| OMB APPROVALOMB Number: 3235-0416Expires:                   March 31, 2007Estimated average burdenHours per response . . . .                  182 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|

**UNITED      STATES**

**SECURITIES      AND EXCHANGE      COMMISSION**

**FORM      10-QSB**

**000-50212**

**AIDA      PHARMACEUTICALS, INC.**

| **Nevada**                                                                    |   | **81-0592184**                                      |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

| **31                Dingjiang Road, Jianggan District, Hangzhou,                China** |   | **310016**                |
|----------------------------------------------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)                                      |   | (Zip                Code) |

**86-0571-85802712**

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUES**

**Persons      who are to respond to the collection of information contained in this form      are**

**             not required to respond unless the form displays a currently valid OMB control      number.**

----

|                            |                                                                                                                                                                                                                |  Page |
|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|  PART              I.      |  Financial              Information                                                                                                                                                                            |       |
|                            |                                                                                                                                                                                                                |       |
|                            | Item 1. Financial Statements              ( Unaudited)                                                                                                                                                         |  3    |
|                            |                                                                                                                                                                                                                |       |
|                            | Condensed Consolidated Balance Sheets              as of              June 30, 2006 (Unaudited) and December 31, 2005                                                                                               |  3    |
|                            |                                                                                                                                                                                                                |       |
|                            | Condensed Consolidated Statements of Income (Loss)                and                Comprehensive Income (Loss)for the Three and Six Months Ended June 30, 2006                and                2005 (Unaudited) |  4    |
|                            |                                                                                                                                                                                                                |       |
|                            | Condensed Consolidated Statements of Cash Flows                for the                Six Months Ended June 30, 2006 and 2005 (Unaudited)                                                                           |  6    |
|                            |                                                                                                                                                                                                                |       |
|                            | Notes to Condensed Consolidated Financial              Statements as of June 30, 2006 (Unaudited)                                                                                                                   |  8    |
|                            |                                                                                                                                                                                                                |       |
|                            | Item 2.  Management’s Discussion and              Analysis of Financial Condition or Plan of Operation                                                                                                   |  22   |
|                            |                                                                                                                                                                                                                |       |
|                            | Item                3.  Controls and Procedures                                                                                                                                                                |  37   |
|                            |                                                                                                                                                                                                                |       |
|  PART                  II. | Other Information                                                                                                                                                                                                   | 37         |
|                            |                                                                                                                                                                                                                |       |
|                            | Item 1. Legal Proceedings                                                                                                                                                                                           |  37   |
|                            |                                                                                                                                                                                                                |       |
|                            | Item                6.  Exhibits and Reports on Form 8-K                                                                                                                                                       |  38   |
|                            |                                                                                                                                                                                                                |       |
|                            | Signatures                                                                                                                                                                                                          |  38   |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements (unaudited)**

