UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

[ x ]  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the quarterly period ended: December 31, 2006

[    ]  TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE EXCHANGE ACT

                      For the transition period from    to

                         Commission file number 0-17232

                      STEM CELL THERAPY INTERNATIONAL, INC.

        (Exact name of small business issuer as specified in its charter)


                 NEVADA                              88-0374180
       (State or other jurisdiction of       (IRS Employer Identification
       Incorporation or organization)                 Number)

                 2203 N. Lois Avenue, 9th Floor, Tampa, FL 33607

                    (Address of principal executive offices)

                                 (813) 600-4088

                           (Issuer's telephone number)

                                 Not applicable

    (Former name, former address and former fiscal year, if changed since last
                                     report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]

<PAGE>

Indicate by check mark whether the registrant is a shell company (as defined by
Rule 12b-2 of the Exchange Act).  Yes [  ]  No  [X]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

34,495,369 shares of common stock, $0.001 par value, as of January 18, 2007.

Transitional Small Business Disclosure Format (check one): Yes [  ]  No  [X]

<PAGE>

                      Stem Cell Therapy International, Inc.
                         (a development stage enterprise)

                                Table of Contents

Part I.  Financial Information

Item 1. Financial Statements                                                   4

     Balance Sheets as of December 31, 2006 (unaudited) and March 31, 2006     5

     Statements of Operations for the three and nine months ended December
     31, 2006 and 2005 (unaudited) and for the period from December 2,
     2004 (Date of Inception) through December 31, 2006 (unaudited)            6

     Statements of Changes in Stockholders' (Deficit) for the period from
     December 2, 2004 (Date of Inception) through December 31, 2006
     (unaudited)                                                               7

     Statements of Cash Flows for the nine months ended December 31, 2006
     and 2005 (unaudited) and for the period from December 2, 2004 (Date
     of Inception) through December 31, 2006 (unaudited)                       8

     Notes to Financial Statements                                             9

Item  2.  Managements Discussion and Analysis                                 21
Item  3.  Controls and Procedures                                             27

Part II.  Other Information

Item  1.  Legal Proceedings                                                   28
Item  2.  Unregistered Sales of Equity Securities and Use of Proceeds         28
Item  3.  Defaults from Senior Securities                                     28
Item  4.  Submission of Matters to a Vote of Security Holders                 28
Item  5.  Other Information                                                   28
Item  6.  Exhibits                                                            28

Signatures                                                                    31


Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002:
     Chief Executive Officer                                                  32
     Chief Financial Officer and Chief Accounting Officer                     33
Certificate Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:
     Chief Executive Officer                                                  34
     Chief Financial Officer and Chief Accounting Officer                     35


<PAGE>

PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance
with  accounting  principles  generally accepted in the United States of America
for  interim financial information and with the instructions for Form 10-QSB and
Rule  10-01  of  Regulation  S-X.  Accordingly,  they  do not include all of the
information  and  footnotes required by accounting principles generally accepted
in  the  United  States  of  America  for complete financial statements.  In the
opinion  of  management,  all  adjustments  considered  necessary  for  a  fair
presentation have been included.  All such adjustments are of a normal recurring
nature.  Operating  results  for the three and nine month periods ended December
31,  2006  and  2005  are  not necessarily indicative of the results that may be
expected  for  the  year  ending  March 31, 2007.  This report should be read in
conjunction  with the financial statements and footnotes thereto included in the
Company's  Registration  Statement  filed  on  amended Form 10-SB filed with the
Securities  and  Exchange  Commission  on  January  19,  2007.








<PAGE>

                      Stem Cell Therapy International, Inc.
                         (a development stage enterprise)

                                 Balance Sheets

<TABLE>
<CAPTION>
<S>                                                          <C>         <C>
                                                  December 31,    March 31,
                                                         2006          2006
                                                  (unaudited)

ASSETS

Current assets:
Cash                                                    $  87,267   $  32,642
Inventory                                                   5,988           -
Prepaid expenses                                           43,267      77,531
                                                      ------------  ----------
Total current assets                                      136,522     110,173

Certificate of deposit, restricted                          3,860     120,000
Deposits                                                    1,589       1,589
Prepaid expenses, long-term                                57,712       1,417
Intangible asset, net                                       4,333       4,708
                                                      ------------  ----------

Total assets                                          $   204,016   $ 237,887
                                                      ============  ==========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable                                      $    44,561   $  28,370
Accrued expenses                                           75,000      75,000
Accrued payroll                                           167,355      35,000
Deferred revenue                                           84,250           -
Stockholder advances                                       48,753      48,377
Due to related party                                      225,200     224,972
                                                      ------------  ----------
Total current liabilities                                 645,119     411,719
                                                      ------------  ----------

Commitments and contingencies (Note 9)                          -           -

Stockholders' deficit:
Preferred stock; $.001 par value; 10,000,000 shares
authorized and 500,000 issued and outstanding                 500         500
Common stock; $.001 par value; 100,000,000 shares
authorized and 34,495,369 and 33,672,510 issued
and outstanding as of December 31, 2006 and
March 31, 2006, respectively                               34,496      33,672
Additional paid-in capital                                660,574     324,398
Deficit accumulated during development stage           (1,136,673)   (532,402)
                                                      ------------  ----------
Total stockholders' deficit                              (441,103)   (173,832)
                                                      ------------  ----------

Total liabilities and stockholders' deficit           $   204,016   $ 237,887
                                                      ============  ==========
</TABLE>

The  accompanying  notes  are  an  integral  part  of  the financial statements.



<PAGE>

                      Stem Cell Therapy International, Inc.
                         (a development stage enterprise)

                            Statements of Operations
                                   (unaudited)
<TABLE>
<CAPTION>
<S>                                       <C>         <C>           <C>         <C>               <C>         <C>

                                                                                         Period from
                                                                                         December 2,
                                                                                         2004 (Date of
                                          Three Months Ended       Nine Months Ended     Inception) through
                                             December  31,            December  31,      December  31,
                                          --------------------    --------------------   -------------------
                                           2006         2005         2006         2005         2006
                                          --------------------    --------------------   -------------------
Revenue                                 $  90,000    $  27,464    $  236,260   $  50,934   $  317,194
Cost of goods sold                         32,435       17,500       241,060      34,600      293,160
Gross margin                               57,565        9,964        (4,800)     16,334       24,034

Operating expenses
Selling general & administrative           157,363     115,569       601,706     273,452    1,165,060
                                        --------------------------------------------------------------
                                           157,363     115,569       601,706     273,452    1,165,060

Loss from operations                       (99,798)   (105,605)     (606,506)   (257,118)  (1,141,026)

Other (expense) income:
Interest (expense) income, net                (219)        572         2,235       1,096        4,353
                                        --------------------------------------------------------------
Net loss before taxes                     (100,017)   (105,033)     (604,271)   (256,022)  (1,136,673)
Income tax expense                               -           -             -           -            -
                                        --------------------------------------------------------------

Net loss                                   (100,017)  (105,033)     (604,271)   (256,022)  (1,136,673)
Less dividends on preferred stock                 -          -             -           -      (10,000)
                                        --------------------------------------------------------------

Loss attributable to common shareholders  $(100,017)  (105,033)     (604,271)   (256,022)  (1,146,673)
                                        ==============================================================

Net loss per share, basic & diluted       $    (.00) $    (.00)   $     (.02)   $   (.01)     $  (.04)
                                        ==============================================================

Weighted average number
   of common shares, basic & diluted     34,495,369 33,408,481    34,248,756  24,251,611   28,001,954
                                        ==============================================================


</TABLE>


    The accompanying notes are an integral part of the financial statements.


