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 AUGUST 31,
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  [  ]  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 October 12, 2007 Common
Stock, no par value 38,145,499


PURPOSE OF AMENDMENT NO. 1  This Amendment No. 1 to the Companys Quarterly Report on
Form 10-QSB for the quarter ended August 31, 2007, which amends the Companys
Form 10-QSB originally filed on October 22, 2007, is being filed to correct the
per share price and number of common stock shares sold issued during and
subsequent to the quarter ended August 31, 2007. The Company initially reported
a $700,000 stock sale in July 2007 at $3.00 per unit which includes one common
share plus a warrant to purchase another share at $3.75, but the price should
have been $0.50 per share with no warrants. The financial statements, notes to
the financial statements and MD & A have been adjusted to reflect this
amendment.   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 3  Condensed
Statements of Operations 4   Condensed
Statements of Cash Flows 5  Selected
Notes to Condensed Financial Statements 6  Item
2.  Managements Discussion and Analysis of Financial
Condition and Results of Operations 11   Item
3.  Controls and Procedures 15  Part II.  Other
Information  Item
1.  Legal Proceedings 16  Item
2.  Unregistered Sales of Equity Securities and Use of Proceeds 16  Item
5.  Other Information 16  Item
6.  Exhibits 17    SIGNATURES 17    3


LIFEQUEST WORLD
CORPORATION(formerly PHYTOLABS, INC. and JURAK
CORPORATION WORLD WIDE, INC.)CONSOLIDATED BALANCE SHEETSItem 1.  Financial StatementsAugust 31

May 31Assets:
2007

2007(unaudited)

(audited)____________

____________Current
assets:Cash
and cash equivalents
$
            131,815

$
            197,338Accounts
receivable
32,330

7,622Inventories,
net
91,301

64,010Prepaid
expenses and advances
15,375

13,854____________

____________Total
current assets
270,821

282,824____________

____________Office
furnishings and equipment, net
2,909

5,152____________

____________Other
assets:Deposits
16,859

38,598Other
asset - immune booster  license
2,390,721

2,390,721____________

____________Total
other assets
2,407,580

2,429,319____________

____________Total
Assets
$
         2,681,310

$
         2,717,295____________

________________________

____________Liabilities and Stockholders' Equity :Current
liabilities:Current
portion of capital lease obligation
$
                1,025

$
                   932Accounts
payable
97,758

97,424Accounts
payable-related party
71,697

54,826Installment
payable-immune booster  license
919,415

1,384,513Accrued
interest - installment payable
15,323

23,075Accrued
compensation and benefits
146,231

158,809Accrued
royalties-related party
735,686

631,856Payable
to stockholder/officers
4,434

26,374____________

____________Total
current liabilities
1,991,569

2,377,809Capital lease
obligations, net of current portion
-

321____________

____________Total
liabilities
1,991,569

2,378,130____________

____________Stockholders'
equity :Common
stock, par value .001 per share, 150,000,000 sharesauthorized,
 35,645,499 and 34,245,500 shares issued andoutstanding
at August 31, 2007 and May 31, 2007, respectively
35,645

34,245Additional
paid-in capital
7,014,754

6,316,154Accumulated
deficit
(6,360,658)

(6,011,234)____________

____________Total
stockholders' equity
689,741

339,165____________

____________Total
Liabilities and Stockholders' Equity
$
         2,681,310

$
         2,717,295____________

________________________

____________See
accompanying notes to consolidated financial statements.


4


LIFEQUEST WORLD CORPORATION(formerly PHYTOLABS, INC. and JURAK CORPORATION WORLD
WIDE, INC.)CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)Three months ended August 312007



2006Sales
$
282,504


$
255,491Cost
of sales

76,356



51,905Gross
profit

206,148



203,586Royalty
expense-related party

125,000



125,000Distribution,
selling and administration expenses

399,914



358,843Loss
from operations

(318,766)



(280,257)Other
income and (expenses)Interest
expense

(30,658)



-Total
other income and (expense), net

(30,658)



-Net
loss before income taxes

(349,424)



(280,257)Income
tax expense

-



-Net
loss
$
(349,424)


$
(280,257)Basic
and diluted loss per common share  (a)
$
(0.01)


$
(0.01)Weighted
average outstanding common shares-

34,412,985



32,964,220basic
and diluted (a)(a)
Reflects the 1 for 3 reverse stock split effective August  20,
2007See accompanying notes to consolidated financial
statements.