**AIDA        PHARMACEUTICAL, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES**

**CONDENSED        CONSOLIDATED BALANCE SHEETS**
** **

|  **                                                                                                                                      ASSETS** |   | June                  30, 2006(Unaudited) |                              | December                  31,2005 |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-----------------------------------|-----------------------------------|---------|
| CURRENT                  ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                      |                              |                              |    |
|                  Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |  $                                   | 5,684,350                         |                              |  $ | 3,129,45  |   |
|                    Restricted cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                      | 1,991,196                         |                              |    | 1,903,487 |   |
|                    Accounts receivable, net of allowance for doubtful accounts of                  $386,688                      and $386,688 as of June 30, 2006 and December 31,2005,                  respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                      | 9,752,632                         |                              |    | 9,390,137 |   |
|                    Notes receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                      | 2,929,596                         |                              |    | 3,323,076 |   |
|                    Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                      | 3,978,566                         |                              |    | 3,348,592 |   |
|                    Deferred tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                      | 10,246                            |                              |    | - |   |
|                    Due from related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | 1,129,471                         |                              |    | 54,120 |   |
|                    Other receivables, prepaid expenses, and other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                      | 449,724                           |                              |    | 449,672 |   |
|                    Due from employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                      | 445,199                           |                              |    | 497,486 |   |
|                    Prepayments for goods                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                      | 380,700                           |                              |    | 316,960 |   |
|                            Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                      | 26,751,680                        |                              |    | 22,412,980 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
|                    Plant and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | 11,607,066                        |                              |    | 11,987,572 |   |
|                    Land use rights, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                      | 2,150,559                         |                              |    | 1,755,440 |   |
|                    Construction in progress                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | 878,722                           |                              |    | 856,776 |   |
|                    Patents, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      | 1,887,327                         |                              |    | 1,788,014 |   |
|                  Due from employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                      | 792,364                           |                              |    | 616,440 |   |
|                    Long term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                      | 288,836                           |                              |    | 218,605 |   |
|                    Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | 4,243,585                         |                              |    | 2,817,391 |   |
|                  Deferred compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                      |                    1,274,167 |                              |    | -  |   |
|                    Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      | 240,367                           |                              |    | 205,919 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
| TOTAL                  ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                         | 50,114,673                        |                              | $       | 42,659,137 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| CURRENT                  LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
|                    Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                         | 3,125,248                         |                              | $       | 1,622,449 |   |
|                    Other payables and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                      | 1,865,426                         |                              |    | 3,003,233 |   |
|                    Accrued expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                      | 2,162,254                         |                              |    | - |   |
|                    Short term debts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                      | 23,665,617                        |                              |    | 21,450,710 |   |
|                    Due to related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                      | 316,753                           |                              |    | 159,492 |   |
|                    Taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                      | 117,130                           |                              |    | 38,722 |   |
|                    Customer deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                      | 1,182,220                         |                              |    | 1,390,526 |   |
|                  Due to employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      | 212,668                           |                              |    | 493,492 |   |
|                    Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      | 163,011                           |                              |    | 106,279 |   |
|           Total                  current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      | 32,810,327                        |                              |    | 28,264,903 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
| LONG-TERM                  LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                              |                              |    |   |   |
|                    Long-term bank loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                      | 3,752,064                         |                              |    | 3,717,380 |   |
|                    Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      | 477,806                           |                              |    | 387,316 |   |
|                    Notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                      | 2,126,169                         |                              |    | - |   |
|                    Minority interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                      | 3,707,572                         |                              |    | 3,565,431 |   |
|                            Total long-term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                      | 10,063,611                        |                              |    | 7,670,127 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
| TOTAL                  LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                      | 42,873,938                        |                              |    | 35,935,030 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                      |                              |                              |    |   |   |
| SHAREHOLDERS’                  EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                      |                              |                              |    |   |   |
|                    Common stock, $0.006 par value; 75,000,000 shares authorized; 25,000,000                  shares                       issued                  and outstanding at June 30, 2006 and December 31, 2005,                  respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                      | 150,000                           |                              |    | 150,000 |   |
|                    Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                      | 3,293,323                         |                              |    | 3,293,323 |   |
|                    Retained earnings (the restricted portion is $593,971 and $593,971                  at June                  30, 2006                       and                  December 31, 2005, respectively)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                      | 3,562,972                         |                              |    | 3,136,495 |   |
|                    Accumulated other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                      | 234,440                           |                              |    | 144,289 |   |
|                           Total Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                      | 7,240,735                         |                              |    | 6,724,107 |   |
| TOTAL                  LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                         | 50,114,673                        |                              | $       | 42,659,137 |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**CONDENSED        CONSOLIDATED STATEMENTS **

