Genova Biotherapeutics (GVBP) 10-Q 2008 Q1 Quarterly report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10 - Q

_______________________________

[mark one]

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

For the quarterly period ended: March 31, 2008

o TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number 000-52703

_____________________________________________________________

Kinder Travel, Inc.

(Exact name of registrant as specified in its charter)

Nevada	20-4939361
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)

20385 64th Avenue

Langley, British Columbia

 (Address of principal executive offices including zip code) 

(604) 514-1962

(Registrant's telephone number, including area code) 

CSC Services of Nevada, Inc., 502 E. John Street, Carson City, NV 89706

 (Name and address of agent for service)

(775) 882-3072

(Telephone Number, including area code, of agent for service)

with a copy to:

SteadyLaw Group, LLP

501 W. Broadway, Suite 800

San Diego, CA 92101

Telephone (619) 399-3090

Telecopier (619) 330-1888

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Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of  "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).YES o  NO x

The registrant has 2,400,000 shares of common stock outstanding as of May 8, 2008.

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Quarterly Report on FORM 10-Q For The Period Ended

March 31, 2008

Table of Contents

Kinder Travel, Inc.

PART I - FINANCIAL INFORMATION		Page No.
ITEM 1.	FINANCIAL STATEMENTS	4
	Condensed Balance Sheets	4
	Condensed Statements of Operations	5
	Condensed Statements of Stockholder Equity	6
	Condensed Statements of Cash Flows	7
	Notes to Condensed Financial Statements	8
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	12
ITEM 4T.	CONTROLS AND PROCEDURES	28
PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	29
ITEM 1A.	RISK FACTORS	29
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	29
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	29
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	29
ITEM 5.	OTHER INFORMATION	29
ITEM 6.	EXHIBITS	29
SIGNATURES		30

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PART I.

Item 1.  FINANCIAL STATEMENTS

KINDER TRAVEL, INC.

BALANCE SHEETS

 (In Canadian Dollars)

UNAUDITED
ASSETS	For the Three Months Ended March 31, 2008			For the Year Ended December 31, 2008
Current Assets
Cash	$	26,047		$	16,276
Accounts receivable, net of allowance for doubtful accounts		16,594			10,941
Deposits with Suppliers		9,008			4,464
Total current assets		51,648			31,680
Vehicles and Equipment, net of accumulated depreciation		22,694			24,488
Website, net of accumulated depreciation		3,554			4,146
Travel Agency Bond		15,000			15,000
	$	92,897		$	75,315
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses		45,580			35,664
Shareholders’ loans		14,235			8,529
Current portion of long-term debt		1,070			1025
Total current liabilities		60,885			45,244
Long-term Debt, net of current portion		20,153			20,418
Stockholders' Equity (Deficit)
Preferred stock, USD $.001 par value; 10,000,000
shares authorized; no shares issued or outstanding					-
Common stock, USD $.001 par value; 65,000,000 shares authorized;
Issued:    2,400,000 shares		2,691			2,691
Additional paid-in capital		128,539			128,539
Retained earnings (deficit)		(119,370	)		(121,576	)
Total stockholders' equity (deficit)		11,859			9,654
	$	92,897		$	75,315

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

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KINDER TRAVEL, INC.

STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2008 and 2007

(In Canadian Dollars)

UNAUDITED

	2008		2007
Revenue	$	71,545	$	58,601
Cost of Sales		14,701		13,173
Net Revenue		56,845		45,428
Expenses
General and administrative		31,406		18,786
Payroll Expenses		24,911		23,135
Professional Fees		7,322		2,329
		54,639		44,251
Net Operating Income (Loss) before taxes	$	2,206	$	1,177
Provision for Income Tax		-		-
Net Income (Loss)	$	2,206	$	1,177
Net income (loss) per common share (basic and
fully diluted)	$	0.00	$	0.00
Weighted average number of common
shares outstanding		2,400,000		2,400,000

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

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KINDER TRAVEL, INC.

STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

For the Three Months Ended March 31, 2008

(In Canadian Dollars)

UNAUDITED

					Additional
	Common Stock				Paid-In			Retained
	Shares		Amount		Capital			Earnings			Total
Balances, December 31, 2005		-	$	-	$	-		$	3,703		$	3,703
Issuance of warrants at fair value for compensation						20,000						20,000
Common stock issued		400,000		466		(466	)		-			-
Common stock issued by execution of warrants		2,000,000		2,225		109,005						111,230
Net profit (loss)									(118,883	)		(118,883	)
Balances, December 31, 2006		2,400,000		2,691		128,539			(115,180	)		16,050
Net profit (loss)									(6,397	)		(6,397	)
Balances, December 31, 2007		2,400,000		2,691		128,539			(121,576	)		9,654
Net profit (loss)									2,206			2,206
Balances, March 31, 2008		2,400,000	$	2,691	$	128,539		$	(119,370	)	$	11,859

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

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KINDER TRAVEL, INC.

STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2008 and 2007

(In Canadian Dollars)

UNAUDITED

	2008			2007
OPERATING ACTIVITIES
Net income (loss)	$	2,206		$	1,177
Adjustments to reconcile net income (loss) to net
cash flows from operating activities
Depreciation and Amortization		2,387			3,140
Changes in operating assets and liabilities
Accounts receivable		(5,653	)		(10,433	)
Deposits with Suppliers		(4,543	)		-
Accounts payable and accrued expenses		9,620			15,126
Net cash flows from operating activities		4,016			9,011
INVESTING ACTIVITIES
Purchases of Vehicles and Equipment		-			-
Net cash flows from investing activities		-			-
FINANCING ACTIVITIES
Net proceeds (payments) from loans		5,706			7,097
Net cash flows from financing activities		5,706			7,097
Change in cash		9,722			16,108
Cash, beginning of the period		16,275			26,824
Cash, end of the period	$	26,047		$	42,932
Supplemental Information:
Cash paid for interest expense	$	748		$	536
Cash paid for income taxes	$	-		$	-
Non-Cash Activities	$	2,387		$	3,140

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

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KINDER TRAVEL INC.

NOTES TO FINANCIAL STATEMENTS

(In Canadian Dollars)

March 31, 2008

Note 1.  The Company and Significant Accounting Policies

The Company

Kinder Travel, Inc. (the "Company") was incorporated under the laws of the state of Nevada.  The Company is a full-service travel agency in Surrey, British Columbia, offering the full range of travel services including corporate travel, vacations, cruise holidays, and group tours. However its primary focus is selling, marketing and providing in-store and web-based travel services and tours to families, businesses and ministries.

