UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549


_______________




FORM
10-Q


_______________




x
            QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the quarterly period ended March 31, 2008




o
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the transition period from
______to______.




BTX
HOLDINGS, INC.


(Exact
name of registrant as specified in Charter




FLORIDA
            
            333-110324
            
            16-1682307(State
      or other jurisdiction of
              incorporation
      or organization)
            
            (Commission
      File No.)
            
            (IRS
      Employee Identification No.)





171
N. Shore Drive, Miami Shores, FL 33141


(Address
of Principal Executive Offices)


_______________




(954)
776-6600


(Issuer
Telephone number)


_______________








(Former
Name or Former Address 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 preceding 12 months (or for such shorter
period that the issuer was required to file such reports), and (2)has been
subject to such filing requirements for the past 90 days. Yes T No £




Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company filer.
 See definition of “accelerated filer” and “large accelerated filer” in
Rule 12b-2 of the Exchange Act (Check one):




Large
Accelerated Filer o     Accelerated
Filer o     Non-Accelerated
Filer o     Smaller
Reporting Company x





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





State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of asof May 15,
2008:  5,318,069 shares of Common Stock.















BTX
HOLDINGS, INC.





FORM
10-Q




March
31, 2008




INDEX




PART
I-- FINANCIAL INFORMATION




Item
      1.
            Financial
      StatementsItem
      2.
            Management’s
      Discussion and Analysis of Financial ConditionItem
      3
            Quantitative
      and Qualitative Disclosures About Market RiskItem
      4.
            Control
      and Procedures






PART
II-- OTHER INFORMATION




Item
      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.
            Exhibits
      and Reports on Form 8-K






SIGNATURE











Item 1. Financial
Information




BTX
HOLDINGS, INC. AND SUBSIDIARY
 
 (A
DEVELOPMENT STAGE COMPANY)
 
 CONSOLIDATED
BALANCE SHEETS




ASSETSMarch
      31,
                
                
                December
      31,2008
                
                
                2007CURRENT
      ASSETS
                
                (Unaudited)
                
                
                (Audited)Cash
                
                $
                455
                
                
                $
                3,404Prepaid
      expenses
                
                
                1,965
                
                
                
                3,616TOTAL
      CURRENT ASSETS
                
                
                2,420
                
                
                
                7,020Property
      and Equipment, net
                
                
                1,722
                
                
                
                2,475TOTAL
      ASSETS
                
                $
                4,142
                
                
                $
                9,495LIABILITIES AND
      STOCKHOLDERS’ DEFICIENCYCURRENT
      LIABILITIESAccounts
      payable
                
                $
                111,535
                
                
                $
                109,257Accrued
      payroll
                
                
                171,630
                
                
                
                134,130Accrued
      interest
                
                
                9,372
                
                
                
                7,047Notes
      payable- related parties
                
                
                30,300
                
                
                
                25,200Notes
      payable
                
                
                50,000
                
                
                
                50,000TOTAL
      CURRENT LIABILITIES
                
                
                372,837
                
                
                
                325,634COMMITMENTS
      AND CONTINGENCIES
                
                
                -
                
                
                
                -STOCKHOLDERS’
      DEFICIENCYPreferred  stock,
      $.001 par value, 10,000,000 shares authorized,  none issued and
      outstanding
                
                
                -
                
                
                
                -Common
      stock, $0.001 par value, 100,000,000 shares
      authorized,  5,318,065 and 5,318,065 shares issued and
      outstanding, respectively
                
                
                5,318
                
                
                
                5,318Additional
      paid in capital
                
                
                2,405,826
                
                
                
                2,405,826Accumulated
      deficit during development stage
                
                
                (2,779,839
                )
                
                
                (2,727,283
                )Total
      Stockholders’ Deficiency
                
                
                (368,695
                )
                
                
                (316,139
                )TOTAL LIABILITIES AND
      STOCKHOLDERS’ DEFICIENCY
                
                $
                4,142
                
                
                $
                9,495
 See
accompanying notes to financial statements.
   2
  BTX
HOLDINGS, INC. AND SUBSIDIARY
 
 (A
DEVELOPMENT STAGE COMPANY)
 
 CONSOLIDATED
STATEMENTS OF OPERATIONS
 
 (UNAUDITED)
  For
      The Period From January 8, 2003For
      The Three Months Ended March 31,
                  
                  
                  (Inception)
      to March 31,2008
                  
                  
                  2007
                  
                  
                  2008OPERATING
      EXPENSESConsulting
      fees
                  
                  $
                  -
                  
                  
                  $
                  -
                  
                  
                  $
                  364,403Management
      fees - related party
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  84,000Professional
      fees
                  
                  
                  4,653
                  
                  
                  
                  209,247
                  
                  
                  
                  316,313Research
      and development
                  
                  
                  -
                  
                  
                  
                  12,500
                  
                  
                  
                  168,618Impairment
      of technology
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  500,000General
      and administrative
                  
                  
                  44,996
                  
                  
                  
                  49,473
                  
                  
                  
                  890,581Total
      Operating Expenses
                  
                  
                  49,649
                  
                  
                  
                  271,220
                  
                  
                  
                  2,323,915LOSS
      FROM OPERATIONS
                  
                  
                  (49,649
                  )
                  
                  
                  (271,220
                  )
                  
                  
                  (2,323,915
                  )OTHER
      EXPENSES:Interest
      Expense
                  
                  
                  (2,907
                  )
                  
                  
                  (10,050
                  )
                  
                  
                  (56,153
                  )Loss
      on convesion of notes payable
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  (97,277
                  )Financing
      fees
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  (302,494
                  )Total
      Other Expenses
                  
                  
                  (2,907
                  )
                  
                  
                  (10,050
                  )
                  
                  
                  (455,924
                  )LOSS
      BEFORE PROVISION FOR INCOME TAXES
                  
                  
                  (52,556
                  )
                  
                  
                  (281,270
                  )
                  
                  
                  (2,779,839
                  )Provision
      for Income Taxes
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -NET
      LOSS
                  
                  $
                  (52,556
                  )
                  
                  $
                  (281,270
                  )
                  
                  $
                  (2,779,839
                  )Net
      loss per share - basic and diluted
                  
                  $
                  (0.01
                  )
                  
                  $
                  (0.08
                  )
                  
                  $
                  11.50Weighted
      average number of shares outstanding during the period - basic and
      diluted
                  
                  
                  5,318,065
                  
                  
                  
                  3,433,191
                  
                  
                  $
                  11.50
 See
accompanying notes to financial statements.
   3
  BTX
HOLDINGS, INC. AND SUBSIDIARY
 
 (A
DEVELOPMENT STAGE COMPANY)
 
 CONSOLIDATED
STATEMENT OF CHANGES IN STOCKHOLDER’ DEFICIENCY
 
 FOR
THE PERIOD FROM JANUARY 8, 2003 (INCEPTION) TO MARCH 31, 2008
 
 (UNAUDITED)
  Preferred
      Stock
                
                
                Common
      Stock
                
                
                Additional
      Paid-In
                
                
                Deferred
                
                
                Accumulated
      Deficit During DevelopmentShares
                
                
                Amount
                
                
                Shares
                
                
                Amount
                
                
                Capital
                
                
                Compensation
                
                
                Stage
                
                
                TotalBALANCE, JANUARY 8,
      2003 (Inception)
                
                
                -
                
                
                $
                -
                
                
                
                -
                
                
                $
                -
                
                
                $
                -
                
                
                
                -
                
                
                $
                -
                
                
                $
                -Issuance
      of founders stock
                
                
                -
                
                
                
                -
                
                
                
                1,574,600
                
                
                
                1,575
                
                
                
                425
                
                
                
                -
                
                
                
                -
                
                
                
                2,000Net
      loss, 2003
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -BALANCE, DECEMBER 31,
      2004
                
                
                -
                
                
                
                -
                
                
                
                1,574,600
                
                
                
                1,575
                
                
                
                425
                
                
                
                -
                
                
                
                -
                
                
                
                2,000Beneficial
      conversion on convertible debt
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                85,000
                
                
                
                -
                
                
                
                -
                
                
                
                85,000Net
      loss, 2004
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (102,668
                )
                
                
                (102,668
                )BALANCE,
      December 31, 2004
                
                
                -
                
                
                
                -
                
                
                
                1,574,600
                
                
                
                1,575
                
                
                
                85,425
                
                
                
                -
                
                
                
                (102,668
                )
                
                
                (15,668
                )Sale
      of common stock for cash
                
                
                -
                
                
                
                -
                
                
                
                311,500
                
                
                
                312
                
                
                
                622,689
                
                
                
                -
                
                
                
                -
                
                
                
                623,000Stock
      issued to acquire technology
                
                
                -
                
                
                
                -
                
                
                
                250,000
                
                
                
                250
                
                
                
                499,750
                
                
                
                -
                
                
                
                -
                
                
                
                500,000Common
      stock issued for reverse merger
                
                
                -
                
                
                
