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, 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:

37,295,369 shares of common stock, $0.001 par value, as of January 31, 2008.

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

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

     Condensed Consolidated  Statements  of  Operations  for  the
          three and nine months ended December 31, 2007 and 2006
          (unaudited) and for the period from  December  2,  2004
          (Date of Inception) through December 31, 2007(unaudited)           F-2

     Condensed Consolidated  Statements  of  Changes  in  Stockholders'
          Deficit for  the  period  from  December  2,  2004 (Date
          of Inception) through December  31,  2007  (unaudited)             F-3

     Condensed Consolidated Statements of Cash Flows for the nine
          months ended December 31, 2007 and 2006 (unaudited), and
          for the period from December 2, 2004 (Date of Inception)
          through December 31, 2007 (unaudited)                              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                                                                    19


Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002:
     Chief Executive Officer                                                  20
     Chief Financial Officer and Chief Accounting Officer                     21
Certificate Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:
     Chief Executive Officer and Chief Financial Officer
      and Chief Accounting Officer                                            22



<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 nine month
periods  ended  December  31, 2007 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

                                        December 31, 2007    March 31, 2007
                                        -------------------  ----------------
                                          (unaudited)
ASSETS
Current assets:
  Cash                                  $                -   $        27,905
  Inventory                                              -             5,988
  Prepaid expenses                                 279,508            47,317
                                        -------------------  ----------------
Total current assets                               279,508            81,210

Certificate of deposit, restricted                       -             3,919
Prepaid expenses and other assets                   22,211            53,378
                                        -------------------  ----------------

      Total assets                      $          301,719   $       138,507
                                        ===================  ================

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable                      $           51,198   $        62,875
  Accrued expenses                                 380,147           245,557
  Deferred revenue                                       -            50,000
  Stockholder advances                                   -            48,753
  Due to related party                             200,200           225,200
                                        -------------------  ----------------
Total current liabilities                          631,545           632,385
                                        -------------------  ----------------

Commitments and contingencies
  (Notes 4 and 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;
    37,295,369 and 34,495,369 issued
    and outstanding as of December
    31, 2007 and March 31, 2007,
    respectively                                    37,295            34,495
  Additional paid-in capital                     1,985,129           660,575
  Deficit accumulated during
    development stage                           (2,352,750)       (1,189,448)
                                        -------------------  ----------------
Total stockholders' deficit                       (329,826)         (493,878)
                                        -------------------  ----------------

      Total liabilities and
        stockholders' deficit           $          301,719   $       138,507
                                        ===================  ================

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

                                      F-1
<PAGE>

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

                Condensed Consolidated Statements of Operations
                                  (Unaudited)
<S>                           <C>           <C>           <C>           <C>           <C>
                              THREE MONTHS ENDED          NINE MONTHS ENDED           DECEMBER 2, 2004
                              DECEMBER 31,                DECEMBER 31,                (DATE OF INCEPTION)
                              --------------------------  --------------------------  THROUGH
                              2007          2006          2007          2006          DECEMBER 31, 2007
                              ------------  ------------  ------------  ------------  ------------------

Revenue                       $    30,000   $    90,000   $   132,960   $   236,260   $         559,404

Cost of Goods Sold:

  Cost of goods sold               13,000        32,435        52,268       125,060             278,361
  Loss on firm purchase
    commitment                          -             -             -       116,000             116,000
                              ------------  ------------  ------------  ------------  ------------------

Gross margin                       17,000        57,565        80,692        (4,800)            165,043

Operating expenses:
  Selling, general
    and administrative            362,080       157,363     1,242,360       601,706           2,519,939
                              ------------  ------------  ------------  ------------  ------------------
Loss from operations             (345,080)      (99,798)   (1,161,668)     (606,506)         (2,354,896)
                              ------------  ------------  ------------  ------------  ------------------

Interest income (expense)             (73)         (219)       (1,634)        2,235              (2,146)
                              ------------  ------------  ------------  ------------  ------------------