<PAGE>

                      STEM CELL THERAPY INTERNATIONAL, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                 STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
   FOR THE PERIOD FROM DECEMBER 2, 2004 (DATE OF INCEPTION) THROUGH DECEMBER 31
                                2006 (UNAUDITED)


<TABLE>
<CAPTION>


<S>                                                    <C>          <C>       <C>      <C>   <C>        <C>            <C>
                                                         COMMON STOCK        PREFERRED STOCK
                                                         ------------        ---------------
                                                                                                           DEFICIT
                                                                                                           ACCUMULATED
                                                                                               ADDITIONAL  DURING
                                                                                               PAID IN     DEVELOPMENT
                                                         SHARES    AMOUNT     SHARES   AMOUNT  CAPITAL     STAGE          TOTAL
                                                       ----------  --------  --------  ----- --------   ------------   -----------
Issuance of common stock for cash                      13,550,000   $13,550         -  $  -  $      -   $          -   $   13,550
Exercise of stock options for services                    500,000       500         -     -         -              -          500
Issuance of common stock and options for
   acquisition deposit                                  5,000,000     5,000         -     -     2,749              -        7,749
Stock options issued for services                               -         -         -     -       906              -          906
Issuance of common stock for services                   2,170,000     2,170         -     -         -              -        2,170
Net loss for the period                                         -         -         -     -         -        (26,241)     (26,241)
                                                       ----------  --------  --------  ----- --------   ------------   -----------
Balance, March 31, 2005                                21,220,000    21,220         -     -     3,655        (26,241)      (1,366)

Cancellation of common stock issued and options
   awarded for services                                (5,600,000)   (5,600)        -     -    (2,749)             -       (8,349)
Issuance of common stock for services                   3,741,832     3,741         -     -   299,898              -      303,639
Issuance of common stock for intangible asset           5,000,000     5,000         -     -         -              -        5,000
Reverse acquisition, September 1, 2005                  6,310,678     6,311         -     -      (906)             -        5,405
Issuance of common stock for a reduction
   in stockholder advances                              3,000,000     3,000         -     -         -              -        3,000
Issuance of preferred stock for cash                            -         -   500,000   500    34,500              -       35,000
Dividend on preferred stock                                     -         -         -     -   (10,000)             -      (10,000)
Net loss for the year ended March 31, 2006                      -         -         -     -         -       (506,161)    (506,161)
                                                       ----------  --------  --------  ----- --------   ------------   -----------
Balance, March 31, 2006                                33,672,510    33,672   500,000   500   324,398       (532,402)    (173,832)

Issuance of common stock for services (unaudited)         822,859       824         -     -   336,176              -      337,000

Net loss for the nine months ended December 31, 2006
   (unaudited)                                                  -         -         -     -         -       (604,271)    (604,271)
                                                       ----------  --------  --------  ----- --------   ------------   -----------
Balance, December 31, 2006 (unaudited)                 34,495,369   $34,496   500,000  $500  $660,574    ($1,136,673)   ($441,103)
                                                       ==========  ========  ========  ===== ========   =============  ===========
</TABLE>


    The accompanying notes are an integral part of the financial statements.

<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                            Statements of Cash Flows

<TABLE>
<CAPTION>
<S>                                                  <C>         <C>             <C>
                                                                             December 2, 2004
                                                   Nine Months  Nine Months  (Date of Inception)
                                                   Ended        Ended        Through
                                                   December 31, December 31, December 31,
                                                   2006         2005         2006
                                                     ---------  ----------    ----------
                                                  (unaudited)   (unaudited)  (unaudited)

OPERATING ACTIVITIES
Net loss                                            $(604,271)  $(256,022)  $(1,136,673)
Adjustments to reconcile net loss to net
   cash used by operating activities:
   Stock based compensation                           315,205     125,660       552,478
   Investment income reinvested                        (2,884)          -        (2,884)
   Amortization                                           375         167           667
   (Increase) decrease in:
      Inventory                                        (5,988)          -        (5,988)
      Prepaid expenses                                   (236)    (56,638)       (4,437)
      Deposits                                              -      11,160        (1,589)
   Increase in:
      Accounts payable                                 16,191      (5,507)       44,561
      Accrued payroll                                 132,355           -       167,355
      Accrued expenses                                      -      60,000        75,000
      Deferred revenue                                 84,250           -        84,250
                                                     ---------  ----------    ----------
   Net cash used by operating activities              (65,003)   (121,180)     (227,260)
                                                     ---------  ----------    ----------

INVESTING ACTIVITIES

   (Investment in)/Proceeds from
    certificate of deposit, restricted                119,024           -          (976)
                                                     ---------  ----------    ----------
      Net cash provided (used) by investing
         activities                                   119,024           -          (976)
                                                     ---------  ----------    ----------

FINANCING ACTIVITIES
   Proceeds from advances from stockholder                376      24,686        52,528
   Payments to stockholder                                  -        (775)         (775)
   Advances from related party                            228     224,582       225,200
   Proceeds from sale of stock                              -      25,000        38,550
                                                     ---------  ----------    ----------
      Net cash provided by financing
         activities                                       604     273,493       315,503
                                                     ---------  ----------    ----------

NET INCREASE IN CASH                                   54,625     152,313        87,267
CASH AT BEGINNING OF PERIOD                            32,642       7,310             -
                                                     ---------  ----------    ----------

CASH AT END OF PERIOD                                $ 87,267   $ 159,623     $  87,267
                                                     =========  ==========    ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION AND NON-CASH FINANCING ACTIVITIES:

    Cash paid for interest                           $    900   $      79     $     979
                                                     =========  ==========    ==========
    Common stock issued for a reduction
             in advance from stockholder             $          $   3,000     $   3,000
                                                     =========  ==========    ==========
   Common stock issued for purchase of
            intangible assets                        $          $   5,000     $   5,000
                                                     =========  ==========    ==========
</TABLE>


    The accompanying notes are an integral part of the financial statements.

<PAGE>


                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


1.     BACKGROUND  INFORMATION  AND  BASIS  OF  PRESENTATION

     Company  Background:

     Stem  Cell  Therapy  International,  Inc.  (the  "Company"), was originally
incorporated  in  the state of Nevada on December 28, 1992 as Arklow Associates,
Inc.   The Company's operating business is Stem Cell Therapy International Corp.
("Stem  Cell  Florida")  a  wholly owned subsidiary which is a development stage
enterprise and was incorporated in the state of Nevada on December 2, 2004.  The
corporate  headquarters  is  located  in  Tampa,  Florida.

     The  Company  is engaged in the licensing of stem cell technology, the sale
of  stem  cell  products,  and  information,  education,  and  referral services
relating  to  potential  stem  cell therapy patients. The Company purchases allo
stem cell biological solutions that are currently being used in the treatment of
patients  suffering  from  degenerative  disorders  of  the  human  body such as
Alzheimer's,  Parkinson's  Disease,  ALS, leukemia, muscular dystrophy, multiple
sclerosis, arthritis, spinal cord injuries, brain injury, stroke, heart disease,
liver  and  retinal  disease,  diabetes  as well as certain types of cancer. The
Company  has  established  agreements  with two highly specialized, professional
medical  treatment  facilities  in  locations outside of the United States where
stem  cell  transplantation  therapy  is  approved  by  the  appropriate  local
government  agencies.  The Company intends to provide these biological solutions
containing  stem  cell products in the United States to universities, institutes
and  privately  funded  laboratory facilities for research purposes and clinical
trials.  Its  products,  which are available now, include various allo stem cell
biological  solutions  (containing human stem cells), low-molecular proteins and
human  growth  factor  hormones.  The  Company  intends  to  deliver  stem  cell
transplants  worldwide  and  educate and consult with physicians and patients in
the  clinical  aspects  of  stem  cell  transplantation.

