**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**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**

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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 $353,361 in the form of “Advances to ex-CFO” is                inserted in the section entitled “Cash Flows From Investing Activities”                under the column “Nine Months Ended September 30, 2004” in the Condensed                Consolidated Statement of Cash Flows for the third quarter ended                September                30, 2005. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                positive amount of $353,361 in the form of “Repayments of advances to                ex-CFO” is inserted in the section entitled “Cash Flows From Investing                Activities” under the column “Nine Months Ended September 30, 2004” in the                Condensed Consolidated Statement of Cash Flows for the third quarter                ended                September 30, 2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**PART      I: FINANCIAL INFORMATION**

**Kid      Castle Educational Corporation**

**Condensed      Consolidated Statements of Cash Flows**

**(Expressed      in US Dollars)**

**(Unaudited)**

|                                                                                                               |   | Nine                  months endedSeptember                  30, |       |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|
|                                                                                                               |   | 2005                                                             |       | 2004 |   |
|                                                                                                               |   |                                                             |       | (Restated) |   |
| Cash                  flows from operating activities                                                              |   |                                                             |       |   |   |
| Net                  loss                                                                                          |   | $                                                                | (689,594   | ) | $ | (785,171 | ) |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities:      |   |                                                             |            |   |   |  |   |
| Depreciation                  and amortization                                                                     |   |                                                             | 333,388    |   |   | 258,261 |   |
| Allowance                  for doubtful debts and sales returns                                                    |   |                                                             | 1,231,289  |   |   | 172,537 |   |
| Provision                  for allowance for loss on inventory obsolescence and slow-moving                  items |   |                                                             | 58,325     |   |   | 113,573 |   |
| Gain                  on disposal of property and equipment                                                        |   |                                                             | (30,333    | ) |   | (10,609 | ) |
| Decrease                  in deferred income tax assets                                                            |   |                                                             | 11,313     |   |   | 67,378 |   |
| Minority                  interest in income                                                                       |   |                                                             | (16,017    | ) |   | 2,611 |   |
| Share                  of loss of investments                                                                      |   |                                                             | 21,157     |   |   | — |   |
| Changes                  in assets and liabilities:                                                                |   |                                                             |            |   |   |  |   |
| Increase                  in notes and accounts receivable                                                         |   |                                                             | (2,124,415 | ) |   | (561,081 | ) |
| Decrease                  in inventories                                                                           |   |                                                             | 240,064    |   |   | (403,744 | ) |
| Increase                  in other receivables                                                                     |   |                                                             | 159,779    |   |   | (99,282 | ) |
| Increase                  in prepayments and other current assets                                                  |   |                                                             | (259,470   | ) |   | (250,194 | ) |
| Increase                  in other assets                                                                          |   |                                                             | (63,276    | ) |   | (122,453 | ) |
| Increase                  in notes and accounts payable                                                            |   |                                                             | 574,013    |   |   | 572,556 |   |
| Increase                  in accrued expenses                                                                      |   |                                                             | 406,985    |   |   | (104,349 | ) |
| Increase                  in other payables                                                                        |   |                                                             | 36,015     |   |   | (88,561 | ) |
| Decrease                  in receipts in advance                                                                   |   |                                                             | (178,961   | ) |   | 349,247 |   |
| Increase                  in income taxes payable                                                                  |   |                                                             | 111,039    |   |   | 42,967 |   |
| Increase                  in deposits received                                                                     |   |                                                             | 63,187     |   |   | 129,455 |   |
| Increase                  in accrued pension liabilities                                                           |   |                                                             | 85,088     |   |   | 10,406 |   |
|                                                                                                               |   |                                                             |            |   |   |  |   |
| Net                  cash used in operating activities                                                             |   |                                                             | (30,424    | ) |   | (706,453 | ) |
|                                                                                                               |   |                                                             |            |   |   |  |   |
| Cash                  flows from investing activities                                                              |   |                                                             |            |   |   |  |   |
| Purchases                  of property and equipment                                                               |   |                                                             | (111,270   | ) |   | (197,389 | ) |
| Proceeds                  from disposal of property and equipment                                                  |   |                                                             | 78,661     |   |   | 79,135 |   |
| Acquisition                  of long-term investments                                                              |   |                                                             | —    |   |   | (103,563 | ) |
| Acquisition                  of long-term notes receivable                                                         |   |                                                             | (46,043    | ) |   | — |   |
| Advances                  to ex-CFO                                                                                |   |                                                             | (2,267,424 | ) |   | (353,361 | ) |
| Repayments                  of advances to ex-CFO                                                                  |   |                                                             | 2,267,424  |   |   | 353,361 |   |
|                                                                                                               |   |                                                             |            |   |   |  |   |
| Net                  cash used in investing activities                                                             |   |                                                             | (78,652    | ) |   | (221,817 | ) |

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**Kid      Castle Educational Corporation**

**Condensed      Consolidated Statements of Cash Flows - Continued**

**(Expressed      in US Dollars)**

|                                                                             |   | Nine                  months endedSeptember                  30, |     |
|----------------------------------------------------------------------------------|--------|------------------------------------------------------------------|----------|
|                                                                             |   | 2005                                                             |     | 2004 |   |
| Cash                  flows from financing activities                            |   |                                                             |     | (Restated) |   |
| Proceeds                  from bank borrowings                                   |   |                                                             | 791,450  |   |   | 2,500,962 |   |
| Repayment                  of bank borrowings                                    |   |                                                             | (994,388 | ) |   | (1,652,431 | ) |
| Repayment                  of capital leases                                     |   |                                                             | (18,365  | ) |   | (22,086 | ) |
| Repayment                  of loan from officers/shareholders                    |   |                                                             | —  |   |   | (581,228 | ) |
| Net                  cash consumed by financing activities                       |   |                                                             | (221,303 | ) |   | 245,217 |   |
|                                                                             |   |                                                             |          |   |   |  |   |
| Net                  decrease in cash and cash equivalents                       |   |                                                             | (330,379 | ) |   | (683,053 | ) |
|                                                                             |   |                                                             |          |   |   |  |   |
| Effect                  of changes in exchange rate on cash and cash equivalents |   |                                                             | 96,409   |   |   | 3,561 |   |
|                                                                             |   |                                                             |          |   |   |  |   |
| Cash                  and cash equivalents at beginning of period                |   |                                                             | 507,895  |   |   | 1,478,612 |   |
|                                                                             |   |                                                             |          |   |   |  |   |
| Cash                  and cash equivalents at end of period                      |   | $                                                                | 273,925  |   | $ | 799,120 |   |

**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                PAI            |
|                            | CHIEF                FINANCIAL OFFICER |

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