================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
    OF 1934
                 For the quarterly period ended December 31 2006

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

          For the transition period from _____________ to ____________

             Commission file number _______________________________

                              KYTO BIOPHARMA, INC.
                              --------------------
        (Exactname of small business issuer as specified in its charter)

          FLORIDA                                       65-1086538
          -------                                       ----------
(State or other jurisdiction of              (IRS Employer Identification No.)
 Incorporation or organization)

              B1-114 BELMONT AVENUE TORONTO, ONTARIO CANDA M5R 1P8
              ----------------------------------------------------
                    (Address of principal executive offices)

                                 (416) 955-0159
                                 --------------
                           (Issuer's telephone number)

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

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

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

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15 (d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.                     Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 12,080,203 Common Shares - $0.0001
Par Value - as of February 12, 2006.

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE)         YES [ ] NO [X]

================================================================================



                      KYTO BIOPHARMA, INC. AND SUBSIDIARY
                         (A Development Stage Company)

                                     INDEX
                                                                      PAGE
                                                                     NUMBER
                                                                     ------
                         PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Unaudited Consolidated Balance Sheet
         as of December 31, 2006 and March 31,2006                      3

         Unaudited Consolidated Statements of Operations
         for the nine months ended December 31, 2006 and 2005           4

         Unaudited Consolidated Statements of Cash Flows
         for the nine months ended December 31, 2006 and 2005           5

         Notes to Unaudited Consolidated Financial Statements           6

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                            8

Item 3.  Controls and Procedures                                       10

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                             10

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds   10

Item 3.  Defaults Upon Senior Securities                               10

Item 4.  Submission of Matters to a Vote of Security Holders           10

Item 5.  Other Information                                             10

Item 6.  Exhibits                                                      11

SIGNATURES                                                             12


                                        2




                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                       KYTO BIOPHARMA, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)



                                                        December 31,        March 31,
                                                            2006              2006
                                                        ------------      ------------
                                     ASSETS
                                                                    
Current Assets
 Cash                                                   $     16,859      $     40,415
 Other receivables                                               692               691
                                                        ------------      ------------
Total Current Assets                                          17,551            41,106
                                                        ------------      ------------
 Prepaid Deposit                                              44,869                --
 Equipment, net                                                   --               228
                                                        ------------      ------------
Total Assets                                            $     62,420      $     41,334
                                                        ============      ============

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                                       $     28,288      $     53,690
 Accrued liabilities - related party                          40,000            10,000
 Accrued interest payable - related party                     30,951            22,271
 Loan Payable-related Party                                  218,322            86,600
 Note Payable, related party                                 100,000           100,000
                                                        ------------      ------------
Total Current Liabilities                                    417,561           272,561
                                                        ------------      ------------
Total Liabilities                                            417,561           272,561
                                                        ------------      ------------
Commitments and Contingencies                                     --                --

Stockholders' Deficit
 Common stock, $0.0001 par value, 25,000,000 shares
    authorized, 12,080,203  issued and outstanding             1,208             1,208
 Additional paid-in capital                               15,323,307        15,323,307
 Deficit accumulated during development stage            (13,419,040)      (11,329,010)
 Accumulated other comprehensive loss                       (260,616)         (257,919)
                                                        ------------      ------------
                                                           1,644,859         3,737,586
 Less: Subscription receivable                                    --               (13)
 Less: Deferred consulting fees                           (2,000,000)       (3,968,800)
                                                        ------------      ------------
Total Stockholders' Deficit                                 (355,141)         (231,227)
                                                        ------------      ------------
Total Liabilities and Stockholders' Deficit             $     62,420      $     41,334
                                                        ============      ============


     SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                                        3



                       KYTO BIOPHARMA, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                                                                                                          For the
                                                                                                                        period from
                                                 For The Three Months Ended          For The Nine Months Ended         March 5, 1999
                                                        December 31,                        December 31,              (inception) to
                                               ------------------------------      -------------------------------     December 31,
                                                   2006              2005              2006              2005              2006
                                               ------------      ------------      ------------      -------------     ------------
                                                                                                       
