**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

----

**FORM      10-Q/A**

**Amendment      No. 1 **

**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**

----

**KID      CASTLE EDUCATIONAL CORPORATION**

| **Florida**                                                                                                      | **59-2549529**                                   |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation ororganization)                                     | (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) |

** **
** **
** **

** **
** **
** **

** **
** **

----

**EXPLANATORY      NOTE**
**:**

| (1) | The                negative amount of $544,244 in the form of “Advances to ex-CFO” is                inserted in the section entitled “Cash Flows From Investing Activities”                under the column “Three months Ended March 31, 2005” in the Condensed                Consolidated Statement of Cash Flows for the first quarter ended                March 31,                2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                  positive amount of $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 “Three months Ended March 31, 2005” in the                  Condensed Consolidated Statement of Cash Flows for the first quarter                  ended                  March 31, 2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                  disclosures under the Notes of the Condensed Consolidated Financial                  Statements are revised by adding Note 2.1 “Restatement” to reflect the                  effects of such transaction on the Condensed Consolidated Financial                  Statements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Footnote                  1 of new subsection                  (x) entitled “Amount due to (from) officers/shareholders” is provided                  under Part B of Note 10 to the Notes of the Condensed Consolidated                  Financial Statements to reflect the above transactions. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

**PART      I: FINANCIAL INFORMATION**

Kid      Castle      Educational Corporation

|                                                                                                                     |   | Three                months ended March 31, |     |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|
|                                                                                                                     |   | 2005                                        |     | 2004 |   |
|                                                                                                                     |   | (Restated)                                  |     |   |   |
|                                                                                                                     |   | (Unaudited)                                 |     |
|                                                                                                                     |   |                                        |     |   |   |
| Cash                flows from operating activities                                                                      |   |                                        |     |   |   |
| Net                (loss) income                                                                                         |   | $                                           | (50,430  | ) | $ | (327,654 | ) |
| Adjustments                to reconcile net (loss) income to net                cash provided by operating activities    |   |                                        |     |   |   |   |   |
| Depreciation                of property and equipment                                                                    |   |                                        | 66,681   |   |   | 52,266 |   |
| Amortization                of intangible assets                                                                         |   |                                        | 42,835   |   |   | 40,509 |   |
| Allowance                for sales returns                                                                               |   |                                        | 95,267   |   |   | 71,890 |   |
| Allowance                for doubtful debts                                                                              |   |                                        | 284,537  |   |   | 156,221 |   |
| Provision                (reversal) of allowance for loss on inventory obsolescence and slow-moving                items |   |                                        | 6,452    |   |   | (69,180 | ) |
| gain                on disposal of property and equipment                                                                |   |                                        | (9,010   | ) |   | — |   |
| Minority                interest income                                                                                  |   |                                        | (143     | ) |   | — |   |
| Share                of loss (gain) of investments                                                                       |   |                                        | (12,483  | ) |   | (46,967 | ) |
| (Increase)/decrease                in:                                                                                   |   |                                        |     |   |   |   |   |
| Notes                and accounts receivable                                                                             |   |                                        | (775,674 | ) |   | 192,461 |   |
| Inventories                                                                                                              |   |                                        | 4,514    |   |   | 204,320 |   |
| Other                receivables                                                                                         |   |                                        | (129,129 | ) |   | 72,016 |   |
| Prepayments                and other current assets                                                                      |   |                                        | 41,002   |   |   | (6,073 | ) |
| Deferred                income tax assets                                                                                |   |                                        | (32,194  | ) |   | 3,314 |   |
| Other                assets                                                                                              |   |                                        | 46,591   |   |   | (31,084 | ) |
| Increase/(decrease)                in:                                                                                   |   |                                        |     |   |   |   |   |
| Notes                and accounts payable                                                                                |   |                                        | 60,036   |   |   | 107,712 |   |
| Accrued                expenses                                                                                          |   |                                        | 148,876  |   |   | (46,463 | ) |
| Other                payables                                                                                            |   |                                        | 124,933  |   |   | (76,311 | ) |
| Receipts                in advance                                                                                       |   |                                        | (147,307 | ) |   | (261,384 | ) |
| Income                taxes payable                                                                                      |   |                                        | 115,635  |   |   | (3,314 | ) |
| Deposits                received                                                                                         |   |                                        | 67,207   |   |   | 29,413 |   |
| Accrued                pension liabilities                                                                               |   |                                        | 29,115   |   |   | (16,266 | ) |
|                                                                                                                     |   |                                        |     |   |   |   |   |
| Net                cash provided by (used in) operating activities                                                       |   |                                        | (22,689  | ) |   | 45,426 |   |
|                                                                                                                     |   |                                        |     |   |   |   |   |
| Cash                flows from investing activities                                                                      |   |                                        |     |   |   |   |   |
| Purchase                of property and equipment                                                                        |   |                                        | (104,562 | ) |   | — |   |
| Proceeds                from disposal of property and equipment                                                          |   |                                        | 72,795   |   |   | — |   |
| Bank                fixed deposits - pledged                                                                             |   |                                        | (58,629  | ) |   | (135,818 | ) |
| Pledged                notes receivable                                                                                  |   |                                        | 29,990   |   |   | 30,129 |   |
| Advances                to ex-CFO (restated)                                                                             |   |                                        | (544,244 | ) |   | — |   |
| Repayments                of advances to ex-CFO (restated)                                                               |   |                                        | 544,244  |   |   | — |   |
|                                                                                                                     |   |                                        |     |   |   |   |   |
| Net                cash used in investing activities                                                                     |   |                                        | (60,406  | ) |   | (105,689 | ) |