**OF        INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)**

**(UNAUDITED)**

|                                                                                    |   | **THREE                MONTHS ENDED****JUNE                30,** |       | **SIX                MONTHS ENDED****JUNE                30,** |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|----------------------------------------------------------------|--------|
|                                                                                    |   | **2006**                                                         |       | **2005**                                                       |   | **2006** |   | **2005** |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |
| **REVENUES**                                                                            |   | $                                                                | 7,284,888  |                                                           | $      | 5,031,908 |   | $ | 12,599,694 |   | $ | 9,832,579 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **COST                OF GOODS SOLD**                                                   |   |                                                             | (3,579,700 | )                                                              |   | (1,191,544 | ) |   | (6,554,934 | ) |   | (2,627,422 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **GROSS                PROFIT**                                                         |   |                                                             | 3,705,188  |                                                           |   | 3,840,364 |   |   | 6,044,760 |   |   | 7,205,157 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| Research                and development                                                 |   |                                                             | -          |                                                           |   | - |   |   | - |   |   | (120,824 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| Selling                and distribution                                                 |   |                                                             | (1,863,507 | )                                                              |   | (2,893,166 | ) |   | (3,540,243 | ) |   | (4,357,773 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| General                and administrative                                               |   |                                                             | (939,536   | )                                                              |   | (938,671 | ) |   | (1,586,281 | ) |   | (1,563,252 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **INCOME                FROM OPERATIONS**                                               |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |                                                             | 902,145    |                                                           |   | 8,527 |   |   | 918,236 |   |   | 1,163,308 |   |
| **OTHER                INCOME (EXPENSES)**                                              |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                   Interest expense, net                                       |   |                                                             | (384,500   | )                                                              |   | (267,895 | ) |   | (653,191 | ) |   | (481,877 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                   Government grants                                           |   |                                                             | 43,124     |                                                           |   | 72,746 |   |   | 503,587 |   |   | 121,640 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                   Gain on sale of investment                                  |   |                                                             | 12,490     |                                                           |   | - |   |   | 12,490 |   |   | - |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                   Gain on non-monetary transactions                           |   |                                                             | -          |                                                           |   | - |   |   | - |   |   | 125,097 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                   Other (loss) income, net                                    |   |                                                             | 31,403     |                                                           |   | (63,203 | ) |   | 71 |   |   | 5,041 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **INCOME****(LOSS)****BEFORE INCOME TAXES**                                             |   |                                                             | 604,662    |                                                           |   | (249,825 | ) |   | 781,193 |   |   | 933,209 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **INCOME                TAXES**                                                         |   |                                                             | (130,270   | )                                                              |   | (62,942 | ) |   | (227,110 | ) |   | (123,240 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **INCOME              (LOSS) FROM CONTINUING OPERATIONS**                               |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **BEFORE              MINORITY INTERESTS**                                              |   |                                                             | 474,392    |                                                           |   | (312,767 | )  |   | 554,083 |   |   | 809,969 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **MINORITY                INTERESTS**                                                   |   |                                                             | (75,504    | )                                                              |   | 146,870 |   |   | (142,141 | ) |   | (229,131 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **INCOME                (LOSS) FROM CONTINUING OPERATIONS**                             |   |                                                             | 398,888    |                                                           |   | (165,897 | ) |   | 411,942 |   |   | 580,838 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **DISCONTINUED                OPERATION**                                               |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| Gain                from disposition of discontinued operation                          |   |                                                             | -          |                                                           |   | - |   |   | - |   |   | 26,068 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operation                                       |   |                                                             | -          |                                                           |   | - |   |   | - |   |   | 161,341 |   |
|                                                                          |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **GAIN                FROM DISCONTINUED OPERATION**                                     |   |                                                             | -          |                                                           |   | - |   |   | - |   |   | 187,409 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **NET                INCOME (LOSS)**                                                    |   |                                                             | 398,888    |                                                           |   | (165,897 | ) |   | 411,942 |   |   | 768,247 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **OTHER                COMPREHENSIVE INCOME**                                           |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| Foreign                Currency Translation gain                                        |   |                                                             | 22,918     |                                                           |   | 28 |   |   | 90,151 |   |   | 45 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **OTHER              COMPREHENSIVE INCOME**                                             |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **BEFORE              INCOME TAXES**                                               |   |                                                             | 22,918     |                                                           |   | 28 |   |   | 90,151 |   |   | 45 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **INCOME                TAXES RELATED TO OTHER****COMPREHENSIVE                INCOME** |   |                                                             | (7,563     | )                                                              |   | (9 | ) |   | (29,750 | ) |   | (15 | ) |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **OTHER              COMPREHENSIVE INCOME,**                                            |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **NET              OF INCOME TAXES**                                                    |   |                                                             | 15,355     |                                                           |   | 19 |   |   | 60,401 |   |   | 30 |   |
|                                                                                    |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **COMPREHENSIVE                INCOME (LOSS)**                                          |   | $                                                                | 414,243    |                                                           | $      | (165,878 | ) | $ | 472,343 |   | $ | 768,277 |   |
| **WEIGHTED              AVERAGE SHARES**                                                |   |                                                             |       |                                                           |   |   |   |   |   |   |   |   |   |
| **OUTSTANDING              BASIC AND DILUTED**                                          |   |                                                             | 25,000,000 |                                                           |   | 23,375,000 |   |   | 25,000,000 |   |   | 23,375,000 |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**CONDENSED        CONSOLIDATED STATEMENTS **

