----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------|

| POWER3 MEDICAL PRODUCTS, INC.                          |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| New York                                                      |   | 65-0565144                       |
|---------------------------------------------------------------|--------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (IRS EmployerIdentification No.) |

|   | 26022 Budde Road             The Woodlands, Texas 77380 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------|--------|
|   | (Address of Principal Executive Offices)                                                                                 |   |

|   | (281) 298-7944                                         |   |
|--------|--------------------------------------------------------|--------|
|   | (Issuer’s Telephone Number, including Area Code) |   |

----

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

----

|                                 |                                                                                                                                                                                                       |   |   |
|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                 |                                                                                                                                                                                                       |   | Page   |
| PART I – FINANCIAL INFORMATION |                                                                                                                                                                                                       |   |
|                                 |                                                                                                                                                                                                       |   |   |
| Item 1.                              | Financial Statements                                                                                                                                                                                       |   | 1      |
|                                 |                                                                                                                                                                                                       |   |   |
|                                 | Balance Sheets at March 31, 2011 (unaudited) and December 31, 2010                                                                                                                                         |   | 1      |
|                                 |                                                                                                                                                                                                       |   |   |
|                                 | Statements of Operations for the three months ended March 31, 2011 and 2010 (unaudited) and the period beginning May 18, 2004 (date of entering development stage) through March 31, 2011 (unaudited) |   | 2      |
|                                 |                                                                                                                                                                                                       |   |   |
|                                 | Statements of Stockholders’ Deficit for all years subsequent to May 18, 2004 (date of entering development stage) and the three months ended March 31, 2011 (unaudited)                              |   | 3      |
|                                 |                                                                                                                                                                                                       |   |   |
|                                 | Statements of Stockholders’ Deficit – Other Equity Items for all years subsequent to May 18, 2004 (date of entering development stage) and the three months ended March 31, 2011 (unaudited)   |   | 4      |
|                                 |                                                                                                                                                                                                       |   |   |
|                                 | Statements of Cash Flows for the three months ended March 31, 2011 and 2010 (unaudited) and the period beginning May 18, 2004 (date of entering development stage) through March 31, 2011 (unaudited)      |   | 5      |
|                                 |                                                                                                                                                                                                       |   |   |
|                                 | Notes to Financial Statements (unaudited)                                                                                                                                                                  |   | 6      |
|                                 |                                                                                                                                                                                                       |   |   |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                |   | 24     |
|                                 |                                                                                                                                                                                                       |   |   |
| Item 4T.                             | Controls and Procedures                                                                                                                                                                                    |   | 30     |
|                                 |                                                                                                                                                                                                       |   |   |
| PART II – OTHER INFORMATION    |                                                                                                                                                                                                       |   |
|                                 |                                                                                                                                                                                                       |   |   |
| Item 1.                              | Legal Proceedings                                                                                                                                                                                          |   | 31     |
|                                 |                                                                                                                                                                                                       |   |   |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                |   | 33     |
|                                 |                                                                                                                                                                                                       |   |   |
| Item 6.                              | Exhibits                                                                                                                                                                                                   |   | 34     |

----

| Power3 Medical Products, Inc. |
|-------------------------------|
| (A Development Stage Entity)  |
| Balance Sheets                |

|                                                                                                                                                                                     |   | March 31,   |        |   |         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|--------------|--------|
|                                                                                                                                                                                     |   | 2011        |        |   | December 31, |   |
|                                                                                                                                                                                     |   | (Unaudited) |        |   | 2010         |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |
| Assets                                                                                                                                                                                   |   |        |        |   |         |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |
| Cash and equivalents                                                                                                                                                                     |   | $           | -           |   |         | $      | - |   |
| Other current assets                                                                                                                                                                     |   |        | -           |   |         |   | - |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Total current assets                                                                                                                                                                     |   |        | -           |   |         |   | - |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Property and equipment, net of accumulated depreciation of $108,577 and $108,461 at March 31, 2011 and December 31, 2010, respectively                                                   |   |        | 2,012       |   |         |   | 2,128 |   |
| Deposits                                                                                                                                                                                 |   |        | 11,332      |   |         |   | 11,332 |   |
| Other assets                                                                                                                                                                             |   |        | 100         |   |         |   | 100 |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Total assets                                                                                                                                                                             |   | $           | 13,444      |   |         | $      | 13,560 |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Liabilities and stockholders’ deficit                                                                                                                                              |   |        |        |   |         |   |   |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Accounts payable                                                                                                                                                                         |   | $           | 1,288,751   |   |         | $      | 1,643,510 |   |
| Accounts payable – related party                                                                                                                                                   |   |        | 525,701     |   |         |   | 525,701 |   |
| Notes payable – related party                                                                                                                                                      |   |        | 225,933     |   |         |   | 154,482 |   |
| Notes payable – in default                                                                                                                                                         |   |        | 501,000     |   |         |   | 501,000 |   |
| Notes payable – in default – related party                                                                                                                                   |   |        | 80,000      |   |         |   | 80,000 |   |
| Convertible debentures – in default                                                                                                                                                |   |        | 272,176     |   |         |   | 303,853 |   |
| Derivative liabilities                                                                                                                                                                   |   |        | 629,171     |   |         |   | 1,460,472 |   |
| Other current liabilities                                                                                                                                                                |   |        | 819,871     |   |         |   | 788,225 |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Total current liabilities                                                                                                                                                                |   |        | 4,342,603   |   |         |   | 5,457,243 |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Total liabilities                                                                                                                                                                        |   |        | 4,342,603   |   |         |   | 5,457,243 |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Stockholders’ deficit:                                                                                                                                                             |   |        |        |   |         |   |   |   |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Preferred Stock – $0.001 par value: 50,000,000 shares authorized; 1,500,000 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively                 |   |        | 1,500       |   |         |   | 1,500 |   |
| Common Stock – $0.001 par value: 600,000,000 shares authorized; 513,271,617 and 472,237,565 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively |   |        | 513,272     |   |         |   | 472,237 |   |
| Additional paid-in capital                                                                                                                                                               |   |        | 73,833,040  |   |         |   | 72,994,212 |   |
| Treasury stock                                                                                                                                                                           |   |        | (16,000     | )      |         |   | (16,000 | ) |
| Common stock payable                                                                                                                                                                     |   |        | 135,000     |   |         |   | 135,000 |   |
| Deficit accumulated during development stage                                                                                                                                             |   |        | (67,114,471 | )      |         |   | (67,349,132 | ) |
| Deficit accumulated before entering development stage                                                                                                                                    |   |        | (11,681,500 | )      |         |   | (11,681,500 | ) |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Total stockholders’ deficit                                                                                                                                                        |   |        | (4,329,159  | )      |         |   | (5,443,683 | ) |
|                                                                                                                                                                                     |   |        |        |   |         |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                                                                        |   | $           | 13,444      |   |         | $      | 13,560 |   |

