**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549 **

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**FORM      10-Q/A**

**Amendment      No. 2 **

**x      QUARTERLY REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE **

**SECURITIES      EXCHANGE ACT OF 1934**

** **
** **
** o      TRANSITION REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

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**KID      CASTLE EDUCATIONAL CORPORATION**

| **Florida**                                                                   | **59-2549529**                                   |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |

| **8th                Floor, No. 98 Min Chuan Road, Hsien Tien****Taipei,                Taiwan ROC**             |
|------------------------------------------------------------------------------------------------------------------|
| (Address                of principal executive offices)                                                          |
| **011-886-22218                5996**                                                                            |
| (Registrant’s                telephone number, including area code)                                        |
|                                                                                                             |
| **NONE**                                                                                                         |
| (Former                name, former address and former fiscal year, if changed since last                report) |

** **
** **

** **
** **

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**EXPLANATORY      NOTE**
**:**

| (1) | The                negative amount of $1,544,244 in the form of “Advances to ex-CFO” is                inserted in the section entitled “Cash Flows From Investing Activities”                under the column “Six Months Ended June 30, 2005 in the Condensed                Consolidated Statement of Cash Flows for the second quarter ended                June 30,                2005 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                positive amount of $1,544,244 in the form of “Repayments of advances to                ex-CFO” is inserted in the section entitled “Cash Flows From Investing                Activities” under the column “Six Months Ended June 30, 2005 in the                Condensed Consolidated Statement of Cash Flows for the second quarter                ended June 30, 2005 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                registrant is revising the disclosure under the Notes of the Condensed                Consolidated Financial Statements by adding Note 1 “Restatement” to                reflect the effects of such transaction on the Condensed Consolidated                Financial Statements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Detailed                information is provided in Note                3 to the Notes of the Condensed Consolidated Financial Statements                to                reflect the above corrections. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The                registrant                is revising the discussion under Item 2, “Management’s Discussion and                Analysis of Financial Condition and Results of Operations” by adding a                paragraph to reflect the effects of such                transaction. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The                registrant is also revising the discussion under Item 4, Controls and                Procedures in order to reflect the effects of such                transactions. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**PART      I: FINANCIAL INFORMATION**

|  Kid                  Castle Educational CorporationRestated                  Condensed Consolidated Statements of Cash Flows(Expressed                  in US Dollars)(Unaudited)  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                          |   | Six                  Month Periods Ended June                  30 , |   |
|                                                                                                                                                                                          |   | 2005 |   | 2004 |   |
|                                                                                                                                                                                          |   | (Restated) |   |
| Cash                flows from operating activities:                                                                                                                                          |   |   |   |
| Net                  loss                                                                                                                                                                     |   | $ | (258,457 | ) | $ | (930,292 | ) |
| Adjustments                  to reconcile net loss to net cash used in  operating                  activities:                                                                           |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                                                                                                                |   |   | 223,862 |   |   | 188,553 |   |
|                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Allowance                  for sales returns                                                                                                                                                  |   |   | 92,463 |   |   | (13,126 | ) |
| Allowance                  for doubtful debts                                                                                                                                                 |   |   | 110,063 |   |   | 130,866 |   |
| Provision                  for (reversal of) allowance for loss on                  inventory obsolescence and slow-moving items                                                              |   |   | 95,147 |   |   | 34,970 |   |
| Minority                  interest in income                                                                                                                                                  |   |   | 19,059 |   |   | — |   |
| Share                  of gain of investments                                                                                                                                                 |   |   | (12,483 | ) |   | (31,425 | ) |
| (Increase)/decrease                  in: Notes                  and accounts receivable                                                                                                       |   |   | (2,371,422 | ) |   | 402,524 |   |
| Inventories                                                                                                                                                                                   |   |   | (139,918 | ) |   | (185,880 | ) |
| Other                  receivables                                                                                                                                                            |   |   | (88,654 | ) |   | (202,283 | ) |
| Prepayments                  and other current assets                                                                                                                                         |   |   | (169,392 | ) |   | 9,484 |   |
| Deferred                  income tax assets                                                                                                                                                   |   |   | (34,147 | ) |   | 3,306 |   |
| Other                  assets                                                                                                                                                                 |   |   | (6,510 | ) |   | (86,257 | ) |
| Increase/(decrease)                  in: Notes                  and accounts payable                                                                                                          |   |   | 776,387 |   |   | 219,374 |   |
| Accrued                  expenses                                                                                                                                                             |   |   | 153,429 |   |   | (                  36,063 | ) |
| Other                  payables                                                                                                                                                               |   |   | 228,281 |   |   | 205,497 |   |
| Receipts                  in advance                                                                                                                                                          |   |   | 195,553 |   |   | (202,230 | ) |
| Income                  taxes payable                                                                                                                                                         |   |   | 83,722 |   |   | (3,306 | ) |
| Deposits                  received                                                                                                                                                            |   |   | 102,551 |   |   | 99,576 |   |
| Accrued                  pension liabilities                                                                                                                                                  |   |   | 59,010 |   |   | 8,882 |   |
| Net                  cash used in operating activities                                                                                                                                        |   |   | (941,456 | ) |   | (387,830 | ) |
| Cash                  flows from investing activities Purchases                  of property and equipment                                                                                    |   |   | (165,947 | ) |   | (                  47,371 | ) |
| Proceeds                  from disposal of property and equipment                                                                                                                             |   |   | — |   |   | — |   |
| Bank                  fixed deposits - pledged                                                                                                                                                |   |   | (61,519 | ) |   | (111,678 | ) |
| Pledged                  notes receivable                                                                                                                                                     |   |   | 1,625,505 |   |   | 11,407 |   |
| Collection                  of long term notes                                                                                                                                                |   |   | 240,971 |   |   | — |   |
| Increase                  in interest in associates                                                                                                                                           |   |   | (                  24,977 | ) |   | — |   |
| Acquisition                  of long term investments                                                                                                                                         |   |   | — |   |   | (103,346 | ) |
| Advances                  to ex-CFO (restated)                                                                                                                                                |   |   | (1,544,244 | ) |   | (140,634 | ) |
| Repayments                  of advances to ex-CFO (restated)                                                                                                                                  |   |   | 1,544,244 |   |   | 140,634 |   |
| Net                  cash used in investing activities                                                                                                                                        |   |   | 1,614,033 |   |   | (250,988 | ) |

