---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended **June 30,
2012**.

OR

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number : **0 - 28847**

**FORMCAP CORP.**
  ( Exact name of registrant as specified in
its charter )

|Nevada                           | 1006772219                 
|-------------------------------- | ---------------------------
|( State or other jurisdiction of | ( I.R.S. Empl. Ident. No. )
|incorporation or organization )  |                            

50 West Liberty Street, Suite 880, Reno, NV
89501( Address of principal executive offices ) ( Zip Code )

**888-777-8777**( Issuer's telephone
number )

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

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
Yes [   ]      No [   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated filer, or a small
reporting company. See definitions of "large accelerated filer, accelerated
filer, and small reporting company" in Rule 12B-2 of the Exchange Act.

|Large accelerated filer [   ] | Accelerated
      filer                    
      [   ]
|----------------------------- | -------------------------------------------------------
|Non-accelerated filer   [   ] | Smaller reporting company   [X]                        

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

The number of shares outstanding the issuers common stock,
$0.001 par value, was 100,788,607 as of August 14, 2012.

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FormCap Corp.Form 10-QFor the Quarter Ended June 30, 2012

TABLE OF CONTENTS

|              |                                                                                                                                                                                            | Page
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----
|              |                                                                                                                                                                                            |     
|PART
      I  | FINANCIAL
      INFORMATION                                                                                                                                                                |     
|              |                                                                                                                                                                                            |     
|Item
      1  | Financial
      Statements                                                                                                                                                                 | 1   
|              |                                                                                                                                                                                            |     
|              | Condensed
      Balance Sheets as at June 30, 2012 (unaudited) and December 31, 2011                                                                                                       | 1   
|              |                                                                                                                                                                                            |     
|              | Condensed
      Statements of Operation for Three and Six Months Ended June 30, 2012 and
      2011, and for the Period from April 10, 1991 (Inception) to June 30, 2012
      (unaudited) | 2   
|              |                                                                                                                                                                                            |     
|              | Condensed
      Statements of Cash Flows  Six Months Ended June 30, 2012 and 2011, and
      for the Period from April 10, 1991 (Inception) to June 30, 2012
      (unaudited)            | 3   
|              |                                                                                                                                                                                            |     
|              | Notes
      to Condensed Financial Statements (unaudited)                                                                                                                                  | 4   
|              |                                                                                                                                                                                            |     
|Item
      2  | Managements
      Discussion and Analysis of Financial Condition and Results of Operations                                                                                                | 7   
|              |                                                                                                                                                                                            |     
|Item
      3  | Quantitative
      and Qualitative Disclosures About Market Risk                                                                                                                           | 9   
|              |                                                                                                                                                                                            |     
|Item
      4  | Controls
      and Procedures                                                                                                                                                              | 9   
|              |                                                                                                                                                                                            |     
|PART
      II | OTHER
      INFORMATION                                                                                                                                                                    |     
|              |                                                                                                                                                                                            |     
|Item
      1  | Legal
      Proceedings                                                                                                                                                                    | 10  
|              |                                                                                                                                                                                            |     
|Item
      1A | Risk
      Factors                                                                                                                                                                         | 10  
|              |                                                                                                                                                                                            |     
|Item
      2  | Unregistered
      Sales of Equity Securities and Use of Proceeds                                                                                                                          | 11  
|              |                                                                                                                                                                                            |     
|Item
      3  | Defaults
      Upon Senior Securities                                                                                                                                                      | 11  
|              |                                                                                                                                                                                            |     
|Item
      4  | Mine
      Safety Disclosures                                                                                                                                                              | 11  
|              |                                                                                                                                                                                            |     
|Item
      5  | Other
      Information                                                                                                                                                                    | 11  
|              |                                                                                                                                                                                            |     
|Item
      6  | Exhibits                                                                                                                                                                                   | 12  
|              |                                                                                                                                                                                            |     
|              | Signatures                                                                                                                                                                                 | 12  

