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: September 30, 2007

[    ]  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 [ ]

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 last practicable date:

37,170,389 shares of common stock, $0.001 par value, as of October 30, 2007.

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

<PAGE>

                      STEM CELL THERAPY INTERNATIONAL, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                   <C>                                                                           <C>

Part I.  Financial Information

Item 1. Financial Statements

   Condensed Consolidated Balance Sheets as of September 30, 2007 (unaudited) and March 31, 2007                     F-1

   Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2007
      and 2006 (unaudited) and for the period from December 2, 2004 (Date of Inception) through
      September 30, 2007 (unaudited)                                                                                 F-2

   Condensed Consolidated Statements of Changes in Stockholders' Deficit for the period from
      December 2, 2004 (Date of Inception) through September 30, 2007 (unaudited)                                    F-3
   Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2007 and 2006
      (unaudited), and for the period from December 2, 2004 (Date of Inception) through
      September 30, 2007                                                                                             F-5

   Notes to Condensed Consolidated Financial Statements                                                              F-6

Item  2.  Management's Discussion and Analysis                                                                       13
Item  3.  Controls and Procedures                                                                                    17

Part II.  Other Information

Item  1.  Legal Proceedings                                                                                          18
Item  2.  Unregistered Sales of Equity Securities and Use of Proceeds                                                18
Item  3.  Defaults from Senior Securities                                                                            18
Item  4.  Submission of Matters to a Vote of Security Holders                                                        18
Item  5.  Other Information                                                                                          18
Item  6.  Exhibits                                                                                                   18

Signatures                                                                                                           21


Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002:
     Chief Executive Officer                                                                                         22
     Chief Financial Officer and Chief Accounting Officer                                                            23
Certificate Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:
     Chief Executive Officer                                                                                         24
     Chief Financial Officer and Chief Accounting Officer                                                            24
</TABLE>



<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles 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  generally  accepted  accounting principles 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 six month
periods  ended September 30, 2007 and 2006 are not necessarily indicative of the
results  that  may  be expected for the year ending March 31, 2008.  For further
information refer to the consolidated financial statements and footnotes thereto
included  in  the  Company's  Form  10-KSB for the year ended March 31, 2007, as
filed  with  the  Securities  and  Exchange  Commission  on  July  16,  2007.






















<PAGE>
                      Stem Cell Therapy International Inc.
                         (a development stage enterprise)

                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>



<S>                                                          <C>           <C>
                                                  September 30, 2007   March 31, 2007
                                                  -------------------  --------------
                                                         (unaudited)
ASSETS
Current assets:
   Cash                                                  $    55,722       $27,905
   Inventory                                                      --         5,988
   Prepaid expenses                                          132,542        47,317
                                                         ------------  ------------
Total current assets                                         188,264        81,210

Certificate of deposit, restricted                                --         3,919
Prepaid expenses and other assets                             31,460        53,378
                                                         ------------  ------------

                  Total assets                           $   219,724   $   138,507
                                                         ============  ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable                                      $    84,031   $    62,875
   Accrued expenses                                          295,030       245,557
   Deferred revenue                                           30,000        50,000
   Stockholder advances                                           --        48,753
   Due to related party                                      225,200       225,200
                                                         ------------  ------------
Total current liabilities                                    634,261       632,385
                                                         ------------  ------------

Commitments and contingencies (Note 8)                             -             -

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; 37,170,369 and 34,495,369 issued
      and outstanding as of September 30, 2007 and
      March 31, 2007, respectively                            37,170        34,495
   Additional paid-in capital                              1,555,390       660,575
   Deficit accumulated during development stage           (2,007,597)   (1,189,448)
                                                         ------------  ------------
Total stockholders' deficit                                 (414,537)     (493,878)
                                                         ------------  ------------

         Total liabilities and stockholders' deficit     $   219,724   $   138,507
                                                         ============  ============
</TABLE>


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

                                       F-1

<PAGE>
                      Stem Cell Therapy International Inc.
                         (a development stage enterprise)

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                               <C>                        <C>                 <C>

                                         THREE MONTHS ENDED              SIX MONTHS ENDED    DECEMBER 2, 2004
                                          SEPTEMBER 30,                    SEPTEMBER 30,       (DATE OF
                                     -------------------------  -------------------------    INCEPTION) THROUGH
                                                                                             SEPTEMBER 30,
                                         2007          2006          2007          2006         2007
                                     -----------   -----------   -----------   -----------   ------------
Revenue                              $    82,960   $   120,555   $   102,960   $   146,260   $   529,404
Cost of Goods Sold:
   Cost of goods sold                     29,000        78,100        39,268        92,625       265,361
   Loss on firm purchase commitment           --       116,000            --       116,000       116,000
                                     -----------   -----------   -----------   -----------   ------------

Gross margin                              53,960       (73,545)       63,692       (62,365)      148,043

Operating expenses:
   Selling, general and administrative   744,869       243,595       880,280       444,344     2,157,859
                                     -----------   -----------   -----------   -----------   ------------
Loss from operations                    (690,909)     (317,140)     (816,588)     (506,709)   (2,009,816)

Interest (income) expense                     --        (2,641)        1,561        (2,455)       (2,219)
                                     -----------   -----------   -----------   -----------   ------------

Net loss before taxes                $  (690,909)  $  (314,499)  $  (818,149)  $  (504,254)  $(2,007,597)