Net loss before taxes            (345,153)     (100,017)   (1,163,302)     (604,271)         (2,352,750)

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

Net loss                         (345,153)     (100,017)   (1,163,302)     (604,271)         (2,352,750)
Less:  Dividends on
  preferred stock                       -             -             -             -             (10,000)
                              ------------  ------------  ------------  ------------  ------------------

Loss attributable to
  common shareholders         $  (345,153)  $  (100,017)  $(1,163,302)  $  (604,271)  $      (2,362,750)
                              ------------  ------------  ------------  ------------  ------------------



Loss per share,
  basic and diluted           $      (.01)  $      (.00)  $      (.03)  $      (.02)  $            (.08)
                              ============  ============  ============  ============  ==================

Weighted average number of
  common shares outstanding,
  basic and diluted            37,196,468    34,495,369    36,222,833    34,248,756          30,535,009
                              ------------  ------------  ------------  ------------  ------------------

<FN>
   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.
</TABLE>
                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                               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 DECEMBER 31, 2007 (UNAUDITED)

<S>                          <C>          <C>       <C>      <C>        <C>           <C>            <C>
                                                                                      DEFICIT
                                                                                      ACCUMULATED
                             COMMON STOCK           PREFERRED STOCK     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)

<FN>
                                                 (CONTINUED)

</TABLE>

                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                               STEM CELL THERAPY INTERNATIONAL, INC.
                                  (A DEVELOPMENT STAGE ENTERPRISE)
          CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (CONTINUED)
          FROM DECEMBER 2, 2004 (DATE OF INCEPTION) THROUGH DECEMBER 31, 2007 (UNAUDITED)
<S>                          <C>          <C>       <C>      <C>        <C>           <C>            <C>
                                                                                      DEFICIT
                                                                                      ACCUMULATED
                             COMMON STOCK           PREFERRED STOCK     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                 -         -        -          -       453,614              -       453,614

Exercise of warrants            250,000       250        -          -          (250)             -             -

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 nine
  months ended December 31,
  2007                                -         -        -          -             -     (1,163,302)   (1,163,302)
                             -----------  --------  -------  ---------  ------------  -------------  ------------
Balance, December 31, 2007   37,295,369   $37,295   500,000  $    500   $ 1,985,129   $ (2,352,750)  $  (329,826)
                             ===========  ========  =======  =========  ------------  -------------  ------------

<FN>
The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>

                                      F-4
<PAGE>
<TABLE>
<CAPTION>
                                     Stem Cell Therapy International Inc.
                                       (a development stage enterprise)
                               Condensed Consolidated Statements of Cash Flows
                                                 (unaudited)

<S>                                                 <C>                  <C>                  <C>
                                                                                              December 2, 2004
                                                                                                 (Date of Inception)
                                                    Nine Months Ended    Nine Months Ended    Through December 31,
                                                    December 31, 2007    December 31, 2006                     2007
                                                    -------------------  -------------------  ----------------------
OPERATING ACTIVITIES:
  Net loss                                          $       (1,163,302)  $         (604,271)  $          (2,352,750)
  Adjustments to reconcile net loss to net
    cash used by operating activities:
    Share-based compensation to non-employees                  398,001              315,205                 960,813
    Share-based compensation to employees                      505,716                                      505,716
    Investment income reinvested                                     -               (2,884)                 (2,943)
    Amortization                                                     -                  375                     667
    Write off of intangible asset                                    -                    -                   4,333
  (Increase) decrease in:
        Inventory                                                5,988               (5,988)                      -
        Prepaid expenses                                        16,589                 (236)                  4,271
        Deposits                                                     -                    -                  (2,169)
  Increase (decrease) in:
        Accounts payable                                       (11,677)              16,191                  51,198
        Accrued payroll                                        110,590              132,355                 281,147
        Accrued expenses                                        24,000                    -                  99,000
        Deferred revenue                                       (50,000)              84,250                       -
                                                    -------------------  -------------------  ----------------------
    Net cash used by operating activities                     (164,095)             (65,003)               (450,717)
                                                    -------------------  -------------------  ----------------------

