UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549  AMENDMENT NO. 1 FORM
10-QSB/A (Mark One) [X] QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934  For the
quarterly period ended November
30, 2007  OR [
   ] TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from to  Commission File Number:   333-61801  LIFEQUEST
WORLD CORPORATION (formerly Phytolabs, Inc.
and Jurak Corporation World Wide, Inc.)  (Exact
name of registrant as specified in its charter)  MINNESOTA 88-0407679  (State
or other jurisdiction of (Federal
Employer incorporation
or organization) Identification
No.)  1181
Grier Drive, Suite C, Las Vegas, NV 89119-3746  (Address
of principal executive offices) (Zip
Code) (702)
914-9688  Registrants
telephone number, including area code  Check whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
    YES  [X]
     NO  [
 ]  Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act.    YES  [
 ]  NO  [X]  APPLICABLE
ONLY TO CORPORATE ISSUERS: Indicate the number
of shares outstanding of each of the issuers classes of common stock, as of the
latest practicable date.   Class Outstanding
at January 7, 2008 Common
Stock, no par value 39,764,544


PURPOSE
OF AMENDMENT NO. 1    This amendment No. 1
to the Companys Quarterly Report on Form 10-QSB for the quarter ended November
30. 2007, which amends the Companys Form 10-QSB filed on January 22, 2008, is
being filed to correct the per share price and number of common stock shares
issued during and subsequent to the quarter ended November 30, 2007. The Company
initially reported a $500,000 stock sale in November 2007 and a $250,000 stock
sale in December 2007 at $0.20 per share, but the price should have been $0.42
per share. The financial statements, notes to the financial statements and MD
& A have been adjusted to reflect this stock price correction.                                  2     LIFEQUEST WORLD CORPORATION (formerly
PHYTOLABS, INC. AND JURAK CORPORATION WORLD WIDE, INC.)  INDEX   Page
No. Part I.
 Financial Information  Item
1.  Financial Statements  Condensed
Balance Sheets 4  Condensed
Statements of Operations 5   Condensed
Statements of Cash Flows 6  Selected
Notes to Condensed Financial Statements 7  Item
2.  Managements Discussion and Analysis of Financial
Condition and Results of Operations 13   Item
3.  Controls and Procedures 17  Part II.  Other
Information  Item
1.  Legal Proceedings 19  Item
2.  Unregistered Sales of Equity Securities and Use of Proceeds 19  Item
5.  Other Information 19  Item
6.  Exhibits 19