Income tax expense                            --            --            --            --            --
                                     -----------   -----------   -----------   -----------   ------------

Net loss                                (690,909)     (314,499)     (818,149)     (504,254)   (2,007,597)
Less:  Dividends on preferred stock           --            --            --            --       (10,000)
                                     -----------   -----------   -----------   -----------   ------------

Loss attributable to common
shareholders                         $  (690,909)  $  (314,499)  $  (818,149)  $  (504,254)  $(2,017,597)
                                     ===========   ===========   ===========   ===========   ============

Loss per share, basic and diluted    $     (0.02)  $     (0.01)  $     (0.02)  $     (0.01)  $     (0.07)
                                     ===========   ===========   ===========   ===========   ============

Weighted average number of
common shares outstanding,
basic and diluted                     36,806,358    34,447,080    35,730,809    34,129,150    29,940,608
                                     ===========   ===========   ===========   ===========   ============


</TABLE>



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

                                       F-2

<PAGE>


                      STEM CELL THERAPY INTERNATIONAL, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)
      CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
FROM DECEMBER 2, 2004 (DATE OF INCEPTION) THROUGH SEPTEMBER 30, 2007 (UNAUDITED)


<TABLE>
<CAPTION>
<S>                                                   <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         8,741,832     8,741        -     -     299,898                    -        308,639

Reverse acquisition, September 1, 2005        6,310,678     6,311        -     -        (906)                   -          5,405

Issuance of common stock for a reduction
   in shareholder 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)
</TABLE>
                                                            (Continued)

                                                               F-3

<PAGE>

<TABLE>
<CAPTION>
<S>                                                   <C>          <C>      <C>      <C>   <C>          <C>

                                             COMMON STOCK           PREFERRED STOCK
                                                                                                       DEFICIT
                                                                                                       ACCUMULATED
                                                                                     ADDITIONAL        DURING
                                                                                     PAID-IN           DEVELOPMENT
                                               SHARES     AMOUNT   SHARES   AMOUNT   CAPITAL           STAGE            TOTAL
                                             ----------   -------  -------  ----- ----------   -------------------    ------------


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           822,859       823        -     -     336,177                    -       337,000

Net loss for the year ended March 31, 2007            -         -        -     -           -    (         657,046)     (657,046)
                                             ----------   -------  -------  ----- ----------   -------------------    ------------

Balance, March 31, 2007                      34,495,369    34,495  500,000   500     660,575     (      1,189,448)     (493,878)

Issuance of common stock for consulting
   services                                     550,000       550        -     -     161,450                    -       162,000
Issuance of warrants for consulting services          -         -        -     -      23,750                    -        23,750
Exercise of warrants                            125,000       125        -     -        (125)                   -             -

Issuance of common stock for cash, net of
   offering costs                             2,000,000     2,000        -     -     204,024                    -       206,024

Share-based compensation to employees                 -         -        -     -     505,716                    -       505,716

Net loss for the six months ended September
   30, 2007                                           -         -        -     -           -             (818,149)     (818,149)
                                             ----------   -------  -------  ----- ----------   -------------------    ------------

Balance, September 30, 2007                  37,170,369   $37,170  500,000  $500  $1,555,390         ($2,007,597 )    ($414,537)
                                             ==========   =======  =======  ===== ==========   ===================    ============


</TABLE>

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

                                       F-4

<PAGE>
                      Stem Cell Therapy International Inc.
                        (a development stage enterprise)
                 Condensed Consolidated Statements of Cash Flows
                                   (unaudited)

<TABLE>
<CAPTION>
<S>                                                  <C>         <C>         <C>         <C>
                                                                                       December 2, 2004
                                                                                       (Date of Inception)
                                              Six Months Ended   Six Months Ended      Through September 30,
                                              September 30, 2007 September 30, 2006        2007
                                                   ----------  ----------               ----------

OPERATING ACTIVITIES:
   Net loss                                          $(818,149)  $(504,254)            $(2,007,597)
   Adjustments to reconcile net loss to net
      cash used by operating activities:
      Share-based compensation to non-employees        126,250     240,823                  689,063
      Share-based compensation to employees            505,716           -                  505,716
      Investment income reinvested                           -      (2,840)                  (2,943)
      Amortization                                           -         250                      667
      Write off of intangible asset                          -           -                    4,333
   (Increase) decrease in:
            Inventory                                    5,988     (11,977)                       -
            Prepaid expenses                            (3,808)        600                  (16,126)
            Deposits                                         -           -                   (2,169)
   Increase (decrease) in:
            Accounts payable                            21,156      30,611                   84,031
            Accrued payroll                             49,474      84,729                  220,030
            Accrued expenses                                 -           -                   75,000
            Deferred revenue                           (20,000)     24,275                   30,000
                                                     ----------  ----------               ----------
       Net cash used by operating activities          (133,373)   (137,783)                (419,995)
                                                     ----------  ----------               ----------

INVESTING ACTIVITIES:
   Proceeds from certificate of deposit, restricted      3,919     119,024                    2,943
                                                     ----------  ----------               ----------
       Net cash provided by investing activities         3,919     119,024                    2,943
                                                     ----------  ----------               ----------

FINANCING ACTIVITIES:
   Proceeds from advances from stockholder                   -         365                   52,528
   Repayment of stockholder advances                   (48,753)          -                  (49,528)
   Advances from related party, net                          -         228                  225,200
   Payment of stock offering costs                     (43,976)          -                  (43,976)
   Proceeds from sale of stock                         250,000           -                  288,550
                                                     ----------  ----------               ----------
      Net cash provided by financing activities        157,271         593                  472,774
                                                     ----------  ----------               ----------