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                            -                  376                  52,528
  Repayment of stockholder advances                            (48,753)                   -                 (49,528)
  (Repayment) advances from related party, net                 (25,000)                 228                 200,200
  Payment of stock offering costs                              (43,976)                   -                 (43,976)
  Proceeds from sale of stock                                  250,000                    -                 288,550
                                                    -------------------  -------------------  ----------------------
    Net cash provided by financing activities                  132,271                  604                 447,774
                                                    -------------------  -------------------  ----------------------

NET INCREASE (DECREASE) IN CASH                                (27,905)              54,625                       -
CASH AT BEGINNING OF PERIOD                                     27,905               32,642                       -
                                                    -------------------  -------------------  ----------------------

CASH AT OF END OF PERIOD                            $                -   $           87,267   $                   -
                                                    ===================  ===================  ======================

    Cash paid for interest                          $            1,645   $              900   $               3,308
                                                    ===================  ===================  ======================

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

  Common stock issued for a reduction
    in advance from stockholder                     $                -   $                -   $               3,000
                                                    ===================  ===================  ======================
  Common stock issued for purchase of
    intangible assets                               $                -   $                -   $               5,000
                                                    ===================  ===================  ======================

<FN>
   The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>
                                      F-5
<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 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 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. 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 Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 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 nine months ended December 31,
2007  are  not  necessarily  indicative  of  the  results  for  a  full  year.

The  condensed  consolidated  financial statements for the period ended December
31,  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 nine months
ended  December  31,  2007  and  the  period  since  December  2,  2004 (date of
inception)  through  December  31,  2007,  the  Company  has  had  net losses of
$1,163,302  and $2,352,750, respectively and cash used by operations of $164,095
and $450,717, respectively, and negative working capital of $352,037 at December
31,  2007.  As  of  December  31,  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 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, 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.     NEW  ACCOUNTING  STANDARDS:

In December 2007, the FASB issued Statement No. 160, Noncontrolling Interests in
Consolidated  Financial  Statements,  an amendment of ARB No. 51 (SFAS No. 160).
The  standard  changes the accounting for noncontrolling (minority) interests in
consolidated  financial  statements  including  the  requirements  to  classify
noncontrolling  interests  as  a component of consolidated stockholders' equity,
and  the  elimination of "minority interest" accounting in results of operations
with  earnings  attributable  to  noncontrolling  interests  reported as part of
consolidated  earnings.  Additionally,  SFAS  No. 160 revises the accounting for
both  increases and decreases in a parent's controlling ownership interest. SFAS
No.  160  is  effective for fiscal years beginning after December 15, 2008, with
early adoption prohibited. Management is currently evaluating the effect, if any
the  adoption  will  have  on  the  Company's  financial position and results of
operations.





                                      F-7
<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 2007 (unaudited)

4.     EQUITY

During  the  nine  months  ended  December  31, 2007, the Company issued 550,000
shares  of  common  stock  valued  at $162,000 for consulting services that were
provided  through  December  25,  2007.

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.
The  Company  has  accrued  $24,000  in  accrued  expenses  as  the value of the
underlying  shares  of common stock to be issued for the Company being unable to
meet the registration statement filing requirements.  This amount represents the
maximum  penalty  allowed  under  the  agreement.

During  the  nine  months  ended  December  31,  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

During  the  nine  months  ended December 31, 2007, the Company issued 2,900,000
stock  options  to employees and 2,650,000 common stock warrants to consultants.
The options and warrants entitle the holders to purchase 5,550,000 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 term is based upon the use of
the  simplified  method.

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

The value of the options granted totaled $505,716 and has been included in
selling, general and administrative expenses in the accompanying Condensed
Consolidated Statement of Operations for the months ended December 31, 2007.