                -
                
                
                
                282,500
                
                
                
                283
                
                
                
                (283
                )
                
                
                -
                
                
                
                -
                
                
                
                -Common
      stock issued for reverse merger
                
                
                -
                
                
                
                -
                
                
                
                16,550,700
                
                
                
                16,551
                
                
                
                (16,551
                )
                
                
                -
                
                
                
                -
                
                
                
                -Repurchase
      and cancellation of common stock
                
                
                -
                
                
                
                -
                
                
                
                (15,737,500
                )
                
                
                (15,738
                )
                
                
                (34,263
                )
                
                
                -
                
                
                
                -
                
                
                
                (50,000
                )Common
      stock issued for financing fees on note payable
                
                
                -
                
                
                
                -
                
                
                
                5,000
                
                
                
                5
                
                
                
                9,995
                
                
                
                -
                
                
                
                -
                
                
                
                10,000In-kind
      contribution of management services
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                880
                
                
                
                -
                
                
                
                -
                
                
                
                880Common
      stock  issued for legal services
                
                
                -
                
                
                
                -
                
                
                
                15,000
                
                
                
                15
                
                
                
                29,985
                
                
                
                -
                
                
                
                -
                
                
                
                30,000Net
      loss, 2005
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (1,250,794
                )
                
                
                (1,250,794
                )BALANCE,
      December 31, 2005
                
                
                -
                
                
                
                -
                
                
                
                3,251,800
                
                
                
                3,252
                
                
                
                1,197,628
                
                
                
                -
                
                
                
                (1,353,462
                )
                
                
                (152,582
                )Sale
      of common stock
                
                
                
                
                
                
                
                
                
                
                4,000
                
                
                
                4
                
                
                
                9,996
                
                
                
                -
                
                
                
                0
                
                
                
                10,000Common
      stock issued for services
                
                
                -
                
                
                
                -
                
                
                
                50,000
                
                
                
                50
                
                
                
                167,950
                
                
                
                (153,000
                )
                
                
                -
                
                
                
                15,000Common
      stock issued for financing fees on note payable
                
                
                -
                
                
                
                -
                
                
                
                18,000
                
                
                
                18
                
                
                
                78,482
                
                
                
                -
                
                
                
                -
                
                
                
                78,500Conversion
      on notes payable and accrued interest
                
                
                -
                
                
                
                -
                
                
                
                85,502
                
                
                
                86
                
                
                
                78,429
                
                
                
                -
                
                
                
                -
                
                
                
                78,514Retirement
      of common stock
                
                
                -
                
                
                
                -
                
                
                
                (5,000
                )
                
                
                (5
                )
                
                
                5
                
                
                
                -
                
                
                
                -
                
                
                
                -Amortization
      of deferred compensation
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                89,704
                
                
                
                -
                
                
                
                89,704Net
      Loss, 2006
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (741,177
                )
                
                
                (741,177
                )Balance
      December 31, 2006
                
                
                -
                
                
                
                -
                
                
                
                3,404,302
                
                
                
                3,404
                
                
                
                1,532,490
                
                
                
                (63,296
                )
                
                
                (2,094,639
                )
                
                
                (622,041
                )Common
      stock issued for services
                
                
                -
                
                
                
                -
                
                
                
                100,000
                
                
                
                100
                
                
                
                149,900
                
                
                
                -
                
                
                
                -
                
                
                
                150,000Conversion
      on notes payable and accrued interest
                
                
                -
                
                
                
                -
                
                
                
                1,204,148
                
                
                
                1,204
                
                
                
                481,400
                
                
                
                -
                
                
                
                -
                
                
                
                482,604Conversion
      of accrued payroll
                
                
                -
                
                
                
                -
                
                
                
                599,615
                
                
                
                600
                
                
                
                238,046
                
                
                
                -
                
                
                
                -
                
                
                
                238,646Common
      stock issued for financing fees
                
                
                -
                
                
                
                -
                
                
                
                10,000
                
                
                
                10
                
                
                
                3,990
                
                
                
                -
                
                
                
                -
                
                
                
                4,000Amortization
      of deferred compensation
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                63,296
                
                
                
                -
                
                
                
                63,296Net
      Loss, 2007
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (632,644
                )
                
                
                (632,644
                )Balance
      December 31, 2007
                
                
                -
                
                
                
                -
                
                
                
                5,318,065
                
                
                
                5,318
                
                
                
                2,405,826
                
                
                
                -
                
                
                
                (2,727,283
                )
                
                
                (316,139
                )Net
      Loss, for the three months ended March 31, 2008
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (52,556
                )
                
                
                (52,556
                )Balance,
      March 31, 2008
                
                
                -
                
                
                $
                -
                
                
                
                5,318,065
                
                
                
                5,318
                
                
                
                2,405,826
                
                
                
                -
                
                
                $
                (2,779,839
                )
                
                $
                (368,695
                )
  See
accompanying notes to financial statements.
   4
  BTX
HOLDINGS, INC. AND SUBSIDIARY
 
 (A
DEVELOPMENT STAGE COMPANY)
 
 CONSOLIDATED
STATEMENTS OF CASH FLOWS
 
 (UNAUDITED)
  For
      The Period From January 8, 2003For
      the Three Months Ended March 31,
                
                
                (Inception)
      to
                  March
      31,2008
                
                
                2007
                
                
                2008CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
                
                $
                (52,556
                )
                
                $
                (281,270
                )
                
                $
                (2,779,839
                )Adjustments
      to reconcile net loss to net cash used in operating
      activities:Common
      stock issued for services
                
                
                -
                
                
                
                187,726
                
                
                
                555,898Common
      stock issued for financing fees
                
                
                -
                
                
                
                
                
                
                
                7,500Beneficial
      conversion expenses
                
                
                -
                
                
                
                
                
                
                
                35,763Loss
      on conversion of notes payable - related party
                
                
                -
                
                
                
                
                
                
                
                96,322Depreciation
      expense
                
                
                753
                
                
                
                1,173
                
                
                
                13,629Impairment
      of technology
                
                
                -
                
                
                
                -
                
                
                
                500,000In-kind
      contribution of services
                
                
                -
                
                
                
                -
                
                
                
                880Changes
      in operating assets and liabilities:(Increase)
      / Decrease in prepaid expenses
                
                
                1,651
                
                
                
                613
                
                
                
                (1,965
                )Accrued
      payroll
                
                
                37,500
                
                
                
                4,532
                
                
                
                372,378Accrued
      interest
                
                
                2,325
                
                
                
                37,500
                
                
                
                57,955Accounts
      payable
                
                
                2,278
                
                
                
                10,051
                
                
                
                111,535Net
      Cash Used In Operating Activities
                
                
                (8,049
                )
                
                
                (39,675
                )
                
                
                (1,029,944
                )CASH
      FLOWS FROM INVESTING ACTIVITIES:Purchase
      of property and equipment
                
                
                -
                
                
                
                -
                
                
                
                (15,351
                )Net
      Cash Used In Investing Activities
                
                
                -
                
                
                
                -
                
                
                
                (15,351
                )CASH
      FLOWS FROM FINANCING ACTIVITIES:Cash
      overdraft
                
                
                -
                
                
                
                (728
                )
                
                
                -Repyaments
      of notes payable
                
                
                -
                
                
                
                -
                
                
                
                (40,000
                )Proceeds
      from notes payable related party
                
                
                5,100
                
                
                
                42,000
                
                
                
                410,750Proceeds
      from notes payable
                
                
                -
                
                
                
                -
                
                
                
                90,000Repurchase
      and retirement or treasury stock
                
                
                -
                
                
                
                -
                
                
                
                (50,000
                )Proceeds
      from issuance of common stock
                
                
                -
                
                
                
                -
                
                
                
                635,000Net
      Cash Provided By Financing Activities
                
                
                5,100
                
                
                
                41,272
                
                
                
                1,045,750NET
      INCREASE (DECREASE) IN CASH
                
                
                (2,949
                )
                
                
                1,597
                
                
                
                455CASH
      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
                
                
                3,404
                
                
                
                -
                
                
                
                -CASH
      AND CASH EQUIVALENTS AT END OF PERIOD
                
                $
                455
                
                
                $
                1,597
                
                
                $
                455Supplemental
      disclosure of non cash investing & financing
    activities:Cash
      paid for income taxes
                
                $
                -
                
                
                $
                -
                
                
                $
                -Cash
      paid for interest expense
                
                $
                
                
                
                $
                
                
                
                $
                500Conversion
      of convrtible debt and accrued interest to common stock
                
                $
                -
                
                
                $
                42,751
                
                
                $
                561,118Conversion
      of accrued salary to common stock
                
                $
                -
                
                
                $
                -
                
                
                $
                200,748
  See accompanying notes to
financial statements.
   5
 
  BTX
HOLDINGS, INC. AND SUBSIDIARY
 
 (A
DEVELOPMENT STAGE COMPANY)
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 MARCH
31, 2008
 