**OF        INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)**

**(UNAUDITED)**

|                                                                                       |   | **THREE                MONTHS ENDED****JUNE                30,** |   | **SIX                MONTHS ENDED****JUNE                30,** |   |
|--------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                                       |   | **2006**                                                         |   | **2005**                                                       |   | **2006** |   | **2005** |   |
|                  Income (loss) per common share from continuing operations, |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
|                  basic and diluted                                          |   | $                                                                | 0.02   |                                                           | $      | (0.01 | ) | $ | 0.02 |   | $ | 0.03 |   |
|                                                                                       |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
|                  Income per common share from gain from disposition of      |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
|                  discontinued              operations, basic and diluted    |   | $                                                                | 0.00   |                                                           | $      | 0.00 |   | $ | 0.00 |   | $ | 0.00 |   |
|                                                                                       |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
|                 Income per common share from income from discontinued            |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
|                 operations,              basic and diluted                       |   | $                                                                | 0.00   |                                                           | $      | 0.00 |   | $ | 0.00 |   | $ | 0.01 |   |
|                                                                                       |   |                                                             |   |                                                           |   |   |   |   |   |   |   |   |   |
| Net                income per common share, basic and diluted                              |   | $                                                                | 0.02   |                                                           | $      | (0.01 | ) | $ | 0.02 |   | $ | 0.03 |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                     **(UNAUDITED)** |   | **For                the Six Months Ended June 30,** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **2006**                                             |       | **2005** |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |   |   |
| Net                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                    | 411,942    |   | $ | 768,247 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 |       |   |   |   |   |
| Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | 810,053    |   |   | 687,191 |   |
| Deferred                taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | 102,527    |   |   | (274,392 | ) |
| Gain                from forgiveness of debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | -          |   |   | (125,097 | ) |
| Minority                interests’ share of net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | 142,140    |   |   | 229,130 |   |
| Loss                of disposal of fixed assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | 230        |   |   | - |   |
| Amortization                of deferred compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | 45,833     |   |   | - |   |
| Gain                on disposal of discontinued operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 | -          |   |   | (26,068 | ) |
| ** **Gain                on sale of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | (12,490    | ) |   | - |   |
| **Changes                in operating assets and liabilities, net of effects of                acquisition:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 |       |   |   |   |   |
| **(Increase)                Decrease In:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                 |       |   |   |   |   |
| Accounts                receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                 | (362,495   | ) |   | 32,608 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | (629,974   | ) |   | 793,151 |   |
| Other                receivables, prepaid expenses, and other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | (53        | ) |   | 618,826 |   |
| Prepayments                for goods                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | (63,740    | ) |   | (1,292 | ) |
| Discontinued                operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | -          |   |   | 423,351 |   |
| **Increase                (Decrease) In:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                 |       |   |   |   |   |
| Accounts                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | 1,502,800  |   |   | (79,992 | ) |
| Other                payables and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | (295,554   | ) |   | 565,631 |   |
| Due                to employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | (280,824   | ) |   | 259,678 |   |
| Taxes                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | 78,410     |   |   | 84,287 |   |
| Customer                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                 | (208,306   | ) |   | 780,088 |   |
| Discontinued              operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | -          |   |   | 876,051 |   |
| Net                cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 1,240,499  |   |   | 5,611,398 |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |   |   |   |   |
| Restricted                cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 | (87,709    | ) |   | (2,022,957 | ) |
| Purchases                of plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | (164,021   | ) |   | (473,406 | ) |
| Purchases                of construction in progress                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | (13,950    | ) |   | - |   |
| Proceeds                from disposal of discontinued operation, net of cash sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | -          |   |   | 1,581,755 |   |
| Cash                received from sale of plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | 819        |   |   | - |   |
| Purchase                of land use right                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 | (394,169   | ) |   | - |   |
| Deposit                for land use right                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 | (986,915   | ) |   | - |   |
| Deposit                for long term investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | (499,749   | ) |   | - |   |
| Deposit                for fixed assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 | (7,880     | ) |   | - |   |
| Deposit                for patent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | (125,069   | ) |   | - |   |
| Notes                receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | 393,479    |   |   | (1,335,312 | ) |
| Due                from related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 | (1,075,350 | ) |   | - |   |
| Due                from employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | (123,638   | ) |   | (1,134,201 | ) |
| Proceeds                from disposal of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | 137,559    |   |   | - |   |
| Purchase                of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | (187,603   | ) |   | - |   |
| Purchase                of a subsidiary, net of cash acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | -          |   |   | (936,707 | ) |
| Discontinued                operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | -          |   |   | 224,141 |   |
| Net                cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | (3,134,196 | ) |   | (4,096,687 | ) |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |   |   |   |   |
| Proceeds                from short-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | 2,214,907  |   |   | - |   |
| Repayment              of short-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 | -          |   |   | (1,437,167 | ) |
| Proceeds              from long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 | 34,684     |   |   | - |   |
| Proceeds                from notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                 | 2,126,169  |   |   | 3,256,526 |   |
| Proceeds                from related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | 157,262    |   |   | - |   |
| Repayment                to related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | -          |   |   | (2,282,174 | ) |
| Discontinued                operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | -          |   |   | (1,666,084 | ) |
| Net                cash provided (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | 4,533,022  |   |   | (2,128,899 | ) |
| **INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | 2,639,325  |   |   | (614,188 | ) |