NET INCREASE (DECREASE) IN CASH                         27,817     (18,166)                  55,722
CASH AT BEGINNING OF PERIOD                             27,905      32,642                        -
                                                     ----------  ----------               ----------

CASH AT OF END OF PERIOD                             $  55,722   $  14,476                $  55,722
                                                     ==========  ==========               ==========

    Cash paid for interest                           $   1,572   $     300                $     979
                                                     ==========  ==========               ==========

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

    Common stock issued for a reduction
             in advance from shareholder             $       -   $       -                $   3,000
                                                     ==========  ==========               ==========
   Common stock issued for purchase of
            intangible assets                        $       -   $       -                $   5,000
                                                     ==========  ==========               ==========
</TABLE>

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

                                       F-5

<PAGE>


                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (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.  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 incorporate in the
state  of  Nevada  on  December 2, 2004.  To date, the Company's activities have
been  limited to raising capital, organizational matters, and the structuring of
its  business  plan.  The  corporate  headquarters is located in Tampa, Florida.

     The  Company is engaged in the licensing of stem cell technology, the sales
of  stem  cell  products,  and  information,  education,  and  referral services
relating  to potential stem cell therapy patients. The Company manufactures 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 highly specialized, professional medical
treatment  facilities  around  the  world  in  locations  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,  educate and consult with physicians and patients in the
clinical  aspects  of  stem  cell  transplantation.




                                       F-6

<PAGE>


                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)

1.     BACKGROUND  INFORMATION  AND  BASIS  OF  PRESENTATION  (CONTINUED):

     Basis of presentation:

In the opinion of management, the accompanying consolidated financial statements
include  all  adjustments,  consisting only of normal recurring items, necessary
for  their  fair  presentation  in conformity with generally accepted accounting
principles.  The  results  of  operations for the six months ended September 30,
2007  are  not  necessarily  indicative  of  the  results  for  a  full  year.

The  condensed  consolidated financial statements for the period ended September
30,  2007  and notes thereto should be read in conjunction with the consolidated
financial  statements  and  notes  thereto  for the year ended March 31, 2007 as
filed  in  the Form 10-KSB, filed with the Securities and Exchange Commission on
July  16,  2007.

     Principles of consolidation:

The accompanying consolidated financial statements include the accounts of Stem
Cell Therapy International, Inc. and its wholly-owned subsidiary, Stem Cell
Therapy International Corp.  All intercompany accounts and transactions have
been eliminated.

2.     LIQUIDITY  AND  MANAGEMENT'S  PLANS:

The  accompanying condensed consolidated financial statements have been prepared
assuming  that the Company will continue as a going concern.  For the six months
ended  September  30,  2007  and  the  period  since  December  2, 2004 (date of
inception)  through  September  30,  2007,  the  Company  has  had net losses of
$818,149  and  $2,007,597,  respectively and cash used by operations of $133,373
and  $419,995,  respectively,  and  negative  working  capital  of  $445,997  at
September  30, 2007.  As of September 30, 2007, 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  use of equity securities to pay for services 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, debt financing 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:

Adoption  of  FASB  Interpretation  No.  48:

Effective  April  1, 2007, the Company adopted the accounting provisions of FASB
Interpretation  No.  48,  Accounting for Uncertainties in Income Taxes (FIN 48).
FIN  48  clarifies  the  accounting  for uncertainty in income taxes recognized,
prescribes  a  recognition  threshold  and  measurement  attribute for financial
statement  recognition  of  tax  positions  taken or expected to be taken by the
Company  in  its income tax returns.  The Company recognizes income taxes on tax
positions  which  have  not been considered more-likely-than-not to be sustained
upon  examination,  including  resolution  of  any related appeals or litigation
processes,  based on the technical merits of the positions.  The tax position is
measured at the largest amount of benefit that is greater than 50 percent likely
of  being  realized  upon  ultimate  settlement.  The Company has adopted FIN 48
effective  April  1,  2007  and  there  is  no  impact of adoption FIN 48 on our
financial  statements  to  date.




                                       F-7

<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)


4.     EQUITY:

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.  The convertible preferred stock
can  be  converted at any time by the holder into one share of common stock.  As
of  September  30, 2007, the Company had 500,000 shares of convertible preferred
stock  issued  and  outstanding.  Management  determined  that  the  convertible
preferred stock contained a beneficial conversion feature based on the effective
conversion  price  and  the  fair value of the convertible preferred stock.  The
beneficial  conversion was recorded in an amount equal to the difference between
the calculated fair value and the book value, which was $10,000 and was recorded
as  additional  paid in capital and interest expense, as the preferred stock can
be  converted  at  any  time  after  the  issue  date.

During  the  six  months  ended  September  30, 2007, the Company issued 550,000
shares of common stock valued at $162,000 for consulting services to be provided
through  December  25, 2007.  As of September 30, 2007, the Company has included
$58,500  in  prepaid  expenses.