----

| Power3 Medical Products, Inc. |
|-------------------------------|
| (A Development Stage Entity)  |
| Statements of Operations      |

|                                                    |   |                       |        |   |      |   |        | Period From  |   |
|---------------------------------------------------------|--------|----------------------------|-------------|--------|-----------|--------|-------------|--------------|--------|
|                                                    |   |                       |        |   |      |   |        | May 18, 2004 |   |
|                                                    |   | For the Three Months Ended |        |   | Through   |   |
|                                                    |   | March 31,                  |        |   | March 31, |   |
|                                                    |   | 2011                       |        |   | 2010      |   |        | 2011         |   |
|                                                    |   |                       |        |   |      |   |        |         |   |
| Net revenue                                             |   | $                          | -           |   |      | $      | -           |         |   | $ | 542,249 |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Operating expenses:                                     |   |                       |        |   |      |   |        |         |   |   |   |   |
| Employee compensation and benefits                      |   |                       | 31,250      |   |      |   | 34,918      |         |   |   | 31,598,092 |   |
| Professional and consulting fees                        |   |                       | 382,761     |   |      |   | 245,001     |         |   |   | 18,053,409 |   |
| Impairment of goodwill                                  |   |                       | -           |   |      |   | -           |         |   |   | 13,371,776 |   |
| Other selling, general and administrative expenses      |   |                       | 61,986      |   |      |   | 177,742     |         |   |   | 2,716,134 |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Total operating expenses                                |   |                       | 475,997     |   |      |   | 457,661     |         |   |   | 65,739,411 |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Loss from operations                                    |   |                       | (475,997    | )      |      |   | (457,661    | )            |   |   | (65,197,162 | ) |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Other income:                                           |   |                       |        |   |      |   |        |         |   |   |   |   |
| Derivative gain                                         |   |                       | 752,811     |   |      |   | 10,703,695  |         |   |   | 7,725,815 |   |
| Loss on settlement of litigation                        |   |                       | -           |   |      |   | -           |         |   |   | (267,865 | ) |
| Interest income                                         |   |                       | -           |   |      |   | -           |         |   |   | 7,867 |   |
| Gain (loss) on settlement of debt                       |   |                       | (20,263     | )      |      |   | -           |         |   |   | 1,562,609 |   |
| Interest expense                                        |   |                       | (21,890     | )      |      |   | (49,198     | )            |   |   | (5,809,116 | ) |
| Mandatory prepayment penalty                            |   |                       | -           |   |      |   | -           |         |   |   | (420,000 | ) |
| Other expense                                           |   |                       | -           |   |      |   | -           |         |   |   | (194,886 | ) |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Total other income                                      |   |                       | 710,658     |   |      |   | 10,654,497  |         |   |   | 2,604,424 |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Net income (loss)                                       |   |                       | 234,661     |   |      |   | 10,196,836  |         |   |   | (62,592,738 | ) |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Deemed dividend                                         |   |                       | -           |   |      |   | -           |         |   |   | (1,140,760 | ) |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Net income (loss) attributable to common stockholders   |   | $                          | 234,661     |   |      | $      | 10,196,836  |         |   | $ | (63,733,498 | ) |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Net income per share - basic                            |   | $                          | 0.00        |   |      | $      | 0.02        |         |   |   |   |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Net income per share - diluted                          |   | $                          | 0.00        |   |      | $      | 0.02        |         |   |   |   |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Weighted average number of shares outstanding - basic   |   |                       | 486,993,960 |   |      |   | 478,823,366 |         |   |   |   |   |
|                                                    |   |                       |        |   |      |   |        |         |   |   |   |   |
| Weighted average number of shares outstanding - diluted |   |                       | 510,842,272 |   |      |   | 500,029,456 |         |   |   |   |   |

----

|  Power3 Medical Products, Inc.            |
|------------------------------------------------|
|  (A Development Stage Entity)             |
|  Statement of Stockholders’ Deficit |