---

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

FormCap Corp.(An Exploration Stage
Company)Condensed Balance Sheets

|                                                                                                                    |   | June 30,    |   |   | December 31, |  
|------------------------------------------------------------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                                                                                    |   | 2012        |   |   | 2011         |  
|                                                                                                                    |   | (Unaudited) |   |   |              |  
|ASSETS                                                                                                              |  
|                                                                                                                    |   |             |   |   |              |  
|CURRENT ASSETS                                                                                                      |   |             |   |   |              |  
|                                                                                                                    |   |             |   |   |              |  
|Cash                                                                                                                | $ | 124         |   | $ | 504          |  
|Prepaid expenses                                                                                                    |   | 29,166      |   |   | 64,167       |  
|                                                                                                                    |   |             |   |   |              |  
|Total Current Assets                                                                                                |   | 29,290      |   |   | 64,671       |  
|                                                                                                                    |   |             |   |   |              |  
|TOTAL ASSETS                                                                                                        | $ | 29,290      |   | $ | 64,671       |  
|                                                                                                                    |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                                               |  
|                                                                                                                    |   |             |   |   |              |  
|CURRENT LIABILITIES                                                                                                 |  
|                                                                                                                    |   |             |   |   |              |  
|Accounts payable and accrued liabilities                                                                            | $ | 32,400      |   | $ | 37,345       |  
|Accounts payable  related
      party                                                                              |   | 390,715     |   |   | 371,540      |  
|Related party payables                                                                                              |   | 154,311     |   |   | 149,311      |  
|Notes payable                                                                                                       |   | 73,084      |   |   | 70,084       |  
|Royal and license fee payable                                                                                       |   | 135,000     |   |   | 135,000      |  
|                                                                                                                    |   |             |   |   |              |  
|Total Current Liabilities                                                                                           |   | 785,510     |   |   | 763,280      |  
|                                                                                                                    |   |             |   |   |              |  
|TOTAL LIABILITIES                                                                                                   |   | 785,510     |   |   | 763,280      |  
|                                                                                                                    |   |             |   |   |              |  
|STOCKHOLDERS DEFICIT                                                                                               |  
|                                                                                                                    |   |             |   |   |              |  
|Preferred stock, 50,000,000 shares authorized
      at par value of $0.001, no shares issued and outstanding        |   | -           |   |   | -            |  
|Common stock, 200,000,000 shares
      authorized at par value of $0.001, 100,788,607 shares issued and outstanding |   | 100,789     |   |   | 100,789      |  
|Stock subscription receivable                                                                                       |   | (17,000     | ) |   | (17,000      | )
|Additional paid-in capital                                                                                          |   | 11,077,823  |   |   | 11,077,823   |  
|Deficit accumulated during the exploration stage                                                                    |   | (11,917,832 | ) |   | (11,860,221  | )
|                                                                                                                    |   |             |   |   |              |  
|Total Stockholders
      Deficit                                                                                   |   | (756,220    | ) |   | (698,609     | )
|                                                                                                                    |   |             |   |   |              |  
|TOTAL LIABLITIES AND STOCKHOLDERS
      DEFICIT                                                                    | $ | 29,290      |   | $ | 64,671       |  

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

1

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FormCap Corp.(An Exploration Stage
Company)Condensed Statements of Operations
  (Unaudited)

For the Three Months Ended
      
      
      For the Six Months Ended
      
      
      From Inception onJune 30,
      
      
      June 30,
      
      
      April 10, 1991 to2012
      
      
      2011
      
      
      2012
      
      
      2011
      
      
      June
        30, 2012REVENUES
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      321,889COST OF SALES
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      352,683GROSS MARGIN
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (30,794
      )OPERATING EXPENSESConsulting fees
      
      12,501
      
      
      (11,759
      )
      
      40,001
      
      
      57,341
      
      
      1,018,701Loss on impairment of assets
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      1,146,206Financing expenses
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      778,946General and administrative expenses
      
      8,839
      
      
      21,595
      
      
      17,610
      
      
      29,370
      
      
      5,536,552Total Operating
        Expenses
      
      21,340
      
      
      9,836
      
      
      57,611
      
      
      86,711
      
      
      8,480,405LOSS FROM OPERATIONS
      
      (21,340
      )
      
      (9,836
      )
      
      (57,611
      )
      
      (86,711
      )
      
      (8,511,199
      )OTHER INCOME AND(EXPENSE)Interest expense
      
      -
      
      
      -
      
      
      -
      
      
      (13,800
      )
      
      (864,177
      )Gain on settlement of debt
      
      -
      
      
      -
      
      
      -
      
      
      311,466
      
      
      286,855Loss on settlement of debt
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (2,829,311
      )Total Other Income and (Expense)
      
      -
      
      
      -
      
      
      -
      
      
      297,666
      
      
      (3,406,633
      )INCOME (LOSS) BEFORE INCOME TAXES
      $
      (21,340
      )
      $
      (9,836
      )
      $
      (57,611
      )
      $
      210,955
      
      $
      (11,917,832
      )Provision for income taxes
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -NET INCOME (LOSS)
      
      (21,340
      )
      $
      (9,836
      )
      $
      (57,611
      )
      $
      210,955
      
      $
      (11,917,832
      )BASIC AND DILUTED NET INCOME (LOSS) PER COMMON
        SHARE
      $
      (0.00
      )
      $
      (0.00
      )
      $
      (0.00
      )
      $
      0.00BASIC AND DILUTED WEIGHTED AVERAGE NUMBER
        OF COMMON SHARES OUTSTANDING
      