NOTES TO CONDENSED
FINANCIAL STATEMENTS  NOTE 1 - CONDENSED
FINANCIAL STATEMENTS  Company Name
Change and Nature of Business  Effective August 20, 2007, the Company changed its name to
Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak Corporation
World Wide, Inc.) to better reflect the business the company is involved in --
that of products designed to positively affect the lives of people worldwide.
The shares of the Company trade on the Over the Counter Bulletin Board under the
symbol, LQWC. We are a product-focused company specializing in the herbal
supplement industry and market.  Lifequest World Corporation (formerly Phytolabs, Inc. and Jurak
Corporation World Wide, Inc.) was incorporated under the laws of the State of
Minnesota on November 1, 1997. In this Quarterly Report, the terms Company,
us, we, our and its are used as references to Lifequest World
Corporation. We develop and distribute dietary herbal supplement products. Our
JC Tonic, The Youth Solution first developed in the 1920s and 1930s and
introduced to the marketplace in 1943 by Mr. Carl Jurak, the father of the
founder of our Company. Our dietary herbal supplement products are distributed
through a network marketing system using independent distributors that we refer
to as Ambassadors of Health (distributors).  The
consolidated balance sheets as of November 30, 2007 and the related consolidated
statements of operations for the three and six months ended November 30, 2007
and 2006 and the consolidated statements of cash flows for the six-month periods
then ended have been prepared by the Company without audit.  In the opinion
of management, all adjustments (which include normal recurring adjustments)
necessary to present fairly the financial position, results of operations, and
cash flows at November 30, 2007 and 2006 and for the six months then ended have
been made.  Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles in the
United States of America have been condensed or omitted.  It is suggested
these condensed financial statements be read in conjunction with the financial
statements and notes thereto included in the Companys May 31, 2007 audited
financial statements and form 10-KSB.  The results of operations for the
period ended November 30, 2007 are not necessarily indicative of the operating
results for the entire year.  The
presentation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, and disclosure of contingent
assets and liabilities at the balance sheet date, and the reported amounts of
revenues and expenses during the reporting period.  The estimates and
assumptions used in the accompanying condensed financial statements are based
upon managements evaluation of the relevant facts and circumstances as of the
time of the financial statements.  Actual results could differ from those
estimates.  NOTE
2  COMPANYS CONTINUED EXISTENCE  The
accompanying consolidated financial statements have been prepared in conformity
with accounting principles generally accepted in the United States of America,
which contemplate continuation of the Company as a going concern.  However,
the Company has sustained substantial losses and has a significant working
capital deficit.  The Company intends to generate positive cash flows from
operations through increased sales utilizing the network of distributors in
place and from financing activities by issuing additional stock, and obtaining
necessary capital through additional advances from the Companys principal
stockholder or through private placements.  To
continue operations, the Company must raise additional capital.  In
December 2006, the Company announced a best efforts private placement of
$3,000,000 at $1.50 per share. This placement was subsequently cancelled, and a
new offering was immediately introduced for $3,000,000 U.S. at $1.00 per unit.
The Company issued several rounds at $1.00 (See 10-KSB). This placement was
subsequently cancelled. The Company made a placement in July 2007 at $0.50 per
share. The Company made a placement in September 2007 at $0.20 per share. The
Company made placements in November and December 2007 at $0.42 per share. The
proceeds of the private placements are to be used for regular corporate needs as
well as funding the product launch of our recently acquired rights to the
world's most powerful immune booster, as stated by the scientific research team
that developed the natural immune booster product.  The
Company received the first $600,000 on December 6, 2006 and $999,950 on March
31, 2007. These placements were received prior to the July 2007 1 for 3 stock
split and included one-year warrants to purchase an additional share at $1.25
pre-split pricing per share. Subsequent to the stock split and issued during the
most recent private placements, the Company received $700,000 at $0.50 per share
on July 23, 2007, $500,000 at $0.20 on September 28, 2007, and $499,965 on
November 29, 2007 and $250,000  on December 3, 2007 at $0.42 per share.
There were no warrants issued with the private placements issued subsequent to
the stock split. There can be no assurance the Company will be able to obtain
additional capital from private placements in the future.  The Company has
no other committed sources or arrangements for additional financing.  The
financial statements do not include any adjustment relating to recoverability
and classification of recorded assets, or the amounts and classification of
liabilities that might be necessary should the Company be unable to continue to
exist.  Management believes that actions presently being taken provide the
opportunity for the Company to continue as a going concern.  NOTE 3 -
INVENTORIES  Inventories
summarized below are priced at the lower of first-in, first-out cost or
market:  November
30 May
31 2007 2007 Finished
goods and supplies $ 48,326 $ 56,050 Raw
materials 122,525 26,571 Allowance
for obsolescence (1,500) (18,611) Total $ 169,351 $ 64,010  NOTE 4 OTHER ASSET-
IMMUNE BOOSTER LICENSE  From December 6, 2006 through November 30, 2007, the Company has
made payments of $2,517,531 for licensing fees associated with an exclusive
license and distribution agreement to acquire the worldwide marketing rights to
the world's most powerful, natural immune booster discovered to date, as stated
by the scientific research team that developed the product. These rights are
being acquired from Nordic Immotech Trading APS (Nordic Immotech), a leading
life science company with a successful history of