                                      F-8
<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 2007 (unaudited)

5.     Stock Options and Warrants (continued)

                                                   WEIGHTED   WEIGHTED
                                                   AVERAGE    AVERAGE
                                        EXERCISE   EXERCISE   GRANT DATE
                             SHARES     PRICES     PRICE      FAIR VALUE
                             ---------  ---------  ---------  -----------

OUTSTANDING AND EXERCISABLE
---------------------------

Outstanding at
  March 31, 2007                    --         --         --           --

Options granted              2,900,000  $    0.19  $    0.19  $      0.19

Options exercised                   --         --         --           --

Options cancelled
  or expired                        --         --         --           --
                             ---------

Outstanding at
  December 31, 2007          2,900,000  $    0.19  $    0.19
                             ---------

Exercisable at
  December 31, 2007          2,900,000  $    0.19
                             ---------

The following table summarizes information about options outstanding and
exercisable as of December 31, 2007:

          OUTSTANDING OPTIONS              EXERCISABLE OPTIONS
          ------------------------------   ------------------------------
                     WEIGHTED              WEIGHTED
RANGE OF  NUMBER     AVERAGE    WEIGHTED   AVERAGE    NUMBER     WEIGHTED
EXERCISE  OUTST-     REMAINING  AVERAGE    REMAINING  EXERC-     AVERAGE
PRICE     ANDING     LIFE       PRICE      LIFE       ISABLE     PRICE
--------  ---------  ---------  ---------  ---------  ---------  --------
$   0.19  2,900,000   10 Years  $    0.19   10 Years  2,900,000  $   0.19

There  was  no  aggregate intrinsic value of options outstanding at December 31,
2007,  based  on  the Company's closing stock price of $0.09. Intrinsic value is
the  amount by which the fair value of the underlying stock exceeds the exercise
price  of  the  options.
The  fair  value  of  each  warrant 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              38% - 102.9%
     Expected dividends               0
     Expected term                    1 - 10 years
     Risk-free interest rate          3.16% - 4.71%

The  value  of the warrants granted totaled $453,614, of which $212,023 has been
included  in  operating  expenses  in  the  accompanying  condensed consolidated
statement  of  operations  for  the  nine  months  ended  December  31, 2007 and
$241,591,  is included in prepaid expenses in the accompanying December 31, 2007
condensed  consolidated  balance  sheet.

                                      F-9
<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 2007 (unaudited)

5.     STOCK  OPTIONS  AND  WARRANTS  (CONTINUED)

                                                        WEIGHTED   WEIGHTED
                                                        AVERAGE    AVERAGE
                                        EXERCISE        EXERCISE   GRANT DATE
                             SHARES     PRICES          PRICE      FAIR VALUE
                             ---------  --------------  ---------  -----------

OUTSTANDING AND EXERCISABLE
---------------------------

Outstanding at
  March 31, 2007                    --              --         --           --

Options granted              2,650,000  $0.001 - $0.15  $    0.02  $      0.22

Options exercised             (250,000) $        0.001  $   0.001           --

Options cancelled
  or expired                        --              --         --           --
                             ---------

Outstanding at
  December 31, 2007          2,400,000  $0.001 - $0.15  $    0.03
                             ---------

Exercisable at
  December 31, 2007          2,400,000  $0.001 - $0.15  $    0.03
                             ---------

The following table summarizes information about options outstanding and
exercisable as of December 31, 2007:

                OUTSTANDING OPTIONS              EXERCISABLE OPTIONS
                ------------------------------   ------------------------------
                           WEIGHTED              WEIGHTED
RANGE OF        NUMBER     AVERAGE    WEIGHTED   AVERAGE    NUMBER     WEIGHTED
EXERCISE        OUTST-     REMAINING  AVERAGE    REMAINING  EXERC-     AVERAGE
PRICE           ANDING     LIFE       PRICE      LIFE       ISABLE     PRICE
--------------  ---------  ---------  ---------  ---------  ---------  --------
$0.001 - $0.15  2,400,000   10 Years  $    0.03   10 Years  2,400,000  $   0.03

The  aggregate  intrinsic  value  of  warrants outstanding at December 31, 2007,
based  on  the  Company's  closing  stock price of $0.09 was $178,000. Intrinsic
value  is the amount by which the fair value of the underlying stock exceeds the
exercise  price  of  the  warrants.