      100,788,607
      
      
      45,788,607
      
      
      100,788,607
      
      
      45,788,607


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

2

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FormCap Corp.(An Exploration Stage
Company)Condensed Statements of Cash Flows
  (Unaudited)

|                                                                  |   |                                   |   |   |          |   |   | From Inception on |  
|----------------------------------------------------------------- | - | --------------------------------- | - | - | -------- | - | - | ----------------- | -
|                                                                  |   |                                   |   |   |          |   |   | April 10, 1991 to |  
|                                                                  |   | For the Six Months Ended June 30, |   |   | June 30, |  
|                                                                  |   | 2012                              |   |   | 2011     |   |   | 2012              |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|CASH FLOWS FROM OPERATING ACTIVITIES                              |   |                                   |   |   |          |   |   |                   |  
|Net Income (Loss)                                                 | $ | (57,611                           | ) | $ | 210,955  |   | $ | (11,917,832       | )
|Adjustments to reconcile net income (loss) to
      net cash used |   |                                   |   |   |          |   |   |                   |  
|by operating activities:                                          |   |                                   |   |   |          |   |   |                   |  
|Amortization of prepaid expenses                                  |   | 35,001                            |   |   | 50,000   |   |   | 295,096           |  
|Amortization
      of beneficial conversion feature               |   | -                                 |   |   | -        |   |   | 379,961           |  
|Depreciation and amortization                                     |   | -                                 |   |   | -        |   |   | 277,322           |  
|Expenses
      paid by related parties                            |   | 5,000                             |   |   | 43,440   |   |   | 91,794            |  
|Common stock and options
      issued for services                |   | -                                 |   |   | -        |   |   | 943,977           |  
|Common stock
      and options issued for collateral and          |   |                                   |   |   |          |   |   |                   |  
|extension of debt                                                 |   | -                                 |   |   | -        |   |   | 17,500            |  
|Gain on settlement of long
      term debt                        |   | -                                 |   |   | (561,466 | ) |   | (286,855          | )
|Loss on impairment
      of assets                                |   | -                                 |   |   | -        |   |   | 1,174,833         |  
|Loss on settlement of debt                                        |   | -                                 |   |   | -        |   |   | 4,154,908         |  
|Interest
      expense in connection with induced conversion      |   | -                                 |   |   | -        |   |   | 262,032           |  
|Foreign currency exchange                                         |   | -                                 |   |   | -        |   |   | (120,814          | )
|Changes to operating assets and
      liabilities                 |   |                                   |   |   | -        |   |   |                   |  
|Accounts receivable                                               |   | -                                 |   |   | -        |   |   | 3,203             |  
|Inventories                                                       |   | -                                 |   |   | -        |   |   | (66,200           | )
|Prepaid expenses
      and other current assets                   |   | -                                 |   |   | -        |   |   | (140,429          | )
|Prepaid royalties                                                 |   | -                                 |   |   | -        |   |   | (99,980           | )
|Accounts
      payable and accrued liabilities                    |   | (4,945                            | ) |   | (17,805  | ) |   | 95,855            |  
|Accounts payable  related
      parties                          |   | 19,175                            |   |   | -        |   |   | 19,175            |  
|Royalty and
      license fees                                    |   | -                                 |   |   | -        |   |   | 196,765           |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|Net Cash
      Used in Operating Activities                       |   | (3,380                            | ) |   | (274,876 | ) |   | (4,719,689        | )
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|CASH FLOWS FROM INVESTING ACTIVITIES                              |   |                                   |   |   |          |   |   |                   |  
|Purchase of capital assets                                        |   | -                                 |   |   | -        |   |   | (104,880          | )
|Acquisition deposits                                              |   | -                                 |   |   | -        |   |   | (431,000          | )
|Extinguishment of oil and gas leases                              |   | -                                 |   |   | 250,000  |   |   | -                 |  
|Purchase of oil and gas lease                                     |   | -                                 |   |   | -        |   |   | (250,000          | )
|Capitalized software expenditures                                 |   | -                                 |   |   | -        |   |   | (135,181          | )
|Principal payments on notes receivable                            |   | -                                 |   |   | -        |   |   | 44,117            |  
|Notes receivable advances                                         |   | -                                 |   |   | -        |   |   | (701,152          | )
|Proceeds from sale of notes receivable                            |   | -                                 |   |   | -        |   |   | 350,000           |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|Net Cash
      (Used in) Investing Activities                     |   | -                                 |   |   | 250,000  |   |   | (1,228,096        | )
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|CASH FLOWS FROM FINANCING ACTIVITIES                              |   |                                   |   |   |          |   |   |                   |  
|Proceeds from related party payables                              |   | -                                 |   |   | 6,551    |   |   | 2,043,760         |  
|Repayments of related party payables                              |   | -                                 |   |   | (1,000   | ) |   | (637,012          | )
|Proceeds from notes payable                                       |   | 3,000                             |   |   | 20,000   |   |   | 929,919           |  
|Proceeds from the sale of preferred
      stock                   |   | -                                 |   |   | -        |   |   | 3,000             |  
|Proceeds from the sale of common stock and stock
      options    |   | -                                 |   |   | -        |   |   | 3,608,242         |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|Net Cash Provided by Financing
      Activities                   |   | 3,000                             |   |   | 25,551   |   |   | 5,947,909         |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|NET INCREASE (DECREASE) IN CASH                                   |   | (380                              | ) |   | 675      |   |   | 124               |  
|CASH AT BEGINNING OF PERIOD                                       |   | 504                               |   |   | 166      |   |   | -                 |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|CASH AT END OF PERIOD                                             | $ | 124                               |   | $ | 841      |   | $ | 124               |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW
      INFORMATION            |   |                                   |   |   |          |   |   |                   |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|CASH PAID FOR:                                                    |   |                                   |   |   |          |   |   |                   |  
|Interest                                                          | $ | -                                 |   | $ | -        |   | $ | 12,650            |  
|Income Taxes                                                      | $ | -                                 |   | $ | -        |   | $ | -                 |  
|                                                                  |   |                                   |   |   |          |   |   |                   |  
|NON CASH FINANCING ACTIVITIES                                     |   |                                   |   |   |          |   |   |                   |  
|Common stock issued for prepaid expenses                          | $ | 70,000                            |   | $ | -        |   | $ | 280,000           |  
|Conversion of related party
      payables to common stock        | $ | -                                 |   | $ | 439,020  |   | $ | 3,559,999         |  

