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


                                  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, 2006

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

                      For the transition period from    to

                         Commission file number 0-17232

                      STEM CELL THERAPY INTERNATIONAL, INC.

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


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


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

                    (Address of principal executive offices)

                                 (813) 600-4088

                           (Issuer's telephone number)

                                 Not applicable

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

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.    Yes   [X]    No [
]


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

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

34,495,369 shares of common stock, $0.001 par value, as of November 14, 2006.

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




<PAGE>

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

Part I.  Financial Information

Item  1.  Financial Statements                                         4

     Balance Sheets as of September 30, 2006 (unaudited) and
       March 31, 2006                                                  5

     Statements of Operations for the three and six months
       ended September 30, 2006 and 2005 (unaudited) and for
       the period from December 2, 2004 (Date of Inception)
       through September 30, 2006 (unaudited)                          6

     Statements of Changes in Stockholders' Equity (Deficit)
       for the period from December 2, 2004 (Date of Inception)
       through September 30, 2006 (unaudited)                          7

     Statements of Cash Flows for the six months ended September
       30, 2006 and 2005 (unaudited) and for the period from
       December 2, 2004 (Date of Inception) through September
       30, 2006 (unaudited)                                            8

     Notes to Financial Statements                                     9

Item  2.  Managements Discussion and Analysis                         20
Item  3.  Controls and Procedures                                     26

Part II.  Other Information

Item  1.  Legal Proceedings                                           27
Item  2.  Unregistered Sales of Equity Securities and
            Use of Proceeds                                           27
Item  3.  Defaults from Senior Securities                             27
Item  4.  Submission of Matters to a Vote of Security Holders         27
Item  5.  Other Information                                           27
Item  6.  Exhibits                                                    27

Signatures                                                            30


Certificate Pursuant to Section 302 of the Sarbanes-Oxley
  Act  of  2002:
     Chief Executive Officer                                          31
     Chief Financial Officer and Chief Accounting Officer             32
Certificate Pursuant to Section 906 of the Sarbanes-Oxley
  Act of 2002:
     Chief Executive Officer                                          33
     Chief Financial Officer and Chief Accounting Officer             34




<PAGE>

PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The  accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America  for  interim  financial  information and with the instructions for Form
10-QSB and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of
the  information  and  footnotes  required  by  accounting  principles generally
accepted  in  the United States of America for complete financial statements. In
the  opinion  of  management,  all  adjustments  considered necessary for a fair
presentation  have been included. All such adjustments are of a normal recurring
nature.  Operating  results  for the three and six month periods ended September
30,  2006  and  2005  are  not necessarily indicative of the results that may be
expected  for  the  year  ending  March  31, 2007. This report should be read in
conjunction  with the financial statements and footnotes thereto included in the
Company's  Registration  Statement  filed  on  amended Form 10-SB filed with the
Securities  and  Exchange  Commission  on  July  31,  2006.






















<PAGE>

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

                                 Balance Sheets


<TABLE>
<CAPTION>
<S>                                                        <C>                         <C>
                                                   September 30,  2006   March  31,  2006
                                                   -------------------   ----------------
                                                       (unaudited)
ASSETS
Current assets:
   Cash                                                      $  14,476   $  32,642
   Inventory                                                    11,977           -
   Prepaid expenses                                            107,316      77,531
                                                           ------------  ----------
Total current assets                                           133,769     110,173

Certificate of deposit, restricted                               3,816     120,000
Deposits                                                         1,589       1,589
Prepaid expenses, long-term                                     67,209       1,417
Intangible asset, net                                            4,458       4,708
                                                           ------------  ----------

             Total assets                                  $   210,841   $ 237,887
                                                           ============  ==========

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable                                        $    58,981   $  28,370
   Accrued expenses                                             75,000      75,000
   Accrued payroll                                             119,729      35,000
   Deferred revenue                                             24,275           -
   Stockholder advances                                         48,742      48,377
   Due to related party                                        225,200     224,972
                                                           ------------  ----------
Total current liabilities                                      551,927     411,719
                                                           ------------  ----------

Commitments and contingencies (Note 9)                               -           -