 (UNAUDITED)
 
 NOTE 1   ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
  (A) Basis of
Presentation
  The
accompanying reviewed financial statements are presented in accordance with
generally accepted accounting principles for interim financial information and
the instructions to Form 10-QSB and item 310 under subpart A of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments(consisting only of normal
occurring accruals) considered necessary in order to make the financial
statements not misleading, have been included. Operating results for the three
months ended March 31, 2008 are not necessarily indicative of results that may
be expected for the year ending December 31, 2008. The financial statements are
presented on the accrual basis.
  (B)
Organization
  BTX
Holdings, Inc. f/k/a King Capital Holdings, Inc. was incorporated under the laws
of the State of Florida on April 24, 2003.
  BioTex
Corporation (f/k/a YB Holdings, Inc.) (a development stage company), established
in 2003 to develop and employ technologies from around the world to process
biomass (plant derived) waste, extract the usable fractions, and then utilize or
sell those extractions for varied applications or in further
processes.
  Activities
during the development stage include developing the business plan, acquiring
technology and raising capital.
  Pursuant
to a share purchase agreement, dated December 30, 2005, BioTex Corporation,
consummated an agreement with BTX Holdings, Inc., pursuant to which BioTex
Corporation, exchanged all of its 1,283,720 then issued and outstanding shares
of common stock for 1,283,720 shares or approximately 89% of the common stock of
BTX Holdings, Inc.. This transaction has been accounted for as a reverse
acquisition. Accounting principles applicable to reverse acquisitions have been
applied to record the acquisition. Under this basis of accounting, BioTex
Corporation, is the acquirer and, accordingly, the consolidated entity is
considered to be a continuation of BioTex Corporation, with the net assets of
BTX Holdings, Inc. deemed to have been acquired and recorded at its historical
cost. The statements of operations include the results of BioTex Corporation for
the three months ended March 31, 2008 and 2007 and for the period from January
3, 2003 (inception) to March 31, 2008.
  BTX
Holdings, Inc. and BioTex Corporation are hereafter referred to as (the
“Company”).
  (C)
Use of Estimates
  In
preparing financial statements in conformity with generally accepted accounting
principles, management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and revenues and
expenses during the reported period. Actual results could differ from those
estimates.
  (D)
Consolidation
  The
accompanying consolidated financial statements include the accounts of BTX
Holdings, Inc and its 100% owned subsidiary BioTex Corporation.
 
 All
inter-company transactions have been eliminated in consolidation.
   6
  (E)
Cash and Cash Equivalents
  For
purposes of the cash flow statements, the Company considers all highly liquid
investments with original maturities of three months or less at the time of
purchase to be cash equivalents. The Company at times has cash in excess of FDIC
insurance limits and places its temporary cash investments with high credit
quality financial institutions. At March 31, 2008 and December 31,
2007  the Company did not have any balances that exceeded FDIC
insurance limits.
  (F)
Property and Equipment
  Property
and equipment are stated at cost, less accumulated depreciation. Expenditures
for maintenance and repairs are charged to expense as incurred. Depreciation is
provided using the straight-line method over the estimated useful life of five
years.
  (G)
Stock-Based Compensation
  Effective
January 1, 2006 The Company adopted SFAS No. 123R “Share-Based
Payment”(“SFAS 123R”), a revision to SFAS No. 123 “Accounting for
Stock-Based Compensation” (“SFAS 123”). Prior to the adoption of SFAS 123R the
Company accounted for stock options in accordance with APB Opinion No. 25
“Accounting for Stock Issued to Employees”(the intrinsic value method), and
accordingly, recognized no compensation expense for stock option
grants.
  Equity
instruments (“instruments”) issued to other than employees are recorded on the
basis of the fair value of the instruments, as required by SFAS No.
123(R).  EITF Issue 96-18, “Accounting for Equity Instruments That Are
Issued to Other Than Employees for Acquiring, or in Conjunction with Selling,
Goods or Services.” defines the measurement date and recognition period for such
instruments.  In general, the measurement date is when either a (a)
performance commitment, as defined, is reached or (b) the earlier of (i) the
non-employee performance is complete or (ii) the instruments are vested. The
measured value related to the instruments is recognized over a period based on
the facts and circumstances of each particular grant as defined in the
EITF.
  During
the year ended December 31, 2005, the Company granted 500,000 options to it's
President with the following terms; 100,000 shares at $5.00, 100,000 at $7.50,
100,000 at $10.00, 100,000 at $15.00 and 100,000 at $20.00. All options expire
December 31, 2015.
  The fair
value of each option grant is estimated on the date of grant using the
Black-Scholes option pricing model with the following weighted average
assumptions used for grants in 2005: dividend yield of zero; expected volatility
of 1%, risk-free interest rate of 3.5%; expected life of 5 years dividend yield
of zero; expected volatility of .001%,risk-free interest rate of 3.5%; expected
life of 5 years. The Company determined the value to be immaterial.
  A summary
of the status of the Company's stock options as of March 31, 2008 and the
changes during the period ended is presented below:
  Fixed
      Options
              
              Shares
              
              
              Weighted
                Average
                Exercise
      PriceOutstanding
      at December 31, 2004
              
              
              -
              
              
              
              -Granted
              
              
              500,000
              
              
              $
              11.50Outstanding
      at December 31, 2005
              
              
              500,000
              
              
              $
              11.50Granted
              
              
              -
              
              
              
              -Outstanding
      at December 31, 2006
              
              
              500,000
              
              
              $
              11.50Granted
              
              
              -
              
              
              
              -Outstanding
      at December 31, 2007
              
              
              500,000
              
              
              $
              11.50Granted
              
              
              -Outstanding
      at March 31, 2008
              
              
              500,000Options
      exercisable at March 31, 2008
              
              
              500,000Weighted
      average exercise price of options granted to employees during period ended
      March 31, 2008
              
              $
              11.50
   7
  (H)
Loss Per Share
  Basic and
diluted net loss per common share is computed based upon the weighted average
common shares outstanding as defined by Financial Accounting Standards No. 128,
“Earnings Per Share.” As of March 31, 2008 common share equivalents of 500,000
stock options were anti-dilutive and not used in the calculation of diluted net
loss per share. As of March 31, 2007  common share equivalents of
500,000 stock options and 1,740,000 shares upon the conversion of a convertible
note payable were anti-dilutive and not used in the calculation of diluted net
loss per share.
  (I)
Business Segments
 
 The
Company operates in one segment and therefore segment information is not
presented.
  (J)
Long-Lived Assets
  The
Company accounts for long-lived assets under the Statements of Financial
Accounting Standards Nos. 142 and144 “Accounting for Goodwill and Other
Intangible Assets” and “Accounting for Impairment or Disposal of Long-Lived
Assets” (“SFAS No. 142 and 144”). In accordance with SFAS No. 142and 144,
long-lived assets, goodwill and certain identifiable intangible assets held and
used by the Company are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. For purposes of evaluating the recoverability of long-lived assets,
goodwill and intangible assets, the recoverability test is performed using
undiscounted net cash flows related to the long-lived assets. A100% or $500,000
impairment charge was recorded in 2005 for the Citrus Separation Technology
acquired during the year as it was determined by management that the future
value was impaired.
  (K)
Fair Value of Financial Instruments
 
 The
carrying amounts of the Company's accounts payable, accrued expenses, notes
payable related parties, notes payable and deferred compensation
approximate fair value due to the relatively short period to maturity for these
instruments.
  (L)
Recent Accounting Pronouncements
 
 In March
2008, the FASB issued SFAS No. 161, “Disclosures about Derivative
Instruments and Hedging Activities, an amendment of FASB Statement No. 133”
(SFAS161). This statement is intended
to improve transparency in financial reporting by requiring enhanced disclosures
of an entity’s derivative instruments and hedging activities and their effects
on the entity’s financial position, financial performance, and cash flows.SFAS161 applies to all derivative
instruments within the scope of SFAS 133, “Accounting for Derivative Instruments
and Hedging Activities” (SFAS 133) as well as related hedged items, bifurcated
derivatives, and nonderivative instruments that are designated and qualify as
hedging instruments. Entities with instruments subject toSFAS161 must provide more robust
qualitative disclosures and expanded quantitative disclosures.SFAS161 is effective prospectively for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008, with early application permitted. We are currently
evaluating the disclosure implications of this statement.
  NOTE 2    
PROPERTY AND EQUIPMENT
  Property
and equipment at March 31, 2008 and December 31, 2007 were as
follows:
  March
      31, 2008
              
              
              December
      31, 2007Computer
              
              $
              15,351
              
              
              $
              15,351Less
      accumulated depreciation
              
              
              (13,629
              )
              