     Effective  September  1,  2005,  Stem  Cell  Florida  entered  into  a
Reorganization  and  Stock  Purchase Agreement (the Agreement) with the Company,
which  was  then  named  Altadyne, Inc., a company quoted on the Pink Sheets and
which  has no ongoing operations.  Under the terms of the agreement, the Company
(then  Altadyne,  Inc.)  acquired Stem Cell Florida and changed its name to Stem
Cell  Therapy  International,  Inc.



<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)

1.     BACKGROUND  INFORMATION  AND  BASIS  OF  PRESENTATION  (CONTINUED)

     Basis of presentation:

In  the opinion of management, the accompanying financial statements include all
adjustments, consisting only of normal recurring items, necessary for their fair
presentation  in conformity with accounting principles generally accepted in the
United  States  of America.  The results of operations for the nine months ended
December 31, 2006 are not necessarily indicative of the results for a full year.

The  financial  statements  for  the  period  ended  December 31, 2006 and notes
thereto  should  be  read in conjunction with the financial statements and notes
thereto  for  the  year  ended  March  31,  2006  as filed in the Form 10-SB, as
amended, filed with the Securities and Exchange Commission as amended on January
19,  2007.

2.     LIQUIDITY  AND  MANAGEMENT'S  PLANS

The  accompanying  financial  statements have been prepared assuming the Company
will  continue  as a going concern.  For the nine months ended December 31, 2006
and  the  period since December 2, 2004 (date of inception) through December 31,
2006,  the  Company  has had a net loss of $604,271 and $1,136,673, respectively
and  cash used by operations of $65,003 and $227,260, respectively, and negative
working  capital of $508,597 at December 31, 2006.  As of December 31, 2006, the
Company  has  not emerged from the development stage.  In view of these matters,
the  ability of the Company to continue as a going concern is dependent upon the
Company's  ability  to  generate  additional  financing  and ultimately increase
operations  and  to  achieve  a  level  of  profitability.  Since inception, the
Company  has  financed  its  activities  principally  from  the  sale  of equity
securities  and  related  party  advances.  The Company intends on financing its
future  development  activities  and  its working capital needs largely from the
sale  of equity securities and loans from the Company's Chief Executive Officer,
until such time that funds provided by operations are sufficient to fund working
capital  requirements.  There  can  be  no  assurance  that  the Company will be
successful  at  achieving its financing goals at reasonably commercial terms, if
at  all.

3.     SIGNIFICANT  ACCOUNTING  POLICIES

     Use  of  estimates:

The preparation of financial statements in conformity with accounting principles
generally  accepted  in the United States of America requires management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and  disclosure of contingent assets and liabilities at the date of
the  financial  statements  and  the  reported  amounts of revenues and expenses
during  the reporting period.  Actual results could differ from those estimates.



<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Concentration  of  credit  risk:

Cash  balances  are  maintained with a major financial institution in the United
States.  Deposits  with this bank may exceed the amount of insurance provided on
such  deposits.  Generally,  these  deposits  may  be  redeemed upon demand and,
therefore,  bear  minimal  risk.

Intangible asset:

Intangible  asset  consists of licensing rights. Intangibles are amortized using
the  straight-line  method  over a period of 10 years, the term of the licensing
rights  agreement.

Impairment of long-lived assets:

The  Company  evaluates  the  recoverability  of  its long-lived assets or asset
groups  whenever adverse events or changes in business climate indicate that the
expected undiscounted future cash flows from the related assets may be less than
previously anticipated.  If the net book value of the related assets exceeds the
undiscounted  future  cash  flows  of  the  assets, the carrying amount would be
reduced  to  the  present  value  of  their  expected  future  cash flows and an
impairment  loss  would  be recognized.  There have been no impairment losses in
the  periods  presented.

Revenue  recognition:

Revenue  is derived from the licensing of stem cell technology, the sale of stem
cell  products,  and  providing  informational  and  referral services.  Revenue
related  to these licenses, sales and services is recognized upon delivering the
license  or  product,  or  rendering  the  services, respectively.  Any payments
received  prior to delivery of the products or services are included in deferred
revenue  and  recognized  once  the  products  are delivered or the services are
performed.






<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Income  taxes:

Deferred  tax assets and liabilities are recognized for the estimated future tax
consequences  attributable  to  differences  between  the  financial  statements
carrying  amounts of existing assets and liabilities and their respective income
tax  bases.  Deferred  tax assets and liabilities are measured using enacted tax
rates  expected to apply to taxable income in the years in which those temporary
differences  are expected to be recovered or settled. The effect on deferred tax
assets  and  liabilities of a change in tax rates is recognized as income in the
period  that  included  the  enactment  date.

Loss  per  common  share:

Basic  and diluted earnings per share are computed based on the weighted average
number  of common stock outstanding during the period.  Common stock equivalents
are  not  considered  in  the  calculation of diluted earnings per share for the
periods  presented because their effect would be anti-dilutive.  The Company had
no  common  stock  equivalents  outstanding  at  December  31,  2006.

Stock-based compensation:

In  April  2006,  the  Company  adopted the provisions of Statement of Financial
Accounting  Standards  No.  123R  -  Share-based Payments ("FAS 123R") replacing
Accounting  for  Stock-Based  Compensation  ("FAS  123"),  which are similar and
require the use of the fair-value based method to determine compensation for all
arrangements  under which employees and others receive shares of stock or equity
instruments  (warrants  and  options).  The  adoption  of  this  standard had no
significant impact on the Company's results of operations during the nine months
ended  December  31,  2006.

Reclassifications:

Certain  reclassifications  have  been  made  to  the  accompanying  fiscal 2006
financial  statements  to  conform  to the December 31, 2006 presentation.  Such
reclassifications  had  no  impact  on  net  loss  as  previously  reported.








<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Recently issued accounting pronouncements:

In  February  2006,  the  Financial  Accounting  Standards Board ("FASB") issued
Statement  of Financial Accounting Standard No. 155 ("SFAS 155"), Accounting for
Certain  Hybrid  Financial Instruments - An Amendment of FASB Statements No. 133
and  140,  to  simplify  and  make  more  consistent  the accounting for certain
financial  instruments.  Specifically,  SFAS  No.  155  amends  SFAS  No.  133,
Accounting  for  Derivative  Instruments  and Hedging Activities, to permit fair
value  re-measurement  for  any  hybrid  financial  instrument  with an embedded
derivative  that  otherwise  would  require  bifurcation provided that the whole
instrument  is  accounted  for  on  a  fair  value  basis.  Prior  to fair value
measurement,  however,  interests  in  securitized  financial  assets  must  be
evaluated  to  identify  interests  containing  embedded  derivatives  requiring
bifurcation.  The amendments to SFAS No. 133 also clarify that interest-only and
principal-only  strips are not subject to the requirements of the SFAS, and that
concentrations  of  credit  risk  in  the form of subordination are not embedded
derivatives.  Finally,  SFAS  No.  155  amends  SFAS No. 140, Accounting for the
Impairment  or  Disposal  for  Long-Lived  Assets,  to  allow  a  qualifying
special-purpose  entity  (SPE)  to  hold  a derivative financial instrument that
pertains  to  a  beneficial  interest  other  than  another derivative financial
instrument.  SFAS  No.  155  applies  to  all  financial instruments acquired or
issued  after  the  beginning of an entity's first fiscal year that begins after
September  15,  2006,  with  earlier  application allowed.  The Company does not
anticipate  that  the  adoption of this statement will have a material impact on
its  financial  statements.

