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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**February      28, 2007**

***Commission      File No. 0-32923***

**AOB      BIOTECH, INC.**

| **CALIFORNIA**                                                                |   | **90-0110902**                                         |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.                Employer Identification Number) |

**301      N. Lake Avenue, Ste. 202, Pasadena CA 91101**

**(626)      796-3988**

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**AOB      BIOTECH, INC.**

**TABLE      OF CONTENTS**

|                                                                                                                                       | **Page**                  |
|--------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
| **PART                I FINANCIAL INFORMATION**                                                                                            |                      |
|                                                                                                                                       |                      |
| Item                1. Financial Statements                                                                                                |                      |
|                                                                                                                                       |                      |
| Condensed                Balance Sheets (Unaudited)                                                                                        | 4                         |
|                                                                                                                                       |                      |
| Condensed                Statements of Operations (Unaudited)                                                                              | 5                         |
|                                                                                                                                       |                      |
| Condensed                Statements of Cash Flows (Unaudited)                                                                              | 6                         |
|                                                                                                                                       |                      |
| Notes                to the Condensed Financial Statements (Unaudited)                                                                     | 7 -                9 |
|                                                                                                                                       |                      |
| Item                2. Management's Discussion and Analysis of Financial Condition and                Results                of Operations | 10                        |
|                                                                                                                                       |                      |
| Item                3. Controls and Procedures                                                                                             | 13                        |
|                                                                                                                                       |                      |
| **PART                II OTHER INFORMATION**                                                                                               |                      |
|                                                                                                                                       |                      |
| Item                1. Legal Proceedings                                                                                                   | 13                        |
|                                                                                                                                       |                      |
| Item                2. Changes in Securities                                                                                               | 13                        |
|                                                                                                                                       |                      |
| Item                3. Defaults upon Senior Securities                                                                                     | 13                        |
|                                                                                                                                       |                      |
| Item                4. Submission of Matters to Vote of Security Holders                                                                   | 13                        |
|                                                                                                                                       |                      |
| Item                5. Other Information                                                                                                   | 13                        |
|                                                                                                                                       |                      |
| Item                6. Exhibits and Reports on Form 8-K                                                                                    | 14                        |
|                                                                                                                                       |                      |
| Signatures                                                                                                                                 | 14                        |
|                                                                                                                                       |                      |
| Certifications                                                                                                                             |                      |

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**PART      I FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**AOB      BIOTECH, INC.**

**TABLE      OF CONTENTS**

|                                                   | **Page**                            |
|--------------------------------------------------------|-------------------------------------|
|                                                   |                                |
| Condensed                Balance Sheets                | 4                                   |
|                                                   |                                |
| Condensed                Statements of Operations      | 5                                   |
|                                                   |                                |
| Condensed                Statements of Cash Flows      | 6                                   |
|                                                   |                                |
| Notes                to Condensed Financial Statements | 7                -                9 |