----

**AIDA      PHARMACEUTICALS, INC. **

**(FORMERLY      BAS CONSULTING, INC.) AND SUBSIDIARIES **

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                            |   | **For                the Six Months Ended June 30,** |      |
|-----------------------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                            |   | **2006**                                             |      | **2005** |   |
|                                                            |   |                                                 |      |   |   |
| Effect                of exchange rate changes on cash          |   |                                                 | (84,425   | ) |   | (2,310 | ) |
| Cash                and cash equivalents at beginning of period |   |                                                 | 3,129,450 |   |   | 2,810,050 |   |
|                                                            |   |                                                 |      |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS AT END OF PERIOD**   |   | $                                                    | 5,684,350 |   | $ | 2,193,552 |   |
|                                                            |   |                                                 |      |   |   |   |   |
| **SUPPLEMENTARY                CASH FLOW INFORMATION**          |   |                                                 |      |   |   |   |   |
| Income                taxes paid                                |   | $                                                    | (79,533   | ) | $ | (912 | ) |
| Interest                paid                                    |   | $                                                    | (671,098  | ) | $ | (497,244 | ) |

**SUPPLEMENTAL      NON-CASH DISCLOSURES:**

| 1.               During the three months ended March 31, 2005, a liability of $639,230              was              settled by transferring equipment with a net book value of $514,133              resulting in a $125,097 gain.                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 2.               During the six months ended June 30, 2006, $274,229 was transferred              from              deposits to patents.                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.                 On February 1, 2005, the Company purchased an additional 52% interest                in                Changzhou Fangyuan Pharmaceutical Co., Ltd. for $3,232,542. Thereafter,                Changzhou Gangyuan                     Pharmaceutical Co.,                Ltd. became a 66% owned subsidiary of the Company, The following                represents the assets purchased and liabilities assumed at the acquisition                date: |

| Land                  use right, net                                                                              |   | $      | 1,182,180   |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|
| Patents,                  net                                                                                     |   |   | 1,868,534   |   |
| Construction                  in progress                                                                         |   |   | 856,776     |   |
| Deposits                                                                                                          |   |   | 1,603,483   |   |
| Plant                  and equipment, net                                                                         |   |   | 8,354,078   |   |
| Cash                  and cash equivalents                                                                        |   |   | 2,295,835   |   |
| Accounts                  receivable, net                                                                         |   |   | 1,038,479   |   |
| Inventories,                  net                                                                                 |   |   | 467,223     |   |
| Other                  receivables and prepayments                                                                |   |   | 122,748     |   |
| Prepayments                  for goods                                                                            |   |   | 380,554     |   |
| Due                  from related parties                                                                         |   |   | 1,917,521   |   |
|                       Total assets purchased                                                  |   | $      | 20,087,411  |   |
|                                                                                                              |   |   |        |   |
| Short                  term bank loans                                                                            |   |   | (8,667,193  | )      |
| Accounts                  payable                                                                                 |   |   | (370,371    | )      |
| Accrued                  expense                                                                                  |   |   | (459,159    | )      |
| Other                  payable and accrued liabilities                                                            |   |   | (1,007,904  | )      |
| Customer                  deposits                                                                                |   |   | (112,373    | )      |
| Deferred                  taxes                                                                                   |   |   | (216,278    | )      |
| Long-term                  bank loans                                                                             |   |   | (3,717,380  | )      |
|                       Total liabilities assumed                                               |   | $      | (14,550,658 | )      |
|                                                                                                              |   |   |        |   |
| Total                  net assets                                                                                 |   | $      | 5,536,753   |   |
|                                                                                                              |   |   |        |   |
| Share                  percentage                                                                                 |   |   | 66          | %      |
|                                                                                                              |   |   |        |   |
| Net                  assets acquired                                                                              |   | $      | 3,654,257   |   |
|                                                                                                              |   |   |        |   |
| Total                  consideration paid (including the investments of $421,715 in prior                  years) |   | $      | 3,654,257   |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**1.          ORGANIZATION AND PRINCIPAL ACTIVITIES**