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 basic and
diluted  weighted  average  number  of  shares  was  36,222,833,  34,248,756 and
30,535,009  for  the nine months ended December 31, 2007 and 2006 and the period
from  December  2,  2004  (Date  of  Inception)  through  December  31,  2007,
respectively.

Common  stock  equivalents  for the nine months ended December 31, 2007 and 2006
and  the period from December 2, 2004 (Date of Inception) through December, 2007
were  anti-dilutive  due to the net losses sustained by the Company during these
periods.


                                      F-10


<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 2007 (unaudited)

7.     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  $1,351,000 at December 31, 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
and  the  Company's  historical  losses, the Company has placed a full valuation
allowance  against  that  asset  of  approximately  $876,400.

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


                                                             Period from
                             Nine Months Ended               December 2, 2004
                             ------------------------------  through
                             December 31,    December 31,    December 31,
                             2007            2006            2007
                             --------------  --------------  ------------------
Income tax provision
  at statutory rate              ($387,400)      ($205,400)          ($791,800)
Increase (decrease) in
  income tax due to:
    Nondeductible expenses             600           1,400               1,300
    State income taxes, net        (41,400)        (21,900)            (84,600)
    Change in valuation
      allowance                    428,200         225,900             875,100
                             --------------  --------------  ------------------
                             $           -   $           -   $               -
                             ==============  ==============  ==================


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

                                   December 31, 2007    March 31, 2007
                                   -------------------  ----------------
Deferred tax (liability) asset:
  Accrued payroll                  $          105,800   $        64,200
  Options and warrants                        260,600
  Net operating loss carryforward             508,700           382,700
                                   -------------------  ----------------
                                              875,100           446,900
  Valuation allowance                        (875,100)         (446,900)
                                   -------------------  ----------------
  Total deferred taxes             $                0   $             0

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.


                                      F-11
<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 2007 (unaudited)

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 December 31, 2007, the Company had
issued these shares of common stock and has included $57,708 in prepaid expenses
for  services  not  yet  performed  pursuant  to  the  agreements.

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.  The warrant was valued at $419,864 using the
Black  Scholes  pricing  model and will be recognized over the service period of
nine  months.  As  of  December  31,  2007, the Company has included $233,258 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 December 31, 2007,
no funding has been secured; however, Westminster did facilitate the acquisition
of  Altadyne,  Inc.  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 December 31,
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.


                                      F-12
<PAGE>
                     Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
              Notes to Condensed Consolidated Financial Statements
       Three and Nine Months Ended December 31, 2007 and 2006 (unaudited)
            and the period from December 2, 2004 (Date of Inception)
                     through December 31, 2007 (unaudited)

8.     COMMITMENTS AND CONTINGENCIES (CONTINUED)

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 December 31, 2007, the Company has not entered into any funding
agreements,  and  therefore  the  third  party  is  not  owed any consideration.

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 December 31,
2007,  250,000  of  the  warrants  valued  as $33,750 have been issued, with the
remaining 250,000 warrants to be issued in 125,000 increments at the end of each
90  day  period  beginning  March 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 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.     RELATED  PARTY  TRANSACTIONS

The  due  to  related  party account of $200,200 is made up of advances from the
majority  stockholder  to  assist  the  Company  with its financial obligations.
These  advances  are  non-interest  bearing,  unsecured  and  due  on  demand.

The  above  amount  is  not necessarily indicative of the amount that would have
been  incurred  had  a comparable transaction been entered into with independent
parties.


                                      F-13
<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

                                       13
<PAGE>
and  at  December  31, 2007, we had a working capital deficit of $352,037 and an
accumulated deficit from operations of $2,352,750. As noted in the Report of the
Independent  Registered Certified 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.