Operating Expenses
 Compensation                                 $      5,295      $     14,955      $     10,250      $     44,791      $  1,750,636
 Depreciation and amortization                          --               157               236               459           814,183
 Consulting                                        283,800           843,700         1,971,300         2,531,200         7,695,899
 Bad debt                                               --                --                --                --            12,819
 Director fees                                          --                --                --                --            64,100
 Financing fees                                         --                --                --                --            28,781
 Professional fees                                   4,500             3,450            25,850            15,450           118,258
 General and administrative                         10,459            12,355            36,121            39,472           448,846
 Research and development                           32,789             5,481            40,445            37,183         1,143,962
 Loss on debt conversion                                --                --                --                --           519,795
 Impairment loss                                        --                --                --                --         1,191,846
                                              ------------      ------------      ------------      ------------      ------------
Total Operating Expenses                           336,843           880,098         2,084,202         2,668,555        13,789,125
                                              ------------      ------------      ------------      ------------      ------------
Other Income (Expenses)
 Interest income                                        --                --                --                --             4,922
 Interest expense                                   (2,960)           (2,420)           (8,680)           (7,261)          (34,758)
 Gain on debt forgivemess                               --                --                48                 2            68,828
 Loss on disposal of equipment                          --                --                --                --              (567)
 Foreign currency transaction gain                 (50,214)             (673)            2,804            44,425           331,660
                                              ------------      ------------      ------------      ------------      ------------
Total Other Income (Expense), net                  (53,174)           (3,093)           (5,828)           37,166           370,085
                                              ------------      ------------      ------------      ------------      ------------
Net Loss                                      $   (390,017)     $   (883,191)     $ (2,090,030)     $ (2,631,389)     $(13,419,040)
                                              ============      ============      ============      ============      ============
Comprehensive Income (Loss)
 Foreign currency translation gain (loss)           50,303            13,661            (2,697)           45,145          (260,616)
                                              ------------      ------------      ------------      ------------      ------------
Total Comprehensive Loss                      $   (339,714)     $   (869,530)     $ (2,092,727)     $ (2,586,244)     $(13,679,656)
                                              ============      ============      ============      ============      ============
Weighted average number of shares
outstanding during the year -
basic and diluted                               12,080,203        11,827,069        12,080,203        11,827,069         6,312,694
                                              ============      ============      ============      ============      ============
Net loss per share - basic and diluted        $      (0.03)     $      (0.07)     $      (0.17)     $      (0.22)     $      (2.13)
                                              ============      ============      ============      ============      ============



     SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                                        4



                       KYTO BIOPHARMA, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)



                                                                                          March 5, 1999
                                                        Nine Months Ended December 31,   (Inception) to
                                                        ------------------------------     December 31,
                                                            2006              2005            2006
                                                        ------------     -------------    -------------
                                                                                 
Cash Flows from Operating Activities:
 Net loss                                                $(2,090,030)     $(2,631,402)    $(13,419,040)
 Adjustment to reconcile net loss to net cash
 provided by (used in)
  operating activities:
  Depreciation and amortization                                  228              442          814,183
  Stock based compensation                                 1,968,800        2,531,200        8,227,893
  Stock based consulting expense                                  --               --          854,345
  Stock based director fees                                       --               --           64,100
  Stock based rent and administrative fees                        --               --           87,028
  Common stock warrants issued as financing fee                   --               --            3,783
  Loss on disposal of equipment                                   --               --              567
  Impairment loss                                                 --               --        1,191,846
  Gain on settlement of accounts payable                          --               --          (59,654)
  Loss on settlement of accounts payable                          --               --          519,795
  Amortization of stock based financing fee                       13               --           25,010
 Changes in operating assets and liabilities:
  (Increase) decrease in:
    Other receivables                                             (1)             393             (691)
    Prepaids and other assets                                (44,869)          17,500          (43,869)
  Increase in:
    Accounts payable and accrued expenses                     13,278           92,463          526,945
    Accounts payable-related parties                              --              184           20,879
                                                         -----------      -----------     ------------
 Net Cash Provided By (Used in) Operating Activities        (152,581)          10,780       (1,186,880)
                                                         -----------      -----------     ------------
Cash Flows from Investing Activities:
 Purchase of property and equipment                               --               --           (4,463)
                                                         -----------      -----------     ------------
Net Cash Used in Investing Activities                             --               --           (4,463)
                                                         -----------      -----------     ------------
Cash Flows from Financing Activities:
 Proceeds from common stock issuance, net of
    offering cost                                                 --               --          958,222
 Loan proceeds from related parties, net                     131,722               --          537,388
 Repayment of loan to related parties                             --               --          (26,792)
                                                         -----------      -----------     ------------
Net Cash Provided by Financing Activities                    131,722               --        1,468,818
                                                         -----------      -----------     ------------
Effect of Exchange Rate on Cash                               (2,697)         (45,145)        (260,616)