Effective  June  27,  2007, the Company entered into an agreement with Newbridge
Securities,  Corp. ("Newbridge") to assist the Company on a "best efforts" basis
in  raising  approximately  $250,000  in  a  private offering of up to 2 million
shares  of  restricted common stock at a price of $.125 per share.  Newbridge is
entitled to a selling concession of 10% of the gross proceeds of the offering, a
3%  non-accountable  expense  allowance and warrant coverage equal to 20% of the
total  securities  placed  in  the offering, including any penalty shares, at an
exercise  price  of  $.15  per  share.  The  Company  is  required  to  file  a
registration  statement  covering  the  above  securities  within 45 days of the
completion  of  the  offering.  If  the  Company  fails to have the registration
statement  deemed effective by the Securities and Exchange Commission within 135
days after the completion of the offering, the Company will issue to the holders
of the securities, additional shares of restricted common stock equal to 1.5% of
the number of shares purchased for each thirty-day period until the registration
statement is deemed effective, up to a maximum of eight such thirty-day periods.

During  the  six  months  ended  September  30,  2007, the Company completed its
private  placement  offering  of 2,000,000 shares of common stock for total cash
proceeds  of $250,000.  Offering costs paid in cash amounted to $43,976 and have
been  taken  as  a  reduction  of  proceeds.  In  addition,  offering costs paid
through  the  issuance  of  400,000 warrants amounted to approximately $121,000.

5.     STOCK  OPTIONS  AND  WARRANTS

In  December  2004,  the  Financial  Accounting  Standards  Board  (FASB) issued
Statement  of  Financial  Accounting  Standards  (SFAS)  No. 123 (Revised 2004),
"Share-Based  Payment"  (SFAS 123R). SFAS 123R requires all share-based payments
to  employees,  including  grants of employee stock options, to be recognized as
compensation  expense  in  the  consolidated financial statements based on their
fair  values.  That  expense  will be recognized over the period during which an
employee is required to provide services in exchange for the award, known as the
requisite  service period (usually the vesting period). The Company adopted SFAS
123R  effective  beginning  April  1,  2006.





                                       F-8

<PAGE>


                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)


5.     STOCK  OPTIONS  AND  WARRANTS  (CONTINUED)

During  the  six  months  ended September 30, 2007, the Company issued 2,900,000
stock options to employees and 525,000 common stock warrants to consultants. The
options  and  warrants  entitle  the holders to purchase 3,425,000 shares of the
Company's  common  stock, at any time, at an exercise price of between $0.001 --
$0.19  per  share  and  expire  in  2017.

The fair value of each option was estimated on the date of grant using the Black
Scholes  model  that  uses  assumptions  noted  in the following table. Expected
volatility  is  based  on the weekly trading of two similar Company's underlying
common  stock  (as  the Company does not have an adequate trading history for an
accurate  calculation)  and  other  factors.



     Expected volatility                   102.9%
     Expected dividends                    0
     Expected term                         10 years
     Risk-free interest rate               4.59%

The value of the options, $505,716 has been included in stock compensation
expense in the accompanying Statement of Operations.

<TABLE>
<CAPTION>
<S>                                <C>        <C>       <C>    <C>       <C>    <C>                    <C>

                                                                         WEIGHTED
                                                                         AVERAGE
                                                        EXERCISE         EXERCISE         WEIGHTED AVERAGE
                                   SHARES               PRICES           PRICE            GRANT DATE FAIR VALUE
                                   ---------            -------          --------         ---------------------
OUTSTANDING AND EXERCISABLE
---------------------------
Outstanding at March 31, 2007             --               --               --                           --
Options granted                    2,900,000            $0.19            $0.19                         $.17
Options exercised                         --               --               --                           --
Options cancelled or expired              --               --               --                           --

Outstanding at September 30, 2007  2,900,000            $0.19            $0.19
                                   =========
Exercisable at September 30, 2007  2,900,000            $0.19            $0.19
                                   =========
</TABLE>

The following table summarizes information about options outstanding and
exercisable as of September 30, 2007:


<TABLE>
<CAPTION>

<S>              <C>                  <C>                  <C>        <C>             <C>          <C>

                                    OUTSTANDING OPTIONS                       EXERCISABLE OPTIONS
                 --------------------------------------------------   --------------------------------------
                                      WEIGHTED
                                      AVERAGE              WEIGHTED   WEIGHTED                     WEIGHTED
RANGE OF         NUMBER               REMAINING            AVERAGE    AVERAGE         NUMBER       AVERAGE
EXERCISE PRICE   OUTSTANDING          LIFE                 PRICE      REMAINING LIFE  EXERCISABLE  PRICE
                 -------------------  -------------------
..19                       2,900,000             10 Years  $     .19        10 Years    2,900,000  $    0.19
---------------  -------------------  -------------------  ---------  --------------  -----------  ---------
</TABLE>

The  aggregate  intrinsic  value  of  options outstanding at September 30, 2007,
based  on  the Company's closing stock price of $0.19 was $0. Intrinsic value is
the  amount by which the fair value of the underlying stock exceeds the exercise
price  of  the  options.


                                       F-9

<PAGE>


                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)


5.     STOCK  OPTIONS  AND  WARRANTS  (CONTINUED)

The  fair  value of each warrant was estimated on the measurement date using the
Black Scholes model that uses assumptions noted in the following table. Expected
volatility  is  based  on the weekly trading of two similar Company's underlying
common  stock  (as  the Company does not have an adequate trading history for an
accurate  calculation)  and  other  factors.