Effective January 1, 2006, the Company acquired all of the assets and liabilities of a British Columbia corporation, Kinder Travel & Tours, Inc. ("KTT").  This acquisition is described in more detail in Note 2.  Prior to the acquisition, the Company had limited operations and expenses were primarily related to becoming incorporated.  Subsequent to the acquisition, the Company adopted the business plan of KTT and began operating a travel agency.

Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, with the instructions to Form 10-QSB, and with Regulation S-B.  Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.  The results of operations reflect interim adjustments, all of which are of a normal recurring nature and which, in the opinion of management, are necessary for a fair presentation of the results for such interim period.  The results reported in these interim financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year.  Certain information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations.  These unaudited interim financial statements should be read in conjunction with the audited annual financial statements for the year ended December 31, 2007.

Revenue Recognition

The Company has various methods by which it receives revenue.  At present, most revenue is derived substantially from the following sources:

●   Supplier Based Commissions: The Company receives commissions based upon contractual arrangements with leading travel providers.

●   Consumer Service Fees: Upfront fee charged for each booking regardless of the type of travel.

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The Company recognizes revenue as follows:

●   For service fees, when reservations are made and secured by a credit card or other form of payment;

●   For air travel, cruises and package tours, when reservations are made and secured by a credit card of other form of payment; and

●   For all travel such as hotel bookings and rental cars, when commissions are received from the travel supplier.

Earnings per Share

Basic earnings per share is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding in the period.  Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities.  Common stock issuable is considered outstanding as of the original approval date for purposes of earnings per share computations.  The shares issued in the conversion of the convertible note payable described in Note 2, were considered issued for the acquisition of KTT effective January 1, 2006.

Website Development Costs

The Company's website was launched in 2006 and website development costs were accounted for in accordance with Emerging Issues Task Force 00-2, "Accounting for Web Site Development Costs," with applicable guidance from AICPA Statement of Position 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use." The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, will be capitalized and amortized, on a straight-line basis over the estimated useful life, if management believes such costs are significant. Maintenance and enhancement costs will be expensed as incurred unless such costs relate to substantial upgrades and enhancements to the website that result in added functionality, in which case the costs will be capitalized and amortized on a straight-line basis over the estimated useful life, if management believes such costs are significant.

Reporting Currency

All of the Company's transactions are denominated in Canadian currency so the Company has adopted the Canadian dollar as its functional and reporting currency.  Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in "general and administrative expenses" in the statement of operations, which amounts were $ (206) and $ 0 for the first three months of 2008 and 2007 respectively.

Estimates

The preparation of these financial statements in conformity with accounting principles generally accepted in the United States 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 these financial statements and the reported amounts of revenues and expenses during the period.  Actual results could differ from these estimates.

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Income Taxes

The Company accounts for income taxes under the asset and liability method.  Under this method, deferred assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.  The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be recoverable against future taxable income.

New Accounting Pronouncements

There are no new accounting pronouncements expected to have a material effect on the Company's accounting policies or financial reporting.

Note 2.  Acquisition

Effective January 1, 2006, the Company acquired all of the assets and liabilities of Kinder Travel & Tours, Inc. ("KTT"), a British Columbia corporation, which had recently acquired all of the assets and liabilities of a sole proprietor.  Prior to the acquisition, the Company was a non-operating shell.  Accordingly, the acquisition is accounted for as a recapitalization of the Company.  The historical financial statements presented are those of KTT as a combined entity with the sole proprietor.

Effective as of the date of the acquisition, the Company issued a convertible note payable to the shareholder of KTT in the amount of US $20,000 represents a conversion rate of 400,000 shares of the Company's common stock at US $0.05 per share.  During March 2006, the note was converted into 400,000 shares.  The Company has accounted for the issuance of shares in the conversion of the note as a recapitalization of the Company.  No gain or loss has been recorded on the note conversion.  The net assets of KTT have been included in the balance sheet at their book values.  No intangible assets were recorded in this acquisition.  No cash was paid in this transaction.

The assets acquired and liabilities assumed of KTT are as follows:

Cash	$	26,903
Accounts receivable, net		10,142
Vehicles and equipment, net		46,515
Travel agency bond		15,000
Accounts payable and accrued expenses		(21,521	)
Demand loan payable		(50,000	)
Long-term debt		(23,346	)
Retained earnings		(3,703	)
	$	-

Since the Company had no revenue or expenses prior to the acquisition of KTT, all proforma results are those of KTT.

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Note 3. Long-Term Debt

The Company has a note payable to a bank. The note is secured by a vehicle, bears interest at 7.89% per year and requires monthly payments of $226 until June 2, 2010, at which time all remaining principal is due in full.

Annual principal payments for the years ending December 31 are required as follows:

2006	$ 897
2007	971
2008	1,050
2009	1,136
2010	19,282
	$ 23,336

Note 4.  Warrants

In June 2006, Mardan Consulting Inc., a corporation owned by the Company's CEO, Daniel L. Baxter, exercised its right to purchase 2,000,000 shares of common stock under the terms of a Common Stock Purchase Warrant issued in January 2006. This brought the total number of shares outstanding to 2,400,000.

Note 5.   Subsequent events

There were no subsequent events expected to have a material effect on the Company's accounting policies or financial reporting.

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

This discussion and analysis should be read in conjunction with the accompanying Financial Statements and related notes. Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of any contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. On an on-going basis we review our estimates and assumptions. Our estimates are based on our historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results are likely to differ from those estimates under different assumptions or conditions, but we do not believe such differences will materially affect our financial position or results of operations. Our critical accounting policies, the policies we believe are most important to the presentation of our financial statements and require the most difficult, subjective and complex judgments, are outlined below in "Critical Accounting Policies,' and have not changed significantly.

In addition, certain statements made in this report may constitute "forward-looking statements'. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Specifically, 1) our ability to obtain necessary regulatory approvals for our products; and 2) our ability to increase revenues and operating income, is dependent upon our ability to develop and sell our products, general economic conditions, and other factors. You can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continues" or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected-in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Overview

Kinder Travel is a travel agency offering a full range of travel services including corporate travel, vacations, cruise holidays, and group tours. However its primary focus is selling, marketing and providing travel services and tours to families, businesses and ministries. Kinder Travel, located in Surrey, British Columbia, Canada, commenced operations in January 2005 and expects to move rapidly towards growth and profitability due to its very unique character as a family vacation specialist and special interest tour operator.