Net Increase (decrease) in Cash and Cash Equivalents         (23,556)         (34,365)          16,859

Cash and Cash Equivalents at Beginning of Period              40,415           37,485               --
                                                         -----------      -----------     ------------

Cash and Cash Equivalents at End of Period               $    16,859      $     3,120     $     16,859
                                                         ===========      ===========     ============
Supplemental Disclosure of Cash Flow Information:
 Cash paid for:
    Interest                                             $        --      $        --     $         --
                                                         ===========      ===========     ============
    Taxes                                                $        --      $        --     $         --
                                                         ===========      ===========     ============
Supplemental Disclosure of Non-Cash
 Investing and Financiang Activities:
    Conversion of debt to equity                         $        --      $        --     $    160,000
                                                         ===========      ===========     ============
    Stock issued for deferred consulting services        $        --      $        --     $  6,750,000
                                                         ===========      ===========     ============



      SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                                        5



                      KYTO BIOPHARMA, INC. AND SUBSIDIARY
                          (A Development Stage Company)

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                               December 31, 2006

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America and the rules and regulations of the United States Securities and
Exchange Commission for interim consolidated financial information. Accordingly,
they do not include all the information and footnotes necessary for a
comprehensive presentation of consolidated financial position and results of
operations.

It is management's opinion, however, that all material adjustments (consisting
of normal recurring adjustments) have been made, which are necessary for a fair
consolidated financial statement presentation. The results for the interim
period are not necessarily indicative of the results to be expected for the
year.

Activities during the development stage include acquisition of financing and
intellectual properties and research and development activities conducted by
others under contracts.

For further information, refer to the audited consolidated financial statements
and footnotes of the Company for the year ending March 31, 2006 included in the
Company's Form 10-KSB.

NOTE 2 ACCOUNTS PAYABLE AND LOANS PAYABLE, RELATED PARTIES

The Company leases office space and administrative services from a principal
stockholder related party. Expenses for the Nine months ended December 31, 2006
were $30,000 and accrued liabilities at December 31, 2006 were $40,000 The total
loans payable to this principal stockholder related party was $218,322 at
December 31, 2006.

NOTE 3 COMMITMENTS

In November 2006, the Company signed an Extension Modification of Research
Collaboration Agreement with the Research Foundation of State University of New
York (RFSUNY) regarding the research and development of the use of monoclonal
antibodies to block the vitamin B12 uptake by cancer cells for funding
consideration of $119,647 to be appropriated for the year of the conduct of the
research plan from November 15, 2006 through November 14, 2007 The company will
pay RFSUNY every six months. The Company shall amend patent No. 5,688,504 to
legally establish joint ownership with RFSUNY. $59,825 was paid in November 2006

NOTE 4 STOCKHOLDERS'  DEFICIENCY

 (A) COMMON STOCK

In November 2004, the Company entered into a services agreement for two years to
generate and increase customer interest in the Company's products and
technologies and explore merger/acquisition possibilities. The Company issued
4,500,000 shares of common stock. The stock was valued at the quoted trading
price of $1.50 on the grant date resulting in a total value of $6,750,000 to be
recognized over the service period of November 1, 2004 through October 31, 2006.
A consulting expense of $6,750,000 was recorded as of December 31, 2006.

NOTE 5 GOING CONCERN

As reflected in the accompanying consolidated financial statements, the Company
has a working capital deficiency of $355,141, a deficit accumulated during
development stage of $13,419,040 and a stockholders' deficiency of $355,141 as
of December 31, 2006. The ability of the Company to continue as a going concern
is dependent on the Company's ability to further implement its business plan,
raise capital, and generate revenues. The consolidated financial statements do
not include any adjustments that might be necessary if the Company is unable to
continue as a going concern.