|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   | Additional  |   |   |         |   |       |    |    |   |        |   |
|---------------------------------------------------------------------|--------|--------------|-------------|--------|-----------------|--------|---------|---------|--------|--------|----------------|--------|--------|-------------|--------|--------|--------------|--------|------------|---------|---------|--------|-------------|--------|
|                                                                |   | Common Stock |        |   | Preferred Stock |   |    | Paid-in |   |   | Other Equity   |   |   | Accumulated |   |   |         |   |
|                                                                |   | Shares       |        |   | Par Value       |   |    | Shares  |   |   | Par Value |   |   | Capital     |   |   | Items (1)    |   |       | Deficit |    |   | Total       |   |
| Balances as of Beginning of Development Stage -- May 18, 2004       |   |         | 14,407,630  |   |            | $      | 14,407  |    |   |   | 3,870,000      |   |   | $           | 3,870  |   |         | $      | 14,225,974 |    |    | $      | -           |   |   | $ | (11,681,500 | ) |   | $ | 2,562,751 |   |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   | - |   |
| Issued shares for compensation                                      |   |         | 27,945,000  |   |            |   | 27,945  |    |   |   | -              |   |   |        | -      |   |         |   | 25,423,555 |    |    |   | (25,451,500 | )      |   |   | - |   |   |   | - |   |
| Issued shares for services                                          |   |         | 4,910,000   |   |            |   | 4,910   |    |   |   | -              |   |   |        | -      |   |         |   | 4,850,090  |    |    |   | (535,000    | )      |   |   | - |   |   |   | 4,320,000 |   |
| Issued shares for acquisition of equipment                          |   |         | 15,000,000  |   |            |   | 15,000  |    |   |   | -              |   |   |        | -      |   |         |   | 13,485,000 |    |    |   | -           |   |   |   | - |   |   |   | 13,500,000 |   |
| Stock option expense                                                |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 626,100    |    |    |   | (626,100    | )      |   |   | - |   |   |   | - |   |
| Issued shares for cash                                              |   |         | 242,167     |   |            |   | 242     |    |   |   | -              |   |   |        | -      |   |         |   | 314,575    |    |    |   | -           |   |   |   | - |   |   |   | 314,817 |   |
| Cancelled shares per cancellation agreement                         |   |         | (160,000    | )      |            |   | (160    | )       |   |   | -              |   |   |        | -      |   |         |   | (71,840    | )       |    |   | -           |   |   |   | - |   |   |   | (72,000 | ) |
| Issued shares to convert Series A perferred shares to common shares |   |         | 3,000,324   |   |            |   | 3,001   |    |   |   | (3,870,000     | )      |   |        | (3,870 | )      |         |   | 3,377,974  |    |    |   | -           |   |   |   | (3,380,975 | ) |   |   | (3,870 | ) |
| Stock based compensation                                            |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | 8,311,012   |   |   |   | - |   |   |   | 8,311,012 |   |
| Net reclassification of derivative liabilities                      |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | (3,347,077 | )       |    |   | -           |   |   |   | - |   |   |   | (3,347,077 | ) |
| Net loss (from May 18, 2004 to December 31, 2004)                   |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | (15,236,339 | ) |   |   | (15,236,339 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2004                                        |   |         | 65,345,121  |   |            |   | 65,345  |    |   |   | -              |   |   |        | -      |   |         |   | 58,884,351 |    |    |   | (18,301,588 | )      |   |   | (30,298,814 | ) |   |   | 10,349,294 |   |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Cancelled shares returned from employee                             |   |         | (1,120,000  | )      |            |   | (1,120  | )       |   |   | -              |   |   |        | -      |   |         |   | (1,307,855 | )       |    |   | -           |   |   |   | - |   |   |   | (1,308,975 | ) |
| Issued shares for compensation                                      |   |         | 140,000     |   |            |   | 140     |    |   |   | -              |   |   |        | -      |   |         |   | 41,860     |    |    |   | -           |   |   |   | - |   |   |   | 42,000 |   |
| Issued shares for services                                          |   |         | 850,000     |   |            |   | 850     |    |   |   | -              |   |   |        | -      |   |         |   | 155,150    |    |    |   | -           |   |   |   | - |   |   |   | 156,000 |   |
| Amortize deferred compensation expense                              |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | 13,222,517  |   |   |   | - |   |   |   | 13,222,517 |   |
| Net loss                                                            |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | (27,134,865 | ) |   |   | (27,134,865 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2005                                        |   |         | 65,215,121  |   |            |   | 65,215  |    |   |   | -              |   |   |        | -      |   |         |   | 57,773,506 |    |    |   | (5,079,071  | )      |   |   | (57,433,679 | ) |   |   | (4,674,029 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Issued shares for services                                          |   |         | 2,449,990   |   |            |   | 2,449   |    |   |   | -              |   |   |        | -      |   |         |   | 311,865    |    |    |   | -           |   |   |   | - |   |   |   | 314,314 |   |
| Issued shares for cash                                              |   |         | 2,452,746   |   |            |   | 2,452   |    |   |   | -              |   |   |        | -      |   |         |   | 222,548    |    |    |   | -           |   |   |   | - |   |   |   | 225,000 |   |
| Issued shares for compensation                                      |   |         | 1,253,098   |   |            |   | 1,254   |    |   |   | -              |   |   |        | -      |   |         |   | 176,763    |    |    |   | -           |   |   |   | - |   |   |   | 178,017 |   |
| Adoption of FAS 123R                                                |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | (475,324   | )       |    |   | 475,324     |   |   |   | - |   |   |   | - |   |