              
              (12,876
              )$
              1,722
              
              
              $
              2,475
  During
the three months ended March 31, 2008 and 2007, and the period January 8, 2003
(Inception) to March 31, 2008 the Company recorded depreciation expense of $753,
$1,173,  and $13,629, respectively.
  NOTE 3    
PURCHASE OF INTELLECTUAL PROPERTY
  During
January 2005, the Company entered into an agreement with Bio Reduction
Technology, LLC, pending the Company's acceptance of a working prototype.
Whereby the Company has the right to acquire an exclusive license to make and
have made and to use, offer to sell, sell, license, rent, and distribute
products embodying the bio reduction technology and any improvements to such
technology throughout the entire world. In exchange for the afore mentioned
license, the Company has agreed to issue up to 150,000 shares of common stock
valued at $1,500,000 the fair market value on the agreement date and an option
to purchase 30,000 additional shares of common stock, which will be exercisable
at a price of $50.00 per share. As of March 31, 2008, the Company has not
received a working prototype and has not closed on the agreement.
   8
   During
May 2005, the Company entered into an agreement with an individual who is the
sole inventor of and holds all the rights, title, and interest in a pending
patent for citrus separation technology, whereby the Company has been assigned
the pending patent and the right to make and have made and to use, offer to
sell, sell, license, rent, and distribute products embodying the citrus
separation technology and improvements to such technology throughout the entire
world. In exchange for the aforementioned pending patent, the Company issued
250,000 shares of common stock valued at $500,000, the fair market value on the
agreement date and an option for the purchase of 150,000 additional shares of YB
common stock, exercisable at a price of $10.00 per share. The options were
valued based on the Black-Scholes model with the following assumptions as
required under SFAS 123 with the following weighted average assumptions:
expected dividend yield 0%, volatility 0%, risk-free interest rate of 4.25%, and
expected warrant life of one year. The Company also agreed to share a certain
percentage of profits derived from sales. As the Company has yet to determine
the commercial feasibility of this technology, it has elected to fully impair
the value of it.
  On
December 29, 2005, the Company entered into an agreement with Dexion
International, Ltd to acquire all rights and interest in its patent application
number 5425221.8 for Hypercritical Separation Technology that was filed with the
European Patent Office on April 15, 2005. Upon successful testing, the rights,
title and interest to the technology are being acquired by us at a cost of $2.5
million and 580,000 shares of common stock. Additionally, pending successful
testing of the technology, the Company has agreed to acquire Dexion's HST
machine for $500,000 and to establish a research and development facility for
the technology. On March 29, 2007, the Company and Dexion International, Ltd,
mutually terminated the Agreement.
  NOTE 4    
NOTES PAYABLE - RELATED PARTIES
 
 During
2004, the Company issued a one-year 8% Convertible Debenture (“Debenture”) in
the principal amount of $87,000, to an officer, director and shareholder in
settlement of the note payable to such related party, which was issued for the
sole purpose of funding ongoing operations. The note was extended until December
31, 2006. The principal and accrued interest of the Debenture is convertible
upon issuance into shares of common stock, par value $0.001 per share, at a
conversion price of $0.05 per share. During the years ended December 31, 2006
and 2005 and the period January 8, 2003 (Inception) to December 31, 2006 the
Company recorded financing fees for the beneficial conversion of $0, $70,795,
and $85,000, respectively. In March 2007 the officer, director and shareholder
extended the maturity date to March 31, 2007. In May 2007 the officer
director and shareholder agreed to convert the principal of $87,000 and accrued
interest of $17,337 into common stock at a discount of 20% from the current
market value of $.40 on date of conversion. The Company issued a total of
326,055 shares of common stock valued at $130,422 ($.40 per share). The Company
recorded a loss on conversion of notes payable of $26,085 (See Note
8).
  On
December 27, 2005, the Company borrowed $15,000 from a related party. The note
is unsecured and is due twelve months from the date of issuance and bears
interest at a rate of 10%. In December 2006 the term of the note was extended to
February 28, 2007. In March 2007, the loan was further extended until March 31,
2007.  In May 2007 the related party agreed to convert the principal of
$15,000 and accrued interest of $2,026 into common stock at a discount of 20%
from the current market value of $.40 on date of conversion. The Company issued
a total of 53,206 shares of common stock valued at $21,283 ($.40 per share). The
Company recorded a loss on conversion of notes payable of $4,257 (See Note
8).
  On
December 28, 2005, a related party loaned the Company $40,000 at a rate of 10%
per annum. The principle and interest were due on December 31, 2006 and was
unsecured. On September 1, 2006 the related party converted $40,000 of principal
and $2,751 of accrued interest into 85,502 shares of common stock. The Company
recorded interest expense of $35,763 associated with the beneficial conversion
of the accrued interest (See Note 8).
 
 In March
2006 a related party repaid an existing unsecured note of the Company in the
amount of $20,000 and $500 of accrued interest. The related party entered into a
new unsecured note agreement in the amount of $20,500 bearing interest at a rate
of 15% per annum and is due December 31, 2006. In December 2006 the term of the
note was extended to February 28, 2007. In March 2007, the loan was further
extended until March 31, 2007.  In May 2007 the related party agreed to
convert the principal of $20,500 and accrued interest of $3,631 into common
stock at a discount of 20% from the current market value of $.40 on date of
conversion. The Company issued a total of 75,409 shares of common stock valued
at $30,164 ($.40 per share). The Company recorded a loss on conversion of notes
payable of $6,033 (See Note 8).
  In April
2006 the Company borrowed $50,000 from a related party. The note is unsecured
and is due December 31, 2006 and bears interest at a rate of 15%. The Company
issued the note holder 12,500 shares of common stock. The fair market value on
the date of issuance based on recent cash offering price was $50,000. The value
is being amortized over the term of the note. In December 2006 the term of the
loan was extended to February 28, 2007. In March 2007, the loan was further
extended until March 31, 2007. At December 31, 2006 the Company recorded
amortization of $50,000.  In May 2007 the related party agreed to convert
the principal of $50,000 and accrued interest of $8,260 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 182,063 shares of common stock valued at $72,825 ($.40
per share). The Company recorded a loss on conversion of notes payable of
$14,565 (See Note 8).
   9
 
 During
the year ended December 31, 2006, officer, director and shareholder loaned the
Company an additional $37,250. The balance accrued interest at a rate of 10% per
annum, is unsecured, and is due on December 31, 2006. In January 2007 the
officer, director and shareholder extended the maturity date to March 31, 2007.
In May 2007 the officer, director and shareholder agreed to convert the
principal of $37,250 and accrued interest of $3,746 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 128,113 shares of common stock valued at $51,245 ($.40
per share). The Company recorded a loss on conversion of notes payable of
$10,249 (See Note 8).
  During
2006, the Company borrowed $73,700 from a related party. The note is unsecured
and is due six months from the dates of issuance and bear interest at a rate of
15%. In December 2006 the term of the note was extended to February 28, 2007. In
March 2007, the loan was further extended until March 31, 2007. During the three
months ended March 31, 2007 the Company borrowed an additional $42,000 from the
related party, note is unsecured and is due March 31, 2007 and bear interest at
a rate of 15%. In April 2007, the Company borrowed $15,000 from a related
party. The note is unsecured and is due June 30, 2007 and bears interest at a
rate of 15%. In May 2007 the officer, director and shareholder agreed to convert
the principal of $130,700 and accrued interest of $8,616 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 439,302 shares of common stock valued at $176,666
($.40 per share). The Company recorded a loss on conversion of notes payable of
$35,145 (See Note 8).
  On May
18, 2007, the Company borrowed $6,000 from a related party. The note is
unsecured and is due July 31, 2007 and bears interest at a rate of 15%. In
November 2007, the term of loan was extended to November 30, 2007. In March
2008, the term of the loan was extended to June 30, 2008. As of March 31, 2008
and December 31, 2007 the Company recorded accrued interest of
$782  and $557, respectively (See note 8).
  On June
5, 2007 the Company borrowed $6,500 from an officer, director and shareholder of
the Company. The note is unsecured and is due July 31, 2007 and bears interest
at a rate of 17%. In November 2007, the term of loan was extended to November
30, 2007. In March 2008, the term of the loan was extended to June 30, 2008. As
of March 31, 2008 and December 31, 2007 the Company recorded accrued interest of
$905 and $630, respectively (See note 8).
 
 During
the three months ended September 30, 2007 the Company borrowed a total of $7,700
from an officer, director and shareholder of the Company. The notes are
unsecured and are due October 30, 2007 and bears interest at a rate of 15%. In
November 2007, the term of loan was extended to November 30, 2007.  In
March 2008, the term of the loan was extended to June 30, 2008. As of March 31,
2008 and December 31, 2007 the Company recorded accrued interest of $781 and
$493, respectively (See note 8).
 
 In
October  2007 the Company borrowed $2,000 from an officer, director
and shareholder of the Company. The note is unsecured and is due November 15,
2007 and bears interest at a rate of 15%. In November 2007, the term of loan was
extended to November 30, 2007.  In March 2008, the term of the loan
was extended to June 30, 2008. As of March 31, 2008 and December 31, 2007
the Company recorded accrued interest of $136 and $62, respectively (See note
8).
 