Our primary goal is to provide travel that promotes family values, at present through our store and in the future via our website.  Our website consists of an on-line booking engine geared to providing Christian families with travel options that promote unity.  A full-scale version of our web-site was launched in October 2006.  We spent approximately $20,000 to complete the design and launch of our website, and funded these expenses from our cash on hand.

The technology, infrastructure and operations of Kinder Travel provide consumers with a groundbreaking approach to online travel in a "family" environment aimed at providing affordable opportunities for memories that last a lifetime.

The objective for Kinder Travel is to promote family travel. We believe that traveling plays a vital role in the education of children and adults alike, while playing a pivotal role in "building childhood memories" and reaffirming or creating bonds between the traveling family members. Kinder Travel offers a range of travel and tour products that are suited and composed specifically for Christian families.

Kinder Travel aspires to become a leader in offering and operating a wide range of family oriented travel and tour products. The vast majority of travel agents do not address the very unique challenges a family faces when making their travel plans. From finding the right destination to the affordability of their family vacation, there are many considerations to contemplate before booking.

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As part of our effort to provide consumers with a more personalized experience, the Company has secured the domain www.myenvoytravel.com, which will function as our principal website, to tailor to the specific travel preferences of each consumer.  Consumers visiting us online at www.kindertravel.com will be redirected to our online home page at www.myenvoytravel.com.  The Company launched its internet site in October 2006.  It is now fully operational.

In fact, the Company will be conducting business under the trade name "Envoy Travel" rather than Kinder Travel.  The Company has decided to transact business under the name "Envoy Travel" primarily for marketing purposes as the word "kinder" means "child" in German and is too restrictive to promote the type of travel which is offered by the Company.

Kinder Travel is a boutique travel agency with a wide range of travel services available to their existing, well-established, client base. However by targeting a unique market segment that has been largely ignored, the family, the Company is well positioned for moderate growth and profitability.

Strategically placed advertising with family oriented newspapers and radio stations may generate the name recognition and the interest necessary for consumers to contact "the family travel specialists" either on the web or by email or phone.

We are not a "blank check company," as we do not intend to participate in a reverse acquisition or merger transaction. A "blank check company" is defined by securities laws as a development stage company that has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person.

Our offices are located at 20385 64th Avenue Langley, B.C. Canada V2Y 1N5

Our Corporate History

In December 2005, Kinder Travel, Inc. (the "Company", "we", "our", "us", "Kinder Travel", the "Registrant",and like references) was formed as a Nevada corporation.  Initial operations commenced under the name Kinder Travel & Tours ("KTT"), a sole proprietorship operating out of Surrey, British Columbia, in January 2005.  In November 2005, KTT incorporated under the laws of the Province of British Columbia as Kinder Travel, Inc. ("KTBC").  Pursuant to the terms of an Asset Purchase Agreement ("Asset Purchase Agreement") executed by and between the Company and KTBC, the Company acquired all assets and liabilities of KTBC in exchange for a convertible note for USD$20,000 (the "Note").  The Note was then distributed to KTBC's only shareholder, Dirk Holzhauer, who subsequently converted the Note into 400,000 shares of common stock.  The Asset Purchase Agreement closed on January 1, 2006 (the "Closing Date").

Business Description

Family Focused Travel

Kinder Travel has identified that Christian family travel is not represented and marketed with any special consideration or focus. Kinder Travel offers existing travel and tour products that are family-oriented as well as offering our own specially designed vacations for Christian families.

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The following is a representative sample of the kind of travel packages currently available to families, and those that we expect to offer sometime in the future:

Family Vacations (presently available)

Transat A.T. Inc. ("Transat") Holidays, the leading package vacation operator for Western Canada, is offering many, family oriented and specially priced all inclusive resorts in the charter market. Kinder Travel anticipates that it will soon be featuring these products by Transat Holidays and aims to become Western Canada's largest seller of Transat Holidays for families. With Kinder Travel the customer gets more information about resorts and the added benefits and perks that will be unique to booking with Kinder Travel.

Family Life Cruises (presently available)

Learn and share, worship and praise while traveling along the Mexican Riviera.  Programs include Marriage Building and Parenting presented by powerful speaking couples.  Vacation Bible School and faith based daycare are provided onboard.  Our first cruise held in April 2007 was almost completely sold out and we are already making plans from the family cruise in 2008. This product is offered in participation with FamilyLife Canada online at www.familylifecruise.com.

Worldwide Religious Travel Packages (presently available)

We specialize in Globus Vacation packages, which may be viewed online at www.globusjourneys.com/faith. Globus is the world leader in escorted travel and the first choice among individuals looking for group travel year after year. With more than 75 years experience offering top quality vacations and eight travel styles, each year the Globus family of brands provides tens of thousands of people an enjoyable travel experience. Recognized for its worldwide excellence, Globus is annually selected as one of the top escorted travel companies by travel agents and Recommend Magazine.

Farm Stays in Germany, Austria and Switzerland (future product offering)

Some European farms have converted part of their housing into budget to moderate hotel style accommodations. Families will stay on the farm and will witness the operations first hand. Children will have the opportunity to learn and understand the importance of farming and will have direct contact with live farm animals.

Missionary Travel (presently available)

Kinder Travel will offer missions to Mexico and other destinations in conjunction with local churches and organizations.

Devotional Tours (presently available)

There will be spiritual journeys to the Holy Land of Israel and Pilgrimages to sites in Europe, like Lourdes or Camino de Santiago.

Family Adventure Travel (future product offering)

The Company will promote high-end family safaris.

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Additional Products and Services

Our Christian focused, family oriented travel and tour products are complemented by the following array of products and services:

www.myenvoytravel.com

Our web-based program allows consumers to book travel from the convenience of their own home, or from wherever may be convenient for them.  The same travel options offered in our store are available through our website.

Access to our web-based program may be subject to an annual fee of $49 when you book your first online vacation.  We have not performed any market research to ascertain whether consumers would be willing to pay such a fee.  Although we have now launched our website, we have yet to determine if such a fee will be charged.

We anticipate that our web-based program will open the door for families, ministries and others to more easily book vacations, thus promoting Christian based family travel.

