the first design samples will take  approximately  three
months and will cost us from $7,000 to $10,000.  As of the day of this quarterly
report we have paid $2,000 towards completion of our packaging design.

 Develop and approve  initial  pattern  drawings,  approve  fabric  samples.  We
anticipate  spending   approximately  $10,000  on  this  stage  of  our  product
development.

Complete manufacturing of our first order of outerwear and underwear. We plan to
place our first order with an independent manufacturer for t-shirts, panties and
boxers. It will take  approximately two months to complete the initial order. We
anticipate  the  total  cost of goods of our  initial  order in the  range  from
$15,000 to $20,000.

Develop the marketing plan for our line of apparel.  We anticipate  that it will
involve a three-tier  strategy of intra-industry  promotion,  direct-to-consumer
promotion  and several major  mass-media  targeted  campaigns.  We will begin to
market Mol-e-Kula brand upon registration of our trade mark by the United States
Patent and  Trademark  office  ("USPTO").  Currently  our trade mark attorney is
preparing  response on the USPTO's  letter dated December 3, 2007. We believe it
will cost a minimum of $5,000 for execution of the marketing  plan over the next
12 months.

In addition we expect to spend  approximately  $10,000 on professional  services
over the next  twelve  months.  Total  expenditures  over the next 12 months are
therefore expected to be $65,000.

We  anticipate  that  additional  funding will be required in the form of equity
financing  from  the  sale of our  common  stock.  However,  we  cannot  provide
investors  with any assurance that we will be able to raise  sufficient  funding
from the sale of our common stock to fund our marketing plan and operations.  We
believe that debt financing will not be an alternative for funding the marketing
plan. We do not have any arrangements in place for any future equity financing.

Results of Operations For Period Ending December 31, 2007
---------------------------------------------------------
We did not earn any revenues  during the six-month  period  ending  December 31,
2007. During the period ended December 31, 2007, we incurred  operating expenses
in the amount of $33,020.  These operating expenses were comprised of accounting
and audit fees of $2,640, amortization of $24, consulting of $5,000, general and

<page>

administrative   expenses  of  $5,121,   management  fees  of  $3,000,   product
development costs of $3,000,  travel expenses of $2,893,  transfer agent expense
of $11,016, and interest expense of $326.

As  at  December  31,  2007,  the  Company  had  assets  totalling  $9,304,  and
liabilities totalling $17,742 for a working capital deficiency of $10,261.

During the period ended June  30, 2007, the  President of the  Company  provided
a $10,000 loan to the  Company. The loan payable is unsecured,  bears   interest
at 6.45% per annum, and consists of $10,000 of principal  due on June 20,  2008,
and $343 of accrued interest payable as of December 31, 2007.

On  October 12, 2007,  the Company's Registration  Statement  on the  Form  SB-2
became effective. To date the  Company  issued 4,500,000  shares of common stock
for  cash   proceeds  of  $36,000  pursuant  to  this  Registration  Statement.
In addition we issued 1,000,000  common  shares  at  $0.001  per  share  to  its
director for proceeds of $1,000.

We have not  generated  any  revenue  since  inception  and are  dependent  upon
obtaining financing to pursue marketing and distribution  activities.  For these
reasons,  our auditors  believe that there is substantial  doubt that we will be
able to continue as a going concern.

Critical Accounting Policies
----------------------------
Our financial  statements are prepared in accordance with accounting  principles
generally  accepted  in  the  United  States  of  America.  Preparing  financial
statements  in  accordance  with  generally   accepted   accounting   principles
requires  management to make estimates and assumptions which affect the reported
amounts of assets and  liabilities  and the disclosure of contingent  assets and
liabilities  at the balance  sheet dates,  and the  recognition  of revenues and
expenses for the reporting periods. These estimates and assumptions are affected
by management's application of accounting policies.

Revenue Recognition
-------------------
We  recognize  revenue  from  product  sales  when the  following  four  revenue
recognition  criteria are met:  persuasive  evidence of an  arrangement  exists,
delivery has occurred or services have been rendered, the selling price is fixed
or determinable,  and  collectibility is reasonably  assured.  Product sales and
shipping revenues, net of promotional discounts, rebates, and return allowances,
are recorded when the products are shipped and title passes to customers.

Item 3 Controls and Procedures
------------------------------

Evaluation of Disclosure Controls

We evaluated the  effectiveness of our disclosure  controls and procedures as of
February 4, 2008. This evaluation was conducted by Anatoli Nem and Serge Wilson,
our chief executive officer and our principal accounting officer.

Disclosure  controls  are  controls  and other  procedures  that are designed to
ensure that  information that we are required to disclose in the reports we file
pursuant  to  the  Securities  Exchange  Act of  1934  is  recorded,  processed,
summarized and reported.

Limitations on the Effective of Controls

Our  management  does not expect that our  disclosure  controls or our  internal
controls over  financial  reporting  will prevent all error and fraud. A control
system, no matter how well conceived and operated,  can provide only reasonable,
but no absolute,  assurance  that the  objectives  of a control  system are met.

<page>

Further, any control system reflects limitations on resources,  and the benefits
of a control system must be considered  relative to its costs. These limitations
also include the realities that judgments in  decision-making  can be faulty and
that  breakdowns  can occur  because of simple  error or mistake.  Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people or by management override of a control. A design
of a control  system is also  based upon  certain  assumptions  about  potential
future conditions;  over time, controls may become inadequate because of changes
in conditions,  or the degree of compliance  with the policies or procedures may
deteriorate.  Because of the inherent  limitations in a  cost-effective  control
system, misstatements due to error or fraud may occur and may not be detected.

Conclusions

Based upon their  evaluation of our  controls,  Anatoli Nem and Serge Wilson our
chief executive officer and principal  accounting officer,  have concluded that,
subject to the limitations  noted above,  the disclosure  controls are effective
providing  reasonable assurance that material information relating to us is made
known to  management  on a timely  basis  during the period when our reports are
being  prepared.  There were no changes in our internal  controls  that occurred
during the quarter covered by this report that have materially affected,  or are
reasonably likely to materially affect our internal controls.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings
-------------------------
The Company is not a party to any pending legal  proceedings.  Management is not
aware of any threatened litigation, claims or assessments.


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 and Report on Form 8-K
---------------------------------------

 31.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to Section 302 of the Sarbanes-Oxley Act of 2002

 31.2     Certification pursuant to 18 U.S.C. Section 1350, as  adopted pursuant
          to Section 302 of the Sarbanes-Oxley Act of 2002

 32.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted  pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002

<page>

32.2      Certification pursuant to 18 U.S.C. Section 1350, as adopted  pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002

We did not file any current reports on Form 8-K during the period.

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.

Startale Group Inc.
                                       /s/ Anatoli Nem
                                       --------------------------
                                       Anatoli Nem
                                       President, Chief Executive
                                       Officer, and Director
                                       Dated: February 4, 2008

                                       /s/ Serge Wilson
                                       ---------------------------
                                       Serge Wilson
                                       Chief Financial Officer, Secretary
                                       Treasurer, principal accounting
                                       officer and Director
                                       Dated: February 4, 2008