----

|                                                                                                                                                                   |   | Three                months ended March 31, |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|
|                                                                                                                                                                   |   | 2005                                        |     | 2004 |   |
|                                                                                                                                                                   |   | (Restated)                                  |     |   |   |
|                                                                                                                                                                   |   | (Unaudited)                                 |     |
| Cash                flows from financing activities                                                                                                                    |   |                                        |     |   |   |
| Proceeds                from bank borrowings                                                                                                                           |   | $                                           | 795,968  |   | $ | 2,829,827 |   |
| Repayment                of bank borrowings                                                                                                                            |   |                                        | (781,513 | ) |   | (2,169,859 | ) |
| Proceeds                from capital leases                                                                                                                            |   |                                        | 58,089   |   |   | — |   |
| Repayment                of capital leases                                                                                                                             |   |                                        | (10,910  | ) |   | (5,662 | ) |
| Repayment                of loan from officers/stockholders                                                                                                            |   |                                        | —  |   |   | (586,529 | ) |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Net                cash provided by financing activities                                                                                                               |   |                                        | 60,634   |   |   | 67,777 |   |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Net                increase in cash and cash equivalents                                                                                                               |   |                                        | (22,461  | ) |   | 7,514 |   |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Effect                of exchange rate changes on cash and cash                equivalents                                                                             |   |                                        | (17,934  | ) |   | (30,792 | ) |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Cash                and cash equivalents at beginning of period                                                                                                        |   |                                        | 213,564  |   |   | 1,273,723 |   |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Cash                and cash equivalents at end of period                                                                                                              |   | $                                           | 173,169  |   | $ | 1,250,445 |   |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| **Supplemental                disclosure of significant non-cash transactions**                                                                                        |   |                                        |     |   |   |   |   |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Increase                (decrease) of notes receivable and pledged notes receivable corresponding                to the increase (decrease) in the following accounts: |   |                                        |     |   |   |   |   |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Deposits                received                                                                                                                                       |   | $                                           | 1,586    |   | $ | (18,896 | ) |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Other                payables                                                                                                                                          |   | $                                           | 6,473    |   | $ | (10,112 | ) |
|                                                                                                                                                                   |   |                                        |     |   |   |   |   |
| Receipts                in advance                                                                                                                                     |   | $                                           | 258,156  |   | $ | (123,465 | ) |

----

**NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**NOTE      2.1 — RESTATEMENT**

|                                                               |   | As                Previously Reported |    | Restated                Amount |   |
|--------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------|--------|
| Advances                to ex-CFO                                  |   |                                  |    |                           |   | (544,244 | ) |
| Repayments                of advances to ex-CFO                    |   |                                  |    |                           |   | 544,244 |   |
| Net                cash (used in) provided by investing activities |   |                                  | (60,406 | )                              |   | (60,406 | ) |

**B. Significant      transactions and balances with related parties are as      follows:**

**(x) Amount      due to (from) officers/shareholders: **

|                                        |   | **March                  31,****2005** |         | **March                  31,****2004** |   |
|---------------------------------------------|--------|----------------------------------------|--------------|----------------------------------------|--------|
| Mr.                Yu-En Chiu (Note 1) |   | $                                      | —      |                                   | $      | — |   |
|                                        |   |                                   |    |                                   |   |    |   |

----

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

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

**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 |

----

**SIGNATURES**

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

----