     Expected volatility                   102.9%
     Expected dividends                    0
     Expected term                         1 to 10 years
     Risk-free rate                        4.59% - 4.71%

<TABLE>
<CAPTION>
<S>                                <C>        <C>       <C>    <C>       <C>    <C>                    <C>

                                                                         WEIGHTED
                                                                         AVERAGE
                                                        EXERCISE         EXERCISE         WEIGHTED AVERAGE
                                   SHARES               PRICES           PRICE            GRANT DATE FAIR VALUE
                                   ---------            -------          --------         ---------------------
OUTSTANDING AND EXERCISABLE
---------------------------
Outstanding at March 31, 2007              -               --               --                           --
Warrants granted                     525,000            $0.001 - $0.15   $0.11                        $0.29
Warrants exercised                   125,000            $0.001           $0.001                          --
Options cancelled or expired              --               --               --                           --

Outstanding at September 30, 2007    400,000            $0.15            $0.15
                                   =========
Exercisable at September 30, 2007    400,000            $0.15            $0.15
                                   =========
</TABLE>

The following table summarizes information about warrants outstanding and
exercisable as of September 30, 2007:

<TABLE>
<CAPTION>

<S>              <C>                  <C>                  <C>        <C>             <C>          <C>

                                    OUTSTANDING OPTIONS                       EXERCISABLE OPTIONS
                 --------------------------------------------------   --------------------------------------
                                      WEIGHTED
                                      AVERAGE              WEIGHTED   WEIGHTED                     WEIGHTED
RANGE OF         NUMBER               REMAINING            AVERAGE    AVERAGE         NUMBER       AVERAGE
EXERCISE PRICE   OUTSTANDING          LIFE                 PRICE      REMAINING LIFE  EXERCISABLE  PRICE
                 -------------------  -------------------
..15                  400,000                    10 Years  $     .15        10 Years     400,000   $    0.15
---------------  -------------------  -------------------  ---------  --------------  -----------  ---------
</TABLE>

The  aggregate  intrinsic  value  of warrants outstanding at September 30, 2007,
based on the Company's closing stock price of $0.19 was $16,000. Intrinsic value
is  the  amount  by  which  the  fair  value of the underlying stock exceeds the
exercise  price  of  the  warrants.

                                      F-10

<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)

6.     EARNINGS PER SHARE

Earnings  per  common  share  are  computed  in  accordance  with  SFAS No. 128,
"Earnings  per  Share,"  which  requires companies to present basic earnings per
share  and  diluted earnings per share. Basic earnings per share are computed by
dividing  net  income  by  the weighted average number of shares of common stock
outstanding  during  the year. Diluted earnings per common share are computed by
dividing  net  income  by  the weighted average number of shares of common stock
outstanding  and  dilutive  options  outstanding  during  the  year. The diluted
weighted  average number of shares was 35,858,281, 34,129,150 and 29,963,110 for
the six months ended September 30, 2007 and 2006 and the period from December 2,
2004  (Date  of  Inception)  through  September  30,  2007,  respectively.

Common  stock  equivalents  for the six months ended September 30, 2007 and 2006
and  the  period from December 2, 2004 (Date of Inception) through September 30,
2007  were  anti-dilutive  due to the net losses sustained by the Company during
these  periods.

7.     INCOME  TAXES

The  Company  adopted  the  provisions  of  FIN  48  on  April  1,  2007.  The
implementation  of  FIN  48  had  no  effect  on Company's financial position or
results  of  operations.

Taxes  on  income  are  provided in accordance with SFAS No. 109, Accounting for
Income  Taxes. Deferred income tax assets and liabilities are recognized for the
expected  future  tax  consequences  of  events  that have been reflected in the
consolidated  financial  statements.  Deferred  tax  assets  and liabilities are
determined based on the differences between the book values and the tax bases of
particular  assets and liabilities and the tax effects of net operating loss and
capital  loss  carry  forwards. 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 the tax rate is
recognized  as income or expense in the period that included the enactment date.

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 $1,250,000 at September 30, 2007. The loss
carry  forwards  expire beginning in 2025. Internal Revenue Code Sec. 382 places
limitations  on  the utilization of net operating losses.  Due to the limitation
the  Company  has  placed  a  full  valuation  allowance  against  that asset of
approximately  $753,000.

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
                                                 Six Months Ended          December 2, 2004
                                                 ----------------          through
                                        September 30,       September 30,  September 30,
                                              2007              2006          2007
Income tax provision at statutory rate     ($275,000)          ($171,500)          ($679,400)
Increase (decrease) in income tax due to:
   Nondeductible expenses                        100                 700                 800
   State income taxes, net                   (30,000)            (18,300)            (73,200)
   Other                                      (1,200)                  -              (1,200)
   Change in valuation allowance             306,100             189,100             753,000
                                           ----------  ------------------  ------------------
                                           $       -   $               -                  $ -
                                           ==========  ==================  ==================

</TABLE>



There  was  no current or deferred provision or benefit for income taxes for the
six months ended September 30, 2007 and 2006 and for the period from December 2,
2004 (Date of Inception) through September 30, 2007.  The components of deferred
tax  assets  as  of  September  30,  2007  and  March  31,  2007 are as follows:

                                      F-11
<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)

7.     INCOME  TAXES  (CONTINUED)

<TABLE>
<CAPTION>


<S>                                 <C>                   <C>      <C>               <C>
                                    September 30, 2007             March 31, 2007
                                    --------------------           ----------------
Deferred tax (liability) asset:
   Accrued payroll                  $            82,000            $        64,200
   Options and warrants                         205,000                          0
   Net operating loss carryforward              466,000                    382,700
                                    --------------------           ----------------
                                                753,000                    446,900
   Valuation allowance                         (753,000)                  (446,900)
                                    --------------------           ----------------
   Total deferred taxes             $                 0            $             0
                                    ====================           ================
</TABLE>



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

8.     COMMITMENTS  AND  CONTINGENCIES

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 4,789,000 shares of the Company's
common  stock  valued at $544,409 on the date of the agreement as the shares are
non-forfeitable  and  non-cancelable.  As of September 30, 2007, the Company had
issued  these  shares  of  common  stock  and  has  included $125,708 in prepaid
expenses  for  services  not  yet  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  will  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 September 30,
2007,  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.