The Company has yet to generate an internal cash flow, and until the sales of
its product begins, the Company is very dependent upon debt and equity funding.
The Company must successfully complete its research and development resulting in
a saleable product. However, there is no assurance that once the development of
the product is completed and finally gains Federal Drug and Administration
clearance, that the Company will achieve a profitable level of operations.

                                        6



NOTE 6 RECENT ACCOUNTING PRONOUNCEMENTS

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" (SFAS
157). SFAS 157 provides guidance for using fair value to measure assets and
liabilities. SFAS 157 addresses the requests from investors for expanded
disclosure about the extent to which companies measure assets and liabilities at
fair value, the information used to measure fair value and the effect of fair
value measurements on earnings. SFAS 157 applies whenever other standards
require (or permit) assets or liabilities to be measured at fair value, and does
not expand the use of fair value in any new circumstances. SFAS 157 is effective
for financial statements issued for fiscal years beginning after November 15,
2007 and will be adopted by the Company in the first quarter of fiscal year
2008. The Company is unable at this time to determine the effect that its
adoption of SFAS 157 will have on its consolidated results of operations and
financial condition.

In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109" (FIN
48). FIN 48 clarifies the accounting for uncertainty in income taxes by
prescribing the recognition threshold a tax position is required to meet before
being recognized in the financial statements. It also provides guidance on
recognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. The cumulative effects, if any, of applying
FIN 48 will be recorded as an adjustment to retained earnings as of the
beginning of the period of adoption. FIN 48 is effective for fiscal years
beginning after December 15, 2006. The Company is currently evaluating the
effect that the adoption of FIN 48 will have on its consolidated results of
operations and financial condition and is not currently in a position to
determine such effects, if any.

In September 2006, the SEC issued Staff Accounting Bulletin No. 108,
"Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements" (SAB 108). SAB 108 provides
guidance on the consideration of the effects of prior year misstatements in
quantifying current year misstatements for the purpose of a materiality
assessment. SAB 108 establishes an approach that requires quantification of
financial statement errors based on the effects of each on a company's balance
sheet and statement of operations and the related financial statement
disclosures. Early application of the guidance in SAB 108 is encouraged in any
report for an interim period of the first fiscal year ending after November 15,
2006, and will be adopted by the Company in the first quarter of fiscal year
2007. The Company does not expect the adoption of SAB 108 to have a material
impact on its consolidated results of operations and financial condition

FSP FAS 123(R)-5 was issued on October 10, 2006. The FSP provides that
instruments that were originally issued as employee compensation and then
modified, and that modification is made to the terms of the instrument solely to
reflect an equity restructuring that occurs when the holders are no longer
employees, then no change in the recognition or the measurement (due to a change
in classification) of those instruments will result if both of the following
conditions are met: (a). There is no increase in fair value of the award (or the
ratio of intrinsic value to the exercise price of the award is preserved, that
is, the holder is made whole), or the antidilution provision is not added to the
terms of the award in contemplation of an equity restructuring; and (b). All
holders of the same class of equity instruments (for example, stock options) are
treated in the same manner. The provisions in this FSP shall be applied in the
first reporting period beginning after the date the FSP is posted to the FASB
website. The Company does not expect the adoption of FSP FAS 123(R)-5 to have a
material impact on its consolidated results of operations and financial
condition.

                                        7



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINACIAL CONDITIONS AND RESULTS
        OF OPERATIONS

PLAN OF OPERATION

The following discussion should be read in conjunction with the financial
statements and related notes which are included in this Quarterly Report. This
Quarterly Report on Form 10-Q contains certain statements that are
forward-looking within the meaning of Section 27a of the Securities Act of 1933,
as amended, and Section 21E of the Securities and Exchange Act of 1934, as
amended, and that involve risks and uncertainties, including, but not limited to
the uncertainties associated with our ability to raise capital, our dependence
on others for our research and development activities, the future success of our
product candidates in development, and other risks described below as well as
those discussed elsewhere in this Form 10-Q, documents incorporated by reference
and other documents and reports that we file periodically with the Securities
and Exchange Commission. Statements made below which are not historical facts
are forward-looking statements. Forward-looking statements involve a number of
risks and uncertainties including, but not limited to, our ability to secure
additional financing for our operations, general economic conditions, our
ability to develop our products, our ability to repay our outstanding debt
obligations, and our ability to fund our operations through March 31, 2007 with
our current cash reserves. For further information regarding our business,
competition and risk factors, refer to the Company's Form 10-KSB filed with the
U.S. Securities Exchange Commission for the year ending March 31, 2006.