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

3

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FormCap Corp.(An Exploration Stage Company)Notes
to the Condensed Financial StatementsJune 30, 2012
  (Unaudited)

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations, and cash flows at June 30, 2012, and
for all periods presented herein, have been made.

Certain information and footnote disclosures normally included
in financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed or
omitted. It is suggested that these financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
December 31, 2011 audited financial statements. The results of operations for
the periods ended June 30, 2012 and 2011 are not necessarily indicative of the
operating results for the full years.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of PresentationThese financial statements have
been prepared in accordance with generally accepted accounting principles in the
United States of America and are stated in US dollars. Because a precise
determination of many assets and liabilities is dependent upon future events,
the preparation of financial statements for a period necessarily involves the
use of estimates which have been made using careful judgment. Actual results may
differ from these estimates.

Reclassification of Financial Statement
AccountsCertain amounts in the condensed financial statements have been
reclassified to conform to the presentation in the June 30, 2012 financial
statements.

Use of EstimatesThe preparation of financial
statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reportable amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

Exploration Stage CompanyThe Company is an
exploration stage company. The Company is devoting substantially all of its
present efforts to establish a new business and none of its planned principal
operations have commenced. All losses accumulated since inception has been
considered as part of the Companys exploration stage activities.

Basic Earnings Per ShareThe computation of basic
earnings per share of common stock is based on the weighted average number of
shares outstanding during the periods presented. The computation of fully
diluted earnings per share includes common stock equivalents outstanding at the
balance sheet date. The Company had no dilutive common stock equivalents
outstanding as of June 30, 2012 and 2011, respectively.

Stock Issued in Exchange for ServicesThe valuation
of common stock issued in exchange for services is valued at an estimated fair
market value as determined by the most readily determinable value of either the
stock or services exchanged. Values of the stock are based upon other sales and
issuances of the Companys common stock within the same general time period.

Cash and Cash EquivalentsCash equivalents are
comprised of certain highly liquid investments with original maturities of three
months or less when purchased. The Company maintains its cash in bank deposit
accounts which at times may exceed federally insured limits of $250,000. The
Company has not experienced any losses related to this concentration of risk.
Deposits did not exceed insured limits for the six months ended June 30, 2012
and for the year ended December 31, 2011.

4

---

FormCap Corp.(An Exploration Stage Company)Notes
to the Condensed Financial StatementsJune 30, 2012
  (Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Long-Lived AssetsIn accordance with ASC 360,
Accounting for the Impairment or Disposal of Long-Lived Assets,
long-lived assets, such as property and equipment, and purchased intangible
assets subject to amortization, are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable. If circumstances require a long-lived asset be tested for
possible impairment, the Company first compares undiscounted cash flows expected
to be generated by an asset to the carrying value of the asset. If the carrying
value of the long-lived asset is not recoverable on an undiscounted cash flow
basis, impairment is recognized to the extent that the carrying value exceeds
its fair value. Fair value is determined through various valuation techniques
including discounted cash flow models, quoted market values and third-party
independent appraisals, as considered necessary.

Financial InstrumentsFor accounts receivable,
accounts payable, accrued liabilities, current portion of long-term debt and
long-term debt, the carrying amounts of these financial instruments approximates
their fair value. Unless otherwise noted, it is managements opinion that the
Company is not exposed to significant interest, currency or credit risks arising
from these financial instruments.