In  September  2005,  the  FASB  issued  FASB Statement No. 157.  This Statement
defines  fair  value,  establishes  a  framework  for  measuring  fair  value in
generally  accepted  accounting  principles (GAAP) and expands disclosures about
fair  value  measurements.  This  Statement  applies  under  other  accounting
pronouncements  that require or permit fair value measurements, the Board having
previously  concluded  in  those  accounting pronouncements that fair value is a
relevant  measurement  attribute.  Accordingly,  this Statement does not require
any new fair value measurements.  However, for some entities, the application of
this  Statement  will change current practices.  This Statement is effective for
financial  statements  for  fiscal  years  beginning  after  November  15, 2007.
Management believes this Statement will have no material impact on the financial
statements  of  the  Company  once  adopted.

In  May  2005,  the  FASB issued Statement of Financial Accounting Standards No.
154,  Accounting Changes and Error Corrections. ("SFAS 154")SFAS No. 154 changes
the  requirements for the accounting for and reporting of a change in accounting
principle. In addition, it carries forward without change the guidance contained
in  APB  Opinion  No.  20 for reporting the correction of an error in previously
issued  financial  statements

<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

and  a  change  in  accounting  estimate.  SFAS  No.  154 requires retrospective
application  to  prior

Recently issued accounting pronouncements (continued):

periods'  financial  statements  of  changes  in  accounting  principle  in most
circumstances.  The  provisions  of  SFAS  No. 154 are effective in fiscal years
beginning  after  December 15, 2005. The adoption of SFAS No. 154 did not have a
material  impact  on  its  financial  statements.

FASB  issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes"
(FIN  48), which will be effective for fiscal years beginning after December 15,
2006.  FIN  48  clarifies  the  accounting  for  uncertainty  in  income  taxes
recognized  in  an  enterprise's  financial  statements  in accordance with FASB
Statement No 109, "Accounting for Income Taxes". FIN 48 prescribes a recognition
threshold  and  measurement of a tax position taken or expected to be taken in a
tax  return.  FIN  48  also  provides guidance on derecognition, classification,
interest  and  penalties,  accounting  in  interim  periods,  disclosure  and
transition.  The Company has not determined the impact of the adoption of FIN 48
on  its  financial  statements.

In  September  2006,  the  SEC  issued  Staff  Accounting  Bulletin  No.  108,
"Considering  the  Effects  of  Prior  Year  Misstatements  when  Quantifying
Misstatements  in  Current  Year  Financial  Statements,"  ("SAB 108").  SAB 108
provides guidance on the consideration of effects of prior year misstatements in
quantifying  current  year  misstatements  for  the  purpose  of  a  materiality
assessment.  The  SEC staff believes registrants must quantify errors using both
a  balance  sheet  and  income  statement  approach  to  evaluate whether either
approach  results  in  quantifying  a  misstatement  that,  when  all  relevant
quantitative  and  qualitative  factors are considered, is material.  SAB 108 is
effective  for  the  Company  at  the  end  of fiscal year 2007.  The Company is
currently  evaluating  the  effects  of  SAB  108  on  its financial statements.

4.     BUSINESS  REORGANIZATION

Effective September 1, 2005, Stem Cell Florida entered into a Reorganization and
Stock  Purchase  Agreement  (the  "Agreement")  with  the  Company,  then  named
Altadyne,  Inc.,  a  company  quoted  on  the  Pink Sheets, which had no assets,
liabilities  or  ongoing  operations.  Under  the  terms  of  the agreement, the
Company,  (then  Altadyne) acquired 100% of the issued and outstanding shares of
common  stock  of  Stem  Cell  Florida  in  a non-cash transaction and Stem Cell
Florida  became  a  wholly  owned  subsidiary of the Company.  Subsequent to the
merger,  Altadyne  changed  its  name  to  Stem  Cell  Therapy  International

<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


4.     BUSINESS  REORGANIZATION  (CONTINUED)

Inc.  This  transaction  is  accounted  for  as a reverse merger, with Stem Cell
Florida  treated  as  the  accounting acquirer for financial statement purposes.

The  results  of  operations for Stem Cell Florida, the accounting acquirer, for
the  period  from December 2, 2004 (Date of Inception) have been included in the
statements  of  operations  of  the  Company.

5.     INTANGIBLE  ASSET

     Intangible asset consists of the following:

                                        December 31,
                                           2006               March 31,
                                        (unaudited)               2006
                                        -----------           ----------
     Licensing rights                   $     5,000        $     5,000

     Less: accumulated amortization       (     667)         (     292)
                                        -----------           ----------
                                        $     4,333        $     4,708
                                        ===========           ==========

     Expected future amortization of the intangible asset is as follows:

Year ending December 31,
------------------------
2007              $        500
2008                       500
2009                       500
2010                       500
2011                       500
Thereafter               1,833
                         -----
                   $     4,333
                         =====

6.     RELATED  PARTY  TRANSACTIONS

Stockholder  advances consist of advances from an officer and stockholder of the
Company  to  assist  the  Company  in  meeting  its financial obligations. These
advances  are  non-interest  bearing,  unsecured  and  due  on  demand.

Due  to  related  party represents a demand note payable to a consulting company
owned  by  a  significant  stockholder.  The  note  is  non-interest bearing and
unsecured.

<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


7.     STOCKHOLDERS'  EQUITY

     Capitalization:

The  Company  has  100,000,000  shares of common stock authorized.  In addition,
there  are  10,000,000  authorized shares of participating convertible preferred
stock,  $.001  par  value,  the  issuance of which is subject to approval by the
Board  of  Directors.  The  Board  of  Directors  has  the  authority to declare
dividends.  The  voting  rights  of  the  convertible preferred stockholders are
equivalent  to  that  of  the  common  stockholders.  Each  share of convertible
preferred  stock  can  be  converted at any time by the holder into one share of
common  stock.  As  of  December  31,  2006,  the  Company had 500,000 shares of
convertible  preferred  stock  issued  and  outstanding valued at $25,000.  Upon
issuance  of  the  preferred  stock,  management determined that the convertible
preferred  stock  contained a beneficial conversion feature calculated as of the
date  of  commitment, September 15, 2006, based on the fair value of the closing
price  of  the common stock, $0.07 per share, and an exercise price of $0.05 per
share, calculated as $25,000 paid for the preferred stock divided by the 500,000
shares  of  convertible  preferred  stock received.  Each share of the preferred
stock  is  convertible  into  one  share  of  common  stock  with  no additional
investment.  The  beneficial  conversion  was  recorded  as  a  dividend, as the
preferred  stock  can  be  converted  at  any  time  after  the  issue  date.