Kyto is in the development stage of its operations and was formed in March 1999
to acquire and develop early-stage compounds which may have potential use as
therapeutic agents for the treatment of cancer and diseases of the immune
system. The Company intends to build itself into a biopharmaceutical company
that develops receptor-mediated technologies to control the uptake of vitamin
B12 by non-controlled proliferative cells. Vitamin B12 regulates one of two
major cellular pathways for the production of folates, the cell's primary source
of carbon and the progenitor for the synthesis of DNA.

Kyto's portfolio consists of molecules at the research and development stage
which may ultimately prove useful in the treatment of certain types of cancer
and inflammatory diseases. Kyto believes that there are several human
therapeutics applications for its drug candidates. Specifically, a number of
properties of the Company's drug delivery and vitamin B12 depletion technologies
suggest a potential role for its drug candidates in the therapy of solid tumors
such as colorectal and breast cancer in addition to treatment of leukemias.

Since inception, Kyto has been engaged in the development of a portfolio of
potential targeted biologic treatments based on:

i) the use of monoclonal antibodies to block the vitamin B12 uptake by cancer
cells,

ii) the therapeutic effect of vitamin B12 depletion by receptor modulators, and

iii) the delivery of cytotoxic drugs to cancer cells using the vitamin B12 as a
Trojan Horse.

The Company had not been profitable and had no revenues from operations since
its inception in March 1999. As reflected in the accompanying unaudited
consolidated financial statements, the Company has a working capital deficiency
of $355,141, a deficit accumulated during development stage of $13,419,040 and a
stockholders' deficiency of $355,141 as of December 2006. The ability of the
Company to continue as a going concern is dependent on the Company's ability to
further implement its business plan, raise capital, and generate revenues by
licensing activities. The consolidated financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a
going concern.

                                        8



To date, others have conducted the research and development activities on behalf
of the Company under contractual agreements and such costs are charged to
expense as incurred. Research and development expense was $40,445 for the nine
months ended December 31, 2006.

Management expects the Company to incur additional operating losses over the
next several years as research and development efforts, preclinical and clinical
testing activities and manufacturing scale-up efforts expand. To date, we have
not had any product sales and do not anticipate receiving any revenue from the
sale of products in the upcoming year. Our sources of working capital have been
equity financings and interest earned on investments.

The Company is currently a development stage company and its continued existence
is dependent upon the Company's ability to resolve its liquidity problems,
principally by obtaining additional debt financing and/or equity capital. The
Company has yet to generate an internal cash flow, and until the sales of its
product begins, the Company is very dependent upon debt and equity funding. The
Company must successfully complete its research and development resulting in a
saleable product. However, there is no assurance that once the development of
the product is completed and finally gains Federal Drug and Administration
clearance, that the Company will achieve a profitable level of operations.

In October 2004, the Company closed on a non-brokered private placement of
500,000 shares of common stock at a price of $0.50 per share for proceeds of
$250,000 with a related party controlled by a director of the Company. The
Company has also converted a debt of $160,000 into 320,000 shares of common
stock at the same price. The proceeds from the private placement from that same
related party was used by the Company to develop its portfolio of potential
targeted biologic treatments and applied to its working capital.

In January 2006, the Company and a Director of the Company agreed to convert the
aggregate amount of $7,027.00 (the "debt") pursuant to an account payable and
advance of fund made by the Director to the Company into common stock from
treasury of the Corporation for issuance of 14,054 common shares at a price of
$0.50 per share, which was the average price for the last trading month. Also
during the same period, the Company and a principal stockholder related party
agreed to convert the aggregate amount of $40,000 (the "Invoice") for office
space and administrative services for the period starting January 1, 2005 and
ending December 31, 2005, into common stock from treasury of the Corporation by
issuing 80,000 common shares at a price of $0.50 per share, which was the
average price for the last trading month.