Stock-based CompensationASC 718 Stock
Compensation requires public companies to recognize the cost of employee
services received in exchange for equity instruments, based on the grant-date
fair value of those instruments, with limited exceptions. ASC 718 Stock
Compensation also affects the pattern in which compensation cost is
recognized, the accounting for employee share purchase plans, and the accounting
for income tax effects of share-based payment transactions.

Foreign Currency TranslationThe Company translates
foreign currency transactions and balances to its reporting currency, United
States Dollars, in accordance with ASC 830 Foreign Currency Matters.
Monetary assets and liabilities are translated into the functional currency at
the exchange rate in effect at the end of the year. Non-monetary assets and
liabilities are translated at the exchange rate prevailing when the assets were
acquired or the liabilities assumed. Revenue and expenses are translated at the
rate approximating the rate of exchange on the transaction date. All exchange
gains and losses are included in the determination of net income (loss) for the
year.

Income TaxesThe Company applies ASC 740, which
requires the asset and liability method of accounting for income taxes. The
asset and liability method requires that the current or deferred tax
consequences of all events recognized in the financial statements are measured
by applying the provisions of enacted tax laws to determine the amount of taxes
payable or refundable currently or in future years. Deferred tax assets are
reviewed for recoverability and the Company records a valuation allowance to
reduce its deferred tax assets when it is more likely than not that all or some
portion of the deferred tax assets will not be recovered.

The Company adopted ASC 740, at the beginning of fiscal year
2008. This interpretation requires recognition and measurement of uncertain tax
positions using a more-likely-than-not approach, requiring the recognition and
measurement of uncertain tax positions. The adoption of ASC 740 had no material
impact on the Companys financial statements.

Recent Accounting PronouncementsThe Company has
evaluated recent accounting pronouncements and their adoption has not had or is
not expected to have a material impact on the Companys financial position or
statements

5

---

FormCap Corp.(An Exploration Stage Company)Notes
to the Condensed Financial StatementsJune 30, 2012
  (Unaudited)

NOTE 3 - GOING CONCERN

The Company's financial statements are prepared using generally
accepted accounting principles in the United States of America applicable to a
going concern which contemplates the realization of assets and liquidation of
liabilities in the normal course of business. The Company has not yet
established an ongoing source of revenues sufficient to cover its operating
costs and allow it to continue as a going concern. The ability of the Company to
continue as a going concern is dependent on the Company obtaining adequate
capital to fund operating losses until it becomes profitable. If the Company is
unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need,
among other things, additional capital resources. Management's plan is to obtain
such resources for the Company by obtaining capital from management and
significant shareholders sufficient to meet its minimal operating expenses and
seeking equity and/or debt financing. However management cannot provide any
assurances that the Company will be successful in accomplishing any of its
plans.

The ability of the Company to continue as a going concern is
dependent upon its ability to successfully accomplish the plans described in the
preceding paragraph and eventually secure other sources of financing and attain
profitable operations. The accompanying financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a
going concern.

NOTE 4 - RELATED PARTY PAYABLES

The Company from time to time has borrowed funds from or has
received services from several individuals and corporations related to the
Company for operating purposes. As of June 30, 2012 and December 31, 2011 the
Company owed $154,311 and $149,311 respectively. These amounts bear no interest,
are not collateralized, and are due on demand. During the six months ended June
30, 2012, a related party paid expenses in the amount of $5,000 on behalf of the
Company.

NOTE 5 - COMMON STOCK

The Company has two classes of stock authorized as of June 30,
2012. The Company has 50,000,000 shares of preferred stock authorized with no
shares outstanding as of June 30, 2012 and December 31, 2011. The Company also
has 200,000,000 shares of Common Stock authorized with 100,788,607 shares issued
and outstanding as of June 30, 2012 and December 31, 2011. During the year ended
December 31, 2011, the Company issued new shares as follows:

On November 23, 2011 25,000,000 common shares were issued under
a debt settlement agreement with a related Party.

On December 1, 2011, 10,000,000 common shares were issued under
the terms of an Oil & Gas Farm-In, Operating and Consulting Agreement with a
consultant.

On December 1, 2011, 10,000,000 common shares were issued to
the same consultant under a debt settlement agreement as payment in full for
previous debt incurred under a Consulting Agreement.

On December 1, 2011, 10,000,000 common shares were issued to
the President of the Company as payment for services rendered in the performance
of his duties.

No further shares have been issued in the six months ended June
30, 2012.

NOTE 6  SUBSEQUENT EVENTS

In accordance with ASC 855-10 Company management reviewed all
material events through the date of this report and there are no subsequent
events to report.

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

The following discussion of our financial condition and results
of operations should be read in conjunction with the financial statements and
notes thereto and the other financial information included elsewhere in this
report. Certain statements contained in this report, including, without
limitation, statements containing the words believes, anticipates, expects
and words of similar import, constitute forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks and uncertainties.
Our actual results may differ materially from those anticipated in these
forward-looking statements as a result of certain factors, including our ability
to create, sustain, manage or forecast our growth; our ability to attract and
retain key personnel; changes in our business strategy or development plans;
competition; business disruptions; adverse publicity; and international,
national and local general economic and market conditions.