**2.          BASIS OF PRESENTATION**

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**3.     PRINCIPLES OF      CONSOLIDATION**

**4.    CONCENTRATIONS**

|                                 |                                   | **Sales**                                                                       |                                                                            | **Accounts                  Receivable** |
|--------------------------------------|----------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|------------------------------------------|
| **Major                  Customers** |                                   | **For                  the Six Months****Ended                  June 30, 2006** | **For                  the Six Months****Ended                  June 20, 2005** |                                     |   |
| **June                  30, 2006**   | **December                  31, 2005** |
|                                 |                                   |                                                                            |                                                                            |                                     |   |   |
| Company                  A           |                                   | 15%                                                                             | 12%                                                                             |                                     | 5% | 7% |
| Company                  B           |                                   | 8%                                                                              | 4%                                                                              |                                     | 1% | 0% |
| Company                  C           |                                   | 6%                                                                              | 2%                                                                              |                                     | 1% | 1% |
| Company                  D           |                                   | 5%                                                                              | 1%                                                                              |                                     | 6% | 2% |

|                                     |                                       | **Purchases**                                                                           |                                                                                    | **Accounts                      Payable** |
|------------------------------------------|--------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-------------------------------------------|
| **Major                      Suppliers** |                                       | **For                      the Six Months****Ended                      June 30, 2006** | **For                      the Six Months****Ended                      June 20, 2005** |                                      |   |
| **June                      30, 2006**   | **December                      31, 2005** |
|                                     |                                       |                                                                                    |                                                                                    |                                      |   |   |
| Company                      E           |                                       | 11%                                                                                     | 12%                                                                                     |                                      | 10% | 7% |
| Company                      F           |                                       | 7%                                                                                      | 8%                                                                                      |                                      | 3% | 6% |

----

**AIDA      PHARMACEUTICALS, INC. **

**(FORMERLY      BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS      OF JUNE 30, 2006**

**(UNAUDITED)**

**5.          USE OF ESTIMATES**

**6.          FOREIGN CURRENCY TRANSLATION**

|                                                 |  **June                30, 2006** |   |  **December                31, 2005** |
|------------------------------------------------------|----------------------------------------|--------|--------------------------------------------|
| Period                end RMB: US$ exchange rate     | 7.9956                                 |   | 8.0702                                     |
| Average                yearly RMB: US$ exchange rate | 8.0329                                 |   | 8.1734                                     |
|                                                 |                                   |   |                                       |

**7.            FAIR VALUE OF FINANCIAL INSTRUMENTS**

**8.          EARNING PER SHARE**

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**9.          NOTES RECEIVABLE**

| Bank                acceptance notes :                      |   |                                            |                                                  |                                       |   |
|-------------------------------------------------------------|--------|-------------------------------------------------|-------------------------------------------------------|--------------------------------------------|--------|
|                                                        |   | **June                30, 2006****(Unaudited)** |                                                  |  **December                31, 2005** |   |
| Due                February 4, 2006 (subsequently settled)  |   | $                                               | -                                                     |                                       | $      | 8,674 |   |
| Due                February 15, 2006 (subsequently settled) |   |                                            | -                                                     |                                       |   | 136,864 |   |
| Due                March 11, 2006 (subsequently settled)    |   |                                            | -                                                     |                                       |   | 6,196 |   |
| Due                April 13, 2006 (subsequently settled)    |   |                                            | -                                                     |                                       |   | 49,566 |   |
| Subtotal                                                    |   |                                            | -                                                     |                                       |   | 201,300 |   |
|                                                        |   |                                            |                                                  |                                       |   |   |   |
| Notes                receivable from related companies:     |   |                                            |                                                  |                                       |   |   |   |
|                                                             |   |                                            | **June                30, 2006****(Unaudited)**  |                                       |   | **December                31, 2005** |   |
| Due                October 14, 2006                         |   |                                            | -                                                     |                                       |   | 319,951 |   |
| Due                November 11, 2006                        |   |                                            | 375,206                                               |                                       |   | 371,738 |   |
| Due                November 30, 2006                        |   |                                            | 62,534                                                |                                       |   | 61,956 |   |
| Due                December 2, 2006                         |   |                                            | 62,534                                                |                                       |   | 123,913 |   |
| Due                December 14, 2006                        |   |                                            | 454,183                                               |                                       |   | - |   |
| Due                December 31, 2006                        |   |                                            | 11,506                                                |                                       |   | - |   |
| Subtotal                                                    |   |                                            | 965,963                                               |                                       |   | 877,558 |   |
|                                                        |   |                                            |                                                  |                                       |   |   |   |
| Notes                receivable from unrelated companies:   |   |                                            |                                                  |                                       |   |   |   |
|                                                             |   |                                            | **June                30, 2006****(Unaudited)**  |                                       |   | **December                31, 2005** |   |
| Due                May 20, 2006 (subsequently settled)      |   |                                            | -                                                     |                                       |   | 123,913 |   |
| Due                December 1, 2006                         |   |                                            | 869,566                                               |                                       |   | 1,160,265 |   |
| Due                November 30, 2006                        |   |                                            | 968,998                                               |                                       |   | 960,040 |   |
| Due                May 31, 2007                             |   |                                            | 125,069                                               |                                       |   | - |   |
| Subtotal                                                    |   |                                            | 1,963,633                                             |                                       |   | 2,244,218 |   |
|                                                        |   |                                            |                                                  |                                       |   |   |   |
| Total                                                       |   | $                                               | 2,929,596                                             |                                       | $      | 3,323,076 |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**10.          INVENTORIES**