 On
December 31, 2007 the Company borrowed $3,000 from an officer, director and
shareholder of the Company. The note is unsecured and is due March 31, 2008 and
bears interest at a rate of 25%.. In March 2008, the term of the loan was
extended to June 30, 2008.  As of March 31, 2008 and December 31, 2007
the Company recorded accrued interest of $187  and $0, respectively
(See note 8).
 
 On
February 1, 2008, the Company borrowed $2,500 from a related party. The note is
unsecured and is due June 30, 2008 and bears interest at a rate of 10%. As of
March 31, 2008 the Company recorded accrued interest of
$40   (See note 8).
 
 On
February 23, 2008, the Company borrowed $500 from a related party. The note is
unsecured and is due June 30, 2008 and bears interest at a rate of 15%. As of
March 31, 2008 the Company recorded accrued interest of $8   (See
note 8).
 
 On March
10, 2008, the Company borrowed $2,100 from a related party. The note is
unsecured and is due June 30, 2008 and bears interest at a rate of 15%. As of
March 31, 2008 the Company recorded accrued interest of
$18   (See note 8).
  NOTE 5    
NOTES PAYABLE
  In March,
2006 the Company borrowed $5,000 from an individual. The note is unsecured, is
due June 1, 2006, and bears interest at a rate of 15%. In August, the note was
extended to September 30, 2006 and the Company agreed to issue 500 shares of
common stock in consideration for the extension.  In June 2007 the
Company repaid the principal of $5,000 and accrued interest of $916. In addition
the Company agreed to issue 10,000 share of common stock valued at $4,000 ($.40
per share) the fair value on the date of issuance as additional fees to cover
the default on note.
   10
  In April,
2006 the Company borrowed $25,000 from an individual. The note is unsecured, is
due four months from the date of issuance and bears interest at a rate of 10%.
The Company issued the note holder 5,000 shares of common stock. The fair market
value on the date of issuance based on recent cash offering price was $25,000.
The value is being amortized over the term of the note. At December 31, 2006 the
Company recorded a discount on the notes of $0 and amortization of $25,000. The
note is currently in default. As of March 31, 2008 and December 31, 2007 the
Company recorded accrued interest of $4,836  and $4,212,
respectively.
  In May,
2006 the Company borrowed $5,000 from an individual. The note is unsecured, is
due June 1, 2006, and bears interest at a rate of 7%. In June, 2006 the note was
extended to October 15, 2006. The note is currently in default. As of March 31,
2008 and December 31, 2007 the Company recorded accrued interest of
$669  and $582, respectively.
  In
November 2007 the Company borrowed $20,000 from an investment company. The note
is unsecured, is due November 13, 2008, and bears interest at a rate of
10%.  As of March 31, 2008 and December 31, 2007 the Company recorded
accrued interest of $762  and $263, respectively.
  NOTE 6    
JOINT VENTURE
  On August
15, 2005, the Company agreed to enter into an agreement with the Citrus
Products of Belize Limited (“CPBL”). Pursuant to the Agreement, the Company and
CPBL were to form a joint venture named BTX Citrus Belize, Ltd. (“BTXC”) for the
purpose of building a plant in Belize for waste peel processing. Pursuant to the
terms of the Agreement, the Company will own 65% and CPBL will own 35% of the
joint venture company. As of March 31, 2008 the joint venture has not been
formed.
  The
parties have agreed that the Net Profits generated by BTXC, minus a working
capital reserve to be determined by the BTXC board of directors, shall be
distributed on a quarterly basis on the same percentage basis as each party's
equity ownership. For the purpose of this Agreement, Net Profits has been
defined as Gross Revenues from the sale of finished products less all associated
costs of operation, including, but not limited to, salaries and wages,
utilities, commissions, SG&A, royalties and debt service. An additional 20%
of the Net Profits will be retained to establish a sinking fund in order to
retire the debt incurred in building the plant until such time that the debt is
retired.
  NOTE 7    
STOCKHOLDERS' EQUITY
  (A)
Common Stock Issued to Founders
  During
January 2003 the Company issued 1,574,600 shares of common stock to founders for
a capital contribution of $2,000 ($.0012 per share).
 
 In August
2006 one of the founders returned 5,000 shares of common stock with a par value
of $5.00. The Company retired the share of common stock in August
2006.
  (B)
Common Stock Issued for Cash
  In 2005,
the Company sold a total of 311,500 shares of common stock to 22 individuals for
cash of $623,000 ($2.00 per share).
  In 2006,
the Company sold a total of 4,000 shares of common stock to an individual for
cash of $10,000 ($2.50 per share).
  (C)
Common Stock Issued for Services
  In
December 2005 the Company issued 15,000 shares of common stock with a fair
market value of $30,000 for legal services ($2.00 per share).
  In March
2006 the Company issued 45,000 shares of common stock valued at $153,000 for
investor relations. The term of the agreement is from June 1, 2006 to June 1,
2007. As of March 31, 2006 the Company has recorded the value of these shares as
deferred compensation and will amortize them over the term of the agreement
($3.40 per share).
 
 In June
2006 the Company issued 5,000 shares of common stock with a fair market value of
$15,000 for consulting services ($3.00 per share).
  In March
2007 the Company issued 100,000 shares of common stock with a fair market value
of $150,000 for consulting services ($1.50 per share).
  
 11
   (D)
Common Stock Issued for Financing Fees
  In
December 2005 the Company issued 5,000 shares of common stock with a fair market
value of $10,000 ($2.00 per share) for financing fees in relation to a note
payable (See Note 4).
  In April
2006 the Company issued 5,000 shares of common stock with a fair market value of
$25,000 ($5.00 per share) for financing fees in relation to a note payable (See
Note 5).
  In April
2006, the Company issued a related party 12,500 shares of common stock with a
fair market value of $50,000 ($4.00 per share) for financing fees in relation to
a note payable (See Note 4).
 
 In
September 2006, the Company issued 500 shares of common stock with a fair market
value of $3,500 ($7.00 per share) for financing fees in relation to a note
payable (See Note 5).
  (E)
Common Stock Issued for Notes Payable
  During
2004, the Company issued a one-year 8% Convertible Debenture (“Debenture”) in
the principal amount of $87,000, to an officer, director and shareholder in
settlement of the note payable to such related party, which was issued for the
sole purpose of funding ongoing operations. The note was extended until December
31, 2006. The principal and accrued interest of the Debenture is convertible
upon issuance into shares of common stock, par value $0.001 per share, at a
conversion price of $0.05 per share. During the years ended December 31, 2006
and 2005 and the period January 8, 2003 (Inception) to December 31, 2006 the
Company recorded financing fees for the beneficial conversion of $0, $70,795,
and $85,000, respectively. In March 2007 the officer, director and shareholder
extended the maturity date to March 31, 2007. In May 2007 the officer
director and shareholder agreed to convert the principal of $87,000 and accrued
interest of $17,337 into common stock at a discount of 20% from the current
market value of $.40 on date of conversion. The Company issued a total of
326,055 shares of common stock valued at $130,422 ($.40 per share). The Company
recorded a loss on conversion of notes payable of $26,085 (See Note
8).
  On
December 27, 2005, the Company borrowed $15,000 from a related party. The note
is unsecured and is due twelve months from the date of issuance and bears
interest at a rate of 10%. In December 2006 the term of the note was
extended to February 28, 2007. In March 2007, the loan was further extended
until March 31, 2007.  In May 2007 the related party agreed to convert the
principal of $15,000 and accrued interest of $2,026 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 53,206 shares of common stock valued at $21,283
($.40 per share). The Company recorded a loss on conversion of notes payable of
$4,257 (See Note 8).
  On
December 28, 2005, a related party loaned the Company $40,000 at a rate of 10%
per annum. The principal and interest were due on December 31, 2006 and was
unsecured. On September 1, 2006 the related party converted $40,000 of principal
and $2,751 of accrued interest into 85,502 shares of common stock. The Company
recorded interest expense of $35,763 associated with the beneficial conversion
of the accrued interest (See Note 8)
  In March
2006 a related party repaid an existing unsecured note of the Company in the
amount of $20,000 and $500 of accrued interest. The related party entered into a
new unsecured note agreement in the amount of $20,500 bearing interest at a rate
of 15% per annum and is due December 31, 2006. In December 2006 the term of the
note was extended to February 28, 2007. In March 2007, the loan was further
extended until March 31, 2007.  In May 2007 the related party agreed to
convert the principal of $20,500 and accrued interest of $3,631 into common
stock at a discount of 20% from the current market value of $.40 on date of
conversion. The Company issued a total of 75,409 shares of common stock
valued at $30,164 ($.40 per share). The Company recorded a loss on conversion of
notes payable of $6,033 (See Note 8).
 
