Information included or incorporated by reference in this annual report may contain forward-looking statements. This information may involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "plan," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. You should read statements that contain these words carefully because they:

o discuss our future expectations;

o contain projections of our future results of operations or of our financial condition; and

o state other "forward-looking" information.

We believe it is important to communicate our expectations. However, there may be events in the future that we are not able to accurately predict or over which we have no control. Our actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under "Risk Factors," "Business" and elsewhere in this prospectus. See "Risk Factors."

The Company was incorporated under the laws of the State of Nevada on June 17,1997. On June 26, 2003, the Company acquired all the outstanding stock of Covenant Corporation, which was incorporated in the State of Nevada on May 10, 2002.

At the time, the Company was an integrated entertainment company engaged in producing feature films and initially focusing on the production of documentaries.

Through the Company's wholly owned subsidiary, Covenant Corporation, it provided technical solutions and consulting services to the entertainment industry in the areas of security, anti-piracy, promotions and online distribution and sales. This Company is dormant

For financial statement purposes, the transaction was treated as a reverse acquisition and a recapitalization with Covenant being treated as the acquirer. The Company issued one share of its common stock or each of Covenant's 12,590,500 outstanding shares. Immediately before acquisition the Company had 617,744 shares outstanding and liabilities in excess of assets of approximately $137,456. The transaction was accounted for as a purchase, with no good will recognized, resulting in a deficiency of $137,456 which was reflected as an adjustment to stockholders' equity on the acquisition date. All shares are shown post reverse split.

On March 31, 2006, the Company changed its name to QuadTech International, Inc. and its public trading symbol has changed to QTII. The Company also completed a one-for-ten reverse split of its common stock

On May 8, 2006 the Company entered into an exclusive worldwide sales and marketing agreement with iPackets International pursuant to which QuadTech agreed to market and sell iPackets' mine-safety technologies. However, on September 7, 2006 QuadTech announced that it had terminated the agreement with iPackets International, thereby relinquishing the licensing rights to iPackets' mine safety product. QuadTech's management determined that the agreement with iPackets simply was not creating value for the company's shareholders.

QuadTech, announced on the same day, September 7, 2006 that it had acquired a 100 percent ownership stake in MRID Technologies ("MTech"). This acquisition included the rights to MTech's patent-pending Multiple Range Identification ("MRID") asset tracking technology, which we consider to be the next generation in Radio Frequency Identification ("RFID") technology. As part of the agreement, MTech's management team is expected to join QuadTech to continue to oversee manufacturing, research and development, and systems installation and deployment, once the Company has raised sufficient finance to proceed with this venture

First developed in the early 1970's, RFID technology uses radio frequency waves to determine whether an object is or is not present. Consequently, current RFID systems do not allow users to pinpoint the location of tagged items.

MTech's MRID systems transmit multiple radio frequency codes, which offer the added functionality of determining direction and proximity of the tagged item or person in relation to the reader receiving its signal. As a result, an MRID receiver is designed to determine the location of a tagged item, making the new MRID systems invaluable in emergency situations or for organizations with large numbers of mobile assets to protect.

Possible applications and target markets for MRID systems include the law enforcement, military, fire rescue, livestock, motion picture, sports, homeland security, and mining industries, as well as other first response operations.

The Company is actively pursuing funding options in order to pursue commercialization of the MRID technology.
We have not developed or marketed any products, do not have any customers, and have not generated any revenue from operations to date.

The Company's nearest competitor in the Multiple Range Identification ("MRID") asset tracking technology marketplace is iPackets International, Inc.

The Company's sole employee is John Meier, its President and Chief Executive Officer. The Company's Chief Financial Officer, Roland Vetter, is a consultant to the Company.

At the current time, the Company has no investments or interests in real estate, real estate mortgages, securities of or interests in persons primarily engaged in real estate activities.

Investors must consider the risks, difficulties, delays and expenses frequently encountered by development stage companies in our business, which have little or no operating history, including whether we will be able to overcome the following challenges:

Because significant up-front expenses, including advertising, sales, and other expenses are required to develop our business, we anticipate that we may incur losses until revenues are sufficient to cover our operating costs. Future losses are likely before our operations become profitable. As a result of our lack of operating history, you will have no basis upon which to accurately forecast on.

The report of our independent certified public accountant for our October 31, 2007 fiscal year raises substantial doubt as to our ability to continue as a going concern due to the fact that we are dependent upon financing to continue operations, have suffered recurring losses from operations and have total liabilities that exceed total assets. Given its limited operating history and existing losses, there can be no assurance that we will be successful in obtaining additional financing. Furthermore, the issuance by us of any additional securities in connection with financing activities undertaken could dilute the ownership of existing shareholders and may reduce the price of our common stock.

Companies trading on the OTC Bulletin Board, such as us, must be reporting issuers under Section 12 of the Securities Exchange Act of 1934, as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board. If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board. As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.

As long as our stock price is less than $5.00 per share, our stock is subject to the SEC's penny stock rules, which impose additional sales practice requirements and restrictions on broker-dealers that sell our stock to persons other than established customers and institutional accredited investors. The application of these rules may affect the ability of broker-dealers to sell our common stock and may affect your ability to sell any common stock you may own.