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"). 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.  The agreement
grants  the  Company  a  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. 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 had 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  agreed  to  replenish  the  Letter  of Credit to the extent of any such
draws.  As  of  September 2006, the Company had not met the first year's minimum
purchase  requirement  and  ICT withdrew $116,000 on the letter of credit, which
has  been  included  in  the cost of goods sold in the accompanying Consolidated
Statements  of  Operations  for  the period from inception through September 30,

                                      F-12
<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)

8.     COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)

2007.  However,  ICT  was  unable  to  provide  the product as requested and the
Company  was  required  to  purchase  the  stem  cell materials from alternative
sources.  Management believes that ICT's inability to provide the requested stem
cell  materials  relieves the Company of its obligations to replenish the letter
of  credit  and  to  fulfill  the  minimum  purchase requirements.  As such, the
accompanying  consolidated financial statements do not reflect any liability for
the  Company's  failure  to  purchase  the minimum amount of stem cell materials
under  the  above  mentioned  license  agreement.

Financing  agreements:

During  the  year  ended  March  31, 2007, the Company entered into a three year
agreement  with  a  consultant  to  locate financing. As consideration for these
consulting  services,  the  Company  has  agreed  to  issue  500,000  shares  of
restricted  common  stock  and a 10% finder's fee for any funds brought into the
Company.  As of September 30, 2007, the Company has not entered into any funding
agreements,  and  therefore  the  third  party  is  not  owed any consideration.

Effective  June  27,  2007, the Company entered into an agreement with Newbridge
Securities,  Corp. ("Newbridge") to assist the Company on a "best efforts" basis
in  raising  approximately  $250,000  in  a  private offering of up to 2 million
shares  of  restricted common stock at a price of $.125 per share.  Newbridge is
entitled to a selling concession of 10% of the gross proceeds of the offering, a
3%  non-accountable  expense  allowance and warrant coverage equal to 20% of the
total  securities  placed  in  the offering, including any penalty shares, at an
exercise  price  of  $.15  per  share.  The  Company  is  required  to  file  a
registration  statement  covering  the  above  securities  within 45 days of the
completion  of  the  offering.  If  the  Company  fails to have the registration
statement  deemed effective by the Securities and Exchange Commission within 135
days after the completion of the offering, the Company will issue to the holders
of the securities, additional shares of restricted common stock equal to 1.5% of
the number of shares purchased for each thirty-day period until the registration
statement is deemed effective, up to a maximum of eight such thirty-day periods.
During  the  six months ended September 30, 2007, Newbridge assisted the Company
in  raising $250,000 of proceeds from a private placement offering.  The Company
incurred  $43,976 of offering costs, which have been netted against the proceeds
and  is  included  in  the  Condensed  Consolidated  Statement  of  Changes  in
Stockholders'  Deficit.

Consulting  Agreement:

Effective  September  12,  2007, the Company entered into a consulting agreement
with  Newbridge  for  business and financial related advice and services through
September  11, 2008.  As compensation for these services, the Company has agreed
to pay $4,000 per month and issue a total of 500,000 warrants.  At September 30,
2007,  125,000  of  the  warrants  valued  as $23,750 have been issued, with the
remaining 375,000 warrants to be issued in 125,000 increments at the end of each
90  day  period beginning January 2008 until the contract expires.  In the event
Newbridge  assists  with  an  offering  or  sale  of  the  Company's securities,
Newbridge  will  be  entitled to receive a financing fee to be determined at the
time  of  such  financing.  Also,  should  any transactions be consumated by the
Company,  in  which  Newbridge introduced the other party, during the six months
following  termination of the agreement, Newbridge will be entitled to receive a
transaction  fee  based  on  the  aggregate  consideration received, computed as
follows:  5%  for  the first million dollars; 4% for the second million dollars;
3%  for  the  third million dollars; 2% for the fourth million dollars and 1% of
the  balance  of  the  value  of  the  transaction.

Employment  Agreements

In  September  2007,  the  Company  entered  into employment agreements with the
Company's  Chief  Executive Officer, Chief Financial Officer and Chief Operating
Officer.  Under  the  employment  agreement  for  the  Chief

                                      F-13
<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Six Months Ended September 30, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through September 30, 2007 (unaudited)

8.     COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)

Executive  Officer,  the  employment  term is five years and with an annual base
salary  of  $150,000,  with  minimum  annual  increases  of  $10,000.  The Chief
Financial  Officer  and  Chief Operating Officer each have employment agreements
for  a  term  of  two  years, with an annual base salary of $60,000.  Additional
performance-based  bonuses  are  provided  for,  and  the employees were granted
options  to  purchase  2,900,000  shares  of  Company stock.  Benefits under the
agreement are accelerated on a change of control, and the employee is subject to
certain  non-competition  covenants.