Stockholders' deficit:
   Preferred stock; $.001 par value; 10,000,000 shares
        authorized and 500,000 issued and outstanding              500         500
   Common stock; $.001 par value; 100,000,000 shares
        authorized and 34,495,369 and 33,672,510 issued
        and outstanding as of September 30, 2006 and
        March 31, 2006, respectively                            34,496      33,672
   Additional paid-in capital                                  660,574     324,398
   Deficit accumulated during development stage             (1,036,656)   (532,402)
                                                           ------------  ----------
Total stockholders' deficit                                   (341,086)   (173,832)
                                                           ------------  ----------

             Total liabilities and stockholders' deficit   $   210,841   $ 237,887
                                                           ============  ==========
</TABLE>

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



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

                            Statements of Operations
                                   (unaudited)
<TABLE>
<CAPTION>
<S>                                          <C>                <C>              <C>          <C>              <C>
                                                                                                            Period from
                                                                                                            December 2,
                                                                                                            2004 (Date of
                                              Three Months Ended                   Six Months Ended         Inception) through
                                                September 30,                       September 30,           September 30
                                      ------------------------------      -----------------------------     ------------------
                                              2006             2005              2006            2005              2006
                                      --------------    ------------     --------------    ------------     -------------

Revenue                               $     120,555     $     23,470     $     146,260     $     23,470     $     227,194
Cost of goods sold                          194,100           17,100           208,625           17,100           260,725
                                      --------------    ------------     --------------    ------------     -------------
Gross margin                                (73,545)           6,370           (62,365)           6,370            33,531
Operating expenses
  Selling general & administrative          243,595           98,980           444,344          157,798         1,007,697
                                      --------------    ------------     --------------    ------------     -------------
                                            243,595           98,980           444,344          157,798         1,007,697

Loss from operations                       (317,140)         (92,610)         (506,709)        (151,428)       (1,041,228)

Other (expense) income:
    Interest (expense) income, net            2,641              355             2,455              439             4,572
                                      --------------    ------------     --------------    ------------     -------------
Net loss before taxes                      (314,499)         (92,255)         (504,254)        (150,989)       (1,036,656)
Income tax expense                                -                -                 -                -                 -
                                      --------------    ------------     --------------    ------------     -------------

Net loss                                   (314,499)         (92,255)         (504,254)        (150,989)       (1,036,656)
Less dividends on preferred stock                 -                -                 -                -           (10,000)
                                      --------------    ------------     --------------    ------------     -------------

Loss attributable to common shareholders $ (314,499)         (92,255)         (504,254)        (150,989)    $  (1,046,656)
                                      ==============    =============    ==============    =============    ==============

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

Weighted average number
   of common shares, basic & diluted     34,447,080       21,526,205        34,129,150       19,623,207          27,104,966
                                      ==============    =============    ==============    =============    ==============
</TABLE>

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


<PAGE>

                      STEM CELL THERAPY INTERNATIONAL, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                 STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
  FOR THE PERIOD FROM DECEMBER 2, 2004 (DATE OF INCEPTION) THROUGH JUNE 30, 2006
                                   (UNAUDITED)


<TABLE>
<CAPTION>
<S>                                                    <C>          <C>       <C>      <C>   <C>        <C>            <C>
                                                         Common Stock         Preferred Stock
                                                  -------------------------  -----------------
                                                                                                           Deficit
                                                                                                           Accumulated
                                                                                               Additional  During
                                                                                               Paid-In     Development
                                                        Shares       Amount   Shares  Amount   Capital     Stage           Totals
Issuance of common stock for cash                      13,550,000   $13,550         -  $  -  $      -   $          -   $   13,550
Exercise of stock options for services                    500,000       500         -     -         -              -          500
Issuance of common stock and options for
   acquisition deposit                                  5,000,000     5,000         -     -     2,749              -        7,749
Stock options issued for services                               -         -         -     -       906              -          906
Issuance of common stock for services                   2,170,000     2,170         -     -         -              -        2,170
Net loss for the period                                         -         -         -     -         -        (26,241)     (26,241)

                                                       ----------  --------  --------  ----  --------   ------------   -----------
Balance, March 31, 2005                                21,220,000    21,220         -     -     3,655        (26,241)      (1,366)