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|                                                                                                    |   |    | **Six                  Months Periods Ended June 30**,  |   |
|---------------------------------------------------------------------------------------------------------|--------|---------|--------------------------------------------------------------|--------|
|                                                                                                    |   |    | 2005                                                    |   |   | 2004  |   |
|                                                                                                    |   |    | (Restated)                                                   |   |
| Cash                  flows from financing activities                                                   |   |  $ |                                                         |   | $ |   |   |
| Proceeds                  from bank borrowings                                                          |   |    | 795,968                                                      |   |   | 2,865,929 |   |
| Repayment                  of bank borrowings                                                           |   |    | (1,054,969                                                   | )      |   | (2,346,878 | ) |
| Proceeds                  from capital leases                                                           |   |    | 57,086                                                       |   |   | (13,933 | ) |
| Repayment                  of capital leases                                                            |   |    | (65,748                                                      | )      |   | — |   |
| Repayment                  of loan from officers/stockholders                                           |   |    | —                                                      |   |   | (585,006 | ) |
| Net                  cash consumed by financing activities                                              |   |    | (267,657                                                     | )      |   | (79,888 | ) |
| Net                  increase (decrease) in cash and cash equivalents                         |   |    | 404,920                                                      |   |   | (718,706 | ) |
| Effect                  of changes in exchange rate on cash and cash                  equivalents  |   |    | 148,142                                                      |   |   | (12,829 | ) |
| Cash                  and cash equivalents at beginning of period                                       |   |    | 213,564                                                      |   |   | 1,273,723 |   |
| Cash                  and cash equivalents at end of period                                             |   | $       | 766,626                                                      |   | $ | 542,188 |   |

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**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1 — RESTATEMENT**

|                                                               |   | As                Previously Reported |               | Restated                Amount |   |
|--------------------------------------------------------------------|--------|---------------------------------------|--------------------|--------------------------------|--------|
| Advances                to ex-CFO                                  |   |                                  | [                ] |                           |   | (1,544,244 | ) |
| Repayments                of advances to ex-CFO                    |   |                                  | [                ] |                           |   | 1,544,244 |   |
| Net                cash (used in) provided by investing activities |   |                                  | 1,614,033          |                           |   | 1,614,033 |   |

**NOTE [      ]**
** —      RELATED PARTY TRANSACTIONS**

**ITEM 2.      **
***MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATION***

**ITEM 4.      **
***CONTROLS      AND PROCEDURES***

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**PART      II: OTHER INFORMATION**

**ITEM      6.**
***EXHIBITS***

**EXHIBIT      INDEX**

| Exhibit                No. |   | Exhibit                                                                                                                      |   |
|----------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
|                       |   |                                                                                                                         |   |
| 31.1                       |   | Rule 13a-14(a)                Certification of Principal Executive Officer                                              |   |
|                       |   |                                                                                                                         |   |
| 31.2                       |   | Rule 13a-14(a)                Certification of Principal Financial Officer                                              |   |
|                       |   |                                                                                                                         |   |
| 32.1                       |   | Section 1350                Certification of Principal Executive Officer and Principal Financial                Officer |   |

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**SIGNATURES**

|                                  |                                                              |                            |
|---------------------------------------|-------------------------------------------------------------------|---------------------------------|
|                                  |                                                                   |
|                             |                                                         |                       |
| Dated              May 24, 2007  | BY:                                                          | */s/              SUANG-YI PAI* |
|                                  | SUANG-YI                PAICHIEF                FINANCIAL OFFICER |
|                                  |                                                              |

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