According to the SEC, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include:

None

None

Our common stock is quoted on the Over the Counter Bulletin Board under the symbol QTII. The table below sets forth, for the periods indicated, the high and low closing prices of our common stock as reported on the OTCBB.  These quotations reflect prices between dealers, do not include retail mark-ups, markdowns, and commissions and may not necessarily represent actual transactions. We effectuated a 1 for 10 reverse stock split on March 31, 2006.

There are approximately 160 holders of our common stock.

There have never been any dividends, cash or otherwise, paid on the common shares of the Company.

None.

We are a development stage company. We had minimal revenues and an accumulated loss of approximately $ 4,236,521 from inception on May 10, 2002 through to October 21, 2007. Our losses result primarily from the issuance of common stock to various individuals and companies for assisting us with the development of our products, marketing and general business strategy.

At October 31, 2007 we have $6 cash on hand, as compared to cash on hand of $30 as of October 31, 2006. The Company has borrowed $382,137 from shareholders to help fund our development stage operations. The Company requires $50,000 to continue its operations at current levels for a further twelve months. We currently do not have an identified source of finance. If we do not raise or generate additional funds, the implementation of both our short and long term business plan will be delayed indefinitely..

As of October 31, 2007, we had assets of approximately $396 (2005: $450) and liabilities of approximately $ 557,513, as compared liabilities of $ 238,942 as of October 31, 2006. Our liabilities as of October 31, 2007 include an interest bearing note with an outstanding balance of $50,355. The remaining liabilities consist of non interest bearing debt that is payable on demand. Management anticipates settling substantially all current outstanding debt with existing creditors by issuing shares for cancellation of the debt.

The Company is a development stage company The results in the statement of operations reflect only the development expenses from the date of inception to October 31, 2007.

We have not developed or marketed any products, does not have any customers, and has not generated any revenue from operations to date.

From the date of the inception (refer to Note 1 of the annual financial statements included herein) to October 31, 2007, the Company has incurred a net loss of $4,236,521 including $9,031 in interest expenses in connection with the outstanding interest bearing note. This is summarized as follows:

For the year ended October 31, 2007

None

None

We have historically had more expenses than income in each year of operations. The accumulated deficit from inception to October 31, 2007 is $4,236,521 (October 31, 2006 is $3,917,897) The Company has been able to maintain a positive cash position solely through financing activities and borrowing.

Our discussion and analysis of the Company's financial condition and results of operations is based on the Company's financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses for each period. Critical accounting policies are defined as policies that management believes are the most important to the portrayal of the Company's financial condition and results of operations. These policies may require us to make difficult, subjective, or complex judgments, commonly about the effects of matters that are inherently uncertain.

The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.

Revenue is recognized on the sale and delivery of a product or the completion of a service provided.

The Company expenses advertising and market development costs as incurred.

The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short term maturities.

Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements.

The Company adopted Statement of Financial Accounting Standards No. 130 which resulted in the showing of a temporary loss on available-for-sale securities under the Stockholders' Deficiency. During the year ended October 30, 2005 there was a decrease in the value of the available -for-sale securities held by the Company, which was considered to be other than temporary and therefore the amount of the decrease was expensed.

SFAS No. 12R3, "Accounting for Stock-Based Compensation," establishes accounting and reporting standards for stock-based employee compensation plans. As permitted by SFAS No. 123R, the Company accounts for such arrangements under APB Opinion No. 25, "Accounting for Stock Issued to Employees" and relate interpretations.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions relate to the valuation of inventory and the liability for the stock bonus plan. Actual amounts could differ from these estimates.

The Company has no revenue at present.

Monetary assets and liabilities are translated at year-end exchange rates, and other assets and liabilities have been translated at the rates prevailing at the date of the transaction. Revenue and expense items, except for amortization, are translated at the average rate of exchange for the year. Amortization is converted using rates prevailing at dates of acquisition. Gains and losses from foreign currency translation are included in the statement of operations.

All figures presented are in US dollars.

Report of Independent Registered Public Accounting Firm                                 F-1

Consolidated Balance Sheet                                                                               F-2

Consolidated Statement of Operations                                                                F-3

Consolidated Statement of Cash Flows                                                                F-4

Statement of Changes in Stockholders' Equity                                                     F-5

Notes to Consolidated Financial Statements                                                        F-6

MADSEN & ASSOCIATES, CPA's Inc.                                                                                                                                                                                     684 East Vine St, Suite 3

Board of Directors

Quadtech International, Inc. and Subsidiary

Vancouver, B.C. , Canada

We have audited the accompanying consolidated balance sheets of Quadtech International, Inc. and Subsidiary a development stage company at October 31, 2007 and the related statements of operations, stockholders' deficit , and cash flows for the years ended October 31, 2007 and 2006 and the period May 10, 2002 (date of inception of subsidiary) to October 31, 2007 . These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall balance sheet presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Quadtech International, Inc. and Subsidiary at October 31, 2007 and the related statements of operations, and cash flows for the years ended October 31, 2007 and 2006 and the period May 10, 2002 to October 31, 2007, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company will need additional working capital for its planned activity and to service its debt, which raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are described in the notes to the financial statements. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Murray, Utah

February 12, 2008 s/Madsen & Associates, CPA's Inc.