5


producing unique, patented products that are distributed on a
global scale. On December 1, 2006, the Company, through its wholly owned
subsidiary, Phytolab Solutions, Inc. finalized the closing of this exclusive
global license and distribution agreement with respect to this natural immune
booster product. Phytolab Solutions, Inc. has not yet begun to market or sell
these products. As part of the closing for this agreement, the Company paid
$2,500,000 per the terms of the installment agreement. As of November 30, 2007,
there are no remaining installments due under the agreement. The Company has imputed interest on these installments at a rate
of 10%. The discounted value of the licensed asset totals $2,373,190.
 Additional costs for legal were also incurred which totaled $17,531.
  Since the sales and marketing of this new immune booster product has
not been initiated, no amortization of the licensed asset has been made for the
six months ended November 30, 2007.  The Company is in the final stages of
completing the packaging and marketing materials for this new product. As part of the license agreement noted above, Nordic Immotech
shall pay a royalty of ten percent (10%) of net sales of products sold by Nordic
and or affiliates to independent third parties in territories outside of the
United States. In a separate agreement, the Company was granted an option to
purchase all the shares in Nordic Immotech (the supplier). Subject to the terms
and conditions of the separate agreement, the Company has the option to purchase
all of the shares of Nordic Immotech (170,000 shares) at a fixed price of $76.47
per share for a total of $13,000,000. The Company may exercise the option
anytime before December 1, 2008. NOTE 5 DISTRIBUTOR
STOCK BONUS PLAN  Prior
to June 1, 2007, The Company offered to its distributors a plan whereby the
distributors could earn a stock
bonus based on sales and bonus points. Distributors earned certificates
redeemable for one share of the
Companys common stock three years after the certificate has been earned. The
number of certificates outstanding at November 30, 2007 and May 31, 2007
were 103,952. The liability for the bonus points of $111,695 at November 30,
2007 and May 31, 2007 is included in accrued compensation and benefits.
 These amounts are redeemable into common stock at a fair market value on
the date that they are fully earned and redeemed.   During the six
month period ended November 30, 2007 and year ended May 31, 2007; no shares were
issued to various distributors under this plan. Effective June 1, 2007 this plan
was discontinued, however the liability or a portion there of will remain for a
period of 3 years relating to the 103,952 shares which were earned but not yet
vested and issued. As the shares vest over the three year period of time, the
stock certificates will be issued and will correspondingly reduce this
liability.  NOTE 6
STOCKHOLDERS EQUITY  In July of 2007, the Board of Directors approved a split of its
common stock on a basis of 1 new share for each 3 old shares. Shareholders of record as of the
effective date of August 20, 2007 have received 1 new share for three old shares outstanding. All per
share information and EPS calculations, including prior periods, reflect the effect of this stock
split.  Prior
to the stock split in July of 2007, the Company had issued 1,600,000 shares of
stock (prior to adjusting for stock split) for $1,599,950 in proceeds, net of
transaction costs. The placement consisted of selling units which included one
share of common stock and a warrant (one year term) to purchase one share of our
common stock at an exercise price of $1.25 for a unit price of $1.00.


6


After
the stock split in July of 2007, there was a single placement of 1,400,000
shares at $0.50 per share for $700,000. Subsequently, we authorized a private
placement of up to 12,000,000 shares of our common stock. These shares were to
be sold on a best efforts basis. This placement will have no warrants issued. We
sold 2,500,000 shares at $0.20 per share for $500,000 in September 2007. We sold
1,190,476 shares at $0.42 per share for $499,965, net of transaction costs in
November 2007.. Subsequent to November 30, 2007, the Company issued an
additional 595,238 shares at $0.42 per share for $250,000. The Company has yet
to formally issue 3,185,714 shares from these placements and expects to have
these issued by third quarter ended February 29, 2008.  During
the three month period ended November 30, 2007, two employees have elected to
cancel 166,670 shares of restricted common stock that they received in April of
2007 during the period ended November 30, 2007 which they received compensation
in lieu of cash. The employees forfeited the shares due to personal tax
ramifications and the Company does not intend to replace this form of
compensation with any other compensation vehicle.  Stock
Warrants  As of
November 30, 2007, the Company has 533,333 warrants outstanding at an exercise
price of $3.75 with a remaining term of no longer than 1 year.  Stock
Option Plan  In June
2007, The Board of Directors authorized a stock option plan whereby management
could issue of up to 2,000,000 options to purchase shares of the Companys
common stock. The stock options may be issued to directors, officers, employees
and consultants of the Company. Options granted under this plan are
non-qualified stock options and have exercise prices and vesting terms
established by the Board of Directors at the time of each grant. Options must be
exercised within five years of grant date, unless otherwise extended by the
Board of Directors or unless grantee ceases to be an officer, director, employee
or consultant of the Company. As of November 30, 2007, no stock options were
issued under this plan.  NOTE 7 
CONTINGENCIES  In the
ordinary course of business, the Company is exposed to legal actions and
threatened claims and incurs costs to defend against such legal actions and
claims.  Company management is not aware of any such outstanding, pending
or threatened action, claim or other circumstance that would materially affect
the Companys financial position or results of operations.  NOTE 8 - INCOME
TAXES  Effective June 1, 2007, the Company adopted FASB Interpretation 48
(FIN 48), Accounting for Uncertainty in Income Taxes to address the
non-comparability in reporting tax assets and liabilities resulting from a lack
of specific guidance in FASB Statement of Financial Accounting Standards No. 109
(SFAS 109), Accounting for Income Taxes on the uncertainty in income taxes
recognized in an enterprises financial statements. Specifically, FIN 48
prescribes (a) a consistent recognition threshold and (b) a measurement
attribute for the financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return, and provides related
guidance on derecognition, classification, interest and penalties, accounting
interim periods, disclosure and transition. To the extent interest and penalties
would be assessed by taxing authorities on any underpayment of income taxes,
such amounts would be accrued and classified as a component of income tax
expenses on the consolidated