Kinder Vacations Network ("KVN")

Utilizing our web-based program, we aim to create the Kinder Vacations Network ("KVN"), which will focus on developing home-based travel agencies offering our travel products and services.  These home-based agencies will have access to our booking system, and will receive 80% of our commission for products and services that they sell.

Our program is designed to sell certain geographic areas to interested parities.  This will, in turn, afford interested consumers with the opportunity of contacting one of our home based travel agents in their community.

A monthly fee of $100 is charged to our home-based travel agents, with a discount of $15 per month for a two-year contractual commitment.  We intend to recruit sales agents for KVN through traditional forms of marketing and advertising.

We anticipate launching KVN in 18 months.

Website Advertising

Website advertising will consist of banner ads from major vendors on the www.myenvoytravel.com website and customized ad placement for our home-based travel agents when consumers simply enter their postal code.  This opportunity will allow our home based travel agents the ability to increase their revenue with advertising space that is included in their monthly fee.

Dream Away

The consumer Dream Away, serviced directly from our www.myenvoytravel.com Internet site, allows consumers to create a "wish list" of destinations, which automatically results in the email distribution of all travel specials for those locations.  Additionally, this feature enables consumers to create and store a digital travel log where they are able to store photographs, create a slide show presentation with music and much, much more.  The Dream Away feature also provides consumers with location specific tourist information, packing tips and toll-free numbers for all pertinent hotel, car and airline suppliers.

Kinder Travel Cafes

It is our goal to open Kinder Travel Cafes that will feature free access to our www.myenvoytravel.com website, bible study, and religious and travel seminars as well as typical cafe services.  Additionally, our Kinder Travel Cafes include the following: a comfortable place to sit and read, travel books from the around the world, luggage for sale, travel related merchandise, and trained representatives to assist in booking one of our travel products.

With our primary travel agency now operating, we intend on launching our first Travel Cafe in 12 months.  However, hurdles for launching our Cafes include increasing our revenues, having the necessary funds or ability to raise additional capital, and sufficient interest in our products.  We may be forced to reconsider our plans to open Kinder Travel Cafes if we cannot overcome some or all of these hurdles.

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Active Web Presence

The website www.myenvoytravel.com operates as a user-friendly booking engine and can be used as a research and booking tool for families planning their vacations as well as businesses and ministries.

Kinder Foundation

Kinder Travel plans to establish a charitable foundation to fund Christian faith-based initiatives in Canada and the United States and to sponsor travel opportunities for families in need.  We plan to launch the Kinder Foundation once we reach a sustainable profit level.  At that time, we will contribute 10% of our profits to fund such initiatives.  As the Kinder Foundation is a work in progress, the types of Christian faith based initiatives that we plan to fund have not been determined.

Industry Background

The Travel Industry

According to market research conducted by PhoCusWright, ("PhoCusWright"); a leading independent, travel, tourism and hospitality research firm specializing in consumer, business, and competitive intelligence; 2004-2006 estimates indicate that while total travel industry growth rates will increase slightly each year, the online share of that market will continue to rise. PhoCusWright projects that more than one-third of all U.S. travel will be booked online by leisure and unmanaged business travel sites in 2006, up from 15% in 2002 and 20% in 2003.

Purchasing travel can be a complicated process involving a variety of destinations, dates and price limitations and the purchase of several products from different suppliers, including air, lodging and car rental providers. To facilitate the exchange of travel information, travelers and suppliers have traditionally relied on travel agents as intermediaries. Travel agents typically perform the task of research, fact-finding and price comparison on behalf of consumers. However, traditional travel agents may not always present optimal choices for consumers and are generally not available 24 hours a day seven days a week.

Travel agents depend on computer reservation systems, referred to as electronic global distribution systems, or GDS, to access flight and other travel product availability and pricing, and to book air and other travel products. GDS may not be able to provide all the information and options that are available in the marketplace due to technical limitations of their legacy mainframe computer systems and their inherent computational limitations. As such, travel agents may not be able to provide consumers with the broadest array of available travel options. Travel agents who use GDS can also increase the overall distribution cost to both consumers and suppliers. For consumers, particularly business travelers, travel agencies typically charge a fee. Traditional consumer leisure travel fees are up to $25 and corporate travel fees generally range from $25 to $50 per transaction. The GDS fees that are charged to suppliers as part of a typical travel agency booking also represent a substantial distribution expense for suppliers. A portion of these fees is typically shared with travel agents each time a booking is made using their systems.

The Online Travel Industry

The sale of travel products online is rapidly gaining consumer acceptance. According to PhoCusWright leisure and unmanaged business travel is the largest consumer spending category on the Internet with approximately $39.4 billion in estimated gross travel bookings in 2003. The Internet empowers consumers and business travelers with a convenient and efficient way to compare and book travel options. In addition, delivery and confirmation of the travel product purchased can be made almost instantaneously through an e-mail sent to the consumer. The Internet also permits suppliers to employ targeted marketing strategies in order to optimize bookings and revenues. While online travel has been widely accepted by consumers, online travel as a percentage of total travel sales is still relatively low. According to PhoCusWright, online travel sales have experienced recent growth rates exceeding 30% annually.  This growth is large when compared to the total travel sales, which have grown at only 2-3%.

Although online travel sales have been growing rapidly, we believe that a significant opportunity exists to further increase the number of consumers who purchase travel on the Internet and on www.myenvoytravel.com by using consumer and supplier-focused technologies and processes to improve the way travel is purchased and sold.

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Competitive Advantage

The following attributes will give our Company a competitive advantage over other participants in the travel industry:

Target Audience

Our target audience is every consumer interested in travel, with an emphasis on those of the Christian Faith and families seeking to create those "once in a lifetime" memories.  If you are an Internet booker and/or a vacation shopper, even a business client, you will receive the most comprehensive and cost effective travel options focused on promoting family unity.  The support that we receive from our suppliers and the commission based incentives that we offer to home based agents in our Kinder Vacations Network will assist in the growth of our Company.

Kinder Vacations Network

We expect that our network of home-based travel agents will help us create a base of knowledgeable, experienced and courteous travel professionals to assist with your travel needs.  By utilizing KVN, consumers are able to have their own potentially successful business, directly from the comfort of their own home.