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**AOB      BIOTECH, INC.**

|                                                                                                                                                                                                                                    |   | **February                28, 2007 (Unaudited)** |     | May                31, 2006 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|----------|-----------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |
| Current                assets                                                                                                                                                                                                           |   |                                             |     |                        |   |
|                   Cash and equivalents                                                                                                                                                                                        |   | $                                                | 414,196  |                        | $      | 636,645 |   |
|                   Accounts receivable                                                                                                                                                                                         |   |                                             | 206,797  |                        |   | 256,797 |   |
|                   Inventory                                                                                                                                                                                                   |   |                                             | 89,235   |                        |   | 90,808 |   |
|                   Loan to affiliate                                                                                                                                                                                           |   |                                             | 81,000   |                        |   | -- |   |
|                   Prepaid expenses                                                                                                                                                                                            |   |                                             | 3,315    |                        |   | 915 |   |
| Total                current assets                                                                                                                                                                                                     |   |                                             | 794,543  |                        |   | 985,165 |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| Property                and equipment                                                                                                                                                                                                   |   |                                             |     |                        |   |   |   |
|                   Office furniture and equipment, net                                                                                                                                                                         |   |                                             | 10,829   |                        |   | 12,214 |   |
|                   Software, net                                                                                                                                                                                               |   |                                             | 361      |                        |   | 491 |   |
| Total                property and equipment, net                                                                                                                                                                                        |   |                                             | 11,190   |                        |   | 12,705 |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| Other                assets                                                                                                                                                                                                             |   |                                             |     |                        |   |   |   |
|                   Deposit                                                                                                                                                                                                     |   |                                             | 33,500   |                        |   | 33,500 |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| **Total                assets**                                                                                                                                                                                                         |   | $                                                | 839,233  |                        | $      | 1,031,370 |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                           |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| Current                liabilities                                                                                                                                                                                                      |   |                                             |     |                        |   |   |   |
|                   Accounts payable                                                                                                                                                                                            |   | $                                                | 1,400    |                        | $      | 30,719 |   |
|                   Deferred revenue                                                                                                                                                                                            |   |                                             | 100,000  |                        |   | 300,000 |   |
|                   Accrued expenses                                                                                                                                                                                            |   |                                             | 70,485   |                        |   | 72,212 |   |
|                   Loan from affiliate                                                                                                                                                                                         |   |                                             | 135,907  |                        |   | 81,344 |   |
|                   Loan from officer                                                                                                                                                                                           |   |                                             | 77,124   |                        |   | 77,124 |   |
| Total                current liabilities                                                                                                                                                                                                |   |                                             | 384,916  |                        |   | 561,399 |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| Stockholders’                equity                                                                                                                                                                                               |   |                                             |     |                        |   |   |   |
|                   Common stock, no par value, 50,000,000 shares authorized, 14,395,036                and                14,273,836 shares issued and outstanding as of 2/28/07 and 5/31/06,                respectively |   |                                             | 631,518  |                        |   | 570,918 |   |
|                   Stock subscriptions receivable                                                                                                                                                                              |   |                                             | (25,000  | )                           |   | (25,000 | ) |
|                   Retained earnings                                                                                                                                                                                           |   |                                             | (152,201 | )                           |   | (75,947 | ) |
| Total                stockholders’ equity                                                                                                                                                                                         |   |                                             | 454,317  |                        |   | 469,971 |   |
|                                                                                                                                                                                                                                    |   |                                             |     |                        |   |   |   |
| **Total                liabilities and shareholders’ equity**                                                                                                                                                                     |   | $                                                | 839,233  |                        | $      | 1,031,370 |   |

**See      Accompanying Notes to Financial Statements**

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**AOB      BIOTECH, INC.**

|                                                                                                                      |   | **Three                Months Ended February 28,** |       | **Nine                Months Ended February 28,** |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|---------------------------------------------------|--------|
|                                                                                                                      |   | **2007**                                           |       | **2006**                                          |   | **2007** |   | **2006** |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |
| Revenues                                                                                                                  |   |                                               |       |                                              |   |   |   |   |   |
|                    Product Sales                                                                           |   | $                                                  | 152        |                                              | $      | 983 |   | $ | 3,371 |   | $ | 983 |   |
|                    Marketing consulting service                                                            |   |                                               | --         |                                              |   | -- |   |   | -- |   |   | 5,000 |   |
|                    Formula development                                                                     |   |                                               | 22,000     |                                              |   | 200,000 |   |   | 222,000 |   |   | 200,000 |   |
| Total                revenues                                                                                             |   |                                               | 22,152     |                                              |   | 200,983 |   |   | 225,371 |   |   | 205,983 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Cost                of revenues                                                                                           |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
|                    Cost of goods sold                                                                      |   |                                               | 8          |                                              |   | 147 |   |   | 960 |   |   | 147 |   |
|                    Marketing consulting service                                                            |   |                                               | --         |                                              |   | -- |   |   | -- |   |   | 1,413 |   |
|                    Formula development                                                                     |   |                                               | 616        |                                              |   | 51,573 |   |   | 20,146 |   |   | 51,573 |   |
| Total                cost of revenues                                                                                     |   |                                               | 624        |                                              |   | 51,720 |   |   | 21,106 |   |   | 53,133 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Gross                profit                                                                                               |   |                                               | 21,528     |                                              |   | 149,263 |   |   | 204,265 |   |   | 152,850 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative expenses                                                               |   |                                               | 112,725    |                                              |   | 21,902 |   |   | 290,504 |   |   | 149,329 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Income                (Loss) from operations                                                                              |   |                                               | (91,197    | )                                                 |   | 127,361 |   |   | (86,239 | ) |   | 3,521 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Other                income (expense)                                                                                     |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
|                    Other income                                                                            |   |                                               | --         |                                              |   | 98 |   |   | -- |   |   | 98 |   |
|                    Other expense                                                                           |   |                                               | (613       | )                                                 |   | -- |   |   | (98 | ) |   | -- |   |
|                    Interest income                                                                         |   |                                               | 5,626      |                                              |   | 6,923 |   |   | 17,936 |   |   | 14,031 |   |
|                    Interest expense                                                                        |   |                                               | (2,549     | )                                                 |   | (675 | ) |   | (7,053 | ) |   | (2,758 | ) |
| Total                other income (expense)                                                                               |   |                                               | 2,464      |                                              |   | 6,346 |   |   | 10,785 |   |   | 11,371 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Net                income (loss) before income taxes                                                                      |   |                                               | (88,733    | )                                                 |   | 133,707 |   |   | (75,454 | ) |   | 14,892 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                                                                 |   |                                               | --         |                                              |   | -- |   |   | 800 |   |   | 800 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                          |   | $                                                  | (88,733    | )                                                 | $      | 133,707 |   | $ | (76,254 | ) | $ | 14,092 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares outstanding                   - basic and fully diluted |   |                                               | 14,354,711 |                                              |   | 14,333,517 |   |   | 14,284,880 |   |   | 14,292,179 |   |
|                                                                                                                      |   |                                               |       |                                              |   |   |   |   |   |   |   |   |   |
| Net                income (loss) per share -- basic and fully diluted                                                     |   | $                                                  | (0.0062    | )                                                 | $      | 0.0093 |   | $ | (0.0053 | ) | $ | 0.0010 |   |