 In April
2006 the Company borrowed $50,000 from a related party. The note is unsecured
and is due December 31, 2006 and bears interest at a rate of 15%. The Company
issued the note holder 125,000 shares of common stock. The fair market value on
the date of issuance based on recent cash offering price was $50,000. The value
is being amortized over the term of the note. In December 2006 the term of loan
was extended to February 28, 2007. In March 2007, the loan was further extended
until March 31, 2007. At December 31, 2006 the Company recorded amortization of
$50,000.  In May 2007 the related party agreed to convert the principal of
$50,000 and accrued interest of $8,260 into common stock at a discount of 20%
from the current market value of $.40 on date of conversion. The Company issued
a total of 182,063 shares of common stock valued at $72,825 ($.40 per share).
The Company recorded a loss on conversion of notes payable of $14,565 (See Note
8).
  During
the year ended December 31, 2006, officer, director and shareholder loaned the
Company an additional $37,250. The balance accrued interest at a rate of 10% per
annum, is unsecured, and is due on December 31, 2006. In January 2007 the
officer, director and shareholder extended the maturity date to March 31, 2007.
In May 2007 the officer, director and shareholder agreed to convert the
principal of $37,250 and accrued interest of $3,746 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 128,113 shares of common stock valued at $51,245 ($.40
per share). The Company recorded a loss on conversion of notes payable of
$10,249 (See Note 8).
   12
   During
2006, the Company borrowed $73,700 from a related party. The note is unsecured
and is due six months from the dates of issuance and bear interest at a rate of
15%. In December 2006 the term of note was extended to February 28, 2007. In
March 2007, the loan was further extended until March 31, 2007. During the three
months ended March 31, 2007 the Company borrowed an additional $42,000 from the
related party, note is unsecured and is due March 31, 2007 and bear interest at
a rate of 15%. In April 2007, the Company borrowed $15,000 from a related
party. The note is unsecured and is due June 30, 2007 and bears interest at a
rate of 15%. In May 2007 the officer, director and shareholder agreed to convert
the principal of $130,700 and accrued interest of $9,616 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 439,302 shares of common stock valued at $176,666
($.40 per share). The Company recorded a loss on conversion of notes payable of
$35,145 (See Note 8).
 
 In March,
2006 the Company borrowed $5,000 from an individual. The note is unsecured, is
due June 1, 2006, and bears interest at a rate of 15%. In August, the note was
extended to September 30, 2006 and the Company agreed to issue 500 shares of
common stock in consideration for the extension.  In June 2007 the
Company repaid the principal of $5,000 and accrued interest of $916. In addition
the Company agreed to issue 10,000 share of common stock valued at $4,000 ($.40
per share) the fair value on the date of issuance as additional fees to cover
the default on note.
  (F)
Common Stock Issued for Technology
  The
Company issued 250,000 shares of common stock with a fair value of $500,000
($2.00 per share) and 150,000 warrants during 2005, at an exercise price of
$10.00 per share for the purchase of intellectual technology. The fair market
value of the warrants was estimated on the grant date using the Black-Scholes
option pricing model as required under SFAS 123 with the following weighted
average assumptions: expected dividend yield 0%, volatility1%, risk-free
interest rate of 4.25%, and expected warrant life of one year. The value was
immaterial at the grant date.
  (G)
Capital Contribution
  In
December, 2005 the Company's CEO elected to forgo $880 of amounts owed to him
for management fees. This amount has been recorded as in-kind contribution of
services at December 31, 2005.
  (H)
Reverse Mergers
  On June
9, 2005, pursuant to the Stock Purchase Agreement and Share Exchange, the
Company issued a total of 282,500 shares of the Company's common stock to the
shareholders of Capital Ventures I.
 
 On
December 30, 2005 pursuant to the Stock Purchase Agreement and Share Exchange,
the Company issued a total of 1,655,070 shares of the Company's common stock to
the shareholders of BioTex Holdings, Inc. simultaneous with the Stock Purchase
Agreement and Share Exchange, the Company purchased and retired a total of
1,573,750 shares of its common stock for $50,000 from a former shareholder of
King Capital.
  (I)
Shares in Escrow
  During
2005, 580,000 shares of common stock were issued into escrow pending the
acceptance of the Agreement between the Company and Dexion International Ltd. to
acquire the right to Hypercritical Separation Technology. On March 29, 2007 the
Company and Dexion mutually terminated the Agreement and the shares being held
in escrow were cancelled.
  During
2005, 150,000 shares of common stock and 50,000 warrants with an exercise price
of $50.00 were issued into escrow pending the acceptance of the Agreement
between the Company and Bio Reduction Technology, LLC to acquire the license to
their Bio Reduction Technology. As of February 22, 2007 the Company has not
completed the transaction with Bio Reduction Technology, LLC and the shares in
escrow were cancelled pending delivery of a working prototype.
  During
2005, the Company issued 50,000 shares of common stock for  a finder's
fee which were put into escrow pending the acceptance of the Agreement between
the Company and Dexion International Ltd. to acquire the Hyper Critical
Separation Technology. On March 29, 2006, the Company and Dexion mutually
terminated the Agreement and the shares being held in escrow were
cancelled.
  (J)
Stock Split
  On July
14, 2006, the Company's stockholders approved a 5 for 1 stock split for its
common stock. As a result, stockholders of record at the close of business on
July 28, 2006, received five shares of common stock for every one shares held.
Common stock, additional paid-in capital and share and per share data for prior
periods have been restated to reflect the stock split as if it had occurred at
the beginning of the earliest period presented.
   13
 
 (K)
Reverse Stock Split
  On June
5, 2007, the Company's stockholders approved a 1 for 10 reverse stock split for
its common stock. As a result, stockholders of record at the close of business
on July 9, 2007, received one shares of common stock for every ten shares held.
Common stock, additional paid-in capital,  share and per share data for
prior periods have been restated to reflect the stock split as if it had
occurred at the beginning of the earliest period presented.
  NOTE 8    
RELATED PARTY TRANSACTIONS
  During
2004, the Company issued a one-year 8% Convertible Debenture (“Debenture”) in
the principal amount of $87,000, to an officer, director and shareholder in
settlement of the note payable to such related party, which was issued for the
sole purpose of funding ongoing operations. The note was extended until December
31, 2006. The principal and accrued interest of the Debenture is convertible
upon issuance into shares of common stock, par value $0.001 per share, at a
conversion price of $0.05 per share. During the years ended December 31, 2006
and 2005 and the period January 8, 2003 (Inception) to December 31, 2006 the
Company recorded financing fees for the beneficial conversion of $0, $70,795,
and $85,000, respectively. In March 2007 the officer, director and shareholder
extended the maturity date to March 31, 2007. In May 2007 the officer
director and shareholder agreed to convert the principal of $87,000 and accrued
interest of $17,337 into common stock at a discount of 20% from the current
market value of $.40 on date of conversion. The Company issued a total of
326,055 shares of common stock valued at $130,422 ($.40 per share). The Company
recorded a loss on conversion of notes payable of $26,085.
  On
December 27, 2005, the Company borrowed $15,000 from a related party. The note
is unsecured and is due twelve months from the date of issuance and bears
interest at a rate of 10%. In December 2006 the term of the note was extended to
February 28, 2007. In March 2007, the loan was further extended until March 31,
2007.  In May 2007 the related party agreed to convert the principal of
$15,000 and accrued interest of $2,026 into common stock at a discount of 20%
from the current market value of $.40 on date of conversion. The Company issued
a total of 53,206 shares of common stock valued at $21,283 ($.40 per share). The
Company recorded a loss on conversion of notes payable of $4,257.
  On
December 28, 2005, a related party loaned the Company $40,000 at a rate of 10%
per annum. The principle and interest were due on December 31, 2006 and was
unsecured. On September 1, 2006 the related party converted $40,000 of principal
and $2,751 of accrued interest into 85,502 shares of common stock. The Company
recorded interest expense of $35,763 associated with the beneficial conversion
of the accrued interest.
 
 In March
2006 a related party repaid an existing unsecured note of the Company in the
amount of $20,000 and $500 of accrued interest. The related party entered into a
new unsecured note agreement in the amount of $20,500 bearing interest at a rate
of 15% per annum and is due December 31, 2006. In December 2006 the term of the
note was extended to February 28, 2007. In March 2007, the loan was further
extended until March 31, 2007.  In May 2007 the related party agreed to
convert the principal of $20,500 and accrued interest of $3,631 into common
stock at a discount of 20% from the current market value of $.40 on date of
conversion. The Company issued a total of 75,409 shares of common stock valued
at $30,164 ($.40 per share). The Company recorded a loss on conversion of notes
payable of $6,033.
  In April
2006 the Company borrowed $50,000 from a related party. The note is unsecured
and is due December 31, 2006 and bears interest at a rate of 15%. The Company
issued the note holder 125,000 shares of common stock. The fair market value on
the date of issuance based on recent cash offering price was $50,000. The value
is being amortized over the term of the note. In December 2006 the term of the
loan was extended to February 28, 2007. In March 2007, the loan was further
extended until March 31, 2007. At December 31, 2006 the Company recorded
amortization of $50,000.  In May 2007 the related party agreed to convert
the principal of $50,000 and accrued interest of $8,260 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 182,063 shares of common stock valued at $72,825 ($.40
per share). The Company recorded a loss on conversion of notes payable of
$14,565.
 