Opportunity for Growth

It is our expectation that people and families will realize the benefits offered by our travel products and services.  Provided this happens, we anticipate tremendous growth opportunities for us, members of KVN, our vendors and, ultimately, the consumer.  As our volume of sales increases, we anticipate that suppliers will be inclined to pay higher commissions, making KVN more attractive and allowing us to more fully implement our business model.

Value for Consumers and Travel Suppliers

We will potentially to do business with the vast majority of major suppliers, enabling us to negotiate competitive pricing allowing us to give consumers better products and greater returns on money spent.

Family Oriented Travel Chart

Our technology is set-up to provide consumers with various Christian based and family oriented travel options that suit their interests in one, easy to see chart, allowing the consumer to choose the most desirable option.

Self-Marketing

We still believe that the best advertising is word of mouth.  However, for us to effectively compete with the larger in-store and web based travel companies, we will also focus on more traditional forms of advertising, along with our commercial spots and Travel Video.

User friendly, innovative approach to travel

In order to keep consumers happy, you have to be able to service their needs.  We take great pride in always being just a phone call away.  That is the reason that some have come to refer to us as the "Christian Travel Company."

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Technology Services

     Booking Engine Services

We have distribution and marketing agreements with numerous airlines, lodging companies, rental car companies and other travel suppliers. These agreements enable us to offer our consumers what we believe to be the most comprehensive selection of low fares generally available to the public and a wide array of competitive rates on other travel products.

Technology and Operations

We believe that the design and quality of our technology positions the Company for success, and distinguishes our website and product offerings from those of our competitors. Our goal has been to build an innovative travel management tool for consumers and to build systems that will move traffic and transactions through a low-cost channel. We believe that our system will continue to support rapid growth and differentiate us from our competitors.

Our hardware and software architecture is designed to maximize scalability, availability, reliability, efficiency, flexibility, manageability and security. By implementing many competing fares, checking availability, and booking transactions directly with supplier hosts, we have constructed our booking engine using Internet technologies rather than a system based around more traditional mainframe travel systems.

Use Kinder Vacations Network to increase sales in all sectors

While online sale of vacation travel is likely to be a primary revenue generating source, we believe that our kinder Vacations Network will drive the sales of all travel related purchases as consumers will have access to one of our local representatives.  We have launched several key initiatives to take advantage of this opportunity:

●   Improve purchase efficiency through effective marketing techniques;    

●   Improve travel offerings;

●   Home-based travel agents;    

●   Launch of our dynamic Travel Video;

●   Low cost travel, with the consumer receiving a portion of our commission; and  

●   Strong Customer Retention.

We offer consumers what we believe to be the broadest selection of family oriented travel options.  As generally evident from the family oriented travel chart on our web site, we offer the largest selection of low fares generally available to the public and a wide array of competitive rates on other travel products. By and through the Kinder Vacations Network, we expect to generate a high degree of customer loyalty that will result in high customer retention rates. Key initiatives to promote higher customer retention include:

●   Continue to maintain strong supplier relationships to ensure competitive rates on commission based travel;

●   Develop our technology to deliver a customer friendly website, providing the option to become a home-based travel agent;

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●   Invest in technologies and marketing strategies that will improve our ability to target our customers;

●   Continue to develop our customer care capabilities to make travel more convenient for our customers;

●   Capitalize on innovative travel platform;

●   We will continue to capitalize on our strength in developing technological and marketing enhancements that benefit both our travel suppliers and customers;

●   Feature certain vendors on our site that pay us higher commission structures and greater family oriented travel opportunities for our consumers; and

●   Direct Relationships with Major Travel Suppliers.

Expand our Customer Base

Our goal is to increase our customer base by acquiring new customers in a cost-effective manner and increasing our market share in the rapidly growing online travel industry. We intend to achieve this objective by:

●   Emphasizing performance-based online advertising and other targeted marketing strategies;

●   Cost-effectively building our brand through traditional broadcast and print channels;

●   Generating increased transactions by using direct mail recognition programs and encouraging infrequent bookers to purchase more travel from us using supplier incentives; and

●   Offering web-based corporate travel.

Pursue New Business Opportunities

We plan to use our innovative technology and our relationships with travel suppliers to expand and enhance our growth prospects.

We believe that our approach to travel uniquely positions us to capitalize on the emerging growth of the online travel industry.  Since we have an established base of vendor contracts in place, we are able to meet the demands of consumers, all of whom are always looking for an easier and more efficient way to book travel.  Our business objectives, once fully implemented, will allow Kinder Travel to continue to develop its wide array of products, putting fast and easy travel tools right at their fingertips.

In order to pursue these business opportunities and our other growth initiatives, we may make strategic acquisitions of other businesses, products and technologies. The discussion of our strategy in this section reflects our current view of the ways we intend to develop our business in the future. Many of the initiatives we describe above are at an early stage, and we continue to review them in light of changing business conditions. We may change our plans, and future developments could differ from those we intend or expect to occur.

The Company also serves as ministry travel provider, and is continually seeking new ministries with which it can partner.  Presently, we have agreements with only two ministries, but, through traditional forms of marketing and advertising, including word of mouth, are seeking other ministries to expand on this aspect of our business plan.

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In 2005, the Company signed a revenue sharing agreement with Power to Change Ministries (formerly Campus Crusade For Christ Canada) ("PTC"), giving it exclusive rights to all travel bookings in Canada. As part of this agreement, Kinder Travel set up an office within the PTC head office and employs a full-time agent to service their travel needs.

Kinder Travel also secured the travel business of Alpha Canada, an organization which works with local churches across Canada offering a 10 week, thought-provoking course which explores the Christian faith in a relaxed, non-threatening environment.

The Company has a formal written agreement with PTC. There is no written agreement with Alpha Canada.

Our Agreement with PTC provides that PTC will act as an independent contractor for the Company, selling and promoting the Company's services.  PTC, per the Agreement, is entitled to receive 35% of the commissions and service fees generated for each of the services sold as long as they maintain certain revenue levels.  The Company will provide administrative support to PTC on an as needed basis.  The Agreement shall continue until terminated by either party upon 30 days written notice.

During the quarter ended March 31, 2008, the Company derived $ 23,239 and $ 0 in revenue through its agreement with PTC and Alpha Canada respectively.