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

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

Net loss for the six months ended September 30, 2006
    (unaudited)                                                 -         -         -     -         -       (504,254)    (504,254)

                                                        ----------  --------  --------  ----  --------   ------------   -----------
Balance, September 30, 2006 (unaudited)                34,495,369    34,496   500,000   500   660,574    ($1,036,656)   ($341,086)
                                                        ==========  ========  ========  ====  ========   =============  ===========
</TABLE>



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

<PAGE>

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

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

                                                                                                   December 2, 2004
                                                    Six Months              Six Months             (Date of Inception)
                                                    Ended                   Ended                  Through September 30
                                                    September 30, 2006      September 30, 2005     2006
                                                    ------------------      ------------------    -----------------------
OPERATING ACTIVITIES
   Net loss                                           $(504,254)             $(150,989)           $(1,036,656)
   Adjustments to reconcile net loss to net
      cash used by operating activities:
      Stock based compensation                          240,823                 17,947                478,095
      Investment income reinvested                       (2,840)                     -                 (2,840)
      Amortization                                          250                     42                    542
      (Increase) decrease in:
            Inventory                                   (11,977)                     -                (11,977)
            Prepaid expenses                                600                      -                 (3,600)
            Deposits                                                            12,749                 (1,589)
         Increase in:
            Accounts payable                             30,611                 38,885                  58,981
            Accrued payroll                              84,729                      -                 119,729
            Accrued expenses                                  -                 45,000                  75,000
            Deferred revenue                             24,275                      -                  24,275
                                                    ------------------      ------------------    -----------------------
      Net cash used by operating activities            (137,783)               (36,366)               (300,040)
                                                    ------------------      ------------------    -----------------------

INVESTING ACTIVITIES

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

FINANCING ACTIVITIES
   Proceeds from advances from stockholder                  365                 26,877                  52,517
   Payments to stockholder                                    -                      -                    (775)
   Advances from related party                              228                161,152                 225,200
   Proceeds from sale of stock                                -                 (8,349)                 38,550
                                                    ------------------      ------------------    -----------------------
      Net cash provided by financing
         activities                                         593                179,680                 315,492
                                                    ------------------      ------------------    -----------------------

NET (DECREASE) INCREASE IN CASH                         (18,166)               143,314                  14,476
CASH AT BEGINNING OF PERIOD                              32,642                  7,310                       -
                                                    ------------------      ------------------    -----------------------

CASH AT OF END OF PERIOD                                $14,476               $150,624                $ 14,476
                                                    ==================      ==================    =======================

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

   Cash paid for interest                               $   300               $      -               $     679
                                                    ==================      ==================    =======================
   Common stock issued for a reduction
             in advance from stockholder                $     -               $  3,000               $   3,000
                                                    ==================      ==================    =======================
   Common stock issued for purchase of
            intangible assets                           $     -               $  5,000               $   5,000
                                                    ==================      ==================    =======================
</TABLE>

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


<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

1.     BACKGROUND  INFORMATION  AND  BASIS  OF  PRESENTATION

     Company  Background

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

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

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









<PAGE>
                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

1.     BACKGROUND  INFORMATION  AND  BASIS  OF  PRESENTATION  (CONTINUED)

     Basis of presentation:

In  the opinion of management, the accompanying financial statements include all
adjustments, consisting only of normal recurring items, necessary for their fair
presentation  in conformity with accounting principles generally accepted in the
United  States  of  America.  The results of operations for the six months ended
September  30,  2006  are  not  necessarily indicative of the results for a full
year.

The  financial  statements  for  the  period  ended September 30, 2006 and notes
thereto  should  be  read in conjunction with the financial statements and notes
thereto  for  the  year  ended  March  31,  2006  as filed in the Form 10-SB, as
amended, filed with the Securities and Exchange Commission on July 31, 2006, and
as  amended  on  November  13,  2006.