Stock  options:

The following table summarizes the activity related to all Company stock options
for  the  nine  months  ended  December  31,  2006  and 2005 and the period from
December  2,  2004  (Date  of  Inception)  through  December  31,  2006:

                                                               Weighted  Average
                                                 Exercise Price   Exercise Price
                                     Stock       per Share        per Share
                                     Options     Options          Options
                                   -----------   --------------    -------------
Outstanding at December 2, 2004             -     $         -       $        -
    Granted                         6,000,000     $  0.001-0.75     $     0.18
    Exercised                        (500,000)    $  0.001          $     0.001
                                   -----------
Outstanding at March 31, 2005       5,500,000     $  0.003-0.75     $     0.196
    Canceled or expired            (5,500,000)    $  0.003-0.75     $     0.196
                                   -----------
Outstanding at December 31, 2006            -
                                   ===========


<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


8.     INCOME TAXES

The income tax provision differs from the amount of tax determined by applying
the Federal statutory rate as follows:

<TABLE>
<CAPTION>


<S>                                              <C>          <C>              <C>
                                                                          Period from
                                                                         December 2, 2004
                                          Nine Months Ended December 31,     through
                                                2006          2005      December 31, 2006
                                          --------------  -----------   ------------------
Income tax provision at statutory rate        ($205,400)    ($87,000)       ($  386,600)
Increase (decrease) in income tax due to:
  Nondeductible expenses                          1,400       (9,300)             1,500
State income taxes, net                         (21,900)      (9,000)         (  41,100)
  Change in valuation allowance                 225,900      105,300            426,200
                                          --------------  -----------   ------------------
                                              $       -    $       -         $        -
                                          ==============  ===========   ==================
</TABLE>

                                            December 31,       March 31,
                                            2006               2006
                                            ------------       ----------
Deferred tax assets:
   Accrued payroll                          $  76,200         $  13,200
   Net operating loss carryforward            350,000           187,100
                                            ------------       ----------
                                              426,200           200,300
Less:  Valuation allowance                   (426,200)         (200,300)
                                            ------------       ----------
                                            $       -         $       -
                                            ============       ==========

Income  taxes  are  based  on  estimates  of  the  annual effective tax rate and
evaluations  of  possible  future  events and transactions and may be subject to
subsequent  refinement  or  revision.

The Company has incurred operating losses since its inception and, therefore, no
tax  liabilities  have  been  incurred  for the periods presented. The amount of
unused tax losses available to carry forward and apply against taxable income in
future years totaled approximately $930,000 at December 31, 2006. The loss carry
forwards  expire  beginning  in  2025.  Due  to  the Company's continued losses,
management has established a valuation allowance equal to the amount of deferred
tax  assets  due  to  it  being  more  likely than not that the Company will not
realize  this  benefit.


<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


9.     COMMITMENTS  AND  CONTINGENCIES

Letter  of  credit:

The  Company  had  a  standing letter of credit with a financial institution for
$120,000  which  was  available  to  be drawn against accounts maintained by the
Company  with  the  financial  institution.  This  letter  of credit served as a
guarantee  of  payment for a third party vendor.  This standing letter of credit
was  collateralized  by  a  $120,000  certificate of deposit of which this third
party  had drawn $116,320 against this letter of credit as of December 31, 2006.
Following  the  draw, the Company has not replenished the letter of credit as of
December  31,  2006.

Consulting  agreements:

The  Company has entered into several consulting agreements with other companies
and individuals to provide consulting and advisory services to the Company.  The
agreements provide for terms ranging from one to three years.  Additionally, the
consulting agreements required the issuance of 4,239,000 shares of the Company's
common  stock  valued at $382,409 on the date of the performance commitment.  As
of  December  31,  2006, the Company had issued these shares of common stock and
has included $96,542 in prepaid expenses for services not yet performed pursuant
to  the  agreements.

The  Company  has  entered  into  several  consulting agreements with doctors to
provide consulting and advisory services to the Company.  The agreements provide
for  six  months to one year service terms.  In exchange for these services, the
Company  issued  a total of 110,000 shares of common stock valued at $114,230 on
the  date  of  the performance commitment.  As of December 31, 2006, the Company
had  issued  these  shares  of  common  for  services  performed pursuant to the
agreements.

Effective  May  4,  2005, the Company entered into an agreement with Westminster
Securities  Corporation  ("Westminster")  for  consulting services and to secure
funding  and/or  lines  of  credit.  In exchange for these services, the Company
paid  Westminster  a  $20,000  retainer  and  had  agreed  to  pay  10%  of  any
equity-based  funding,  8%  of  any  debt-based  convertible  funding, 5% of any
nonconvertible  debt-based  funding,  as well as, issue warrants equal to 10% of
the  number  of  shares  of  stock issued in connection with the funding.  As of
December  31,  2006,  no  funding  has  been  secured;  however, Westminster did
facilitate the acquisition of Altadyne, and therefore received 379,000 shares of
common  stock  in  September  2005.  The Agreement with Westminster was mutually
terminated  effective  January  4,  2006.


<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Nine Months Ended December 31, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                      through December 31, 2006 (unaudited)


9.  COMMITMENTS AND CONTINGENCIES (CONTINUED)

Licensing  agreement:

Effective  September  1,  2005,  the  Company  entered into a ten year licensing
agreement  with  the  Institute  of  Cell  Therapy,  a  company incorporated and
organized  under  the  laws  of Kiev, Ukraine ("ICT").  The agreement grants the
Company  an  exclusive  right  and license in most parts of the world to utilize
patents,  processes and products owned or produced by ICT in connection with the
operation  of  the Company's business.  In exchange for the license, the Company
agrees  to  exclusively  purchase  all  biological  solution  of  stem cell Allo
Transplant  materials  from  ICT  for a three year period.  Such Allo Transplant
materials shall be at a cost of $6,500 per patient per condition.  The licensing
agreement  guarantees a minimum purchase of 60 portions per twelve month period.
In  the event that the Company is unable to purchase the minimum quantities, ICT
will  be  entitled  to draw upon the irrevocable letter of credit at the rate of
$2,000  for  every portion less than the minimum required purchase.  The Company
has provided ICT with a $120,000 irrevocable letter of credit in ICT's favor for
the  first  three  years of the agreement.  In the event the Letter of Credit is
drawn  upon,  the Company agrees to replenish the Letter of Credit to the extent
of  any  such  draws.  As  of  December  31,  2006, the Company did not meet the
minimum  purchase  requirement  and  ICT  has  drawn on the letter of credit for
$116,000  and  the  Company  has  not  yet  replenished  the  Letter  of Credit.

Pursuant  to  the  agreement,  the  Company  issued  ICT 5,000,000 shares of the
Company's common stock recorded at the fair market value of the Company's common
stock of $5,000 and is included as intangible assets in the accompanying balance
sheets.

During  the  nine  months  ended  December 31, 2006, the Company entered into an
agreement  to  locate  financing  with  a  third  party  for  three  years.  As
consideration  for  these  consulting  services, the Company has agreed to issue
500,000  shares of restr icted common stock and a 10% finder's fee for any funds
brought  into the Company.  As of December 31, 2006, the Company has not entered
into  any  funding  agreements,  and  therefore  the third party is not owed any
consideration.


<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

THE  FOLLOWING  INFORMATION  SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED
FINANCIAL  STATEMENTS  OF  STEM  CELL  THERAPY INTERNATIONAL, INC. AND THE NOTES
THERETO  APPEARING  ELSEWHERE  IN  THIS FILING.  STATEMENTS IN THIS MANAGEMENT'S
DISCUSSION  AND  ANALYSIS  OR  PLAN OF OPERATION AND ELSEWHERE IN THIS FILING ON
FORM  10-QSB  THAT  ARE  NOT STATEMENTS OF HISTORICAL OR CURRENT FACT CONSTITUTE
"FORWARD-LOOKING  STATEMENTS."