Reservations

Our website enables consumers and business travelers to research and purchase a wide range of travel products and services, including airline tickets, hotel accommodations, car rentals, cruises, and vacation packages. We have established agreements with numerous travel suppliers and offer air fares and rates from hundreds of airlines, tens of thousands of hotel properties and a large number of car rental providers. Our advanced search technology allows our customers to easily find and compare what we believe to be the widest selection of travel prices and options from not only our site, but all leading online travel providers, the largest selection of low fares generally available and the opportunity to share in the commissions that we receive. Finally, we have developed what we believe is an intuitive and easy-to-use booking process for making reservations and purchasing travel services.

Flights

Our search engine can quickly analyze over billions of possible flight and fare combinations to provide customers with the largest selection of low fares generally available to the public. Our technology and innovative display allows consumers to choose the best rate or schedule that they find and begin their booking process.  Our systems allow you be in total control over your travel choices, while continuously promoting Christian, family oriented travel options.

Our search options allow for easy vacation planning.  For example, a person interested in finding a vacation would be asked the following type of questions: (1) Where are you departing from?; (2) Where are you going to?; (3) What are your dates of travel?; (4) How many people are in your party?  This information will go out and search all major providers, after which our system will quickly display the best price for that vacation.  Whether you are just booking a car, or need a hotel, to booking airline tickets to vacation packages and cruises, the choice is yours!

Our vacation packages feature allows customers to choose among a variety of suppliers of vacation packages, including air and lodging, escorted tours, last-minute and other packages. Consumers can select their tour based on destination, resort name or interest preferences. Our website features online specials and answers to frequently asked questions.

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Customer Services

In addition to allowing travelers to book travel transactions, we also provide a broad array of useful information and services designed to optimize the consumer's www.myenvoytravel.com experience.

We take the Christian approach to the travel industry.  No matter what the question or concern, our travel agents are standing by to assist you with all of your travel related questions.  Additionally, our website is packed full of useful information that makes travel planning fun, educational and religious.  Our search engine is very unique, providing resources not offered by other companies.  If you are tired of wasting time doing travel research and still don't know in which direction to go, then visit us on the internet by typing www.myenvoytravel.com.

Consumers in our store are asked to answer a simple travel questionnaire, which we in turn use to offer you the most comprehensive, low-cost options available.  Our website is premised on a similar questionnaire, followed by clicking search, after which all of your research will be completed in just a few moments.  Whether in store or on our website, we are sure to provide you with all of the information you need to make an informed decision for a Christian oriented family vacation!

Corporate Travel

It is our intent to launch www.myenvoytravel.com/corporate, to tailor to the ever growing demand for corporate travel solutions that provide lower transaction costs, lower average ticket price, high degree of price transparency, access to a wide choice of low fares, and a superior, automation-enhanced service experience. The Company's business site will offer companies the same functionality and ease of use that we offer for leisure bookings, while adding functionality and service features that address the needs of both business travelers and the corporate travel managers who administer corporate travel policies.

We originally planned to launch this aspect of our business plan in March 2007.  We have decided to focus on growing the personal travel services that we offer, and, in the future, launch a corporate travel website.  We have not decided on a specific time frame for implementation of corporate travel services.

While offering the same features as www.myenvoytravel.com, this aspect offers internal controls meant to maximize company travel policies.  Traveler profiles will be uploadable to account for individual travel needs, along with company specific requirements to maximize savings.

Corporations may be charged a flat fee of $100 per month will be charged for access, thereby providing complete access to our corporate services.  We have not performed any market research to ascertain whether corporations would be willing to pay such a fee.  As such, we have yet to determine if such a fee will be charged once this portion of our website is fully operational.

Some additional corporate travel features are:

(i)   full integration of corporate negotiated fares and rates in our booking path;

(ii)   travel arranger functionality, which allows personal assistants to manage travel on behalf of corporate employees;

(iii)   functionality designed to control travel policies in more highly managed corporate environments, including the ability to track and report reasons for employees not choosing the lowest available fare and the ability to limit availability displays to only those suppliers with which the corporation has a preferred relationship; and

(iv)   consolidated data reporting, which helps corporations track travel spending and support negotiations with suppliers.

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Consumer Marketing

We use various forms of cost-effective online marketing, including advertising on content sites and placement on comparative shopping tools as well as on search engine websites. We expect to use 30 and 60 second commercial spots as our primary marketing vehicle supplementing these commercials with our Travel Video.  A smaller portion of our marketing budget is dedicated to other advertising such as internet, primarily cable, and print publications. Our marketing initiatives are subject to strict cost performance and measurement processes.

Our marketing efforts employ a comprehensive array of analytical tools that measure our spending effectiveness. We use these tools to ensure that we stay focused on achieving a high return on our marketing investment. We believe that focusing on performance-based marketing techniques and the financial implications of our marketing efforts is an important factor in pursuing our goal of profitable growth.

Hardware

Our focus on reducing costs per transaction keeps us focused on the efficiency of our hardware. We make extensive use of commodity hardware, which allows for flexibility and processing power capable of handling large amounts of traffic and data at low unit costs. In addition, we have built monitoring and automation tools to help us monitor, detect and fix problems in our hardware and software.  This results in little downtime for maintenance and upgrades, while helping to keep costs of operating and maintaining the machines low despite increases in the number of machines.  Our system's hardware and network architecture are designed to avoid single points of failure.

Software

Our secure password system protects the consumer from any hackers, giving you complete privacy for your travel arrangements. Using your credit card on our site is also protected with an encrypted credit card processing program.

Our superior booking engine will do most of the work for the consumer.  Once consumers complete the formatted screen, their data goes out to the major website providers and then to ours (which are the same ones that travel agencies use today).  Their data comes back with a comparison, allowing them to make an educated decision for themselves.  The data will come back in numerous boxes, so that consumers are able to see the various family oriented travel options.  Once they make their decision, they can click on the box to expand it and begin booking the reservation.