7


statement of operations. The adoption of FIN 48 did not impact the
consolidated financial statements for the six months ended November 30, 2007.
The Companys federal and state tax returns are potentially open to examinations
for fiscal years 2003-2006.  Deferred taxes are provided on a liability method whereby deferred
tax assets are recognized for deductible temporarydifferences and operating loss and tax credit carryforwards and deferred
tax liabilities are recognized for taxable temporary differences. Temporary
differences are the differences between the reported amounts of assets and
liabilities and their tax basis. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that
some portion or all of the deferred tax assets will not be realized. Deferred
tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of the enactment. The Company has recorded a full
valuation allowance for all deferred tax assets due to the significance of its
continued operating losses.  NOTE 9  RELATED
PARTY TRANSACTIONS  Intellectual Property License
Agreement  In
January 1999, we entered into an intellectual property license agreement (the
"License Agreement") with Jurak Holdings Limited ("JHL"), a corporation
organized under the laws of the Province of Alberta, Canada and an affiliate of
our Chief Executive Officer and one of our directors. Pursuant to the terms and provisions of the License Agreement, we are required to pay the
greater of $500,000 for fiscal year 2003 and each calendar year thereafter,
during the first ten years of the License Agreement (the "Minimum Royalty Fee"),
or eight percent of the net sales price of all licensed products sold under the
License Agreement (the "Continuing Royalty Fee"). After fiscal 2013, we
are required to make payments in the amount of the Continuing Royalty Fee.  For the
six months ended November 30, 2007 and 2006, the minimum royalty fee for the
amount of $250,000 was expensed. The accrued payments due and owing to JHL under
the License Agreement for the Minimum Royalty Fee and the Continuing Royalty Fee
were $794,139 and $631,856 at November 30, 2007 and May 31, 2007,
respectively.  NOTE 10
 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS  In
February 2007, the FASB issued Statement of Financial Accounting Standards
Statement No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities - Including an Amendment of FASB Statement No. 115 (SFAS No.
159). This standard permits an entity to choose to measure many financial
instruments and certain other items at fair value. This standard is effective
for financial statements issued for fiscal years beginning after November 15,
2007. We believe the adoption of SFAS No. 159 will not have a material impact on
our consolidated financial position or results of operations  In
September 2006, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards No. 157, Fair Value Measurements("SFAS
No. 157"). This standard clarifies the principle that fair value should be based
on the assumptions that market participants would use when pricing an asset or
liability. Additionally, it establishes a fair value hierarchy that prioritizes
the information used to develop those assumptions. This standard is effective
for financial statements issued for fiscal years beginning after November 15,
2007. We are currently evaluating the impact of this statement. We believe the
adoption of SFAS No. 157 will not have a material impact on our consolidated
financial position or results of operations.


8


NOTE
11  SUBSEQUENT EVENTS  On
December 3, 2007, the Company received private placement funding of an
additional $250,000 for 595,238 shares of common stock at $0.42 per share.