| Amortize deferred compensation expense                              |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | 4,603,747   |   |   |   | - |   |   |   | 4,603,747 |   |
| Net loss                                                            |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | (6,415,969 | ) |   |   | (6,415,969 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2006                                        |   |         | 71,370,955  |   |            |   | 71,370  |    |   |   | -              |   |   |        | -      |   |         |   | 58,009,358 |    |    |   | -           |   |   |   | (63,849,648 | ) |   |   | (5,768,920 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Issued shares for services                                          |   |         | 1,810,000   |   |            |   | 1,810   |    |   |   | -              |   |   |        | -      |   |         |   | 282,390    |    |    |   | -           |   |   |   | - |   |   |   | 284,200 |   |
| Issued shares for conversion of debt                                |   |         | 22,265,224  |   |            |   | 22,264  |    |   |   | -              |   |   |        | -      |   |         |   | 606,412    |    |    |   | -           |   |   |   | - |   |   |   | 628,676 |   |
| Issued shares for warrants exercised                                |   |         | 5,270,832   |   |            |   | 5,272   |    |   |   | -              |   |   |        | -      |   |         |   | 336,396    |    |    |   | -           |   |   |   | - |   |   |   | 341,668 |   |
| Issued shares for cash                                              |   |         | 7,630,625   |   |            |   | 7,632   |    |   |   | -              |   |   |        | -      |   |         |   | 992,818    |    |    |   | -           |   |   |   | - |   |   |   | 1,000,450 |   |
| Placement agent fees                                                |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | (58,500    | )       |    |   | -           |   |   |   | - |   |   |   | (58,500 | ) |
| Stock received                                                      |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 100        |    |    |   | -           |   |   |   | - |   |   |   | 100 |   |
| Unreturned shares                                                   |   |         | 5,000       |   |            |   | 5       |    |   |   | -              |   |   |        | -      |   |         |   | 4,495      |    |    |   | -           |   |   |   | - |   |   |   | 4,500 |   |
| Deemed dividend                                                     |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 17,635     |    |    |   | -           |   |   |   | (17,635 | ) |   |   | - |   |
| Net loss                                                            |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | (5,216,288 | ) |   |   | (5,216,288 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2007                                        |   |         | 108,352,636 |   |            |   | 108,353 |    |   |   | -              |   |   |        | -      |   |         |   | 60,191,104 |    |    |   | -           |   |   |   | (69,083,571 | ) |   |   | (8,784,114 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                    |   |         | 7,482,910   |   |            |   | 7,483   |    |   |   | -              |   |   |        | -      |   |         |   | 584,858    |    |    |   | -           |   |   |   | - |   |   |   | 592,341 |   |
| Common stock issued for cash                                        |   |         | 7,492,875   |   |            |   | 7,493   |    |   |   | -              |   |   |        | -      |   |         |   | 639,911    |    |    |   | -           |   |   |   | - |   |   |   | 647,404 |   |
| Common stock issued for conversion of debt                          |   |         | 22,172,536  |   |            |   | 22,173  |    |   |   | -              |   |   |        | -      |   |         |   | 1,568,626  |    |    |   | -           |   |   |   | - |   |   |   | 1,590,799 |   |
| Common stock issued for lawsuit settlement                          |   |         | 325,000     |   |            |   | 325     |    |   |   | -              |   |   |        | -      |   |         |   | 30,550     |    |    |   | -           |   |   |   | - |   |   |   | 30,875 |   |
| Issued shares for payables                                          |   |         | 2,133,333   |   |            |   | 2,133   |    |   |   | -              |   |   |        | -      |   |         |   | 186,867    |    |    |   | -           |   |   |   | - |   |   |   | 189,000 |   |
| Common stock held in escrow                                         |   |         | 2,000,000   |   |            |   | 2,000   |    |   |   | -              |   |   |        | -      |   |         |   | 18,000     |    |    |   | (20,000     | )      |   |   | - |   |   |   | - |   |
| Preferred stock issued for services                                 |   |         | -           |   |            |   | -       |    |   |   | 1,500,000      |   |   |        | 1,500  |   |         |   | 357,000    |    |    |   | -           |   |   |   | - |   |   |   | 358,500 |   |
| Deemed dividends                                                    |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 12,071     |    |    |   | -           |   |   |   | (12,071 | ) |   |   | - |   |
| Loss on related party debt conversion                               |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | (89,049    | )       |    |   | -           |   |   |   | - |   |   |   | (89,049 | ) |
| Common stock payable                                                |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | 123,286     |   |   |   | - |   |   |   | 123,286 |   |
| Net loss                                                            |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | (136,784 | ) |   |   | (136,784 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2008                                        |   |         | 149,959,290 |   |            |   | 149,960 |    |   |   | 1,500,000      |   |   |        | 1,500  |   |         |   | 63,499,938 |    |    |   | 103,286     |   |   |   | (69,232,426 | ) |   |   | (5,477,742 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Common stock issued for conversion of debt                          |   |         | 150,701,039 |   |            |   | 150,701 |    |   |   | -              |   |   |        | -      |   |         |   | 2,154,621  |    |    |   | (82,944     | )      |   |   | - |   |   |   | 2,222,378 |   |
| Common stock payable                                                |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | 116,000     |   |   |   | - |   |   |   | 116,000 |   |