Competitors

We operate in a highly competitive market and we may not be able to compete effectively. The market for travel products is intensely competitive. We compete with a variety of companies with respect to each product or service we offer, including:

● InterActiveCorp, an interactive commerce company, which owns or controls numerous travel-related enterprises, including Expedia, an online travel agency,

● Hotels.com, a representative of online lodging reservations, Hotwire, a wholesaler of airline tickets, lodging and other travel products and Ticketmaster and

● Citysearch,  both of which offer destination information and tickets to attractions;

● Sabre Holdings, which owns Travelocity, an online travel agency, GetThere, a provider of online corporate travel technology and services, and the Sabre Travel Network, a GDS (or "global distribution system");

● Orbitz, Inc., an online travel company that enables travelers to search for and purchase a broad array of travel products, including airline tickets, lodging, rental cars, cruises and vacation packages;

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● Cendant, a provider of travel and vacation services, which owns or controls the following: Galileo International, a worldwide GDS; Cheap Tickets, an online travel agency; Lodging.com, an online representative of hotel rooms; Howard Johnson, Ramada Inns and other hotel franchisors; Avis and Budget car rental companies;

● Travelport, a provider of online corporate travel services and other travel-related brands;

● Expedia, Lowestfare.com and Priceline.com are our primary competitors in the referral marketing business;

● Other consolidators and wholesalers of airline tickets, lodging and other travel products,  including Priceline.com and Travelweb; and

● Other local, regional, national and international traditional travel agencies servicing leisure and business travelers.

We are a relatively small player in this market. These competitors are in general larger, have greater financial and personnel resources and have achieved greater market penetration than we have.

Based solely upon management's knowledge of and experience in the industry and not upon any research or other verifying data from independent third parties, our agents are quoted the same rates from travel service providers as other travel agents and agencies.

Research and Development

We conduct no research and development activities.

Intellectual Property

We have not applied for any patent or trademarks in connection with our operations.

Trademarks

We have no patents or trademarks. Our success and ability to compete in the online travel industry depend, in part, upon our technology. We rely primarily on provisions in our contracts to protect our technology. We attempt to negotiate beneficial intellectual property ownership provisions in our contracts. However, laws and our actual contractual terms may not be sufficient to protect our technology from use or theft by third parties. For instance, a third-party might try to reverse engineer or otherwise obtain and use our technology without our permission and without our knowledge, allowing competitors to duplicate our products. We may have legal or contractual rights that we could assert against such illegal use, but lawsuits claiming infringement or misappropriation are complex and expensive, and the outcome would not be certain. In addition, the laws of some countries in which we may wish to sell our products may not protect software and intellectual property rights to the same extent as the laws of the United States. Moreover, the intellectual property right laws afford us no protection since we have no patents or trademarks.

Travel Agency Bond

Travel agencies in Canada are regulated by the Business Practices and Consumer Protection Authority ("BPCPA").  BPCPA required the Company to purchase a Guaranteed Investment Certificate ("GIC") from a financial institution as a condition for licensing as a travel agency.  The financial institution then issued a letter of credit to the BPCPA.   The GIC matures on December 14, 2008.

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Government Regulation

We must comply with laws and regulations relating to our sales activities, including those prohibiting unfair and deceptive practices and those requiring us to register as a seller of travel products, comply with disclosure requirements and participate in state restitution funds. In addition, many of our travel suppliers are heavily regulated and we are indirectly affected by such regulation.

Travel Industry Regulation

As a travel company selling air transportation products, we are subject to regulation by federal, state and provincial agencies which have jurisdiction over economic issues affecting the sale of air travel, including consumer protection issues and competitive practices. Such agencies may have the authority to enforce economic regulations, and may assess civil penalties or challenge our operating authority. To the extent we sell travel products other than air transportation, we are subject to regulation by other federal, state or provincial agencies, which may have jurisdiction over a wide range of advertising, marketing and other consumer protection areas.

Internet Regulation

We must also comply with laws and regulations applicable to businesses engaged in online commerce. An increasing number of laws and regulations apply directly to the Internet and commercial online services. Moreover, there is currently great uncertainty whether or how existing laws governing issues such as property ownership, sales and other taxes, libel and personal privacy apply to the Internet and commercial online services. It is possible that laws and regulations may be adopted to address these and other issues. Further, the growth and development of the market for online commerce may prompt calls for more stringent consumer protection laws. New laws or different applications of existing laws would likely impose additional burdens on companies conducting business online and may decrease the growth of the Internet or commercial online services. In turn, this could decrease the demand for our products or increase our cost of doing business.

For example, in the United States, Federal legislation imposing limitations on the ability of states to impose taxes on Internet-based sales was enacted in 1998. The Internet Tax Freedom Act, which was extended by the Internet Nondiscrimination Act, exempted certain types of sales transactions conducted over the Internet from multiple or discriminatory state and local taxation through November 1, 2003. The majority of products and services we sell are already taxed: hotel rooms and car rentals at the local level, and air transportation at the federal level with state taxation preempted. Nevertheless, failure to renew this legislation could allow state and local governments to impose additional taxes on some aspects of our Internet-based sales, and these taxes could decrease the demand for our products or increase our cost of operations.

International

We may become subject to the laws and regulations of other countries, including with respect to transportation, privacy and consumer and online regulation. These may impose additional costs or other obligations on us.

Future Regulation

Federal, state, provincial or other governmental agencies may adopt new laws, regulations and policies regarding a variety of matters that could affect our business or operations. We cannot predict what other matters such agencies might consider in the future, or what the impact of such regulations might be on our business.

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Employees

As of March 31, 2008, we employed we employed two (3) persons on a full time basis and two (2) individual on a part time basis.

Because of the nature of our business, we do not expect to hire any new employees in the foreseeable future, but anticipate that we will be conducting most of our business through agreements with consultants and third parties.

Reporting Currency

All of the Company's transactions are denominated in Canadian currency so the Company has adopted the Canadian dollar as its functional and reporting currency. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in "General and Administrative expenses" in the statement of operations, which amounts were not material during the quarter ended March 31, 2008.

The Department of Corporation Finance in its advisory letter titled International Financial Reporting and Disclosure Issues, dated May 1, 2001 has stated, "Regulation S-X presumes that a US-incorporated registrant will present its financial statements in US dollars. In rare instances, the staff has not objected to the use of a different reporting currency. Those instances have been limited to situations where the US-incorporated registrant had little or no assets and operations in the US, substantially all the operations were conducted in a single functional currency other than the US dollar, and the reporting currency selected was the same as the functional currency. In these circumstances, reporting in the foreign currency would produce little or no foreign currency translation effects under FASB Statement No. 52."

First, the Company has its only facilities located Canada, and therefore has no assets or operations in the US. Second, all operations of the Company are conducted only in Canadian currency. Third, the reporting currency is in Canadian dollars which is the same currency that all operations were conducted in. Therefore, reporting in Canadian dollars would produce little or no foreign currency translation effects under FASB Statement No. 52.