9


Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations Overview  Lifequest World Corporation, (formerly Phytolabs, Inc. and Jurak
Corporation World Wide, Inc.), a Minnesota corporation incorporated on November
1, 1997, currently trades on the Over-the-Counter Bulletin Board under the
symbol "LQWC". We are a product-focused company specializing in the herbal
supplement industry and market.  We
distribute our products through a network marketing system using independent
distributors. Network marketing appeals to a wide cross-section of people,
particularly those seeking to supplement income, start a home-based business or
pursue entrepreneurial opportunities other than conventional full-time employment. We consider our attractive compensation plan and cash
bonus pools to be attractive components of our network marketing system. We also
believe that our network marketing system is ideally suited to market herbal
supplement products because sales of such products are strengthened by ongoing
personal contact between our distributors and their customers. Distributors are
given the opportunity through sponsored events and training sessions to
network with other distributors, develop selling skills and establish personal
goals. We supplement monetary incentives with other forms of recognition in order to further motivate and foster an atmosphere
of excitement through our distributor network.  We have
obtained trademark protection for the name "JC Tonic" within the United States
and within Canada. We also own the web sites www.jurak.com, www.jctonic.com and
www.tonicman.com. The
Company has also obtained the worldwide marketing rights to the world's most
powerful, natural immune booster discovered to date, as stated by the scientific
research team that developed the product. These rights have been acquired from a
leading life science company with a successful history of producing unique,
patented products that are distributed on a global scale. On December 1, 2006,
the Company finalized the closing of this exclusive global license and
distribution agreement with respect to this natural immune booster product and
has made the entire required installment payments called for in the agreement as
of November 30, 2007. The Company has not yet begun to market or sell these
products, but expects to begin in the third quarter of fiscal 2008. The following discussion and analysis of our results of operations
and financial position should be read in conjunction with our audited financial
statements and the notes thereto, included in our 10-KSB filed for the year
ended May 31, 2007. Our financial statements are prepared in accordance with
U.S. GAAP.  SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS  The
following discussion is intended to provide an analysis of our financial
condition and should be read in conjunction with our audited financial
statements and the notes thereto.  The matters discussed in this section,
which are not historical or current facts, deal with potential future
circumstances and developments.  Such forward-looking statements include,
but are not limited to, the development plans for our growth, trends in the
results of our development, anticipated development plans, operating expenses
and our anticipated capital requirements and capital resources.  Our actual
results could differ materially from the results discussed in the
forward-looking statements.  The
accompanying financial statements have been prepared in conformity with
accounting  principles generally accepted in the United States of America,
which contemplate continuation of the Company as a


10


going
concern.  However, the Company has sustained substantial losses and its
current exceed its current assets.  The Company intends to generate
positive cash flows from operations through increased sales utilizing the
network of distributors in place with existing products and the new natural
immune booster products, issuing additional stock, and obtaining necessary
capital through additional advances from the Companys principal stockholder or
through private placements.  To
continue operations, the Company must raise additional capital.  As stated
in Note 6, the Company has sold additional stock in a private placement during
the six months ended November 30, 2007.  However, there can be no assurance
the Company will be able to obtain additional capital from private placements in
the future. The Company has no other committed sources or arrangements for
additional financing.  Prior
to the stock split in July of 2007, the Company had issued 1,600,000 shares of
stock (prior to adjusting for stock split) for $1,599,950 in proceeds, net of
transaction costs. The placement consisted of selling units which included one
share of common stock and a warrant (one year term) to purchase one share of our
common stock at an exercise price of $1.25 for a unit price of $1.00.  After
the stock split in July of 2007, there was a single placement of 1,400,000
shares at $0.50 per share for $700,000. Subsequently, we authorized a private
placement of up to 12,000,000 shares of our common stock. These shares were to
be sold on a best efforts basis. This placement will have no warrants issued. We
sold 2,500,000 shares at $0.20 per share for $500,000 in September 2007. We sold
1,190,476 shares at $0.42 per share for $499,965, net of transaction costs in
November 2007.. Subsequent to November 30, 2007, the Company issued an
additional 595,238 shares at $0.42 per share for $250,000. The Company has yet
to formally issue 3,185,714 shares from these placements and expects to have
these issued by third quarter ended February 29, 2008.  With
the formal completion of the exclusive global license and distribution agreement
relative to the natural immune booster product, the Company has accelerated work
on the packaging and branding of this new product to make it widely available to
North American market with an anticipated launch in the 3rd quarter of fiscal
2008. The Company has received, during the three months ended November 30, 2007,
its first shipment of raw materials for selling in North America.  Three months Ended November 30, 2007 Compared to Three months
Ended November 30, 2006  Total
sales for the three months ended November 30, 2007 was $274,989 compared to
$301,095 in the same period ended in 2006.  Gross profit was $218,953 for
the three months ended November 30, 2007 compared to $215,591 for the same
period ended in 2006, as further discussed below. The net loss during the three
months ended November 30, 2007 was $270,810 compared to a net loss of $243,773
in the same period ended in 2006.  Sales
and Gross Margins  Sales
for three months ended November 30, 2007 decreased slightly to $274,989 compared
to $301,095 in the same period ended in 2006. The 2007 sales amount includes
$31,525 of royalty income due from Nordich Immotech for their sales or our
natural immune booster product in Europe which is compared to no royalty revenue
for the comparable period. Management is confident that the improved computer
system tracking and reporting, updated website and significant new offerings
from the immune booster product in fiscal 2008 will result in future increases
in sales volume.