The  following  management discussion should be read together with the Stem Cell
Therapy International, Inc. financial statements included in this Form 10QSB and
other  reports  filed with the SEC, including the amended Form 10SB Registration
Statement filed on January 19, 2007.  See "Index to Financial Statements". Those
financial  statements  have  been prepared in accordance with generally accepted
accounting  principles  of  the  United  States  of  America.

<PAGE>

                                General Overview

     Stem  Cell  Therapy  International,  Inc.  (the  "Company")  was originally
incorporated  in  Nevada  on  December  28, 1992 as Arklow Associates, Inc., and
after  several  name  changes  was  renamed  Altadyne, Inc.  By March, 2005, the
Company  (then  Altadyne, Inc.) had no assets, liabilities, or ongoing business.
On  March  20, 2005, R Capital Partners ("R Capital") acquired the Company (then
Altadyne,  Inc.),  and  on  September  1,  2005, Stem Cell Therapy International
Corp., a Nevada corporation ("Stem Cell Florida") acquired the Company by way of
a  reverse  acquisition.  Following  the  transaction,  Stem  Cell Florida was a
wholly  owned  subsidiary  of  the Company, and Stem Cell Florida's shareholders
became shareholders of the Company.  On October 5, 2005, the Company changed its
name to Stem Cell Therapy International, Inc. to reflect the new business of the
Company.  This  transaction is accounted for as a reverse merger, with Stem Cell
Florida  treated  as  the  accounting acquirer for financial statement purposes.

     Stem  Cell  Florida  was  incorporated  in  Nevada  on  December  2,  2004.
Following  the  reverse  acquisition,  the Company assumed and is continuing the
operations  of  Stem  Cell Florida.  The Company's executive management team is:
Calvin  C.  Cao,  Chairman  and  Chief Executive Officer and Daniel J. Sullivan,
Chief  Financial  Officer.  The  Company's  supplier in the Ukraine also has the
following  non-executive  officers:  Dr.  Yuriv  Gladkikh,  Chief Scientist; Dr.
Galina  Lobyntseva,  Chief of Manufacture; Sergei Martynenko, Director of Clinic
in  Kiev;  Dr.  Vladimir Gladkikh, Medical Director; and Dr. Dimitriy Lobyntsev,
Director  of  Research.  Although  these  individuals  are  not employees of the
Company,  we  consider  them  vital  to  the  success  of  our  business.

     We  are  indirectly  involved  in  research  and  development and practical
application  within  the field of regenerative medicine. We provide allo (human)
stem cell biological solutions that are currently being used in the treatment of
patients  suffering  from  degenerative  disorders  of  the  human  body.  These
treatments  occur  outside of the United States.  We have established agreements
with  highly  specialized,  professional medical treatment facilities around the
world  in  locations  where Stem Cell Transplantation therapy is approved by the
appropriate  local  government  agencies.

     We  intend  to provide these biological solutions containing allo stem cell
products  also  in  the  United States to universities, institutes and privately
funded  laboratory  facilities  for  research  purposes  and  clinical  trials.

     We  will  initially devote most of our efforts toward organization and fund
raising  for  planned  clinics  and patient operations and limited revenues have
been  generated from any such operations.  The Company has experienced recurring
losses from operations since its inception and as at December 31, 2006, we had a
working  capital  deficit of $508,597 and an accumulated deficit from operations
of  $1,136,673.  As  noted  in  the  financial  statements  for  the period from
inception  to  December 31, 2006, these factors raise doubt about the ability of
the  Company  to  continue  as  a  going  concern.  Realization of the Company's
business  plan  is  dependent  upon  the  Company's  ability  to meet its future
financing  requirements,  and  the success of future operations.  Our only other
source  for  cash  at this time is through investments or loans from management.
We  must  raise  cash  to  implement  our  project  and  stay  in  business.

<PAGE>

                          Critical accounting policies

     The  accounting  policies  of  the Company are in accordance with generally
accepted  accounting principles of the United States of America, and their basis
of  application  is  consistent.  Outlined  below  are those policies considered
particularly  significant:

Revenue  recognition:

     We  derive  revenue from the licensing of stem cell technology, the sale of
stem  cell  products,  and  providing  informational  and referral services.  We
recognize  revenue related to these licenses, sales and services upon delivering
the  license  or product, or rendering the services, respectively.  Any payments
received  prior to delivery of the products or services are included in deferred
revenue  and  recognized  once  the  products  are delivered or the services are
performed.

Stock-based  compensation:

     In  April  2006,  we  adopted  the  accounting  provisions  of Statement of
Financial  Accounting  Standards  No.  123R  -  Share-based  Payments (FAS 123R)
replacing Accounting for Stock-Based Compensation ("FAS 123"), which are similar
and require the use of the fair-value based method to determine compensation for
all  arrangements  under  which  employees and others receive shares of stock or
equity  instruments  (warrants  and  options).

                    Recently issued accounting pronouncements

     In  February 2006, the Financial Accounting Standards Board ("FASB") issued
Statement  of Financial Accounting Standard No. 155 ("SFAS 155"), Accounting for
Certain  Hybrid  Financial Instruments - An Amendment of FASB Statements No. 133
and  140,  to  simplify  and  make  more  consistent  the accounting for certain
financial  instruments.  Specifically,  SFAS  No.  155  amends  SFAS  No.  133,
Accounting  for  Derivative  Instruments  and Hedging Activities, to permit fair
value  re-measurement  for  any  hybrid  financial  instrument  with an embedded
derivative  that  otherwise  would  require  bifurcation provided that the whole
instrument  is  accounted  for  on  a  fair  value  basis.  Prior  to fair value
measurement,  however,  interests  in  securitized  financial  assets  must  be
evaluated  to  identify  interests  containing  embedded  derivatives  requiring
bifurcation.  The amendments to SFAS No. 133 also clarify that interest-only and
principal-only  strips are not subject to the requirements of the SFAS, and that
concentrations  of  credit  risk  in  the form of subordination are not embedded
derivatives.  Finally,  SFAS  No.  155  amends  SFAS No. 140, Accounting for the
Impairment  or  Disposal  for  Long-Lived  Assets,  to  allow  a  qualifying
special-purpose  entity  (SPE)  to  hold  a derivative financial instrument that
pertains  to  a  beneficial  interest  other  than  another derivative financial
instrument.  SFAS  No.  155  applies  to  all  financial instruments acquired or
issued  after  the  beginning of an entity's first fiscal year that begins after
September  15,  2006,  with  earlier  application allowed.  The Company does not
anticipate  that  the  adoption of this statement will have a material impact on
its  financial  statements.

<PAGE>

     In  September 2006, the FASB issued FASB Statement No. 157.  This Statement
defines  fair  value,  establishes  a  framework  for  measuring  fair  value in
generally  accepted  accounting  principles (GAAP) and expands disclosures about
fair  value  measurements.  This  Statement  applies  under  other  accounting
pronouncements  that require or permit fair value measurements, the Board having
previously  concluded  in  those  accounting pronouncements that fair value is a
relevant  measurement  attribute.  Accordingly,  this Statement does not require
any new fair value measurements.  However, for some entities, the application of
this  Statement  will change current practices.  This Statement is effective for
financial  statements  for  fiscal  years  beginning  after  November  15, 2007.
Management believes this Statement will have no material impact on the financial
statements  of  the  Company  once  adopted.