Critical Accounting Policies and Estimates

We believe that there are several accounting policies that are critical to understanding our historical and future performance, as these policies affect the reported amounts of revenue and the more significant areas involving management's judgments and estimates. These significant accounting policies relate to revenue recognition, research and development costs, valuation of inventory, valuation of long-lived assets and income taxes. For a summary of our significant accounting policies (which have not changed from December 31, 2006), see our annual report on Form 10-KSB for the period ended December 31, 2006.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2008 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2007 (UNAUDITED).

REVENUE

Our gross revenue amounted to $71,545 for the three months ended March 31, 2008 compared to $58,601 for the three months ended March 31, 2007. 

All revenues were derived from the sale of travel and travel related products.  Fluctuations in our revenues is primarily the result of the nature of the business model we operate. The Company can neither predict, assess nor prevent fluctuation.  We attempt to offer products and services at competitive prices.  Our travel products and services are aimed at those interested in purchasing Christian based, family vacations.  Because of the unpredictable nature of fluctuations, we do not attribute fluctuations to any particular item or event. Our business model is to respond to fluctuation with immediate change.  We do not account for or analyze the fluctuations as we do not believe it to be a prudent use of resources, given our business model.

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OPERATING EXPENSES

Our total operating expenses for the three months ended March 31, 2008 were $54,639 compared to $44,251 for the same period in the prior year.  Expenses consisted general operating expenses, payroll, and professional fees. 

NET PROFIT

As a result of the foregoing, we had a net profit of $2,206 for the three months ended March 31, 2008 compared to a net profit of $1,177 for the same period in the prior year.  Our net profit for the period ended March 31, 2008 is attributed to increased revenues as compared to the same period during the prior year.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2008 our cash balance was $26,047. This represents an improvement in our financial position since December 31, 2007 when we reported cash of $16,276.

Cash flows from operating and financing activities in 2008 through March 31 were positive $9,722 compared to an increase of $16,108 in 2007 through March 31. The major difference in the 2008 cash flows for the three months ended March 31 as compared to 2007 were (1) payment of a deposit for a group cruise package and (2) we had a slightly lower infusion of cash from shareholders' loans than in 2007.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our investors.

Plan Of Operations for the Next 12 Months

Our plan of operations for the next twelve months is to proceed with the implementation of our business plan. We will strive to launch all aspects of our operations.  Primarily, we will focus on generating revenue from our website. Continuing operations will always focus on ways to increase our marketing sales force. We may require up to $310,000 in additional financing to expand our operations as outlined in the table below, subject to our cash on hand and actual revenues.

Goal	Expected Manner of Occurrence or Method of Achievement	Date When Step Should be Accomplished	Cost of Completion
Develop infrastructure and Kinder Travel Cafes	Secure additional space within existing building and seek design and construction proposals.	12 months	$100,000
Acquire Existing Travel Business	Direct mail campaign to local travel agencies	6 months	$200,000
Website enhancements ("Dream Away" Program)	Source improved booking engine. Create "My Preferences" section and registration section to opt-in for regular email promotions	3 months	$10,000

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Our total expenditures over the next twelve months are anticipated to be approximately $310,000.

All steps will be undertaken contemporaneously.

Our marketing efforts will be directed at expanding our representative network through personal contact or seminars.

Critical Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make a wide variety of estimates and assumptions that affect (i) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and (ii) the reported amounts of revenues and expenses during the reporting periods covered by the financial statements. Our management routinely makes judgments and estimates about the effect of matters that are inherently uncertain. As the number of variables and assumptions affecting the future resolution of the uncertainties increases, these judgments become even more subjective and complex. The most significant accounting policies that are most important to the portrayal of our current financial condition and results of operations are as follows:

Revenue Recognition

SAB No. 104 requires that four basic criteria be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectibility is reasonably assured. Should changes in conditions cause management to determine that these criteria are not met for certain future transactions, revenue recognized for a reporting period could be adversely affected.

The Company has various methods by which they receive revenue. At present, most revenue is derived substantially from the following sources:

●  Supplier Based Commissions: The Company receives commissions based upon contractual arrangements with leading travel providers.

●  Consumer Service Fees: Upfront fees charged for each booking regardless of the type of travel.

Revenue is recognized as follows for the services discussed above:

●  for service fees, when reservations are made and secured by a credit card or other form of payment;

●  for air travel, cruises and package tours, when reservations are made and secured by a credit card or other form of payment; and

●  for all travel such as hotel bookings and rental cars, when commissions are received from the travel supplier.

Allowance for Doubtful Accounts

Management makes judgments, based on its established aging policy, historical experience and future expectations, as to the ability to collect the Company's accounts receivable. An allowance for doubtful accounts has been established. The allowance for doubtful accounts is used to reduce gross trade receivables to their estimated net realizable value. When evaluating the adequacy of the allowance for doubtful accounts, management analyzes amounts based upon an aging schedule, historical bad debt experience, and current trends. The Company's accounts receivable balance was $16,594 at March 31, 2008.

Available Information

We file electronically with the Securities and Exchange Commission our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934.  You may obtain a free copy of our reports and amendments to those reports on the day of filing with the SEC by going to http://www.sec.gov.

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ITEM 4(T). CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, we have carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this quarterly report. This evaluation was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective as at the end of the period covered by this quarterly report to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the SEC.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes In Internal Controls Over Financial Reporting

During the quarter, the Company used an outside consulting firm to assist in the preparation of financial statements in accordance with US Generally Accepted Accounting Principles.  This outside consulting firm also reviews account reconciliations and all equity transactions.  Other than the described changes, no other Changes in internal controls over financial reporting occurred during the current period that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II.

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 1(A). RISK FACTORS

Not required.

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

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits.

EXHIBIT NUMBER	DESCRIPTION	LOCATION
3.1 - 3.2	Articles of Incorporation and Bylaws	Previously Filed.
31.1	Rule 13a-14(a)/15d-14(a) Certification (CEO)	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certification (CFO)	Filed herewith
32.1	Section 1350 Certification (CEO)	Filed herewith
32.2	Section 1350 Certification (CFO)	Filed herewith

(b)           Reports on Form 8-K.

There were no reports on Form 8-K filed during the period ended March 31, 2008, and there have been no such reports filed since March 31, 2008.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	KINDER TRAVEL, INC. (Registrant)
Date: May 8, 2008	By:	/s/ Daniel L. Baxter
		Name: Daniel L. Baxter
		Title: Director, CEO and CFO

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