11


Gross
profit in the three months ended November 30, 2007 increased slightly to
$218,953 compared to $215,591 in the same period ended in 2006. Gross profit as
a percentage of revenue increased slightly to 80% in the three months ended
November 30, 2007 compared to 72% in the same period ended in 2006, due to the
royalty income earned in 2007.  Royalty
Expense-Related Party  The
minimum royalty expense-related party accrued to Jurak Holdings Limited (related
party) remained consistent for both periods at $125,000.  Distribution, Selling and Administrative Expenses  Total
distribution, selling and administrative expenses for the three months ended
November 30, 2007 were $345,198 compared with $334,364 for the same period ended
in 2006. The selling and administrative expenses were consistent with the prior
period.  Interest expense for the three months ended November 30, 2007 was
$19,565 compared with $0 for the same period in the prior year. Current year
interest costs relate to the imputed interest on the installment payable-immune
booster license.  Six
months Ended November 30, 2007 Compared to Six months Ended November 30, 2006  Total
sales for the six months ended November 30, 2007 was $557,493 compared to
$556,586 in the same period ended in 2006.  The 2007 sales amount includes
$59,567 of royalty income due from Nordich Immotech for their sales of our
natural immune booster product in Europe which is compared to no royalty revenue
for the comparable period. Gross profit was $425,101 for the six months ended
November 30, 2007 compared to $419,177 for the same period ended in 2006, as
further discussed below. The net loss during the six months ended November 30,
2007 was $620,234 compared to a net loss of $524,030 in the same period ended in
2006.  Sales
and Gross Margins  Sales
for six months ended November 30, 2007 increased slightly to $557,493 compared
to $556,586 in the same period ended in 2006. Management is confident that the
improved computer system tracking and reporting, updated website and significant
new offerings from the immune booster product in fiscal 2008 will result in
future increases in sales volume.  Gross
profit in the six months ended November 30, 2007 increased slightly to $425,101
compared to $419,177 in the same period ended in 2006. Gross profit as a
percentage of revenue was 76% in the six months ended November 30, 2007 compared
to 75% in the same period ended in 2006 partly due to the royalty income earned
in 2007.  Royalty
Expense-Related Party  The
minimum royalty expense-related party accrued to Jurak Holdings Limited (related
party) remained consistent for both periods at $250,000.  Distribution, Selling and Administrative Expenses