| Common stock issed upon exercise of warrants                        |   |         | 11,789,509  |   |            |   | 11,790  |    |   |   | -              |   |   |        | -      |   |         |   | 267,042    |    |    |   | -           |   |   |   | - |   |   |   | 278,832 |   |
| Common stock issued for services                                    |   |         | 112,201,562 |   |            |   | 112,201 |    |   |   | -              |   |   |        | -      |   |         |   | 4,403,503  |    |    |   | (14,286     | )      |   |   | - |   |   |   | 4,501,418 |   |
| Common stock issued for cash                                        |   |         | 11,515,600  |   |            |   | 11,516  |    |   |   | -              |   |   |        | -      |   |         |   | 73,640     |    |    |   | -           |   |   |   | - |   |   |   | 85,156 |   |
| Return of common stock held in escrow                               |   |         | (800,000    | )      |            |   | (800    | )       |   |   | -              |   |   |        | -      |   |         |   | 800        |    |    |   | -           |   |   |   | - |   |   |   | - |   |
| Deemed dividends                                                    |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 1,111,054  |    |    |   | -           |   |   |   | (1,111,054 | ) |   |   | - |   |
| Release of common stock held in escrow                              |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 20,000     |    |    |   | 4,000       |   |   |   | - |   |   |   | 24,000 |   |
| Common stock rescinded for debt                                     |   |         | (1,200,000  | )      |            |   | (1,200  | )       |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | (7,056      | )      |   |   | - |   |   |   | (8,256 | ) |
| Common stock contributed for debt payment                           |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 276,558    |    |    |   | -           |   |   |   | - |   |   |   | 276,558 |   |
| Options issued for services                                         |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 176,927    |    |    |   | -           |   |   |   | - |   |   |   | 176,927 |   |
| Net loss                                                            |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | (19,211,574 | ) |   |   | (19,211,574 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009                                        |   |         | 434,167,000 |   |            |   | 434,167 |    |   |   | 1,500,000      |   |   |        | 1,500  |   |         |   | 71,984,083 |    |    |   | 119,000     |   |   |   | (89,555,054 | ) |   |   | (17,016,304 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Common stock issued upon exercise of warrants                       |   |         | 36,799,358  |   |            |   | 36,799  |    |   |   | -              |   |   |        | -      |   |         |   | 197,735    |    |    |   | -           |   |   |   | - |   |   |   | 234,534 |   |
| Common stock issued for services                                    |   |         | 13,573,456  |   |            |   | 13,573  |    |   |   | -              |   |   |        | -      |   |         |   | 518,671    |    |    |   | -           |   |   |   | - |   |   |   | 532,244 |   |
| Vesting of common stock issued for services                         |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 280,000    |    |    |   | -           |   |   |   | - |   |   |   | 280,000 |   |
| Common stock rescinded or canceled                                  |   |         | (12,302,249 | )      |            |   | (12,302 | )       |   |   | -              |   |   |        | -      |   |         |   | 12,302     |    |    |   | -           |   |   |   | - |   |   |   | - |   |
| Imputed interest on no-interest loans                               |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 1,421      |    |    |   | -           |   |   |   | - |   |   |   | 1,421 |   |
| Net income                                                          |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | 10,524,422 |   |   |   | 10,524,422 |   |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                        |   |         | 472,237,565 |   |            | $      | 472,237 |    |   |   | 1,500,000      |   |   | $           | 1,500  |   |         | $      | 72,994,212 |    |    | $      | 119,000     |   |   | $ | (79,030,632 | ) |   | $ | (5,443,683 | ) |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                    |   |         | 16,986,799  |   |            |   | 16,987  |    |   |   | -              |   |   |        | -      |   |         |   | 287,687    |    |    |   | -           |   |   |   | - |   |   |   | 304,674 |   |
| Common stock issued for settlement of debt and litigation           |   |         | 27,747,253  |   |            |   | 27,748  |    |   |   | -              |   |   |        | -      |   |         |   | 463,914    |    |    |   | -           |   |   |   | - |   |   |   | 491,662 |   |
| Common stock issued for cash                                        |   |         | 300,000     |   |            |   | 300     |    |   |   | -              |   |   |        | -      |   |         |   | 2,700      |    |    |   | -           |   |   |   | - |   |   |   | 3,000 |   |
| Common stock rescinded or canceled                                  |   |         | (4,000,000  | )      |            |   | (4,000  | )       |   |   | -              |   |   |        | -      |   |         |   | 4,000      |    |    |   | -           |   |   |   | - |   |   |   | - |   |
| Imputed interest on no-interest loans                               |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | 2,037      |    |    |   | -           |   |   |   | - |   |   |   | 2,037 |   |
| Settlement of derivative liability                             | -      |         |        |   | -               |   |    |    | -      |   |           |   | -      |        |   |   |  78,490 |   |       |    |  - |   |        |   |  - |   |   |   |  78,490 |   |
| Net income                                                          |   |         | -           |   |            |   | -       |    |   |   | -              |   |   |        | -      |   |         |   | -          |    |    |   | -           |   |   |   | 234,661 |   |   |   | 234,661 |   |
|                                                                |   |         |        |   |            |   |    |    |   |   |           |   |   |        |   |   |         |   |       |    |    |   |        |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011 (unaudited)                               |   |         | 513,271,617 |   |            | $      | 513,272 |    |   |   | 1,500,000      |   |   | $           | 1,500  |   |         | $      | 73,833,040 |    |    | $      | 119,000     |   |   | $ | (78,795,971 | ) |   | $ | (4,329,159 | ) |