Overview

The Company does not currently engage in any business
activities that provide cash flow. The Company is currently in the exploration
stage.

On July 8, 2009, the Company had signed an option agreement
with Morgan Creek Energy Corp. to acquire up to a 50% Working Interest (40.75%
Net Revenue Interest) in Morgan Creeks approximately 13,000 acre entire Frio
Draw Prospect located in Curry County, New Mexico. Under the terms of the
agreement, FormCap is required to drill and complete two mutually defined
targets on the acreage to earn its interest.

Following the initial two wells, Morgan Creeks management and
land team will work with FormCap to establish additional targets on the Frio
draw based on technical data and drill results. The two companies will jointly
fund additional targets and have committed to a minimum five holes drill program
in order to effectively test the Frio Draw.

On September 25, 2009, the Company has received a letter from
Morgan Creek Energy Corp. terminating the Option Agreement between FormCap Corp.
and Morgan Creek Energy Corp. on the Frio Draw Prospect in New Mexico.

On October 20, 2009, the company acquired 5,313 acres of oil
and gas leases (leases), all with primary terms of five years initiated in
June 2009. The leases, known as the Weber City Prospect, are located in Curry
County, New Mexico, which lies on the eastern most side of New Mexico bordering
the State of Texas. The Company had acquired a 100% working interest (80% Net
Revenue Interest) from Atlas Larunas LLC for $250,000.

On February 15, 2011, the Company assigned all its rights in
the leases to Rich Investments Ltd. (Rich) and Leare Developments Ltd.
(Leare), under the terms of a loans settlement agreement whereby Rich and
Leare accepted the assignment of the leases in full and final satisfaction of
the outstanding indebtedness of the Company to each of Rich and Leare.

On March 16, 2011, the Company signed a Farm-Out Agreement for
oil and gas exploration in the Peco Area of Alberta. The Farm-Out Agreement
between FormCap Corp. and a private Alberta Corporation is comprised of a
Seismic Option, a Farm-Out and a Participation clause. The Agreement stipulated
a commencement date for the shooting of a 3D seismic program on the Farm-Out
Lands not later than June 1, 2011 and a Commencement Date of November 1, 2011
for spudding and continuous drilling of a Test Well. Due to conditions in the
oil and gas industry these dates were amended to October 1, 2011 for
commencement of seismic program and February 1, 2012 for the spudding of a Test
Well. The Agreement provides FormCap 60 days following completion of the seismic
program to elect to drill the Test Well. Upon completion of the Test Well
FormCap shall have earned a 40% working interest in the well subject to a 10%
Gross Overiding Royalty payable to the Farmor. The Farmor may elect to convert
the Gross Overiding Royalty to a 50% interest in FormCaps working interest
(i.e.: a 20% working interest).

Results of Operations for the Three Months Ended June 30,
2012 and 2011.

Revenues. There was no revenue for the three months ended June
30, 2012 and 2011.

Operating Expenses. For the three months ended June 30, 2012,
we had total operating expenses of $21,340 as compared to $9,836 for the three
months ended June 30, 2011. There was a reduction in general and administrative
expenses of $12,756; however, the Company realized a recovery of consulting fees
of $12,501 for the three months ended June 30, 2011 contributing to the lower
operating expenses for the three months.

7

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Interest Expense. There were no interest expenses for the three
months ended June 30, 2012 and 2011 as the liabilities of the Company bear no
interest.

Net Loss. The net loss for the quarter ended June 30, 2012 was
$21,340 as compared to $9,836 for the quarter ended June 30, 2011. These amounts
are entirely comprised of the operating expenses as there were no other income
or expenses.

Results of Operations for the Six Months Ended June 30, 2012
and 2011.

Revenues. There was no revenue for the six months ended June
30, 2012 and 2011.

Operating Expenses. For the six months ended June 30, 2012, we
had total operating expenses of $57,611 as compared to $86,711 for the six
months ended June 30, 2011. This was accounted for mainly by a reduction in
consulting expense of $17,340 and a reduction in general and administrative
expenses of $11,760.

Interest Expense. There were no interest expenses for the six
months ended June 30, 2012 and 2011 as the liabilities of the Company bear no
interest.

Net Loss. The net loss for the six months ended June 30, 2012
was $57,611 as compared to income of $210,955 for the six months ended June 30,
2011. This was because there was no gain on settlement of debt as compared to a
gain of $311,466 recorded in 2011.

Liquidity and Capital Resources

As at June 30, 2012, our current assets were $29,290 (December
31, 2011 - $64,671) and our current liabilities were $785,510 (December 31, 2011
- $763,280), which resulted in a working capital deficit of $756,220 compared to
a working capital deficit of $698,609 at December 31, 2011.