2.     LIQUIDITY  AND  MANAGEMENT'S  PLANS

The  accompanying  financial  statements have been prepared assuming the Company
will  continue  as a going concern.  For the six months ended September 30, 2006
and  the period since December 2, 2004 (date of inception) through September 30,
2006,  the  Company  has had a net loss of $504,254 and $1,036,656, respectively
and cash used by operations of $137,783 and $300,040, respectively, and negative
working  capital  of  $418,158 at September 30, 2006.  As of September 30, 2006,
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 increase
operations  and  to  achieve  a  level  of  profitability.  Since inception, the
Company  has  financed  its  activities  principally  from  the  sale  of equity
securities  and  related  party  advances.  The Company intends on financing its
future  development  activities  and  its working capital needs largely from the
sale  of equity securities and loans from the Company's Chief Executive Officer,
until such time that funds provided by operations are sufficient to fund working
capital  requirements.  There  can  be  no  assurance  that  the Company will be
successful  at  achieving its financing goals at reasonably commercial terms, if
at  all.

3.     SIGNIFICANT  ACCOUNTING  POLICIES

     Use  of  estimates:

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



<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Concentration  of  credit  risk:

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

Intangible asset:

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

Impairment of long-lived assets:

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

Revenue  recognition:

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










<PAGE>
                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Income  taxes:

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

Loss  per  common  share:

Basic  and diluted earnings per share are computed based on the weighted average
number  of common stock outstanding during the period.  Common stock equivalents
are  not  considered  in  the  calculation of diluted earnings per share for the
periods  presented  because  their  effect  would  be  anti-dilutive.

Stock-based compensation:

In  April  2006,  the  Company  adopted the provisions of Statement of Financial
Accounting  Standards  No.  123R  -  Share-based Payments ("FAS 123R") replacing
Accounting  for  Stock-Based  Compensation  ("FAS  123"),  which are similar and
require the use of the fair-value based method to determine compensation for all
arrangements  under which employees and others receive shares of stock or equity
instruments  (warrants  and  options).  The  adoption  of  this  standard had no
significant  impact on the Company's results of operations during the six months
ended  September  30,  2006.

Reclassifications:

Certain reclassifications have been made to the March 31, 2006 balance sheet to
conform with the September 30, 2006 presentation.  Such reclassifications had no
impact on net income as previously reported.








<PAGE>
                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Recently issued accounting pronouncements:

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

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

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


<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

3.     SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Recently issued accounting pronouncements (continued):

periods'  financial  statements  of  changes  in  accounting  principle  in most
circumstances.  The  provisions  of  SFAS  No. 154 are effective in fiscal years
beginning after December 15, 2005. The Company plans to prospectively adopt SFAS
No.  154  at  the  beginning  of  the  2007  fiscal  year.

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

4.     BUSINESS  REORGANIZATION

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

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







<PAGE>
                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

5.     INTANGIBLE  ASSET

     Intangible asset consists of the following:

                                       September 30,
                                         2006               March 31,
                                     (unaudited)               2006
                                     -------------           -----------
     Licensing rights                  $     5,000           $     5,000

     Less: accumulated amortization      (     542)            (     292)
                                     -------------           -----------
                                       $     4,458           $     4,708
                                     =============           ===========

     Expected future amortization of the intangible asset is as follows:

          Year ending September 30,
          -------------------------
2007              $        500
2008                       500
2009                       500
2010                       500
2011                       500
Thereafter               1,958
                         -----
                   $     4,458
                         =====

6.     RELATED  PARTY  TRANSACTIONS

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

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






<PAGE>
                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)




7.     STOCKHOLDER'S  EQUITY

     Capitalization:

The  Company  has  100,000,000  shares of common stock authorized.  In addition,
there  are  10,000,000  authorized shares of participating convertible preferred
stock,  $.001  par  value,  the  issuance of which is subject to approval by the
Board  of  Directors.  The  Board  of  Directors  has  the  authority to declare
dividends.  The  voting  rights  of  the  convertible preferred stockholders are
equivalent  to that of the common stockholders.  The convertible preferred stock
can  be  converted at any time by the holder into one share of common stock.  As
of  September  30, 2006, the Company had 500,000 shares of convertible preferred
stock  issued and outstanding.  Upon issuance of the preferred stock, 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  of the preferred stock, which was $10,000 and was recorded as a dividend,
as  the  preferred  stock  can  be  converted  at any time after the issue date.