     In  May  2005,  the FASB issued Statement of Financial Accounting Standards
No.  154,  Accounting  Changes  and  Error Corrections. ("SFAS 154")SFAS No. 154
changes  the  requirements  for  the accounting for and reporting of a change in
accounting  principle.  In  addition,  it  carries  forward  without  change the
guidance  contained  in  APB  Opinion  No. 20 for reporting the correction of an
error  in  previously  issued  financial  statements  and a change in accounting
estimate.  SFAS  No.  154  requires  retrospective application to prior periods'
financial  statements  of changes in accounting principle in most circumstances.
The  provisions  of  SFAS  No. 154 are effective in fiscal years beginning after
December  15,  2005. The adoption of SFAS No. 154 did not have a material impact
on  its  financial  statements.

          FASB  issued  Interpretation  No.  48,  "Accounting for Uncertainty in
Income Taxes" (FIN 48), which will be effective for fiscal years beginning after
December  15,  2006,  FIN  48 clarifies the accounting for uncertainty in income
taxes recognized in an enterprise's financial statements in accordance with FASB
Statement No 109, "Accounting for Income Taxes". FIN 48 prescribes a recognition
threshold  and  measurement of a tax position taken or expected to be taken in a
tax  return.  FIN  48  also  provides guidance on derecognition, classification,
interest  and  penalties,  accounting  in  interim  periods,  disclosure  and
transition.  The Company has not determined the impact of the adoption of FIN 48
on  its  financial  statements.

     In  September  2006,  the  SEC  issued  Staff  Accounting Bulletin No. 108,
"Considering  the  Effects  of  Prior  Year  Misstatements  when  Quantifying
Misstatements  in  Current  Year  Financial  Statements,"  ("SAB 108").  SAB 108
provides guidance on the consideration of effects of prior year misstatements in
quantifying  current  year  misstatements  for  the  purpose  of  a  materiality
assessment.  The  SEC staff believes registrants must quantify errors using both
a  balance  sheet  and  income  statement  approach  to  evaluate whether either
approach  results  in  quantifying  a  misstatement  that,  when  all  relevant
quantitative  and  qualitative  factors are considered, is material.  SAB 108 is
effective  for  the  Company  at  the  end  of fiscal year 2007.  The Company is
currently  evaluating  the  effects  of  SAB  108  on  its financial statements.

<PAGE>

                              Results of Operations

Nine months ended December 31, 2006 and 2005

     We  had  revenue of $236,260 during the nine months ended December 31, 2006
as  compared  to $50,934 of revenue for the comparable period in 2005.  Our cost
from  ICT for the stem cell biological material delivered during the nine months
ended  December 31, 2006 was $241,060 as compared to $34,600 for the same period
ended  2005.   The increase in cost of goods sold is due to the increased number
of  treatments  and  a $116,000 charge for an additional payment made to ICT for
not meeting the contractual minimum purchase requirement.   Our net loss for the
nine  month  period ended December 31, 2006 was $604,271 as compared to $256,022
during  the  same  period  in  2005.  The  loss  primarily reflects increases in
payroll, professional fees and the additional payment to ICT for not meeting the
minimum  purchase  requirement.  Revenues during 2006 reflected the treatment of
nine  patients compared with only two patients treated during the same period in
2005.

     Gross  margin  for  the  nine  months ended December 31, 2006 was a loss of
$4,800  as compared to $16,334 for the nine months ended December 31, 2005.  The
decrease  in  gross  margin  is  primarily  due  to  the  $116,000 charge for an
additional  payment made to ICT for not meeting the contractual minimum purchase
requirement.  We  anticipate  positive  gross margins on future patient services
and  delivery  of  our  stem  cell  biological  products.

Three months ended December 31, 2006 and 2005

     We  had revenues of $90,000 during the three months ended December 31, 2006
as  compared  to $27,464 of revenue for the comparable period in 2005.  Our cost
from ICT for the stem cell biological material delivered during the three months
ended  December  31, 2006 was $32,435 as compared to $17,500 for the same period
ended  2005.   Our  net  loss for the three month period ended December 31, 2006
was $100,017, compared to $105,033 during the same period in 2005.  The decrease
in  net  loss  is  primarily due to the increased number of patient's treated in
2006  as  compared  to  2005.

     Gross  margin  for  the three months ended December 31, 2006 was $57,565 as
compared  to  $9,964  for  three months ended September 30, 2005.  The increased
gross  margin is primarily due to an increase in the number of patient's treated
in  2006  as  compared  to  2005.

LIQUIDITY AND CAPITAL RESOURCES

     The  Company's  financial  statements  have been prepared assuming that the
Company  will  continue  as a going concern.  For the nine months ended December
31,  2006  and  the  period  since  December 2, 2004 (Date of Inception) through
December  31,  2006,  the Company has had a net loss of $604,271 and $1,136,673,
respectively  and cash used by operations of $65,003 and $227,260, respectively,
and  negative  working capital of $508,597 at December 31, 2006.  As of December
31,  2006,  the  Company has not emerged from the development stage.  In view of
these  matters, continuation of the Company as a going concern is dependent upon

<PAGE>

our  ability  to  generate  additional  financing  and  ultimately  to  increase
operations  and  to  achieve a level of profitability.  Since inception, we have
financed  our  activities  principally  from  shareholder  advances  and  some
relatively  minor sales of equity securities.  We intend on financing our future
development  activities  and  our working capital needs largely from the sale of
equity  securities  and  loans from the Company's Chief Executive Officer, until
such  time  that  funds  provided  by  operations are sufficient to fund working
capital  requirements.  There  can  be  no  assurance  that  the Company will be
successful  in  achieving its financing goals at reasonably commercial terms, if
at  all.

Unpredictability  of  future  revenues;  Potential  fluctuations  in  quarterly
operating  results;  Seasonality

     As a result of our limited operating history and the emerging nature of the
biotechnological  markets  in  which  we  compete,  we  are unable to accurately
forecast  future  revenues.  Our  current  and  future  expense levels are based
largely  on  our  investment plans and estimates of future revenues and are to a
large  extent  fixed  and  expected  to  increase.

     Sales  and  operating results generally depend on the volume of, timing of,
and ability to fulfill the number of orders received for the biological solution
and  the number of patients treated, which are difficult to forecast.  We may be
unable  to  adjust  spending in a timely manner to compensate for any unexpected
revenue  shortfall.  Accordingly,  any  significant  shortfall  in  revenues  in
relation  to  our planned expenditures would have an immediate adverse effect on
our  business,  prospects,  financial  condition,  and  results  of  operations.
Further,  as  a strategic response to changes in the competitive environment, we
may  from  time  to  time  make certain pricing, service, or marketing decisions
which could have a material adverse effect on our business, prospects, financial
condition  and  results  of  operations.