Total Stockholders Deficit increased from $698,609 at December
31, 2011 to $756,220 at June 30, 2012.

Cash Flows Used in Operating Activities

We have not generated positive cash flows from operating
activities. For the six months ended June 30, 2012, net cash flows used in
operating activities was $3,380 consisting of primarily of a net loss of
$57,611. Net cash flows used in operating activities was adjusted by $35,001 in
amortization of prepaid expenses. Net cash flows used in operating activities
was further changed by $4,945 decrease in accounts payable and accrued
liabilities and $19,175 increase in accounts payable  related parties.

For the six months ended June 30, 2011, net cash flows used in
operating activities was $274,876 consisting of net income of $210,955 adjusted
by a non-cash gain on settlement of long term debt of $561,466. Net cash flows
used in operating activities was further changed by $17,805 increase in accounts
payable and accrued liabilities.

Cash Flows Used in Investing Activities

For the six months ended June 30, 2012, net cash flows used in
investing activities was $Nil compared to net cash flows provided by investing
activities during the six months ended June 30, 2012 of $250,000. This change
was primarily as a result of extinguishing of oil and gas lease in 2011.

Cash Flow Provided by Financing Activities

We have financed our operations primarily from either advances
from related parties or the issuance of equity and debt instruments. For the six
months ended June 30, 2012, net cash flows provided from financing activities
was $3,000 compared to $25,551 for the six months ended June 30, 2011. Cash
flows from financing activities for the six months ended June 30, 2012 consisted
of $3,000 proceeds from notes payables. Cash flows from financing activities for
the six months ended June 30, 2011 consisted of $20,000 proceeds from notes
payable and $5,551 net proceeds from related party payables.

We expect that working capital requirements will continue to be
funded through a combination of our existing funds and further issuances of
securities.

8

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Off-Balance Sheet Arrangements

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

Recent Accounting Pronouncements

For the three month period ended June 30, 2012, there were no
accounting standards or interpretations issued that are expected to have a
material impact on our financial position, operations or cash flows.

Item 3. Quantitative and Qualitative Disclosures About
Market Risk

As a smaller reporting company (as defined in Item 10(f)(1)
of Regulation S-K), our Company is not required to provide information required
by this Item.

Item 4. Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of
1934, as amended (the Exchange Act), we have carried out an evaluation of the
effectiveness of the design and operation of our Company's disclosure controls
and procedures as of the end of the period covered by this quarterly report,
being June 30, 2012. This evaluation was carried out under the supervision and
with the participation of our Company's management, including our President,
Principal Executive Officer and Principal Financial Officer. Based upon that
evaluation, our President, Principal Executive Officer and Principal Financial
Officer concluded that our disclosure controls and procedures are not effective
as of the end of the period covered by this report due to the material
weaknesses described in Management's Report on Internal Control over Financial
Reporting included in our annual report on Form 10-K for the year ended December
31, 2011.

There have been no significant changes in our Company's
internal controls or in other factors, which could significantly affect internal
controls subsequent to the date we carried out our evaluation. Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed in our Company's reports filed
or submitted under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Securities and Exchange
Commission's rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed in our Company's reports filed under the Exchange Act
is accumulated and communicated to management, including our Company's president
and Principal Executive Officer as appropriate, to allow timely decisions
regarding required disclosure.

There have been no changes in our internal controls over
financial reporting during the most recently completed fiscal quarter that have
materially affected or are reasonably likely to materially affect the Companys
internal control over financial reporting.

9

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PART II  OTHER INFORMATION

Item 1. Legal Proceedings

On May 21, 2009, the Company received a Writ of Summons from
Robert D. Holmes Law Corporation and Terrence E. King Law Corporation, the
Plaintiffs and William McKay, Jupiter Capital Ltd., Jupiter Capital Ventures,
Inc., Barron Energy Corporation, Media Games Ltd., Brandgamz Marketing Inc.,
FormCap Corp. and Snap-Email, Inc., the Defendants. The claim against FormCap
Corp. in the amount of $53,839.64 together with interest at the rate of 18% per
annum thereon from and after October 1, 2007. On June 9, 2009, the Companys
related parties who took over the debt of the company as per the agreement dated
November 7, 2006, have made a settlement with the Plaintiffs and have agreed
to file a discontinuance of claims made against FormCap. On March 23, 2010, the
company received document regarding notice of discontinuance of proceeding in
the Supreme Court of British Columbia.

On February 15, 2011, the Company assigned all its rights in
the leases to Rich Investments Ltd. (Rich) and Leare Developments Ltd.
(Leare), under the terms of a loans settlement agreement whereby Rich and
Leare accepted the assignment of the leases in full and final satisfaction of
the outstanding indebtedness of the Company to each of Rich and Leare.