Stock  options:

The following table summarizes the activity related to all Company stock options
for  the  six  months  ended  September  30,  2006  and 2005 and the period from
December  2,  2004  (Date  of  Inception)  through  September  30,  2006:

                                                                 Weighted
                                                                 Average
                                                  Exercise Price Exercise Price
                                  Stock             Per Share    Per Share
                                  Options           Options      Options
                                  ----------       ------------  ------------
Outstanding at December 2, 2004            -        $         -  $    -
      Granted                      6,000,000        $0.001-0.75  $ 0.18
      Exercised                     (500,000)       $     0.001  $0.001
Outstanding at March 31, 2005      5,500,000        $0.003-0.75  $0.196
      Canceled or expired         (5,500,000)       $0.003-0.75  $0.196
Outstanding at September 30, 2006    -

<PAGE>
                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)



8.     INCOME TAXES

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

<TABLE><CAPTION>
<BTB>
<S>                                        <C>                 <C>                <C>
                                                                             Period from
                                                                             December 2, 2004
                                        Six Months Ended September 30,       through
                                        ------------------------------
                                        2006                    2005         September 30, 2006
                                        ----                    ----          ------------------
Income tax provision at statutory rate    ($171,446)          ($51,336)            ($309,483)
Increase (decrease) in income tax due to:
    Nondeductible expenses                      653
State income taxes, net                     (18,304)            (5,481)             (32,979)
    Change in valuation allowance           189,097             56,817              342,462
                                        ------------        -----------        -------------
                                        $         -          $       -         $          -
                                        ============        ===========        =============
</TABLE>

                                          September 30,           March 31,
                                          2006                    2006
Deferred tax assets:
   Accrued payroll                       $     45,100         $     13,200
   Net operating loss carryforward            344,300              187,100
                                              -------              -------
                                              389,400              200,300
Less:  Valuation allowance                   (389,400)            (200,300)
                                             ---------             --------
                                         $          -         $          -
                                             =========             ========

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

The Company has incurred operating losses since its inception and, therefore, no
tax  liabilities  have  been  incurred  for the periods presented. The amount of
unused tax losses available to carry forward and apply against taxable income in
future  years  totaled  approximately  $900,000  at September 30, 2006. The loss
carry  forwards expire beginning in 2025. Due to the Company's continued losses,
management has established a valuation allowance equal to the amount of deferred
tax  assets  due  to  it  being  more  likely than not that the Company will not
realize  this  benefit.


<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

9.     COMMITMENTS  AND  CONTINGENCIES

Letter  of  credit:

The  Company  had  a  standing letter of credit with a financial institution for
$120,000  which  was  available  to  be drawn against accounts maintained by the
Company  with  the  financial  institution.  This  letter  of credit served as a
guarantee  of  payment for a third party vendor.  This standing letter of credit
was collateralized by a $120,000 certificate of deposit against which this third
party  had  drawn  $116,320  as  of  September  30,  2006.

Consulting  agreements:

The  Company has entered into several consulting agreements with other companies
and individuals to provide consulting and advisory services to the Company.  The
agreements provide for terms ranging from one to three years.  Additionally, the
consulting agreements required the issuance of 4,239,000 shares of the Company's
common  stock  valued at $382,409 on the date of the performance commitment.  As
of  September  30, 2006, the Company had issued these shares of common stock and
has  included  $160,544  in  prepaid  expenses  for  services  not yet performed
pursuant  to  the  agreements.

The  Company  has  entered  into  several  consulting agreements with doctors to
provide consulting and advisory services to the Company.  The agreements provide
for  six  months to one year service terms.  In exchange for these services, the
Company  issued  a total of 110,000 shares of common stock valued at $114,230 on
the  date  of the performance commitment.  As of September 30, 2006, the Company
had  issued  these  shares  of  common  stocks  and  included $10,381 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  had  agreed  to  pay  10%  of  any
equity-based  funding,  8%  of  any  debt-based  convertible  funding, 5% of any
nonconvertible  debt-based  funding,  as well as, issue warrants equal to 10% of
the  number  of  shares  of  stock issued in connection with the funding.  As of
September  30,  2006,  no  funding  has  been  secured; however, Westminster did
facilitate the acquisition of Altadyne, and therefore received 379,000 shares of
common  stock  in  September  2005.  The Agreement with Westminster was mutually
terminated  effective  January  4,  2006.