----

| Power3 Medical Products, Inc.                                  |
|----------------------------------------------------------------|
| (A Development Stage Entity)                                   |
| Statement of Stockholders’ Deficit -- Other Equity Items |

|                                                          |   | DeferredCompensationExpense |        |   | TreasuryStock |   |    | Stock Heldin Escrow |   |   | CommonStockPayable |   |   | Total  |    |
|---------------------------------------------------------------|--------|-----------------------------|-------------|--------|---------------|--------|---------|---------------------|--------|--------|--------------------|--------|--------|--------|---------|
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |
| Balances as of Beginning of Development Stage -- May 18, 2004 |   | $                           | -           |   |          | $      | -       |                |   | $      | -                  |   |   | $      | -       |   |   | $ | - |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Issued shares for compensation                                |   |                        | (25,451,500 | )      |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | (25,451,500 | ) |
| Issued shares for services                                    |   |                        | (535,000    | )      |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | (535,000 | ) |
| Stock option expense                                          |   |                        | (626,100    | )      |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | (626,100 | ) |
| Stock based compensation                                      |   |                        | 8,311,012   |   |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | 8,311,012 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2004                                  |   |                        | (18,301,588 | )      |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | (18,301,588 | ) |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Amortize deferred compensation expense                        |   |                        | 13,222,517  |   |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | 13,222,517 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2005                                  |   |                        | (5,079,071  | )      |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | (5,079,071 | ) |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Adoption of FAS 123R                                          |   |                        | 475,324     |   |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | 475,324 |   |
| Amortize deferred compensation expense                        |   |                        | 4,603,747   |   |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | 4,603,747 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2006                                  |   |                        | -           |   |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | - |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2007                                  |   |                        | -           |   |          |   | -       |                |   |   | -                  |   |   |   | -       |   |   |   | - |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Stock held in escrow                                          |   |                        | -           |   |          |   | -       |                |   |   | (20,000            | )      |   |   | -       |   |   |   | (20,000 | ) |
| Common stock payable                                          |   |                        | -           |   |          |   | -       |                |   |   | -                  |   |   |   | 123,286 |   |   |   | 123,286 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2008                                  |   |                        | -           |   |          |   | -       |                |   |   | (20,000            | )      |   |   | 123,286 |   |   |   | 103,286 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Common stock issued for conversion of debt                    |   |                        | -           |   |          |   | 7,056   |                |   |   | -                  |   |   |   | (90,000 | ) |   |   | (82,944 | ) |
| Common stock payable                                          |   |                        | -           |   |          |   | -       |                |   |   | -                  |   |   |   | 116,000 |   |   |   | 116,000 |   |
| Common stock issued for services                              |   |                        | -           |   |          |   | -       |                |   |   | -                  |   |   |   | (14,286 | ) |   |   | (14,286 | ) |
| Return of common stock held in escrow                         |   |                        | -           |   |          |   | (16,000 | )                   |   |   | 16,000             |   |   |   | -       |   |   |   | - |   |
| Release of common stock held in escrow                        |   |                        | -           |   |          |   | -       |                |   |   | 4,000              |   |   |   | -       |   |   |   | 4,000 |   |
| Common stock rescinded for debt                               |   |                        | -           |   |          |   | (7,056  | )                   |   |   | -                  |   |   |   | -       |   |   |   | (7,056 | ) |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2009                                  |   |                        | -           |   |          |   | (16,000 | )                   |   |   | -                  |   |   |   | 135,000 |   |   |   | 119,000 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2010                                  |   | $                           | -           |   |          | $      | (16,000 | )                   |   | $      | -                  |   |   | $      | 135,000 |   |   | $ | 119,000 |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
|                                                          |   |                        |        |   |          |   |    |                |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at March 31, 2011 (unaudited)                         |   | $                           | -           |   |          | $      | (16,000 | )                   |   | $      | -                  |   |   | $      | 135,000 |   |   | $ | 119,000 |   |

----

| Power3 Medical Products, Inc. |
|-------------------------------|
| (A Development Stage Entity)  |
| Statements of Cash Flows      |