 During
the year ended December 31, 2006, officer, director and shareholder loaned the
Company an additional $37,250. The balance accrued interest at a rate of 10% per
annum, is unsecured, and is due on December 31, 2006. In January 2007 the
officer, director and shareholder extended the maturity date to March 31, 2007.
In May 2007 the officer, director and shareholder agreed to convert the
principal of $37,250 and accrued interest of $3,746 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 128,113 shares of common stock valued at $51,245 ($.40
per share). The Company recorded a loss on conversion of notes payable of
$10,249.
  During
2006, the Company borrowed $73,700 from a related party. The note is unsecured
and is due six months from the dates of issuance and bear interest at a rate of
15%. In December 2006 the term of the note was extended to February 28, 2007. In
March 2007, the loan was further extended until March 31, 2007. During the three
months ended March 31, 2007 the Company borrowed an additional $42,000 from the
related party, note is unsecured and is due March 31, 2007 and bear interest at
a rate of 15%. In April 2007, the Company borrowed $15,000 from a related
party. The note is unsecured and is due June 30, 2007 and bears interest at a
rate of 15%. In May 2007 the officer, director and shareholder agreed to convert
the principal of $130,700 and accrued interest of $8,616 into common stock at a
discount of 20% from the current market value of $.40 on date of conversion. The
Company issued a total of 439,302 shares of common stock valued at $176,666
($.40 per share). The Company recorded a loss on conversion of notes payable of
$35,145.
   14
  On May
18, 2007, the Company borrowed $6,000 from a related party. The note is
unsecured and is due July 31, 2007 and bears interest at a rate of 15%. In
November 2007, the term of loan was extended to November 30, 2007. In March
2008, the term of the loan was extended to June 30, 2008. As of March 31, 2008
and December 31, 2007 the Company recorded accrued interest of
$782  and $557, respectively.
  On June
5, 2007 the Company borrowed $6,500 from an officer, director and shareholder of
the Company. The note is unsecured and is due July 31, 2007 and bears interest
at a rate of 17%. In November 2007, the term of loan was extended to November
30, 2007. In March 2008, the term of the loan was extended to June 30, 2008. As
of March 31, 2008 and December 31, 2007 the Company recorded accrued interest of
$905 and $630, respectively.
 
 During
the three months ended September 30, 2007 the Company borrowed a total of $7,700
from an officer, director and shareholder of the Company. The notes are
unsecured and are due October 30, 2007 and bears interest at a rate of 15%. In
November 2007, the term of loan was extended to November 30, 2007.  In
March 2008, the term of the loan was extended to June 30, 2008. As of March 31,
2008 and December 31, 2007 the Company recorded accrued interest of $781 and
$493, respectively.
 
 In
October  2007 the Company borrowed $2,000 from an officer, director
and shareholder of the Company. The note is unsecured and is due November 15,
2007 and bears interest at a rate of 15%. In November 2007, the term of loan was
extended to November 30, 2007.  In March 2008, the term of the loan
was extended to June 30, 2008. As of March 31, 2008 and December 31, 2007
the Company recorded accrued interest of $136 and $62,
respectively.
 
 On
December 31, 2007 the Company borrowed $3,000 from an officer, director and
shareholder of the Company. The note is unsecured and is due March 31, 2008 and
bears interest at a rate of 25%.. In March 2008, the term of the loan was
extended to June 30, 2008.  As of March 31, 2008 and December 31, 2007
the Company recorded accrued interest of $187  and $0,
respectively.
 
 On
February 1, 2008, the Company borrowed $2,500 from a related party. The note is
unsecured and is due June 30, 2008 and bears interest at a rate of 10%. As of
March 31, 2008 the Company recorded accrued interest of $40.
 
 On
February 23, 2008, the Company borrowed $500 from a related party. The note is
unsecured and is due June 30, 2008 and bears interest at a rate of 15%. As of
March 31, 2008 the Company recorded accrued interest of $8.
 
 On March
10, 2008, the Company borrowed $2,100 from a related party. The note is
unsecured and is due June 30, 2008 and bears interest at a rate of 15%. As of
March 31, 2008 the Company recorded accrued interest of $18.
 
 NOTE 9    
COMMITMENTS AND CONTINGENCIES
  (A)
Employment Agreement
  During
December 2005, the Company entered into an employment agreement with the
President and Chief Executive Officer of the Company for a term of five years at
an annual minimum salary of $150,000. In May 2007 the President and Chief
Executive Officer of the Company agreed to convert the principal of $190,917
into common stock at a discount of 20% from the current market value of $.40 on
date of conversion. The Company issued a total of 599,615 shares of common stock
valued at $238,646 ($.40 per share). The Company recorded additional
compensation expense on the conversion of the accrued salary of $47,729. As of
March 31, 2008 and December 31, 2007 the President and Chief Executive Officer
of the Company is owed accrued salary of $122,169 and $84,669,
respectively.
  In the
event that the net profits of the Company is less than $2,500,000 per annum than
the Executive shall receive a salary of $150,000; If net profits of the Company
are more than $2,500,000 per annum and less than $5,000,000 than the Executive
shall receive a salary of $250,000; if net profits of the Company are more than
$5,000,000 per annum but less than $7,500,000 than the Executive shall receive a
salary of $375,000; if the net profits of the Company are greater than
$7,500,000 per annum than the Executive shall receive a salary of $500,000 and
4% of the Annual Net Profits of the Companies, from all sources, before
Depreciation, Amortization and Taxes, in excess of $10,000,000. In addition the
Company has agreed to a monthly car allowance of up $1,500 per month. Net
Profits is based upon the net corporate profits, from all sources, before
Depreciation, Amortization and Taxes as collectively defined by the United
States Generally Accepted Accounting Principles (“GAAP”).
 
 The Company has agreed to issue the following common stock options:
  Options
to purchase 100,000 shares of the Company's common stock at an exercise price of
$5.00 expiring in 2015.
  Options
to purchase 100,000 shares of the Company's common stock at an exercise price of
$7.50 expiring in 2015.
  Options
to purchase 100,000 shares of the Company's common stock at an exercise price of
$10.00 expiring in 2015.
  Options
to purchase 100,000 shares of the Company's common stock at an exercise price of
$15.00 expiring in 2015.
  Options
to purchase 100,000 shares of the Company's common stock at an exercise price of
$20.00 expiring in 2015.
   15
  (B)
Joint Venture
  During
August 2005, the Company agreed to form a majority-owned venture, BTX Citrus
Belize, Ltd. (herein after known as “BTXC”), with Citrus Products Of Belize Ltd.
(“CPBL”), comprised of the Company's capital funding and citrus peel processing
equipment. CPBL is providing the land free citrus peels for 10 years
and is placing $700,000 in an escrow account for a period of no longer than four
months. As a result of this transaction, BioTex Corp. (“BIOTEX”) will have a 65%
ownership interest. The remaining 35% shall be owned by Citrus Products Of
Belize Ltd. (“CPBL”).  (See Note 6)
  NOTE
10   GOING CONCERN
  As
reflected in the accompanying financial statements, the Company is in the
development stage with no operations, a net loss of $2,779,839 from inception, a
stockholders' deficiency of $368,695, a working capital deficiency of $370,417
and used cash in operations from inception of $1,029,944. In addition, the
Company has $30,000 in notes payable that are currently in default. This raises
substantial doubt about its ability to continue as a going concern. The ability
of the Company to continue as a going concern is dependent on the Company's
ability to raise additional capital and implement its business plan. The
financial statements do not include any adjustments that might be necessary if
the Company is unable to continue as a going concern.
  Management
believes that actions presently being taken to obtain additional funding and
implement its strategic plans provide the opportunity for the Company to
continue as a going concern.
 
 NOTE 11   SUBSEQUENT
EVENTS
 
 On April
1, 2008 the Company borrowed $500 from an officer and director of the Company.
The note is unsecured and is due June 30, 2008 and bears interest at a rate of
15%.












16




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





The
information contained in Item 2 contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Actual results may
materially differ from those projected in the forward-looking statements as a
result of certain risks and uncertainties set forth in this report. Although
management believes that the assumptions made and expectations reflected in the
forward-looking statements are reasonable, there is no assurance that the
underlying assumptions will, in fact, prove to be correct or that actual results
will not be different from expectations expressed in this report.




Plan of
Operations





Our plan
of operations for the next twelve months is focused on the following primary
objectives.