<PAGE>

                      Stem Cell Therapy International, Inc.
                        (a development stage enterprise)
                          Notes to Financial Statements
   For the Three and Six Months Ended September 30, 2006 and 2005 (unaudited)
          and for the period from December 2, 2004 (Date of Inception)
                     through September 30, 2006 (unaudited)

9.     COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)


Licensing  agreement:

Effective  September  1,  2005,  the  Company  entered into a ten year licensing
agreement  with  the  Institute  of  Cell  Therapy,  a  company incorporated and
organized  under  the  laws  of Kiev, Ukraine ("ICT").  The agreement grants the
Company  an  exclusive  right  and license in most parts of the world to utilize
patents,  processes and products owned or produced by ICT in connection with the
operation  of  the Company's business.  In exchange for the license, the Company
agrees  to  exclusively  purchase  all  biological  solution  of  stem cell Allo
Transplant  materials  from  ICT  for a three year period.  Such Allo Transplant
materials shall be at a cost of $6,500 per patient per condition.  The licensing
agreement  guarantees a minimum purchase of 60 portions per twelve month period.
In the event that the Company is unable to purchase the minimum quantities shall
entitle  ICT to draw upon the irrevocable letter of credit at the rate of $2,000
for  every  portion  less  than  the minimum required purchase.  The Company has
provided ICT with a $120,000 irrevocable letter of credit in ICT's favor for the
first  three years of the agreement.  In the event the Letter of Credit is drawn
upon,  the Company agrees to replenish the Letter of Credit to the extent of any
such  draws.  As  of  September  30,  2006, the Company did not meet the minimum
purchase  requirement  and  ICT  has drawn on the letter of credit for $116,000.

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

10.     SUBSEQUENT  EVENT

Subsequent  to  September  30,  2006,  the  Company  entered  into  a consulting
agreement  with  a  third  party  for  three  years.  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.











<PAGE>

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

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

The  following  management discussion should be read together with the Stem Cell
Therapy  International,  Inc.  financial statements included in this Form 10QSB.
See  "Index  to  Financial  Statements".  Those  financial  statements have been
prepared  in  accordance  with  generally  accepted accounting principles of the
United  States  of  America.

<PAGE>

                                General Overview

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

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

     We  are indirectly involved, 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 as at September 30, 2006, we had
a working capital deficit of $418,158 and an accumulated deficit from operations
of  $1,036,656.  As  noted  in  the  financial  statements  for  the period from
inception  to September 30, 2006, these factors raise doubt about the ability of
the  Company  to  continue  as  a  going  concern.  Realization of the Company's
business  plan  is  dependent  upon  the  Company's  ability  to meet its future
financing  requirements,  and  the success of future operations.  Our only other
source  for  cash  at this time is through investments or loans from management.
We  must  raise  cash  to  implement  our  project  and  stay  in  business.

<PAGE>

                          Critical accounting policies

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

Revenue  recognition:

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

Stock-based  compensation:

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

                    Recently issued accounting pronouncements

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

<PAGE>

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

     In  May  2005,  the FASB issued Statement of Financial Accounting Standards
No.  154,  Accounting  Changes  and  Error Corrections. ("SFAS 154")SFAS No. 154
changes  the  requirements  for  the accounting for and reporting of a change in
accounting  principle.  In  addition,  it  carries  forward  without  change the
guidance  contained  in  APB  Opinion  No. 20 for reporting the correction of an
error  in  previously  issued  financial  statements  and a change in accounting
estimate.  SFAS  No.  154  requires  retrospective application to prior periods'
financial  statements  of changes in accounting principle in most circumstances.
The  provisions  of  SFAS  No. 154 are effective in fiscal years beginning after
December  15, 2005. The Company plans to prospectively adopt SFAS No. 154 at the
beginning  of  the  2007  fiscal  year.