     We  expect  to  experience significant fluctuations in our future quarterly
operating  results  due  to  a variety of factors, many of which are outside our
control.  Factors  that  may  adversely  affect  our quarterly operating results
include  (i)  our ability to retain existing patients, attract new patients at a
steady  rate  and  maintain patient satisfaction, (ii) our ability to manage our
affiliated  production  facility  and  maintain  gross  margins,  (iii)  the
announcement or introduction of new treatments and/or patents by the Company and
its  competitors,  (iv) price competition or higher  prices in the industry, (v)
the  level  of  use  of  the  Internet  and  on-line  patient services, (vi) the
Company's  ability  to  upgrade  and  develop its systems and infrastructure and
attract  new  personnel  in  a  timely  and effective manner, (vii) the level of
traffic on our website, (viii) technical difficulties, system downtime, (ix) the
amount  and  timing  of  operating  costs  and  capital expenditures relating to
expansion  of  our  business,  operations  and  infrastructure, (x) governmental
regulation,  and  (xi)  general  economic  conditions.

OFF-BALANCE  SHEET  ARRANGEMENTS

     The Company is not currently engaged in any off-balance sheet arrangements,
as  defined by Item 303(c)(2) of Regulation S-B.  The Company has not engaged in
any  off-balance  sheet  arrangement  during  the  last  fiscal year, and is not
reasonably  likely  to  engage  in any off-balance sheet arrangement in the near
future.


<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

     Under the supervision and with the participation of our Management,
including our President who serves as our principal executive officer and our
Chief Financial Officer, who serves as our principal financial officer, we
conducted an evaluation of the effectiveness of the design and operations of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as of December 31, 2006. Based on
this evaluation, our principal executive officer and principal financial officer
concluded that our disclosure controls and procedures were effective such that
the material information required to be included in our Securities and Exchange
Commission ("SEC") reports is recorded, processed, summarized and reported
within the time periods specified in SEC rules and forms relating to Stem Cell
Therapy International, Inc., and was made known to them by others within those
entities, particularly during the period when this report was being prepared.

     There were no significant changes in the Company's Internal Controls or in
other factors that have materially affected, or are reasonably likely to affect,
Internal Controls over financial reporting during the most recent fiscal
quarter.


<PAGE>

PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

Not applicable

ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.  OTHER INFORMATION

Not Applicable.

ITEM 6.   EXHIBITSAND REPORTS ON FORM 8-K

(a)   Exhibit Index.  The following exhibits are filed with or incorporated by
      -------------
reference into this quarterly report:

3.1     Articles of Incorporation of Stem Cell Therapy International, Inc., as
        amended*
3.2     Articles of Incorporation of Stem Cell Therapy Corp.*
3.3     Certificate of Designation of Series A Preferred Stock*
3.4     By-laws of Stem Cell Therapy International, Inc.*
10.1    Business Consulting and Services Agreement dated as of December 16,
        2004 between Stem Cell Therapy International Corp. and PMS SA.*
10.2    Consulting Agreement dated as of January 4, 2005 between Stem Cell
        Therapy International Corp. and RES Holdings Corp.*
10.3    Investor and Media Relations Contract dated as of February 10, 2005
        between Stem Cell Therapy International Corp. and Stern & Co.*
10.4    Executive Suite Lease Agreement dated as of February 15, 2005 between
        Stem Cell Therapy International Corp. and Wilder Corporation.*

<PAGE>

10.5    Engagement Letter dated as of May 3, 2005 between the Company and
        Westminster Securities Corporation.*
10.6    Reorganization and Stock Purchase Agreement dated as of September 1,
        2005 between the Company (then Altadyne, Inc.), Stem Cell Therapy
        International Corp. and R Capital Partners, Inc.*
10.7    Licensing Agreement dated as of September 1, 2005 between the Company
        and Institute of Cell Therapy.*
10.8    Consulting Agreement dated as of September 1, 2005 between the Company
        and European Consulting Group, LLC.*
10.9    Consulting Agreement dated as of September 1, 2005 between the Company
        and Global Management Enterprises, LLC.*
10.10   Consulting Agreement dated as of September 1, 2005 between the Company
        and USA Consulting Group, LLC.*
10.11   Professional Services Agreement dated as of September 7, 2005 between
        the Company and Bridgehead Group Limited , Inc.*
10.12   Public Relations Agreement dated as of September 19, 2005 between the
        Company and Stern & Co.*
10.13   Advisory Physician Agreement dated as of October 4, 2005 between the
        Company and Alexey Bersenev.*
10.14   Medical and Scientific Advisory Board Member Agreement dated as of
        October 10, 2005, between the Company and Dr. Weiwen Deng.*
10.15   Medical and Scientific Advisory Board Member Agreement dated as of
        October 24, 2005, between the Company and Dr. Jorge Quintero.*
10.16   Medical and Scientific Advisory Board Member Agreement dated as of
        October 24, 2005, between the Company and Dr. Salvador Vargas.*
10.17   Medical and Scientific Advisory Board Member Agreement dated as of
        December 2, 2005 between the Company and Dr. Igor Katkov.*
10.18   Medical and Scientific Advisory Board Member Agreement dated as of
        December 2, 2005, between the Company and Dr. Nikita Tregubov.*
10.19   Business Advisory Board Agreement dated as of December 5, 2005 between
        the Company and Fred J. Villella.*

<PAGE>

10.20   Business Development Advisory Agreement dated as of January 1, 2006
        between the Company and Alexander Kulik.*
10.21   Termination and Modification of Engagement Letter dated January 4,
        2006 between the Company and Westminster Securities Corporation.*
10.22   Business Consulting and Services Agreement dated January 20, 2006
        between the Company and Julio C. Ferreira dba Sphaera Inte-Par.*
10.23   Business Development Advisory Agreement dated as of February 7, 2006
        between the Company and Gus Yepes.*
10.25   Treating Physician Agreement dated as of October 24, 2005 between the
        Company and Dr. Salvador Vargas.
10.26   Treating Physician Agreement dated as of October 24, 2005 between the
        Company and Dr. Jorge Quintero.
10.27   Consulting Agreement dated as of June 9, 2006 between the Company and
        Rick Langley.
10.28   Patient Treatment Agreement dated November 1, 2006 between the Company
        and Shenshen Beike Biotechnology Company Limited.
10.29   Consulting Agreement dated as of October 12, 2006 between the Company
        and SOS Resource Services, Inc.
21.     List of Subsidiaries
31.1    Chief Executive Officer certification pursuant to Section 302 of the
        Sarbanes-Oxley Act of 2002.
31.2    Chief Financial Officer certification pursuant to Section 302 of the
        Sarbanes-Oxley Act of 2002.
32.1    Chief Executive Officer certification pursuant to 18 U.S.C. Section
        1350
32.2    Chief Financial Officer certification pursuant to 18 U.S.C. Section
        1350

_______________________
* Previously filed with the Company's initial filing of Form 10-SB, file number
000-51931, filed on April 25, 2006, and incorporated by this reference as an
exhibit to this Form 10-QSB.

(b) Reports on Form 8-K.
    --------------------

Form 8-K filed on August 4, 2006 reporting that effective July 19, 2006, the
Company terminated its prior accounting firm Pender Newkirk and Company LLP, as
its accounting firm and engaged Aidman, Piser & Company, P.A. , Certified Public
Accountants, Tampa, FL, as its new auditors.

<PAGE>

Form 8-K filed on January 19, 2007 reporting that the Company and Peter
Sidorenko, the Company's Chief Operating Officer, mutually determined that Mr.
Sidorenko would be terminated from that position. The Company is presently
seeking a replacement for Mr. Sidorenko.





                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Date: February 12, 2007

By: /s/Calvin Cao
    -------------
Name: Calvin Cao

Title: President

Date: February 12, 2007

By: /s/Daniel Sullivan
    ------------------
Name: Daniel Sullivan

Title: Chief Financial Officer and
     Chief Accounting Officer