1.
            Identifying
      potential candidates for merger or acquisition
    opportunities





2.
            Raising
      capital through private debt or equity
  offerings;




Acquisition or Merger
Candidates





We will
attempt to locate and negotiate with a business entity for the combination of
that target company with us. The combination will normally take the form of a
merger, stock- for-stock exchange or stock-for-assets exchange. In most
instances the target company will wish to structure the business combination to
be within the definition of a tax-free reorganization under Section 351 or
Section 368 of the Internal Revenue Code of 1986, as amended. No assurances can
be given that we will be successful in locating or negotiating with any target
company.





On
December 29, 2005, we terminated our agreement with Mastercraft Ltd. dated May
31, 2005. The agreement contemplated the acquisition of the rights, title and
interest to its MST technology at a cost of $3 million and 650,000 shares of
common stock of BioTex. The agreement was terminated when Mastercraft defaulted
on the terms of the agreement and both Mastercraft and BioTex signed mutual
releases of liability. Upon termination, the 650,000 shares being held in escrow
were returned to the treasury.





On
December 29, 2005, we entered into an agreement with Dexion International, Ltd
to acquire all rights and interest in its patent application number 5425221.8
for Hypercritical Separation Technology that was filed with the European Patent
Office on April 15, 2005. Upon successful testing, the rights, title and
interest to the technology were being acquired by us at a cost of $2.5 million
and 580,000 shares of common stock. Additionally, pending successful testing of
the technology, we had agreed to acquire Dexion’s HST machine for $500,000 and
to establish a research and development facility for the technology. In March,
2007, BioTex terminated the Agreement when both parties were found to be in
default of provisions of the Agreement, and such defaults were not
curable.  Upon termination, the 580,000 shares being held in escrow
were returned to the treasury





We
account for long-lived assets under the Statements of Financial Accounting
Standards Nos. 142 and 144 "Accounting for Goodwill and Other Intangible Assets"
and "Accounting for Impairment or Disposal of Long-Lived Assets" ("SFAS No. 142
and 144"). In accordance with SFAS No. 142 and 144, long-lived assets, goodwill
and certain identifiable intangible assets held and used by the Company
are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. For
purposes of evaluating the recoverability of long-lived assets, goodwill and
intangible assets, the recoverability test is performed using undiscounted net
cash flows related to the long-lived assets. A 100% or $500,000 impairment
charge was recorded for the Citrus Separation Technology acquired during the
year ended December 31, 2005 as it was determined by management that the future
value was impaired.





Going Concern
Consideration





As
reflected in the accompanying financial statements as of March 31, 2008, we are
in the development stage with no operations, a stockholders' deficiency of
$368,695, and a working capital deficiency of $370,417 and used cash in
operations from inception of $1,029,944. This raises substantial doubt about our
ability to continue as a going concern. Our ability to continue as a going
concern is dependent on our ability to raise additional capital and implement
our business plan. The financial statements do not include any adjustments that
might be necessary if the Company is unable to continue as a going
concern.





We
believe that actions presently being taken to obtain additional funding and
implement our strategic plans provide the opportunity for us to continue as a
going concern.








17





Liquidity and Capital
Resources





As of
March 31, 2008, we have assets of $4,142 consisting of cash of $455, prepaid
expenses of $1,965 and property and equipment of $1,722 and total liabilities of
$372,837 consisting of accounts payable of $111,535, and accrued expenses of
$181,002 an amount of $30,300 due to related parties, and notes payable of
$50,000.





Cash and
cash equivalents from inception to date have not been sufficient to cover
expenses involved in starting our business. Current cash on hand is insufficient
to support our operations for the next twelve months. Therefore, we will require
additional funds to continue to implement and expand our business plan during
the next twelve months.





Critical Accounting
Policies





Our
financial statements and related public financial information are based on the
application of accounting principles generally accepted in the United States
(“GAAP”). GAAP requires the use of estimates; assumptions, judgments and
subjective interpretations of accounting principles that have an impact on the
assets, liabilities, revenue and expense amounts reported. These estimates can
also affect supplemental information contained in our external disclosures
including information regarding contingencies, risk and financial condition. We
believe our use if estimates and underlying accounting assumptions adhere to
GAAP and are consistently and conservatively applied. We base our estimates on
historical experience and on various other assumptions that we believe to be
reasonable under the circumstances. Actual results may differ materially from
these estimates under different assumptions or conditions. We continue to
monitor significant estimates made during the preparation of our financial
statements.





Our
significant accounting policies are summarized in Note 1 of our financial
statements. While all these significant accounting policies impact our financial
condition and results of operations, we view certain of these policies as
critical. Policies determined to be critical are those policies that have the
most significant impact on our financial statements and require management to
use a greater degree of judgment and estimates. Actual results may differ
from those estimates. Our management believes that given current facts and
circumstances, it is unlikely that applying any other reasonable judgments or
estimate methodologies would cause effect on our consolidated results of
operations, financial position or liquidity for the periods presented in this
report.





Stock Based
Compensation





The
Company applies SFAS No. 123R “Share-Based Payment” (“SFAS 123R”), a revision to
SFAS No. 123 “Accounting for Stock-Based Compensation” (“SFAS 123”), and
superseding APB Opinion No. 25 “Accounting for Stock Issued to Employees” and
its related implementation guidance. SFAS 123R establishes standards for the
accounting for transactions in which an entity exchanges its equity instruments
for goods or services, including obtaining employee services in share-based
payment transactions. SFAS 123R applies to all awards granted after the required
effective date and to awards modified, repurchased, or cancelled after that
date.





Equity
instruments (“instruments”) issued to other than employees are recorded on the
basis of the fair value of the instruments, as required by SFAS No.
123(R).  EITF Issue 96-18, “Accounting for Equity Instruments That Are
Issued to Other Than Employees for Acquiring, or in Conjunction with Selling,
Goods or Services.” defines the measurement date and recognition period for such
instruments.  In general, the measurement date is when either a (a)
performance commitment, as defined, is reached or (b) the earlier of (i) the
non-employee performance is complete or (ii) the instruments are vested. The
measured value related to the instruments is recognized over a period based on
the facts and circumstances of each particular grant as defined in the
EITF.





Long Lived Assets





The Company accounts for long-lived
assets under the Statements of Financial Accounting Standards Nos. 142 and 144
“Accounting for Goodwill
and Other Intangible Assets”and “Accounting for Impairment or Disposal
of Long-Lived Assets”(“SFAS No. 142
and144”). In accordance with SFAS No. 142 and
144, long-lived assets, goodwill and certain identifiable intangible assets held
and used by the Company are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amountof an asset may not be recoverable. For
purposes of evaluating the recoverability of long-lived assets, goodwill and
intangible assets, the recoverability test is performed using undiscounted net
cash flows related to the long-lived assets. A 100% or $500,000 impairment charge was recorded in
2005 for the Citrus Separation Technology acquired during the year as it was
determined by management that the future value was impaired.





Item
3.  Quantitative and Qualitative Disclosures About Market Risk





The
Company is subject to certain market risks including changes in interest rates.
The Company does not undertake any specific actions to limit those
exposures.




18




Item
4T.  Controls and Procedures
 
 Pursuant
to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”),
the Company carried out an evaluation, with the participation of the Company’s
management, including the Company’s Chief Executive Officer (“CEO”) and Chief
Accounting Officer (“CAO”) (the Company’s principal financial and accounting
officer), of the effectiveness of the Company’s disclosure controls and
procedures (as defined under Rule 13a-15(e) und er the Exchange Act) as of the
end of the period covered by this report. Based upon that evaluation, the
Company’s CEO and CAO concluded that the Company’s disclosure controls and
procedures are effective to ensure that information required to be disclosed by
the Company in the reports that the Company files or submits under the Exchange
Act, is recorded, processed, summarized and reported, within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated
and communicated to the Company’s management, including the Company’s CEO and
CAO, as appropriate, to allow timely decisions regarding required
disclosure.
 
 Internal
control over financial reporting is a process to provide reasonable assurance
regarding the reliability of consolidated financial reporting and the
preparation of financial statements for external purposes in accordance with
U.S. generally accepted accounting principles. There has been no change in the
Company’s internal control over financial reporting during the quarter ended
March 31, 2008 that has materially affected, or is reasonably likely to
materially affect, the Company’s internal control over financial
reporting.
  There
have been no significant changes in the Company’s internal controls or in other
factors that could significantly affect internal controls subsequent to the date
the Chief Executive Officer and the Chief Financial Officer carried out this
evaluation.











19








PART
II - OTHER INFORMATION




Item
1. Legal Proceedings.




Currently
we are not aware of any litigation pending or threatened by or against the
Company.




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




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 Reports of Form 8-K.




(a)           Exhibits




31.1
Certifications pursuant to Section 302 of Sarbanes Oxley Act of
2002




32.1
Certifications pursuant to Section 906 of Sarbanes Oxley Act of
2002




(b)           Reports
of Form 8-K




None.








20









SIGNATURES








Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.









BTX
      HOLDINGS, INC.Date:
      May 13, 2008
            By:
            /s/
      Scott J. SilvermanScott
      J. SilvermanPresident,
              Chief
      Executive Officer,
              Chief
      Financial Officer







21