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

                              Results of Operations

As of September 30, 2006 and for the six months ended September 30, 2006 and
2005

     We  had  revenue of $146,260 during the six months ended September 30, 2006
as  compared  to $23,470 of revenue for the comparable period in 2005.  Our cost
from  ICT  for the stem cell biological material delivered during the six months
ended September 30, 2006 was $208,625 as compared to $17,100 for the same period
ended  2005.   The increase in cost of goods sold is due to the increased number
of  treatments  and  a $116,000 charge for an additional payment made to ICT for
not meeting the contractual minimum purchase requirement.   Our net loss for the
six  month  period ended September 30, 2006 was $504,254 as compared to $150,989
during  the  same  period  in  2005.  The  loss  primarily reflects increases in
payroll, professional fees and the additional payment to ICT for not meeting the
minimum  purchase  requirement.  Revenues during 2006 reflected the treatment of
six  patients'  and  only  one  patient was treated during the same period ended
2005.

<PAGE>

     Gross  margin  for  the  six months ended September 30, 2006 was a negative
$62,365  as compared to a positive $6,370 for the six months ended September 30,
2005.  The decreased gross margin is primarily due to the $116,000 charge for an
additional  payment made to ICT for not meeting the contractual minimum purchase
requirement.  We  anticipate  positive gross  margins on future patient services
and  delivery  of  our  stem  cell  biological  products.

As of September 30, 2006 and for the three months ended September 30, 2006 and
2005

     We  had  revenues  of  $120,555 during the three months ended September 30,
2006  as  compared to $23,470 of revenue for the comparable period in 2005.  Our
cost  from  ICT for the stem cell biological material delivered during the three
months ended September 30, 2006 was $194,100 as compared to $17,100 for the same
period ended 2005.   Our net loss for the three month period ended September 30,
2006 was $314,499, compared to $92,255 during the same period in 2005.  The loss
primarily  reflects  increases  in payroll, professional fees and the additional
payment  to  ICT  for  not  meeting  the  minimum  purchase  requirement.

     Gross  margins for the three months ended September 30, 2006 was a negative
$73,545  as  compared  to a positive $6,370 for three months ended September 30,
2005.  The decreased gross margin is primarily due to the $116,000 charge for an
additional  payment made to ICT for not meeting the contractual minimum purchase
requirement.

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,  2006  and  the  period  since  December 2, 2004 (Date of Inception) through
September  30,  2006, the Company has had a net loss of $504,254 and $1,036,656,
respectively and cash used by operations of $137,783 and $300,040, respectively,
and negative working capital of $418,158 at September 30, 2006.  As of September
30,  2006,  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 our ability to increase
operations  and  to  achieve a level of profitability.  Since inception, we have
financed  our  activities  principally  from  shareholder  advances  and  some
relatively  minor sales of equity securities.  We intend on financing our future
development  activities  and  our working capital needs largely from the sale of
equity  securities  and  loans from the Company's Chief Executive Officer, until
such  time  that  funds  provided  by  operations are sufficient to fund working
capital  requirements.

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

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

<PAGE>

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

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

OFF-BALANCE  SHEET  ARRANGEMENTS

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


<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

     Under the supervision and with the participation of our Management,
including our President who serves as our principal executive officer and our
Chief Financial Officer who serves as our principal financial officer, we
conducted an evaluation of the effectiveness of the design and operations of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as of September 30, 2006. Based on
this evaluation, our principal executive officer and principal financial officer
concluded that our disclosure controls and procedures were effective such that
the material information required to be included in our Securities and Exchange
Commission ("SEC") reports is recorded, processed, summarized and reported
within the time periods specified in SEC rules and forms relating to Stem Cell
Therapy International, Inc., and was made known to them by others within those
entities, particularly during the period when this report was being prepared.
There were no significant changes in the Company's Internal Controls or in other
factors that have materially affected, or are reasonably likely to affect,
Internal Controls over financial reporting during the most recent fiscal
quarter.


<PAGE>

PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

Not applicable

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

     Effective June 9, 2006 the Company issued 150,000 shares of common stock to
Global Business Partners Holdings, Inc. and 150,000 shares to Cutler Law Group
in connection with consulting services 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

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5.  OTHER INFORMATION

Not Applicable.