     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 December 31, 2007 and for the nine months ended December 31, 2007 and 2006

     We  had  revenue of $132,960 during the nine months ended December 31, 2007
as  compared to $236,260 of revenue for the comparable period in 2006.  Revenues
during  2007  reflected  the  treatment of five patients whereas there were nine
patients  treated  during  the  same  period  ended  2006.

                                       14
<PAGE>
     Our  cost  of  goods  sold  for the stem cell biological material delivered
during  the  nine  months  ended  December  31,  2007 was $52,268 as compared to
$125,060  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 nine months ended December 31, 2007 was 61% compared
to a negative gross profit margin of (2%) for the nine months ended December 31,
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  nine  months ended December 31, 2006, there is no such
charge  during  the  nine  months  ended  December  31,  2007.

     Selling,  general  and  administrative  expenses  increased  $640,654  to
$1,242,360  for  the nine months ended December 31, 2007 as compared to $601,706
for  the  nine months ended December 31, 2006.  The increase in selling, general
and  administrative  expenses  for  the  nine  months ended December 31, 2007 is
primarily  due  to  an approximate $506,000 increase in share based compensation
for  options  awarded  to  executives.

     Our  net loss for the nine months ended December 31, 2007 was $1,163,302 as
compared to $604,271 during the same period in 2006. The loss primarily reflects
an  increase  in  share  based  compensation.

As of December 31, 2007 and for the three months ended December 31, 2007 and
2006

     We  had  revenue of $30,000 during the three months ended December 31, 2007
as  compared  to $90,000 of revenue for the comparable period in 2006.  Revenues
during  2007  reflected  the  treatment  of one patient whereas there were three
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  December  31, 2007 was $13,000 as compared to
$32,435  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.

     Gross margins for the three months ended December 31, 2007 was 56% compared
to  a  gross  profit margin of 63% for the three months ended December 31, 2006.
The  decrease in gross margin is due to decrease in the number of patients and a
higher  cost  associated  with the current year patients than in the prior year.

     Selling, general and administrative expenses increased $204,717 to $362,080
for  the  three  months  ended December 31, 2007 as compared to $157,363 for the
three  months  ended  December  31,  2006.  The increase in selling, general and
administrative  expenses  for  the  three  months  ended  December  31,  2007 is
primarily  due  to  an  approximate  $184,000  increase  in  professional  fees.

                                       15
<PAGE>
     Our  net  loss for the three months ended December 31, 2007 was $345,153 as
compared to $100,017 during the same period in 2006. The loss primarily reflects
decrease  in  patients  and  the  increase  in  professional  fees.

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,
2007  and the period since December 2, 2004 (date of inception) through December
31 the Company has had a net loss of $1,163,302 and $2,352,750, respectively and
cash  used  by  operations  of $164,095 and $450,717, respectively, and negative
working  capital  of  $352,037  at  December  31,  2007.

     As  of  December 31, 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  December  31,  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
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.

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     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 December 31, 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.

                          PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

None.

                                       17
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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  nine  months  ended  December  31,  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:

10.30 Newbridge  Securities  Agreement*

10.31 Business  Advisory  Agreement  with  Newbridge  Securities  Corporation**

                                       18
<PAGE>
10.32 Employment  Agreement  -  Calvin  Cao**

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 and Chief Financial Officer certification pursuant
      to  18  U.S.C.  Section  1350


* Filed with the Company's quarterly report on form 10-QSB for the quarter ended
June 30, 2007, filed August 16, 2007 as file number 000-51931.
** Filed with the Company's quarterly report on form 10-QSB for the quarter
ended September 30, 2007, filed November 20, 2007 as file number 000-51931.

_______________________


(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: February 19, 2008

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


Date: February 19, 2008

By: /s/Andrew J. Norstrud
    ---------------------
Name: Andrew J. Norstrud
Title: Chief Financial Officer



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