5


LIFEQUEST WORLD CORPORATION(formerly PHYTOLABS, INC. and  JURAK CORPORATION
WORLD WIDE, INC.)CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)Three months ended August 312007
2006CASH FLOWS FROM
OPERATING ACTIVITIES:Net loss
$       (349,424)
$
      (280,257)Adjustments to
reconcile net lossto
net cash used in operating activities:Depreciation
and amortization
2,243
3,023Changes
in operating assets and liabilities:Accounts
receivable
(24,708)
-Inventories
(27,291)
(16,955)Prepaid
expenses and advances
(1,521)
2,773Deposits
21,739
8,619Accounts
payable
17,205
12,129Accrued
expenses
83,500
87,430____________
____________Net
cash used in operating activities
(278,257)
(183,238)____________
____________CASH FLOWS FROM
INVESTING ACTIVITIES:Restricted
cash
-
(81)Purchase of
equipment
-
(2,237)Investment in
other asset - immune booster  license
-
(15,054)____________
____________Net
cash used in investing activities
-
(17,372)____________
____________CASH FLOWS FROM
FINANCING ACTIVITIES:Proceeds from
issuance of common stock, net of issuance costs
700,000
200,000Payments on
installment payable-immune booster license
(465,098)
-Payments on
capital lease obligations
(228)
(1,792)Advances from
(repayment to) stockholder/officer
(21,940)
(41,517)____________
____________Net
cash provided by financing activities
212,734
156,691____________
____________NET DECREASE IN
CASH AND CASH EQUIVALENTS
(65,523)
(43,919)CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
197,338
44,073____________
____________CASH AND CASH
EQUIVALENTS AT END OF PERIOD
$
        131,815
$
               154____________
________________________
____________See accompanying notes to consolidated financial
statements.


6


LIFEQUEST WORLD CORPORATION (formerly PHYTOLABS, INC. AND JURAK CORPORATION WORLD WIDE,
INC.)     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 Phytolabs Inc. 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 August 31, 2007 and the related consolidated
statements of operations for the three months ended August 31, 2007 and 2006 and
the consolidated statements of cash flows for the three-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 August 31, 2007 and 2006 and for the three 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
three-month period ended August 31, 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.
They issued several rounds at $1.00 (see 10-KSB).This placement was subsequently
cancelled. The Company made a single placement in July 2007 at $0.50 per share.
Subsequent to the July 2007 placement, a new offering was introduced for
$2,500,000 at $0.20 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 at a price of $1.00 per share. 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, during the most recent private placements, the Company received $700,000
at $0.50 per share on July 23, 2007, and $500,000 on September 28, 2007 at $0.20
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:  August
31 May
31 2007 2007 Finished
goods and supplies $ 68,276 $ 56,050 Raw
materials 24,525 26,571 Allowance
for obsolescence (1,500) (18,611) Total $ 91,301 $ 64,010  NOTE 4 OTHER ASSET-
IMMUNE BOOSTER LICENSE From December 6, 2006 through August 31, 2007, the Company has
made payments of $1,567,531 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, 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, 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
$550,000 per the terms of the agreement on December 6, 2006 and two additional
$500,000 payments in April and August 2007. The agreement calls for additional
installment payments totaling $950,000 to be paid as follows: $500,000                
September 30, 2007
                                                $450,000                
November 30, 2007 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.
 The remaining installments payable, net of the calculated imputed
interest, totals $919,415 as of August 31, 2007. 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 three months ended August 31, 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 August 31, 2007 and May 31, 2007 were
103,952. The liability for the bonus points
of $111,695  at August 31, 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 quarter ended August 31, 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 will
remain for a period of 3 years relating to the 103,952 shares which were earned
but not yet 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  On July 27, 2007, the Board of Directors approved a reverse 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 reflects the effect of this reverse stock
split.   Prior
to the stock split in July 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 2007, there was a single placement made at $0.50 per
share. We sold 1,400,000 shares for $700,000 in July 2007. Subsequently, we
authorized a private placement of up to 12,000,000 shares of our common stock.
These shares will be sold at $0.20 per share. We sold 2,500,000 shares fo
$500,000 in September 2007. These placements will have no warrants issued.  We have
sold 1,933,333 shares (split adjusted) for $2,299,950, net of transaction costs,
through August 31, 2007 under these placements. The Company has yet to formally
issue 1,400,000 shares from these placements and expects to have these issued by
third quarter ended February 28, 2008.  Stock
Warrants  As of
August 31, 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 August 31, 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 statement of operations. The adoption of FIN 48 did
not impact the consolidated financial statements for the three months ended
August 31, 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 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
three months ended August 31, 2007 and 2006, the minimum royalty fee for the
amount of $125,000 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 $735,686 and $631,856 at August 31, 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.  NOTE
11  SUBSEQUENT EVENTS  The
Company sold 2,500,000 restricted common shares for $500,000 in cash on
September 28, 2007 for $0.20 per share. Proceeds were used to pay the September
30, 2007 immune booster license installment payment of $500,000.