|                                                                                  |   |                       |         |   |      |   |        | Period From  |   |
|---------------------------------------------------------------------------------------|--------|----------------------------|--------------|--------|-----------|--------|-------------|--------------|--------|
|                                                                                  |   |                       |         |   |      |   |        | May 18, 2004 |   |
|                                                                                  |   | For the Three Months Ended |         |   | Through   |   |
|                                                                                  |   | March 31,                  |         |   | March 31, |   |
|                                                                                  |   | 2011                       |         |   | 2010      |   |        | 2011         |   |
|                                                                                  |   |                       |         |   |      |   |        | (unaudited)  |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |
| Cash flows from operating activities                                                  |   |                       |         |   |      |   |        |         |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |
| Net income (loss)                                                                     |   | $                          | 234,661      |   |      | $      | 10,196,836  |         |   | $ | (52,068,316 | ) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities:  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Gain on conversion of financial instruments                                           |   |                       | -            |   |      |   | -           |         |   |   | (1,579,670 | ) |
| Impairment of goodwill                                                                |   |                       | -            |   |      |   | -           |         |   |   | 13,371,776 |   |
| Impairment of intangible assets                                                       |   |                       | -            |   |      |   | -           |         |   |   | 179,788 |   |
| Loss on previously capitalized lease                                                  |   |                       | -            |   |      |   | -           |         |   |   | 34,243 |   |
| Loss on settlement of litigation and debt                                             |   |                       | 20,263       |   |      |   | -           |         |   |   | 629,521 |   |
| Amortization of debt discounts and deferred finance costs                             |   |                       | -            |   |      |   | 21,747      |         |   |   | 4,027,056 |   |
| Change in derivative liability, net of bifurcation                                    |   |                       | (752,811     | )      |      |   | (10,703,695 | )            |   |   | (19,567,866 | ) |
| Stock issued for compensation and services                                            |   |                       | 304,674      |   |      |   | 70,000      |         |   |   | 40,094,179 |   |
| Debt issued for compensation and services                                             |   |                       | -            |   |      |   | -           |         |   |   | 1,028,927 |   |
| Stock issued for settlement of litigation and debt                                    |   |                       | -            |   |      |   | -           |         |   |   | 30,875 |   |
| Depreciation expense                                                                  |   |                       | 116          |   |      |   | 683         |         |   |   | 109,458 |   |
| Release of stock held in escrow                                                       |   |                       | -            |   |      |   | -           |         |   |   | 24,000 |   |
| Other non-cash items                                                                  |   |                       | 2,037        |   |      |   | -           |         |   |   | (30,054 | ) |
| Changes in operating assets and liabilities:                                          |   |                       |         |   |      |   |        |         |   |   |   |   |
| Prepaid expenses and other current assets                                             |   |                       | -            |   |      |   | -           |         |   |   | 186,084 |   |
| Deposits and other assets                                                             |   |                       | -            |   |      |   | -           |         |   |   | 10,933 |   |
| Accounts payable and other liabilities                                                |   |                       | 116,609      |   |      |   | 188,025     |         |   |   | 5,398,035 |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Net cash used in operating activities                                                 |   |                       | (74,451      | )      |      |   | (226,404    | )            |   |   | (8,121,031 | ) |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Cash flows from investing activities                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Increase in property and equipment                                                    |   |                       | -            |   |      |   | -           |         |   |   | (147,158 | ) |
| Increase in other assets                                                              |   |                       | -            |   |      |   | -           |         |   |   | (179,786 | ) |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Net cash used in investing activities                                                 |   |                       | -            |   |      |   | -           |         |   |   | (326,944 | ) |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Cash flows from financing activities                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Proceeds from sale of common stock                                                    |   |                       | 3,000        |   |      |   | -           |         |   |   | 2,352,327 |   |
| Borrowings on notes payable                                                           |   |                       | -            |   |      |   | -           |         |   |   | 3,838,430 |   |
| Borrowings on notes payable – related party                                     |   |                       | 71,451       |   |      |   | -           |         |   |   | 475,791 |   |
| Principal payments on notes payable                                                   |   |                       | -            |   |      |   | -           |         |   |   | (122,478 | ) |
| Principal payments on notes payable – related party                             |   |                       | -            |   |      |   | -           |         |   |   | (47,300 | ) |
| Proceeds from exercise of warrants                                                    |   |                       | -            |   |      |   | 234,534     |         |   |   | 747,900 |   |
| Stock rescinded for debt                                                              |   |                       | -            |   |      |   | -           |         |   |   | - |   |
| Proceeds from issuance of convertible debt, warrants, and rights net of issuance cost |   |                       | -            |   |      |   | -           |         |   |   | 1,200,709 |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Net cash provided by financing activities                                             |   |                       | 74,451       |   |      |   | 234,534     |         |   |   | 8,445,379 |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Net increase (decrease) in cash and equivalents                                       |   |                       | -            |   |      |   | 8,130       |         |   |   | (2,596 | ) |
| Cash and equivalents, beginning of period                                             |   |                       | -            |   |      |   | -           |         |   |   | 2,596 |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Cash and equivalents, end of period                                                   |   | $                          | -            |   |      | $      | 8,130       |         |   | $ | - |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Supplemental disclosure of cash flow information                                      |   |                       |         |   |      |   |        |         |   |   |   |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Cash paid for interest                                                                |   |                       | -            |   |      |   | -           |         |   |   | 59,840 |   |
| Cash paid for income taxes                                                            |   |                       | -            |   |      |   | -           |         |   |   | - |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Schedule of non-cash financing activities                                             |   |                       |         |   |      |   |        |         |   |   |   |   |
|                                                                                  |   |                       |         |   |      |   |        |         |   |   |   |   |
| Stock for conversion of debt – related party                                    |   |                       | -            |   |      |   | -           |         |   |   | 2,227,759 |   |
| Stock for subscriptions receivable                                                    |   |                       | -            |   |      |   | -           |         |   |   | - |   |
| Warrants exercised for subscriptions receivable                                       |   |                       | -            |   |      |   | -           |         |   |   | - |   |
| Stock issued for common stock payable                                                 |   |                       | -            |   |      |   | -           |         |   |   | - |   |
| Exchange of debt – related party                                                |   |                       | -            |   |      |   | -           |         |   |   | 214,075 |   |
| Exchange of convertible notes for stock                                               |   |                       | -            |   |      |   | -           |         |   |   | 2,525,070 |   |
| Stock issued for settlement of litigation and debt                                    |   |                       | 471,399      |   |      |   | 98,207      |         |   |   | 1,543,333 |   |
| Deemed dividend                                                                       |   |                       | -            |   |      |   | -           |         |   |   | 1,140,760 |   |
| Exchange of convertible preferred stock for common stock                              |   |                       | -            |   |      |   | -           |         |   |   | 3,380,975 |   |
| Preferred stock issued for payables                                                   |   |                       | -            |   |      |   | -           |         |   |   | 358,500 |   |
| Stock held in escrow                                                                  |   |                       | -            |   |      |   | -           |         |   |   | 20,000 |   |
| Stock contributed for debt payment                                                    |   |                       | -            |   |      |   | -           |         |   |   | 276,558 |   |
| Return of stock held in escrow                                                        |   |                       | -            |   |      |   | -           |         |   |   | 16,800 |   |
| Cashless exercise of warrants                                                         |   |                       | -            |   |      |   | -           |         |   |   | 32,507 |   |
| Stock rescinded for debt                                                              |   |                       | -            |   |      |   | -           |         |   |   | 8,256 |   |
| Stock rescinded or canceled                                                           |   |                       | 4,000        |   |      |   | 12,302      |         |   |   | 16,302 |   |
| Settlement of derivative liability                                               |   |                       |  78,490 |   |      |   | -           |         |   |   | 78,490 |   |

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|   Asset                               |   | March 31,2011 |    |   | December 31,2010 |   |
|-------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                            |   |          |    |   |             |   |
| Computers and Related Devices                   |   | $             | 18,209  |   |             | $      | 18,209 |   |
| Less: Accumulated Depreciation                  |   |          | (16,197 | )      |             |   | (16,081 | ) |
|        Total |   |          | 2,012   |   |             |   | 2,128 |   |
|                                            |   |          |    |   |             |   |   |   |
| Lab Equipment                                   |   |          | 92,380  |   |             |   | 92,380 |   |
| Less: Accumulated Depreciation                  |   |          | (92,380 | )      |             |   | (92,380 | ) |
|        Total |   |          | -0-     |   |             |   | -0- |   |
|                                            |   |          |    |   |             |   |   |   |
| Total Property and Equipment, Net               |   | $             | 2,012   |   |             | $      | 2,128 |   |

|  Liability                        |   | March 31,2011 |    |   | December 31,2010 |   |
|----------------------------------------|--------|---------------|---------|--------|------------------|--------|
| Accrued Interest                       |   | $             | 384,507 |   |             | $      | 382,759 |   |
| Accrued Payroll Taxes                  |   |          | 23,574  |   |             |   | 23,574 |   |
| Accrued Compensation and Salaries      |   |          | 411,331 |   |             |   | 380,081 |   |
| Other Accrued Expenses and Liabilities |   |          | 459     |   |             |   | 1,811 |   |
|   Total                      |   | $             | 819,871 |   |             | $      | 788,225 |   |