**See      Accompanying Notes to Financial Statements**

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**AOB      BIOTECH, INC.**

|                                                                                                            |   | **Nine                Months Ended February 28,** |     |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------|
|                                                                                                            |   | **2007**                                          |     | **2006** |   |
|                                                                                                            |   |                                              |     |   |   |
| **Cash                flows from operating activities**                                                         |   |                                              |     |   |   |
|                    Net income (loss)                                                             |   | $                                                 | (76,254  | ) | $ | 14,092 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                              |     |   |   |   |   |
|                    Depreciation and amortization expenses                                        |   |                                              | 1,515    |   |   | 583 |   |
|                    (Increase) Decrease in accounts receivable                                    |   |                                              | 50,000   |   |   | (163 | ) |
|                    (Increase) in prepaid expenses                                                |   |                                              | (2,400   | ) |   | (3,705 | ) |
|                    (Increase) Decrease in inventory                                              |   |                                              | 1,573    |   |   | (87,191 | ) |
|                    Decrease in deposits                                                          |   |                                              | --       |   |   | (10,500 | ) |
|                    Increase (Decrease) in accounts payable                                       |   |                                              | (29,319  | ) |   | 52,393 |   |
|                    Increase (Decrease) in deferred revenue                                       |   |                                              | (200,000 | ) |   | 300,000 |   |
|                    Increase (Decrease) in accrued expenses                                       |   |                                              | (1,727   | ) |   | 3,675 |   |
| **Net                cash provided by (used in) operating activities**                                          |   |                                              | (256,612 | ) |   | 269,184 |   |
|                                                                                                            |   |                                              |     |   |   |   |   |
| **Cash                flows from investing activities**                                                         |   |                                              |     |   |   |   |   |
|                    (Increase) in loan to affiliate                                               |   |                                              | (81,000  | ) |   | -- |   |
|                    Cash used to purchase fixed assets                                            |   |                                              | --       |   |   | (10,218 | ) |
| **Net                cash provided by investing activities**                                                    |   |                                              | (81,000  | ) |   | (10,218 | ) |
|                                                                                                            |   |                                              |     |   |   |   |   |
| **Cash                flows from financing activities**                                                         |   |                                              |     |   |   |   |   |
|                    Increase (Decrease) in loan from affiliate                                    |   |                                              | 54,563   |   |   | (50,000 | ) |
|                    Increase in loan from shareholder                                             |   |                                              | --       |   |   | 20,663 |   |
|                    Proceeds from issuance of common stock                                        |   |                                              | 60,600   |   |   | 411,918 |   |
| **Net                cash provided by financing activities**                                                    |   |                                              | 115,163  |   |   | 382,581 |   |
|                                                                                                            |   |                                              |     |   |   |   |   |
| **Net                increase (decrease) in cash**                                                              |   |                                              | (222,449 | ) |   | 641,547 |   |
|                                                                                                            |   |                                              |     |   |   |   |   |
| Cash                - beginning                                                                                 |   |                                              | 636,645  |   |   | 80,734 |   |
| Cash                - ending                                                                                    |   | $                                                 | 414,196  |   | $ | 722,281 |   |
|                                                                                                            |   |                                              |     |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURES**                                                                     |   |                                              |     |   |   |   |   |
|                                                                                                            |   |                                              |     |   |   |   |   |
| Interest                paid                                                                                    |   | $                                                 | --       |   | $ | -- |   |
| Income                taxes paid                                                                                |   | $                                                 | 800      |   | $ | 2,600 |   |