12


Total
distribution, selling and administrative expenses for the six months ended
November 30, 2007 were $745,112 compared with $693,207 for the same period ended
in 2006. The selling and administrative expenses were consistent with the prior
period.  Interest expense for the six months ended November 30, 2007 was
$50,233 compared with $0 for the same period in the prior year. Current year
interest costs relate primarily to the imputed interest on the installment
payable-immune booster license.   Liquidity and
Capital Resources  Six
Month Period Ended November 30, 2007  We have
historically had more expenses and cost of sales than revenue in each year of
our operations. The accumulated deficit as of November 30, 2007 was $6,631,468
compared to $6,011,234 as of May 31, 2007.  Generally, we have financed
operations to date through the proceeds of the private placement of equity and
debt securities and sales revenue. In connection with our business plan,
management anticipates that there may be additional increases in operating
expenses and capital expenditures relating to the new immune booster products.
We intend to finance these expenses with further issuances of our securities and
revenues from operations. Therefore, we expect we may need to raise additional
capital and increase our revenues to meet long-term operating requirements.  We
currently have a $2,500,000 private placement offering in process. These funds
have been used to make the required payments for our new license agreement and
will be used to launch and market our natural immune booster products.  At
November 30, 2007, the Company had $0 of unrestricted cash compared to $197,338
of unrestricted cash at May 31, 2007.  The Company had current assets of
$222,488 and current liabilities of $1,216,226 at November 30, 2007 compared to
current assets of $282,824 and current liabilities of $2,377,809 at May 31,
2007.  Net
cash used in operating activities was $488,817 during the six months ended
November 30, 2007 compared to net cash used in operating activities of $209,202
in the same period ended in 2006. The increase was due primarily to the
increased operating loss for the six months ended November 30, 2007 compared to
the operating loss for the six months ended November 30, 2006 after adjusting
for the net increase in inventory, trade payables and accrued expenses.  Net
cash used in (provided by) investing activities was $0 in the first six months
ended November 30, 2007 compared to $(3,951) in the same period ended in 2006.  Net
cash provided by financing activities was $291,479 during the six months ended
November 30, 2007 compared to net cash provided by financing activities in the
same period in 2006 of $166,365.  Proceeds from the issuance of common
stock were $1,699,965 in the six months ended November 30, 2007 compared to
$200,000 in the same period of 2006.  Payments on the installment note for
the immune booster license was $1,384,513 in the six months ended November 30,
2007 compared to $0 in the same period in 2006.


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Critical Accounting Policies  Our
critical accounting policies, including the assumptions and judgements
underlying them, are discussed in our fiscal 2007 Form 10-KSB in Note 1 Summary
of Significant Accounting Policies included in our Consolidated Financial
Statements.  There were no significant changes to our critical accounting
policies during the period ended November 30, 2007.  These policies have
been consistently applied in all material respects and disclose such matters as
allowance for doubtful accounts, sales returns, inventory valuation, income
taxes, revenue recognition and fixed asset and intangible asset impairment
recognition. On an ongoing basis, we evaluate our estimates based on historical
experience and on various other assumptions that are believed to be reasonable
under the circumstances, the result of which form the basis for making
judgements about the carrying value of assets and liabilities that are not
readily apparent from other sources.  Results may differ from these
estimates due to actual outcomes being different from those on which we based
our assumptions.  Management on an ongoing basis reviews these estimates
and judgements.  Recently Issued Accounting Pronouncements  In
February 2007, the FASB issued Statement of Financial Accounting Standards
Statement No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities - Including an Amendment of FASB Statement No. 115 (SFAS No.
159). This standard permits an entity to choose to measure many financial
instruments and certain other items at fair value. This standard is effective
for financial statements issued for fiscal years beginning after November 15,
2007. We believe the adoption of SFAS No. 159 will not have a material impact on
our consolidated financial position or results of operations.  In September 2006, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 157, Fair Value
Measurements("SFAS No. 157"). This standard clarifies the principle that
fair value should be based on the assumptions that market participants would use
when pricing an asset or liability. Additionally, it establishes a fair value
hierarchy that prioritizes the information used to develop those assumptions.
This standard is effective for financial statements issued for fiscal years
beginning after November 15, 2007. We are currently evaluating the impact of
this statement. We believe the adoption of SFAS No. 157 will not have a material
impact on our consolidated financial position or results of operations.  Item 3.
 Controls and Procedures  (a) Evaluation of Disclosure Controls and Procedures  The
Companys management, Anthony Carl Jurak, our Chief Executive Officer and acting
Chief Accounting Officer, conducted an evaluation of the effectiveness of the
Companys disclosure controls and procedures, as defined in Exchange Act Rule
13a-15(e), as of November 30, 2007 (the Disclosure Controls Evaluation).
 Based on that evaluation, the Companys chief executive officer and chief
accounting officer, concluded that as of the end of the period covered by this
report, the Companys disclosure controls and procedures were effective to
provide a reasonable level of assurance that: (i) information required to be
disclosed by the Company in the reports the Company files or submits under the
Exchange Act is recorded, processed, summarized and reported within the specific
time periods in the Securities and Exchange Commissions rules and forms and
(ii)  information required to be disclosed in the reports theCompany files or submits underExchange Act are accumulated and communicated to