9.     SUBSEQUENT  EVENT

During  October  2007, the Company entered into an agreement with an attorney to
compensate  for  services  provided  from  September  2007  through  May 2008 in
exchange  for  a  2,000,000 common stock warrant with an exercise price of $.001
and a 10 contractual year term. On September 30, 2007, the warrant was valued at
$379,163  using  the Black Scholes pricing model and will be recognized over the
service period of nine months. As of September 30, 2007, the Company has accrued
$42,179  as  accounts  payable  for  the  value of services received through the
period  end.

                                      F-14

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

THE  FOLLOWING  INFORMATION  SHOULD  BE  READ  IN CONJUNCTION WITH THE CONDENSED
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."

                                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, the Company (then Altadyne), acquired
Stem  Cell  Therapy  International  Corp.,  a  Nevada  corporation  ("Stem  Cell
Florida")  in  what  was  effectively  a  reverse  acquisition.  Following  the
transaction,  Stem Cell Florida became 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 members are: Calvin
C.  Cao,  Chairman  and  Chief  Executive  Officer,  Andrew  J.  Norstrud, Chief
Financial  Officer,  and  Lixian  Jiang,  Chief  Operating  Officer  and  Patent
Trademark  Counsel.

     We  are indirectly involved, as a "middle man," 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.
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 at September 30, 2007, we had a
working  capital  deficit of $445,997 and an accumulated deficit from operations
of  $2,007,597.  As  noted in the Report of the Independent Registered Certified

                                     13
<PAGE>

Public  Accountants report for the audited Stem Cell Therapy International, Inc.
financial  statements  for  the  period  from inception to March 31, 2007, 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.  This  is because we have not generated substantial revenues
since inception. Our only other source for cash at this time is through advances
or  loans  from management. We must raise cash to implement our project and stay
in  business.

                          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:

     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.

     Common  stock  transactions  for  services  are recorded at either the fair
value  of the stock issued or the fair value of the services rendered, whichever
is  more evident on the day that the transactions are executed. The certificates
must  be  issued  subsequent  to  the  transaction  date.

     Revenue  transactions are derived from providing informational and referral
services;  we  have  no plans to enter into any other revenue transaction in the
near  future.  We recognize revenue related to these services upon rendering the
services, as long as (1) there is persuasive evidence of an arrangement, (2) the
sales  price  is  fixed  or  determinable,  and  (3)  collection  of the related
receivable is reasonably assured. 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.

     Research  and development costs are charged to operations when incurred and
are  included  in  operating  expenses.

                              RESULTS OF OPERATIONS

As of September 30, 2007 and for the six months ended September 30, 2007 and
2006

     We  had  revenue of $102,960 during the six months ended September 30, 2007
as  compared to $146,260 of revenue for the comparable period in 2006.  Revenues
during  2007  reflected  the  treatment  of four patients whereas there were six
patients  treated  during  the  same  period  ended  2006.

                                     14
<PAGE>

     Our  cost  of  goods  sold  for the stem cell biological material delivered
during  the  six  months  ended  September  30,  2007 was $39,268 as compared to
$92,625  for  the same period ended 2006.  The decrease in cost of goods sold is
due  to  the  decrease  in  the  number of patients in 2007 compared to the same
period  in  2006  and  the Company has begun purchasing the stem cell biological
solution  from  less  expensive  vendors  located  in  Mexico  and  China.

     Gross  margins for the six months ended September 30, 2007 was 62% compared
to  a  negative  gross profit margin of (43%) for the six months ended September
30,  2006.  The  increase  in  gross margin is due to the Company purchasing the
stem cell biological materials from less expensive vendors located in Mexico and
China.  The  increased  gross  margin  is also due to the $116,000 charge for an
additional  payment made to ICT for not meeting the contractual minimum purchase
requirement  during  the  six  months ended September 30, 2006, there is no such
charge  during  the  six  months  ended  September  30,  2007.

     Selling, general and administrative expenses increased $435,936 to $880,280
for  the six months ended September 30, 2007 as compared to $444,344 for the six
months  ended  September  30,  2006.  The  increase  in  selling,  general  and
administrative expenses for the six months ended September 30, 2007 is primarily
due  to an approximate $506,000 increase in share based compensation for options
awarded  to  executives.

     Our  net  loss  for the six months ended September 30, 2007 was $818,149 as
compared to $504,254 during the same period in 2006. The loss primarily reflects
an  increase  in  share  based  compensation.

As of September 30, 2007 and for the three months ended September 30, 2007 and
2006

     We  had revenue of $82,960 during the three months ended September 30, 2007
as  compared to $120,555 of revenue for the comparable period in 2006.  Revenues
during  2007  reflected  the treatment of three patients whereas there were four
patients  treated  during  the  same  period  ended  2006.

     Our  cost  of  goods  sold  for the stem cell biological material delivered
during  the  three  months  ended  September 30, 2007 was $29,000 as compared to
$78,100  for  the same period ended 2006.  The decrease in cost of goods sold is
due to the decrease in patient treatments in 2007 compared to the same period in
2006 and the Company has begun purchasing the stem cell biological solution from
less  expensive  vendors  located  in  Mexico  and  China.