**See      Accompanying Notes to Financial Statements**

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**AOB      BIOTECH, INC.**

**NOTES      TO THE FINANCIAL STATEMENTS**

**NOTE      1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**NOTE      2 - RELATED PARTY TRANSACTIONS**

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**NOTE      3 - CAPITAL STOCK**

**NOTE      4 - COMMITMENTS**

| For                the year ended November, |   | Amount |    |
|---------------------------------------------|--------|--------|---------|
|                                        |   |   |    |
| 2007                                        |   | $      | 129,920 |   |
| 2008                                        |   |   | 96,754  |   |
| 2009                                        |   |   | 22,446  |   |
|                                        |   |   |    |   |
| Total                                       |   | $      | 249,120 |   |

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**NOTE      5 - SEGMENT INFORMATION**

|                                        |   | **Nine                Months Ended February 28,** |    |
|---------------------------------------------|--------|---------------------------------------------------|---------|
|                                        |   | **2007**                                          |    | **2006** |   |
|                                        |   | Revenue                                           |    | Gross                Profit |   | Revenue |   | Gross                Profit |   |
|                                        |   |                                              |    |   |   |   |   |   |   |
| Product                Sales                |   | $                                                 | 3,371   |   | $ | 2,411 |   | $ | 983 |   | $ | 836 |   |
| Formula                development          |   |                                              | 222,000 |   |   | 201,854 |   |   | 200,000 |   |   | 148,427 |   |
| Marketing                consulting service |   |                                              | --      |   |   | -- |   |   | 5,000 |   |   | 3,587 |   |
|                                        |   | $                                                 | 225,371 |   | $ | 204,265 |   | $ | 205,983 |   | $ | 152,850 |   |

|                         |   | **Nine                Months Ended February 28,** |    |
|------------------------------|--------|---------------------------------------------------|---------|
|                         |   | **2007**                                          |    | **2006** |   |
|                         |   |                                              |    |   |   |
| United                States |   | $                                                 | 3,371   |   | $ | 5,983 |   |
| Japan                        |   |                                              | 222,000 |   |   | 200,000 |   |
| Total                        |   | $                                                 | 225,371 |   | $ | 205,983 |   |

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**Item      2. Management's Discussion and Analysis or Plan of      Operation**

**Overview**

For      the      year ended May 31, 2005, the Company received all of its revenues from its      marketing and consulting services and of those revenues over 90% was from one      customer, FINA International Co., Ltd. In the year ended May 31, 2006 the      Company was able to develop its product sales business which represented      approximately 56% of total revenues. Over 95% of the Company’s revenues was      generated by only one customer. This customer who purchased the Company’s      products owes the Company, as of August 31, 2006, $206,440. These monies should      all be paid by December 31, 2006. Super Max USA, Inc. was responsible for all      of      the Company’s formula development business. The Company received $500,000 for      the development of five products. Two products were delivered to the customer      in      April 2006. The remaining three products are scheduled to be delivered to the      customer between November 2006 and April 2007. 

**Results      of Operations**

**Nine      Months Ended February 28, 2007 Compared to Nine Months Ended February 28,      2006**

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**Three      Months Ended February 28, 2007 Compared to Three Months Ended February 28,      2006**

**Liquidity      and Capital Resources**

**Critical      Accounting Policies**

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**Revenue      Recognition **

**Income      Taxes **

**Allowance      for Doubtful Accounts **

**Inventory      Reserves **

**Segment      Information **

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**Caution      Regarding Forward-Looking Statements**

**Item      3. Controls and Procedures**

**PART      II - OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      2. Changes in Securities**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Securities      Holders**

**Item      5. Other Information**

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**Item      6. Exhibits and Reports on Form 8-K**

| a)   | Form                8-K - None |
|----------------|--------------------------------|

| b)   | Exhibits |
|----------------|----------|

| Exhibit                number |   | Description                              |
|-------------------------------|--------|------------------------------------------|
|                          |   |                                     |
| 31.1                          |   | Section                302 Certification |
|                          |   |                                     |
| 31.2                          |   | Section                302 Certification |
|                          |   |                                     |
| 32.1                          |   | Section                906 Certification |

**SIGNATURES**

| Dated:                April 13, 2007 | AOB                Biotech, Inc.         |
|--------------------------------------|------------------------------------------|
|                                 |                                     |
|                                 | *By:**/s/                Nelson Liao*    |
|                                 | *Nelson                Liao*             |
|                                 | *Chief                Executive Officer* |

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