|                                |   | **June                30, 2006****(Unaudited)** |      |  **December                31, 2005** |   |
|-------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------------|--------|
|                                |   |                                            |      |                                       |   |
| Raw                materials        |   | $                                               | 998,532   |                                       | $      | 735,017 |   |
| Work-in-progress                    |   |                                            | 752,654   |                                       |   | 357,220 |   |
| Finished                goods       |   |                                            | 2,227,380 |                                       |   | 1,788,025 |   |
| Processing                materials |   |                                            | -         |                                       |   | 468,330 |   |
|                                |   | $                                               | 3,978,566 |                                       | $      | 3,348,592 |   |

**11.          DUE TO/FROM REALTED PARTIES**

|                                                      |   | **June                30, 2006****(Unaudited)** |      |  **December                31, 2005** |   |
|-----------------------------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------------|--------|
| Current:                                                  |   |                                            |      |                                       |   |
| Ningbo                Tianheng Pharmaceuticals Co., Ltd.  |   | $                                               | 12,507    |                                       | $      | 12,391 |   |
| Hangzhou                Jin’ou Medicine Co., Ltd    |   |                                            | 1,061,930 |                                       |   | - |   |
| Zhejiang                Guobang Veterinary Drug Co., Ltd. |   |                                            | 55,034    |                                       |   | 41,729 |   |
| Total                due from related parties             |   | $                                               | 1,129,471 |                                       | $      | 54,120 |   |

|                                        |   | **June                30, 2006****(Unaudited)** |    |  **December                31, 2005** |   |
|---------------------------------------------|--------|-------------------------------------------------|---------|--------------------------------------------|--------|
| .                                           |   |                                            |    |                             |   |
| Merlin                Green Canada Inc.     |   | $                                               | 26,431  |                                       | $      | 136,593 |   |
| Jin’ou                Group           |   |                                            | 201,961 |                                       |   | 22,899 |   |
| Zhejiang                Guobang Co., Ltd.   |   |                                            | 88,361  |                                       |   | - |   |
| Total                due to related parties |   | $                                               | 316,753 |                                       | $      | 159,492 |   |

|                                    |   | **June                30, 2006****(Unaudited)** |      |  **December                31, 2005** |   |
|-----------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------------|--------|
|                                    |   |                                            |      |                                       |   |
| Current                                 |   | $                                               | 445,199   |                                       | $      | 497,486 |   |
| Long-term                               |   |                                            | 792,364   |                                       |   | 616,440 |   |
| Total                due from employees |   | $                                               | 1,237,563 |                                       | $      | 1,113,926 |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**11.      DUE      TO/FROM RELATED PARTIES(CONTINUED)**

|                                  |   | **June                30, 2006****(Unaudited)** |    |  **December                31, 2005** |   |
|---------------------------------------|--------|-------------------------------------------------|---------|--------------------------------------------|--------|
|                                  |   |                                            |    |                                       |   |
| Current                               |   | $                                               | 212,668 |                                       | $      | 493,492 |   |
| Total                due to employees |   | $                                               | 212,668 |                                       | $      | 493,492 |   |