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|                                                                     |   | March 31,2011 |    |   | December 31,2010 |   |
|--------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                     |   |          |    |   |             |   |
| Common Stock Warrants                                                    |   | $             | 169,328 |   |             | $      | 513,028 |   |
| Convertible Promissory Notes and     Debentures |   |          | 459,843 |   |             |   | 947,444 |   |
|        Total                          |   | $             | 629,171 |   |             | $      | 1,460,472 |   |

|                                                                     |   | DividendYield |   |   | ExpectedVolatility |   |   | Risk-FreeInterest Rate |   |   | RemainingContractualLife (Years) |   |
|--------------------------------------------------------------------------|--------|---------------|--------|--------|--------------------|--------|--------|------------------------|--------|--------|----------------------------------|--------|
| Common Stock Warrants                                                    |   |          | 0      | %      |               |   | 111.9  | %                      |   |   | 1.09                             | %      |   |   | 2.06 |   |
| Convertible Promissory Notes     and Debentures |   |          | 0      | %      |               |   | 114.0  | %                      |   |   | 2.24                             | %      |   |   | 5.00 |   |

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|                                                                                 |   | March 31,2011 |    |   | December 31,2010 |   |
|--------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                                 |   |          |    |   |             |   |
| Notes Payable                                                                        |   | $             | -0-     |   |             | $      | -0- |   |
|                                                                                 |   |          |    |   |             |   |   |   |
| Notes Payable – Related Party                                                  |   |          | 225,933 |   |             |   | 154,482 |   |
|                                                                                 |   |          |    |   |             |   |   |   |
| Notes Payable – in Default                                                     |   |          | 501,000 |   |             |   | 501,000 |   |
| Less: Unamortized Discount                                                           |   |          | -0-     |   |             |   | -0- |   |
|      Total                                                  |   |          | 501,000 |   |             |   | 501,000 |   |
|                                                                                 |   |          |    |   |             |   |   |   |
| Notes Payable – in Default – Related Party                               |   |          | 80,000  |   |             |   | 80,000 |   |
|                                                                                 |   |          |    |   |             |   |   |   |
|           Total Notes Payable, Net |   | $             | 806,933 |   |             | $      | 735,482 |   |

|                                                                                          |   | March 31,2011 |    |   | December 31,2010 |   |
|-----------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                                          |   |          |    |   |             |   |
| Convertible Debentures – in Default                                                     |   | $             | 272,176 |   |             | $      | 303,853 |   |
|                                                                                          |   |          |    |   |             |   |   |   |
|           Total Convertible Debentures, Net |   | $             | 272,176 |   |             | $      | 303,853 |   |

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|                                             |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|--------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Derivative liabilities – March 31, 2011    |   |    | -0-    |   |    |   | -0-    |    |   | $ | 629,171 |   |
| Derivative liabilities – December 31, 2010 |   |    | -0-    |   |    |   | -0-    |    |   | $ | 1,460,472 |   |

|                                              |   | DerivativeLiabilities |        |
|---------------------------------------------------|--------|-----------------------|-------------|
| Balance, December 31, 2009                        |   | $                     | 14,456,424  |   |
| Purchases, sales, issuances and settlements (net) |   |                  | (12,995,952 | ) |
| Balance, December 31, 2010                        |   |                  | 1,460,472   |   |
| Purchases, sales, issuances and settlements (net) |   |                  | (831,301    | ) |
| Balance, December 31, 2010                        |   | $                     | 629,171     |   |

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|   | ● | our ability to fund future growth and implement our business strategy; |
|--------|---------|------------------------------------------------------------------------|

|   | ● | our dependence on a limited number of business partners for substantially all of our revenue; |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | ● | projections of our future revenue, results of operations and financial condition; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | ● | anticipated deployment, capabilities and uses of our products and our product development activities and product innovations; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | ● | the importance of proteomics as a major focus of biology research; |
|--------|---------|--------------------------------------------------------------------|

|   | ● | competition and consolidation in the markets in which we compete; |
|--------|---------|-------------------------------------------------------------------|

|   | ● | existing and future collaborations and partnerships; |
|--------|---------|------------------------------------------------------|

|   | ● | the utility of biomarker discoveries; |
|--------|---------|---------------------------------------|

|   | ● | our belief that biomarker discoveries may have diagnostic and/or therapeutic utility; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | ● | our ability to comply with applicable government regulations; |
|--------|---------|---------------------------------------------------------------|

|   | ● | our ability to expand and protect our intellectual property portfolio; |
|--------|---------|------------------------------------------------------------------------|

|   | ● | the condition of the securities and capital markets; |
|--------|---------|------------------------------------------------------|

|   | ● | general economic and business conditions, either nationally or internationally or in the jurisdictions in which we are doing business; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------|

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| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------------|----------------------------------------------------------------------------------------------|

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| Exhibit No. |   |                                                                                                                                                                    | Exhibit |   |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|
|        |   |                                                                                                                                                                    |
| 31.1        |   | Certification of Chief Executive Officer of the registrant required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                             |
|        |   |                                                                                                                                                                    |
| 31.2        |   | Certification of Chief Financial Officer of the registrant required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                             |
|        |   |                                                                                                                                                                    |
| 32.1        |   | Certification of Chief Executive Officer and Chief Financial Officer of the registrant required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended |

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|                          | POWER3 MEDICAL PRODUCTS, INC.      |
|-------------------------------|------------------------------------|
|                          |                               |
|                          |                               |
| Date:  May 16, 2011 |  /s/  Helen R. Park |
|                          | Helen R. Park                      |
|                          | Chief Executive Officer            |

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| Exhibit |   |                                                                                                                                                  | Exhibit Description |   |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|
|    |   |                                                                                                                                                  |
| 31.1    |   | Certification of Chief Executive Officer required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                             |
|    |   |                                                                                                                                                  |
| 31.2    |   | Certification of Chief Financial Officer required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended                             |
|    |   |                                                                                                                                                  |
| 32.1    |   | Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended |