PART
I - FINANCIAL INFORMATION
Item 1. Financial Statements
| Entest BioMedical, Inc. (A Development Stage Company)   Consolidated Balance Sheet |
| As of | As of |
| May 31, 2010 | August 31, 2009 |
| (unaudited) |
| ASSETS |
| Current Assets |
| Cash | $ | 50,611 | $ | 250 |
| Current Portion of Prepaid Expenses | 49,200 | 45,100 |
| Employee Receivable | 1,396 | - |
| Total Current Assets | 101,207 | 45,350 |
| Long Term Assets |
| Non Current Portion of Prepaid Expenses | 40,700 | 36,700 |
| Deposits | 1,059 |
| TOTAL ASSETS | $ | 142,966 | $ | 82,050 |
| LIABILITES AND STOCKHOLDERS' EQUITY |
| Current Liabilities |
| Accounts Payable | 18,778 | 2,355 |
| Notes Payable | 124,072 |
| Accrued Expenses | 53,167 |
| Total Current Liabilities | 196,017 | 2,355 |
| TOTAL LIABILITIES | 196,017 | 2,355 |
| STOCKHOLDERS' EQUITY |
| Common Stock, $0.001 par vale, 70,000,000 shares |
| authorized, 17,050,000 and 17,553,040 shares issued and |
| outstanding as of August 31, 2009 and May 31, 2010 | 17,553 | 17,050 |
| Preferred Stock , $001 par value 5,000,000 shares authorized, |
| 0 shares issued and outstanding as of August 31, 2009 and May 31, 2010 |
| Additional paid in Capital | 537,415 | 308,083 |
| Contributed capital | 4,748 | 485 |
| Deficit accumulated during the development stage | (612,767 | ) | (245,923 | ) |
| Total Stockholders' Equity | (53,051 | ) | 79,695 |
| TOTAL LIABILITIES |
| & STOCKHOLDERS' EQUITY | $ | 142,966 | $ | 82,050 |

The Accompanying Notes are an Integral Part of these Financial Statements
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| Entest BioMedical, Inc. (A Development stage Company)    Consolidated Statement of Operations  (Unaudited) |
| Period from Inception |
| (August 22, 2008) |
| For The Three Months Ended | For The Nine Months Ended | through May 31, 2010 |
| May 31, 2010 | May 31, 2009 | May 31, 2010 | May 31, 2009 |
| REVENUES |
| Total Revenues | $ | - | $ | - | $ | - | $ | - |
| COSTS AND EXPENSES |
| Research and Development | 4,361 | - | 9,015 | 19,015 |
| Rent | 12,300 | 36,900 | 45,100 |
| General and Administrative | 93,630 | - | 291,377 | 318,614 |
| Incorporation Costs | - | - | 408 |
| Consultant's Expenses | 11,091 | - | 27,202 | 227,202 |
| Miscellaneous Expenses | - | - | 78 | 78 |
| Total Costs and Expenses | 121,382 | - | 364,494 | 78 | 610,417 |
| OPERATING LOSS | (121,382 | ) | - | (364,494 | ) | (78 | ) | (610,417 | ) |
| OTHER INCOME AND EXPENSE |
| Interest Expense | (1,828 | ) | - | (2,350 | ) | (2,350 | ) |
| LOSS BEFORE INCOME TAXES | (123,210 | ) | - | (366,844 | ) | (78 | ) | (612,767 | ) |
| Income Taxes |
| NET INCOME (LOSS) | $ | (123,210 | ) | $ | - | $ | (366,844 | ) | $ | (78 | ) | $ | (612,767 | ) |
| BASIC AND DILUTED EARNINGS (LOSS) |
| PER SHARE | $ | (0.007 | ) | $ | - | $ | (0.021 | ) | $ | (0.052 | ) |
| WEIGHTED AVERAGE NUMBER OF |
| COMMON SHARES OUTSTANDING | 17,553,040 | 1,500 | 17,536,167 | 1,500 |

The Accompanying Notes are an Integral Part of these Financial Statements
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| Entest BioMedical, Inc. (A Development Stage Company)   Statement of Stockholders' Equity From August 22, 2008 (Inception) through May 31, 2010 (Unaudited) |
| Accumulated |
| Deficit |
| Common | Additional | Cotrib- | during the |
| Paid-in | uted | Development | Total |
| Shares | Amount | Capital | Capital | Stage |
| Beginning balances Aug. 22, 2008 | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| Shares issued to parent | 1,500 | 408 | 408 |
| Net Loss August 22, 2008 |
| through August 31, 2008 | (408 | ) | (408 | ) |
| Balances August 31, 2008 | 1,500 | $ | 408 | $ | - | $ | (408 | ) | $ | - |
| Recapitalization in connection with |
| reverse acquisition | (1,500 | ) | (408 | ) | 408 | - |
| 10,000,000 | 10,000 | (10,000 | ) |
| Common Shares issued in Reverse |
| Acquisition | 4,000,000 | 4,000 | (4,000 | ) | - |
| Increases in Contributed Capital | 485 | 485 |
| Common Shares issued for Cash | 1,000,000 | 1,000 | 99,000 | 100,000 |
| Restricted Stock Award issued to |
| employee | 2,000,000 | 2,000 | (2,000 | ) |
| Restricted Stock Award |
| compensation expense for the |
| year ended August 31, 2009 | 24,725 | 24,725 |
| Common Stock issued to |
| consultant | 50,000 | 50 | 199,950 | 200,000 |
| Net Loss year ended Aug. 31, 2009 | (245,515 | ) | (245,515 | ) |
| Balances August 31, 2009 | 17,050,000 | $ | 17,050 | $ | 308,083 | $ | 485 | $ | (245,923 | ) | $ | 79,695 |
| Common Shares issued for Cash | 500,000 | 500 | 49,500 | 50,000 |
| Restricted Stock Award |
| compensation expense for the |
| 3 months ended Nov. 30, 2009 | 98,916 | 98,916 |
| Common Stock as Compensation | 3,040 | 3 | 4,557 | 4,560 |
| Increases in Contributed Capital | 4,263 | 4,263 |
| Net Loss 3 months ended Nov. 30, 2009 | (135,370 | ) | (135,370 | ) |
| Balances November 30, 2009 | 17,553,040 | $ | 17,553 | $ | 461,056 | $ | 4,748 | $ | (381,293 | ) | $ | 102,064 |
| Restricted Stock Award |
| compensation expense for the |
| 3 months ended February 28, 2010 | 76,359 |
| Net Loss 3 months ended February 28,2010 | (108,264 | ) |
| Balances February 28, 2010 | 17,553,040 | $ | 17,553 | $ | 537,415 | $ | 4,748 | $ | (489,557 | ) | $ | 70,159 |
| Balances February 28, 2010 | 17,553,040 | 17,553 | 537,415 | 4,748 | (489,557 | ) | 70,159 |
| Common Shares issued for Cash |
| Restricted Stock Award |
| Compensation expense for |
| 3 months ended May 31, 2010 |
| Common Stock as Compensation |
| Increases in Contributed Capital |
| Net Loss 3 months ended May 31, 2010 | (123,210 | ) | (123,210 | ) |
| Balances May 31, 2010 | 17,553,040 | 17,553 | 537,415 | 4,748 | (612,767 | ) | (53,051 | ) |

The Accompanying Notes are an Integral Part of these Financial Statements
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| Entest BioMedical, Inc. (A Development Stage Company)   Consolidated Statement of Cash Flows (Unaudited) |
| Period from |
| Inception |
| (Aug.22,2008) |
| For the Three Months Ended | Nine Months Ended | through |
| May 31 | May 31 | May 31, |
| 2010 | 2009 | 2010 | 2009 | 2010 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
| Net (loss) | (123,210 | ) | - | (366,844 | ) | (78 | ) | (612,767 | ) |
| (Increase) Decrease in Employee Receivable | (1,396 | ) | - | (1,396 | ) | - | (1,396 | ) |
| Increase (Decrease) in Accounts Payable | 9,920 | - | 16,413 | - | 18,768 |
| (Increase) Decrease in Prepaid Expenses | 12,300 | - | (8,100 | ) | - | (89,900 | ) |
| (increase) Decrease in Deposits | - | (1,059 | ) | - | (1,059 | ) |
| Increase (Decrease) in Accrued Expenses | 52,655 | - | 53,177 | - | 53,177 |
| Stock issued as compensation to Employees | - | - | 179,835 | - | 204,560 |
| Stock issued to Prepay Expenses | - | - | 45,000 | - | 45,000 |
| Stock issued as compensation to Consultants | - | - | - | - | 200,000 |
| - |
| Net Cash Provided by (Used in) Operating Activities | (49,731 | ) | - | (82,974 | ) | (78 | ) | (183,617 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES |
| Common stock issued for cash | - | - | 50 | - | 1,050 |
| Advances from shareholder | - | - | - | - | - |
| Increase (Decrease) in Notes Payable | 100,102 | - | 124,072 | - | 124,072 |
| Contributed Capital | - | - | 4,263 | 78 | 4,748 |
| Additional Paid in capital | - | - | 4,950 | - | 104,358 |
| Net Cash Provided by Financing Activities | 100,102 | - | 133,335 | 78 | 234,228 |
| Net Increase in Cash | 50,371 | - | 50,361 | - | 50,611 |
| Cash at Beginning of Period | 240 | - | 250 | - | - |
| Cash at End of Period | 50,611 | - | 50,611 | - | 50,611 |

The Accompanying Notes are an Integral Part of these Financial Statements
5
Entest BioMedical, Inc.
(A Development Stage Company)
Notes to Consolidated Financial Statements
As of May 31, 2010
NOTE 1 - BASIS OF PRESENTATION
The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by Entest BioMedical Inc. (“the Company”) , without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.
These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these condensed consolidated interim financial statements be read in conjunction with the financial statements of the Company for the period ended August 31, 2009 and notes thereto included in the Company's 10-K annual report. The Company follows the same accounting policies in the preparation of interim reports.
Results of operations for the interim periods are not indicative of annual results.
NOTE 2-GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company generated net losses of $612,767 during the period from August 22, 2008 (inception) through May 31, 2010. This condition raises substantial doubt about the Company's ability to continue as a going concern. The Company's continuation as a going concern is dependent on its ability to meet its obligations, to obtain additional financing as may be required and ultimately to attain profitability. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Management plans to raise additional funds by obtaining governmental and non-governmental grants as well as offering securities for cash. Management has yet to decide what type of offering the Company will use or how much capital the Company will raise. There is no guarantee that the Company will be able to raise any capital through any type of offerings. Management can give no assurance that any governmental or non-governmental grant will be obtained by the Company despite the Company’s best efforts.
6
NOTE 3. RELATED PARTY TRANSACTIONS
Between March 4, 2010 and May 27, 2010, Bombardier Pacific Ventures (“Bombardier”), a company controlled by David R. Koos who is the Company’s Chief Executive Officer, made loans to the Company totaling $49,982. The total amount owed by the Company to Bombardier as of May 31, 2010 is $73,372. These loans and any accrued interest are due and payable at the demand of Bombardier and bear simple interest at the rate of 15% per annum.
During the three months ended May 31, 2010 David R. Koos, made loans to the Company totaling $50,120. These loans and any accrued interest are due and payable at the demand of David R. Koos and bear simple interest at the rate of 15% per annum.
NOTE 4. INCOME TAXES
| As of May 31, 2010 |
| Deferred tax assets: |
| Net operating tax carry forwards | $ | 238,034 |
| Other | -0- |
| Gross deferred tax assets | 238,034 |
| Valuation allowance | (238,034 | ) |
| Net deferred tax assets | $ | -0- |

As of May 31, 2010 the Company has a Deferred Tax Asset of $238,034 completely attributable to net operating loss carry forwards of approximately $626,404 (which expire 20 years from the date the loss was incurred) consisting of:
(a) $ 13,647 of Net Operating Loss Carry forwards acquired in the reverse acquisition of Entest BioMedical, Inc, a California corporation, and
(b) $612,768 attributable to Entest BioMedical, Inc.
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry forwards are expected to be available to reduce taxable income. The achievement of required future taxable income is uncertain. In addition, the reverse acquisition of Entest BioMedical, Inc. has resulted in a change of control. Internal Revenue Code Sec 382 limits the amount of income that may be offset by net operating loss (NOL) carryovers after an ownership change. As a result, the Company has the Company recorded a valuation allowance reducing all deferred tax assets to 0.
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NOTE 5. STOCKHOLDERS' EQUITY
The stockholders' equity section of the Company contains the following classes of capital stock as of May 31, 2010:
Common Stock:
$0.001 par value, 70,000,000 shares authorized 17,553,040 shares issued and outstanding as of May 31, 2010.
Preferred Stock:
$0.001 par value 5,000,000 shares authorized 0 shares issued and outstanding as of May 31, 2010.
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Item
CERTAIN FORWARD-LOOKING INFORMATION
Information provided in this Quarterly report on Form 10Q may contain forward-looking statements within the meaning of Section 21E or Securities Exchange Act of 1934 that are not historical facts and information. These statements represent the Company's expectations or beliefs, including, but not limited to, statements concerning future and operating results, statements concerning industry performance, the Company's operations, economic performance, financial conditions, margins and growth in sales of the Company's products, capital expenditures, financing needs, as well assumptions related to the forgoing. For this purpose, any statements contained in this Quarterly Report that are not statement of historical fact may be deemed to be forward-looking statements. These forward-looking statements are based on current expectations and involve various risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. The Company's financial performance and the forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by the Company with the Securities and Exchange Commission, including the Company's most recent Form 10K for the year ended August 31, 2009. All references to” We”, “Us”, “Company” or the “Company” refer to Entest BioMedical, Inc.
Material Changes in Financial Condition:
As of May 31, 2010, we had Cash on hand of $50,611 and as of August 31, 2009 we had Cash on hand of $250.
The increase in Cash on hand of approximately 201% is primarily attributable the borrowings of the Company.
As of May 31, 2010, we had Prepaid Expenses of $89,900 and as of August 31, 2009 we had Prepaid Expenses of $81,800.
The increase in Prepaid Expenses of approximately 10% is primarily attributable to the sale of 500,000 of our common shares for consideration of $50,000 of which $45,000 was deposited with Bio-Matrix Scientific Group, Inc (BMSN) to be applied to rental payments due to BMSN over the course of sublease agreement between BMSN and us offset by rental expenses incurred during the nine months ended May 31, 2010.
As of May 31, 2010 we had Employee Receivable of $1,396 and as of August 31, 2009 we had Employee Receivable of $0.
The increase in Employee Receivable of $1,396 results from a loan to an employee.
As of May 31, 2010 we had Deposits of $1,059 and as of August 31, 2009 we had Deposits of $0.
The increase in Deposits results from a deposit of $1,059 sent by the Company to San Diego Gas and Electric Company.
As of May 31, 2010 we had Accounts Payable of $18,778 and as of August 31, 2009 we had Accounts Payable of $2,355.
The increase in Accounts Payable of approximately 697% is primarily attributable to an increase in outstanding obligations incurred in the course of business.
As of May 31, 2010 we had Notes Payable of $124,072 and as of August 31, 2009 we had Notes Payable of $0.
9
The increase in Notes Payable is attributable to $124,072 borrowed from our Chairman and CEO and a corporation controlled by our Chairman and CEO which was utilized to pay operational costs.
As of May 31, 2010 we had Accrued Expenses of $53,167 and as of August 31, 2009 we had Accrued Interest Expenses of $0.
The increase in Accrued Expenses is mainly attributable to Accrued Salaries due to David R. Koos our Chairman and CEO.
Material Changes in Results of Operations
Revenues were -0- for the quarter ending May 31, 2010 and -0- for the same quarter ending May 31, 2009. Net losses were $123,210 or the three months ended May 31, 2010 and $0 for the same period ended May 31, 2009,
This increase in Net Losses is primarily attributable to increases in research and development costs, compensation, consulting and rental expenses incurred by us.
Revenues were -0- for the nine months ending May 31, 2010 and -0- for the nine months ending May 31, 2009. Net losses were $366,834 or the nine months ended May 31, 2010 and $78 for the same period ended May 31, 2009.
This increase in Net Losses is primarily attributable to increases in research and development costs, compensation, consulting and rental expenses incurred by us.
Liquidity and Capital Resources
As of May 31, 2010 we had $50,610 cash on hand and current liabilities of $196,017 such liabilities consisting of Accounts Payable, Notes Payable, and Accrued Expenses.
We feel we will not be able to satisfy its cash requirements over the next twelve months and shall be required to seek additional financing.
We currently plan to raise additional funds by obtaining governmental and non-governmental grants as well as offering securities for cash. We have yet to decide what type of offering we will use or how much capital we will raise. There is no guarantee that we will be able to raise any capital through any type of offerings. We can give no assurance that any governmental or non-governmental grant will be obtained by us despite our best efforts. We cannot assure that we will be successful in obtaining additional financing necessary to implement our business plan. We have not received any commitment or expression of interest from any financing source that has given us any assurance that we will obtain the amount of additional financing in the future that we currently anticipate. For these and other reasons, we are not able to assure that we will obtain any additional financing or, if we are successful, that we can obtain any such financing on terms that may be reasonable in light of our current circumstances.
We were not party to any material commitments for capital expenditures as of the end of the quarter ended May 31, 2010.
Item
As a smaller reporting company, as defined by Rule 229.10(f) (1) of Regulation S-K, we are not required to provide the information required by this Item. We have chosen to disclose, however, that we have not engaged in any transactions, issued or bought any financial instruments or entered into any contracts that are required to be disclosed in response to this item.
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Item
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, the management of the Company carried out an evaluation, under the supervision of the Company's Principal Executive Officer and with the participation of the Company's Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. The Company's disclosure controls and procedures are designed to provide a reasonable level of assurance of achieving the Company's disclosure control objectives. The Company's management has concluded that the Company's disclosure controls and procedures are, in fact, effective at this reasonable assurance level as of the period covered.
Changes in Internal Controls over Financial Reporting
There were no changes to the Company's internal controls over financial reporting that have been materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.
PART II—OTHER INFORMATION
Item
None
Item
N/A.
Item
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item
None.
Item
| 31.1 | Certification of Chief Executive Officer |
| 31.2 | Certification of Chief Financial Officer |
| 32.1 | Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2 | Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002. |

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SIGNATURES
In accordance with the requirements of the Exchange Act, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Entest BioMedical, Inc. |
| a Nevada corporation |
| By: | /s/ David R. Koos |
| David R. Koos |
| Chief Executive Officer |
| Date: June 22, 2010 |

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Question: What is the ratio of net loss for the three-month period ending May 31, 2010 to the total stockholders' equity as of May 31, 2010 in decimal form?

Solution:
def solution():
    #Define variables name and value
    net_loss_3_month = -123210
    total_stockholders_equity= -53051

    #Do math calculation to get the answer
    answer = round(net_loss_3_month / total_stockholders_equity, 3)
    return answer


Answer: 2.322