Item 1A. Risk Factors

AN INVESTMENT IN THE COMPANY IS HIGHLY SPECULATIVE IN NATURE
AND INVOLVES AN EXTREMELY HIGH DEGREE OF RISK.

There may be conflicts of interest between our management and
our non-management stockholders.

Conflicts of interest create the risk that management may have
an incentive to act adversely to the interests of other investors. A conflict of
interest may arise between our managements own pecuniary interest and may at
some point compromise its fiduciary duty to our stockholders. In addition, our
officers and directors are currently involved with other blank check companies
and conflicts in the pursuit of business combinations with such other blank
check companies with which they and other members of our management are, and may
in the future be affiliated with, may arise. If we and the other blank check
companies that our officers and directors are affiliated with desire to take
advantage of the same opportunity, then those officers and directors that are
affiliated with both companies would abstain from voting upon the opportunity.
In the event of identical officers and directors, the officers and directors
will arbitrarily determine the company that will be entitled to proceed with the
proposed transaction.

As the Company has no recent operating history or revenue and
there is a risk that we will be unable to continue as a going concern and
consummate a business combination. We will, in all likelihood, sustain operating
expenses without corresponding revenues, at least until the consummation of a
business combination. This may result in our incurring a net operating loss that
will increase continuously until we can consummate a business combination with a
profitable business opportunity. We cannot assure you that we can identify a
suitable business opportunity and consummate a business combination.

THERE IS COMPETITION FOR THOSE PRIVATE COMPANIES SUITABLE FOR A
MERGER TRANSACTION OF THE TYPE CONTEMPLATED BY MANAGEMENT.

The Company is in a highly competitive market for a small
number of business opportunities which could reduce the likelihood of
consummating a successful business combination. We are and will continue to be
an insignificant participant in the business of seeking mergers with, joint
ventures and acquisitions of small private and public entities. A large number
of established and well-financed entities, including small public companies and
venture capital firms, are active in mergers and acquisitions of companies that
may be desirable target candidates for us. Nearly all these entities have
significantly greater financial resources, technical expertise and managerial
capabilities than we do, consequently, we will be at a competitive disadvantage
in identifying possible business opportunities and successfully completing a
business combination. These competitive factors may reduce the likelihood of our
identifying and consummating a successful business combination.

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FUTURE SUCCESS IS HIGHLY DEPENDENT ON THE ABILITY OF MANAGEMENT
TO LOCATE AND ATTRACT A SUITABLE ACQUISITION.

The nature of our operations is highly speculative and there is
a consequent risk of loss of your investment. The success of our plan of
operation will depend to a great extent on the operations, financial condition
and management of the identified business opportunity. While management intends
to seek business combination(s) with entities having established operating
histories, we cannot assure you that we will be successful in locating
candidates meeting that criterion. In the event we complete a business
combination, the success of our operations may be dependent upon management of
the successor firm or venture partner firm and numerous other factors beyond our
control.

OUR BUSINESS WILL HAVE NO REVENUES UNLESS AND UNTIL WE MERGE
WITH OR ACQUIRE AN OPERATING BUSINESS.

We are a development stage company and have had no revenues
from operations. We may not realized any revenues unless and until we
successfully merge with or acquire an operating business.

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

On February 11, 2010, 500,000 shares were issued to Norman J
Mackenzie for consulting services valued at $170,000.

On July 20, 2010, 250,000 shares at $0.05 per share were issued
to Leare Developments Ltd. as collateral for its Convertible Note Payable.

On July 20, 2010, 100,000 shares at $0.05 per share were issued
to Leare Developments Ltd. as fee for extension of the repayment of its
Convertible Note Payable.

On October 27, 2010, 500,000 shares at $0.04 per share were
issued to Jim Romano as finders fee as per agreements dated July 21, and October
5, 2010.

On November 23, 2011 25,000,000 common shares were issued under
a debt settlement agreement with a related Party.

On December 1, 2011, 10,000,000 common shares were issued under
the terms of a Oil & Gas Farm-In, Operating and Consulting Agreement with a
consultant.

On December 1, 2011, 10,000,000 common shares were issued to
the same consultant as payment in full of debt arising under a Consulting
Agreement.

On Decemebr 1, 2011, 10,000,000 common shares were issued to
the President of the Company as payment for services rendered in the performance
of his duties.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None

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Item 6. Exhibits

|Exhibit No. | Description                                                                                                                                                            
|----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|            |                                                                                                                                                                        
|31          | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|            |                                                                                                                                                                        
|32          | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

SIGNATURES

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

|                       | FORMCAP CORP.                                                      
|---------------------- | -------------------------------------------------------------------
|                       |                                                                    
|Dated: August 14, 2012 | By: /s/ Graham Douglas                                             
|                       | Graham Douglas                                                     
|                       | President, Secretary, Treasurer and Director                       
|                       | (Principal Executive Officer, Principal
      Financial Officer and
|                       | Principal Accounting Officer)                                      

12

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