The report of our Independent Registered Public Accounting Firm on our March 31,
2006 financial statements includes an explanatory paragraph indicating that
there is substantial doubt about our ability to continue as a going concern due
to substantial recurring losses from operations, cash used in operations,
stockholders' deficit and significant accumulated deficit and working capital
deficit. Our ability to continue as a going concern will be determined by our
ability to obtain additional funding and maintain operations. We do not
currently have sufficient financial resources to fund our operations. Therefore,
we need additional funds to continue these operations. The Company operates in a
rapidly changing environment that involves a number of factors, some of which
are beyond management's control, such as financial market trends and investors'
appetite for new financings. It should also be emphasized that, should the
Company not be successful in completing its own financing (either by debt or by
the issuance of securities from treasury), the Company may be unable to continue
to operate as a going concern.

The Company has, as of the end of December 31 2006, $417,561 in total
liabilities. During the last nine months, the Company has undertaken a review of
its research and development activities as well as a review of its Intellectual
Property portfolio. The Company has added to its current IP Lawyers, a new IP
law firm to obtain a new independent assessment of it IP portfolio, obtain
advice on some pending patents and contribute to further discussions with the
Company's research partners. The Company has been able to continue its Research
& Development activities with one or its R&D Partners and is seeking funding to
meet it operating and R&D cost in the development and activities of its
antibodies over the next 12 months. The Company has yet to form a strategic
alliance for product development and to out-license the commercial rights to
development partners.  The Company's plan of operation for the next twelve
months is to continue to focus its efforts on finding new sources of capital and
on research activities and the development and application of its antibodies. We
have yet to form a strategic alliance for product development and to out-license
the commercial rights to development partners. By forming strategic alliances
with third parties, we believe that our technologies and related products would
be more rapidly developed and successfully introduced into the marketplace. At
the date of filing of this Form 10-QSB with the U.S. Securities and Exchange
Commission, the Company did receive a commitment of one of its stockholders to
provide operating loan funds for the Company.

                                        9



ITEM 3. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures: An evaluation of the
registrant's disclosure controls and procedures (as defined in Section
13(a)-14(c) of the Securities Exchange Act of 1934 (the "Act")) was carried out
under the supervision and with the participation of the Registrant's President
and Chief Executive Officer within the 90-day period preceding the filing date
of this quarterly report. The registrant's President and Chief Executive Officer
concluded that the registrant's disclosure controls and procedures as currently
in effect are effective in ensuring that the information required to be
disclosed by the registrant in the reports it files or submits under the Act is
(i) accumulated and communicated to the registrant's management in a timely
manner, and (ii) recorded, processed, summarized and reported within the time
periods specified in the SEC's rules and forms.

(b) Changes in Internal Controls: In the Quarter ended December 31, 2006, the
registrant did not make any significant changes in, nor take any corrective
actions regarding, its internal controls or other factors that could
significantly affect these controls.

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

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.

                                       10



ITEM 6. EXHIBITS

        INDEX TO EXHIBITS


EXHIBIT
NUMBER           DESCRIPTION
- -------          -----------

3(i)(a)          Articles of Incorporation of Kyto Biopharma, Inc.*

3(i)(b)          Articles of Amendment changing name to Kyto Biopharma, Inc.*

3(ii)            Bylaws of Kyto Biopharma, Inc.*

10.6             Services Agreement between Kyto Biopharma, Inc. and Gerard
                 Serfati [dated November 1, 2004]***

31.1             Section 302 Certification**

32.1             Certification pursuant to 18 U.S.C. Section 1350 as adopted
                 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

*    Filed as Exhibit to Company's Form 10-SB on September 12th, 2003, with the
     Securities and Exchange Commission

**   Filed as Exhibit with this Form 10-QSB.

***  Previoulsy filed with Form S-8 on November 18, 2004.

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                                   SIGNATURES

In accordance with 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.

                                             KYTO BIOPHARMA, INC.
                                             --------------------
                                             (Registrant)

Date  February 15, 2006                      /s/  Georges Benarrcoh
      -----------------                      ----------------------------------
                                             (Signature)
                                             Georges Benarroch
                                             Acting President and
                                             Chief Executive Officer
                                             And Acting Chief Executive Officer

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