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 is also obtaining 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 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. The Company has not yet begun to market or sell these products,
but expects to begin in the second quarter of fiscal 2008. (See Note 4)  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
that 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 going concern.  However, the
Company has sustained substantial losses and its liabilities exceed its 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.  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.
They issued several rounds at $1.00 (see 10-KSB).This placement was subsequently
cancelled. The Company made a single placement in July 2007 at $0.50 per share.
Subsequent to the July 2007 placement, a new offering was introduced for
$2,500,000 at $0.20 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 at a price of $1.00 per share. 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, during the most recent private placements, the Company received $700,000
at $0.50 per share on July 23, 2007, and $500,000 on September 28, 2007 at $0.20
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.  With
the formal completion of the exclusive global license and distribution agreement
relative to the natural immune booster product, the Company will accelerate work
on the packaging and branding of this new product to make it widely available to
North American and European markets with an anticipated launch in the 3rd
quarter of fiscal 2008.   Three months Ended August 31, 2007 Compared to Three months
Ended August 31, 2006  Total
sales for the three months ended August 31, 2007 was $282,504 compared to
$255,491 in the same period ended in 2006.  Gross profit was  $206,148
for the three months ended August 31, 2007 compared to $203,586 for the same
period ended in 2006, as further discussed below. The net loss during the three
months ended August 31, 2007 was $349,424 compared to a net loss of $280,257 in
the same period ended in 2006.  Sales
and Gross Margins  Sales
for three months ended August 31, 2007 increased slightly  to $282,504
compared to $255,491 in the same period ended in 2006. Management is confident
that improved computer system tracking and reporting, a replicated website and
significant new product offerings in fiscal 2008 will result in an increase in
sales volumes.  Gross
profit in the three months ended August 31, 2007 increased slightly to $206,148
compared to $203,586 in the same period ended in 2006. Gross profit as a
percentage of revenue decreased to 73% in the three months ended August 31, 2007
compared to 80% in the same period ended in 2006 as a result of increased
material, packaging and freight costs in the current period.  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
August 31, 2007 were $399,914 compared with $358,843 for the same period ended
in 2006. The increase is primarily related to increases in expenses and
consulting fees associated with the development and promotion of the Companys
new product offerings expected to be available late 2007.  Other selling
and administrative expenses were consistent with the prior period.  Interest expense for the three months ended August 31, 2007 was
$30,658 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  Three Month Period Ended August  31, 2007  We have
historically had more expenses and cost of sales than revenue in each year of
our operations. The accumulated deficit as of August 31, 2007 was $6,360,658
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 which was
initiated in September 2007. These funds will be used to make the required
payments for our new license agreement and to launch and market our natural
immune booster products.  At
August 31, 2007, the Company had $131,815 of unrestricted cash compared to
$197,338 of unrestricted cash at May 31, 2007.  The Company had current
assets of $270,821 and current liabilities of $1,991,569 at August 31, 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 $278,257 during the three months ended
August 31, 2007 compared to net cash used in operating activities of $183,238 in
the same period ended in 2006. The increase was due primarily to the increased
operating loss for the three months ended August 31, 2007 compared to the
operating loss for the three months ended August 31, 2006 after adjusting for
the net increase in trade payables and accrued expenses.  Net
cash used in investing activities was $0 in the first three months ended August
31, 2007 compared to $17,372 in the same period ended in 2006. The change was
caused primarily by the initial costs associated with the purchase of the other
asset-immune booster license in 2006.  Net
cash provided by financing activities was $212,734 in the first three months
ended August 31, 2007 compared to net cash provided by financing activities in
the same period in 2006 of $156,691.  Proceeds from the issuance of common
stock were $700,000 in the first three months ended August 31, 2007 compared to
$200,000 in the same period of 2006. In December, 2006 the Company announced a
best efforts private placement of $3,000,000 U.S. at $1.50 per share. The
placement was subsequently cancelled, and a new offering was immediately introduced for
$3,000,000 U.S. at $1.00 per unit.  Each unit consists of one share of
common stock and one-year warrant to purchase one share of common stock at
$1.25.  These terms do not reflect the 1 for 3 reverse stock split on
August 20, 2007. After the stock split, the Company issued a single placement of
$700,000 at $0.50 per share. Subsequently, we authorized a private placement of
$2,500,000 at $0.20 per share. The proceeds of these 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 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, $999,950 on March 31,
2007, $700,000 on July 23, 2007 and $500,000 on September 28, 2007..  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 three months ended August 31, 2007.  These policies
have been consistently applied in all material respects and disclose such
matters as allowance for doubtful accounts, sales returns, inventory valuation,
warranty expense, 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 August 31, 2007 (the Disclosure Controls Evaluation).
 Based on that evaluation, the Companys chief executive officer and chief
accounting officer, President and Vice President of Operations/Assistant
Secretary 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
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 August 31,
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.  However, 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
have been no significant changes in internal control over financial reporting
that occurred during the quarter ended covered by this report that have
materially affected or are reasonably likely to materially affect the Companys
internal control over financial reporting.     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
  Unregistered Sales of Equity Securities and Use of Proceeds  During
the three month period ended August 31, 2007, the Company sold 1,400,000 shares
of unregistered common stock at $0.50 under a private placement post split, for
total proceeds of $700,000 to the Company. No underwriters were 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.  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 on 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).  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:
 January 22, 2007 Chairman
of the Board, Director Acting
Chief Accounting Officer