     Gross  margins  for  the  three  months  ended  September  30, 2007 was 65%
compared  to  a negative gross profit margin of (61%) for the three months ended
September  30,  2006.  The  increase  in  gross  margin  is  due  to the Company
purchasing  the  stem  cell  biological  materials  from less expensive vendors.
Also, the increased gross margin is due to the $116,000 charge for an additional
payment made to ICT for not meeting the contractual minimum purchase requirement
during the three months ended September 30, 2006, there is no such charge during
the  three  months  ended  September  30,  2007.

                                     15
<PAGE>

     Selling, general and administrative expenses increased $501,274 to $744,869
for  the  three  months ended September 30, 2007 as compared to $243,595 for the
three  months  ended  September  30, 2006.  The increase in selling, general and
administrative  expenses  for  the  three  months  ended  September  30, 2007 is
primarily  due  to an approximate $506,000 increase in share based compensation.

     Our  net loss for the three months ended September 30, 2007 was $690,909 as
compared to $314,499 during the same period in 2006. The loss primarily reflects
increase  in  share  based  compensation  to  executive  officers.

LIQUIDITY AND CAPITAL RESOURCES

     The  Company's  financial  statements  have been prepared assuming that the
Company will continue as a going concern. For the six months ended September 30,
2007 and the period since December 2, 2004 (date of inception) through September
the Company has had a net loss of $818,149 and $2,007,597, respectively and cash
used  by operations of $133,373 and $419,995, respectively, and negative working
capital  of  $445,997  at  September  30,  2007.

     As  of September 30, 2007, the Company has not emerged from the development
stage.  In view of these matters, recoverability of recorded asset amounts shown
in the accompanying financial statements is dependent upon the Company's ability
to  begin  significant operations and to achieve a level of profitability. Since
inception,  the Company has financed its activities principally from shareholder
advances  and  some  relatively  minor  sales of equity securities (as set forth
below).  The  Company intends on financing its future development activities and
its  working  capital  needs  largely  from  the sale of equity securities, debt
financing  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.

     Effective  June  27,  2007,  the  Company  entered  into  an agreement with
Newbridge  Securities,  Corp.  ("Newbridge")  to  assist  the Company on a "best
efforts"  basis in raising approximately $250,000 in a private offering of up to
2  million  shares of restricted common stock at a price of $.125 per share.  As
of  September  30,  2007,  the  Company has received $206,024 of proceeds, which
represents  $250,000  gross  proceeds  less  $43,976  of  offering  costs.

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 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

                                     16
<PAGE>

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.

ITEM 3.  CONTROLS AND PROCEDURES

     As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the
"Exchange Act"), as of September 30, 2007, the Company carried out an evaluation
of the effectiveness of the design and operation of the Company's disclosure
controls and procedures.  This evaluation was carried out under the supervision
and with the participation of the Company's management, including the Company's
Chief Financial Officer (who has served as the principal financial and
accounting officer) and its President (who serves as the principal operating
officer).  Based upon that evaluation, the Company's President and Chief
Financial Officer have concluded that the Company's disclosure controls and
procedures are effective in alerting them to material information regarding the
Company's financial statement and disclosure obligation in order to allow the
Company to meet its reporting requirements under the Exchange Act in a timely
manner.

     The Company's management, with the participation of its President and Chief
Financial Officer, has determined that there has been no change in the Company's
internal control over financial reporting that occurred during the Company's
last fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.


                                     17
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

None.

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

     Effective  May  11, 2007, the Company issued 250,000 shares of common stock
to  Mirador  Consulting  Group  in  connection  with  consulting  services to be
provided  to  the Company.  These shares were issued without any public offering
in  accordance  with  Section  4(2)  of  the Securities Act of 1933, as amended.

     Effective  June 25, 2007, the Company issued 300,000 shares of common stock
to Interactive Resources Group Inc. in connection with consulting services to be
provided  to  the Company.  These shares were issued without any public offering
in  accordance  with  Section  4(2)  of  the Securities Act of 1933, as amended.

     During  the  six  months  ended  September  30,  2007,  the  Company issued
2,000,000  shares  of  common stock to accredited investors in connection with a
private  placement  offering  in  exchange  for  $250,000,  this amount includes
$43,976  of  offering  costs.  These  shares  were  issued  under  Regulation D.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5.  OTHER INFORMATION

In  September  2007,  the  Company  entered  into employment agreements with the
Company's  Chief  Executive Officer, Chief Financial Officer and Chief Operating
Officer.  Under  the  employment  agreement for the Chief Executive Officer, the
employment  term  is five years and with an annual base salary of $150,000, with
minimum  annual  increases  of  $10,000.  The  Chief Financial Officer and Chief
Operating  Officer each have employment agreements for a term of two years, with
an  annual  base  salary  of  $60,000.  Additional performance-based bonuses are
provided  for,  and  the  employees  were  granted options to purchase 2,900,000
shares  of  Company  stock.  Benefits  under  the agreement are accelerated on a
change  of  control,  and  the  employee  is  subject to certain non-competition
covenants.


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

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

10.31     Business Advisory Agreement with Newbridge Securities Corporation
10.32     Employment Agreement - Calvin Cao

                                     18
<PAGE>

10.33     Employment Agreement - Lixian Jiang
10.34     Employment Agreement - Andrew J. Norstrud

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

_______________________

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

None

                                   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: November 19, 2007

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

Title: President

Date: November 19, 2007

By: /s/Andrew J. Norstrud
    ---------------------
Name: Andrew J. Norstrud

Title: Chief Financial Officer