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management, including the chief executive officer and chief
accounting officer, to allow timely decisions regarding required disclosure, all
in accordance with Exchange Act Rule 13a-15(e).  There
were no changes in the Companys internal control over financial reporting, as
defined in Exchange Act Rule 13a-15(f), during the quarter ended November 30,
2007, that have materially affected, or are reasonably likely to materially
affect, the Companys internal control over financial reporting.  A
control system, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control system
are met.  Further, the design of a control system must reflect the fact
that there are resource constraints, and the benefits of controls must be
considered relative to their costs.  Because of the inherent limitations in
all control systems, no evaluation of controls can provide absolute assurance
that all control issues and instances of fraud, if any, within the Company have
been detected.  Because of the inherent limitations in a cost-effective
control system, misstatements due to error or fraud may occur and not be
detected.  Due to
the limited number of Company employees engaged in the authorization, recording,
processing and reporting of transactions, there is inherently a lack of
segregation of duties. The Company periodically assesses the cost versus benefit
of adding the resources that would remedy or mitigate this situation, and
currently does not consider the benefits to outweigh the costs of adding
additional staff in light of the limited number of transactions related to the
Companys operations.  (b) Changes in Internal Controls Over Financial Reporting  There
were no changes in the Companys internal control over financial reporting,
during the quarter ended November 30, 2007, that have materially affected, or
are reasonably likely to materially affect, the Companys internal control over
financial reporting.


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PART
II.  OTHER INFORMATION  Item 1.  Legal
Proceedings  On
December 13, 2006, a civil suit was filed in the District Court of Clark County
in and for the State of Nevada by Jurak Corporation World Wide, Inc.
(plaintiffs) and one former employee and her spouse (defendants). The suit
entails that the former employee processed credit refunds to a debit/credit card
held at their banking institution. In addition, the former employee embezzled
funds by setting up a merchant processing system and diverting the charging of
our distributors' credit cards from our merchant processor to their processor.
All is evidenced by information located on the computer used by the former
employee at the Company as well as through other reporting mechanisms and
processing systems. The Company is seeking
relief for damages in excess of $60,000; special damages according to proof; for
attorneys' fees and costs of suit; and for other and further relief as the Court
may deem just and proper as compensation for
monies embezzled by the former employee and her spouse. No answer has been
received from the defendant and the Company is seeking a default judgment
granting all of the relief sought.  Item 2
  Changes in Securities  During
the six month period ended November 30, 2007, the Company authorized a single
placement at $0.50 per share with no warrants. Subsequently, we authorized a
private placement of up to 12,000,000 shares of our common stock at $0.20 per
share. This placement will have no warrants issued. We have sold 6,400,000
shares for $1,699,965, net of transaction costs, through November 30, 2007 under
these placements. Subsequent to November 30, 2007, the Company issued an
additional 1,250,000 shares for $250,000. The Company has yet to formally issue
5,150,000 shares from these placements and expects to have these issued by third
quarter ended February 28, 2008. These shares are unregistered with no
underwriter used for the sale of common stock. The shares of stock were sold
pursuant to an exemption from registration under Rule 506 of Regulation D.  During
the three month period ended November 30, 2007, two employees have elected to
cancel 166,670 shares of restricted common stock that they received in April of
2007during the period ended November 30, 2007 which they received compensation
in lieu of cash. The employees forfeited the shares due to personal tax
ramifications and the Company does not intend to replace this form of
compensation with any other vehicle.  Item 5
   Other Information  No
items occurred during the period of this report which would have been required
to be reported in a Form 8-K which have not been reported.  There
have been no material changes to the procedures by which security holders may
recommend nominees to the Companys board of directors.  Item 6
  Exhibits  The following exhibits are included herein:  31.1 Certification of Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002 (Rules 13a-14 and 15d-14 of the Exchange
Act).


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32. Certifications pursuant Section 906 of the Sarbanes-Oxley Act of
2002 (18 U.S.C. §1350).    Signatures  In accordance with
the requirements of the Exchange Act of 1934, the registrant caused this report
to be signed on its behalf by the undersigned thereto, duly authorized.  Lifequest
World Corporation.  By /s/
Anthony Jurak Anthony
Jurak Date:
 April 15, 2008 Chief
Executive Officer and Acting
Chief Accounting Officer


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