ITEM 6.   EXHIBITSAND REPORTS ON FORM 8-K

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

3.1     Articles of Incorporation of Stem Cell Therapy International, Inc., as
amended*
3.2     Articles of Incorporation of Stem Cell Therapy Corp.*
3.3     Certificate of Designation of Series A Preferred Stock*
3.4     By-laws of Stem Cell Therapy International, Inc.*
10.1     Business Consulting and Services Agreement dated as of December 16,
2004 between Stem Cell Therapy International Corp. and PMS SA.*
10.2     Consulting Agreement dated as of January 4, 2005 between Stem Cell
Therapy International Corp. and RES Holdings Corp.*
10.3     Investor and Media Relations Contract dated as of February 10, 2005
between Stem Cell Therapy International Corp. and Stern & Co.*
10.4     Executive Suite Lease Agreement dated as of February 15, 2005 between
Stem Cell Therapy International Corp. and Wilder Corporation.*
10.5     Engagement Letter dated as of May 3, 2005 between the Company and
Westminster Securities Corporation.*

<PAGE>

10.6     Reorganization and Stock Purchase Agreement dated as of September 1,
2005 between the Company (then Altadyne, Inc.), Stem Cell Therapy International
Corp. and R Capital Partners, Inc.*
10.7     Licensing Agreement dated as of September 1, 2005 between the Company
and Institute of Cell Therapy.*
10.8     Consulting Agreement dated as of September 1, 2005 between the Company
and European Consulting Group, LLC.*
10.9     Consulting Agreement dated as of September 1, 2005 between the Company
and Global Management Enterprises, LLC.*
10.10     Consulting Agreement dated as of September 1, 2005 between the Company
and USA Consulting Group, LLC.*
10.11     Professional Services Agreement dated as of September 7, 2005 between
the Company and Bridgehead Group Limited , Inc.*
10.12     Public Relations Agreement dated as of September 19, 2005 between the
Company and Stern & Co.*
10.13     Advisory Physician Agreement dated as of October 4, 2005 between the
Company and Alexey Bersenev.*
10.14     Medical and Scientific Advisory Board Member Agreement dated as of
October 10, 2005, between the Company and Dr. Weiwen Deng.*
10.15     Medical and Scientific Advisory Board Member Agreement dated as of
October 24, 2005, between the Company and Dr. Jorge Quintero.*
10.16     Medical and Scientific Advisory Board Member Agreement dated as of
October 24, 2005, between the Company and Dr. Salvador Vargas.*
10.17     Medical and Scientific Advisory Board Member Agreement dated as of
December 2, 2005 between the Company and Dr. Igor Katkov.*
10.18     Medical and Scientific Advisory Board Member Agreement dated as of
December 2, 2005, between the Company and Dr. Nikita Tregubov.*
10.19     Business Advisory Board Agreement dated as of December 5, 2005 between
the Company and Fred J. Villella.*
10.20     Business Development Advisory Agreement dated as of January 1, 2006
between the Company and Alexander Kulik.*
10.21     Termination and Modification of Engagement Letter dated January 4,
2006 between the Company and Westminster Securities Corporation.*
10.22     Business Consulting and Services Agreement dated January 20, 2006
between the Company and Julio C. Ferreira dba Sphaera Inte-Par.*
10.23     Business Development Advisory Agreement dated as of February 7, 2006
between the Company and Gus Yepes.*
10.25     Treating Physician Agreement dated as of October 24, 2005 between the
Company and Dr. Salvador Vargas.*
10.26     Treating Physician Agreement dated as of October 24, 2005 between the
Company and Dr. Jorge Quintero.*
10.27     Consulting Agreement dated as of June 9, 2006 between the Company and
Rick Langley.
21.     List of Subsidiaries*
31.1     Chief Executive Officer certification pursuant to Section 302 of the
Sarbanes-Oxley Act               of 2002.

<PAGE>

31.2     Chief Financial Officer certification pursuant to Section 302 of the
Sarbanes-Oxley Act               of 2002.
32.1     Chief Executive Officer certification pursuant to 18 U.S.C. Section
1350
32.2     Chief Financial Officer certification pursuant to 18 U.S.C. Section
1350

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

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

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







                                   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 14, 2006

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

Title: President

Date: November 14, 2006

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

Title: Chief Financial Officer and
     Chief Accounting Officer