**12.           BUSINESS COMBINATION**

|                                                 |   |   |        |
|------------------------------------------------------|--------|--------|-------------|
| Total                consideration paid              |   | $      | 3,654,257   |   |
| Fair                value of assets acquired         |   |   | (18,309,680 | ) |
| Fair                value of liabilities assumed     |   |   | 9,603,434   |   |
| Negative                goodwill                     |   |   | (5,051,989  | ) |
|                                                 |   |   |        |   |
| Negative                goodwill applied to a patent |   |   | 5,051,989   |   |
| Total                                                |   | $      | 5,051,989   |   |

|                                                   |   |   |      |
|--------------------------------------------------------|--------|--------|-----------|
| Net                income                              |   | $      | 1,494,777 |   |
|                                                   |   |   |      |   |
| Net                income per share, basic and diluted |   | $      | 0.06      |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**13.          PLANT AND EQUIPMENT**

|                                                |   | **June                30, 2006****(Unaudited)** |       |  **December                31, 2005** |   |
|-----------------------------------------------------|--------|-------------------------------------------------|------------|--------------------------------------------|--------|
| At                cost:                             |   |                                            |       |                                       |   |
| Buildings                                           |   | $                                               | 7,023,763  |                                       | $      | 6,944,082 |   |
| Machinery                                           |   |                                            | 8,013,202  |                                       |   | 7,832,139 |   |
| Motor                vehicles                       |   |                                            | 613,319    |                                       |   | 607,649 |   |
| Office                equipment                     |   |                                            | 551,395    |                                       |   | 573,220 |   |
| Leasehold                improvements               |   |                                            | 369,439    |                                       |   | 366,024 |   |
|                                                |   |                                            | 16,571,118 |                                       |   | 16,323,114 |   |
|  Less:                Accumulated depreciation |   |                                            |       |                                       |   |   |   |
| Buildings                                           |   |                                            | 1,198,952  |                                       |   | 1,089,490 |   |
| Machinery                                           |   |                                            | 2,998,371  |                                       |   | 2,582,907 |   |
| Motor                vehicles                       |   |                                            | 377,212    |                                       |   | 332,125 |   |
| Office                equipment                     |   |                                            | 318,128    |                                       |   | 293,561 |   |
| Leasehold                improvements               |   |                                            | 71,389     |                                       |   | 37,459 |   |
|                                                |   |                                            | 4,964,052  |                                       |   | 4,335,542 |   |
| Plant                and equipment, net             |   | $                                               | 11,607,066 |                                       | $      | 11,987,572 |   |

**14.          LAND USE RIGHTS**

|                                          |   | **June                30, 2006****(Unaudited)** |      |  **December                31, 2005** |   |
|-----------------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------------|--------|
|                                          |   |                                            |      |                                       |   |
| Cost                                          |   | $                                               | 2,307,952 |                                       | $      | 1,896,091 |   |
| Less:                Accumulated amortization |   |                                            | (157,393  | )                                          |   | (140,651 | ) |
| Land                use rights, net           |   | $                                               | 2,150,559 |                                       | $      | 1,755,440 |   |

| 2006                within half year |   | $      | 17,762    |   |
|--------------------------------------|--------|--------|-----------|--------|
| 2007                                 |   |   | 47,362    |   |
| 2008                                 |   |   | 47,362    |   |
| 2009                                 |   |   | 47,362    |   |
| 2010                                 |   |   | 47,362    |   |
| Thereafter                           |   |   | 1,943,349 |   |
| Total                                |   | $      | 2,150,559 |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**1****5.          PATENTS**

|                                          |   | **June                30, 2006****(Unaudited)** |      |  **December                31, 2005** |   |
|-----------------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------------|--------|
|                                          |   |                                            |      |                                       |   |
| Cost                                          |   | $                                               | 2,414,339 |                                       | $      | 2,194,078 |   |
| Less:                Accumulated amortization |   |                                            | (527,012  | )                                          |   | (406,064 | ) |
| Patents,                net                   |   | $                                               | 1,887,327 |                                       | $      | 1,788,014 |   |

| 2006                within half year |   | $      | 165,995   |   |
|--------------------------------------|--------|--------|-----------|--------|
| 2007                                 |   |   | 331,991   |   |
| 2008                                 |   |   | 289,723   |   |
| 2009                                 |   |   | 276,344   |   |
| 2010                                 |   |   | 226,316   |   |
| Thereafter                           |   |   | 596,958   |   |
| Total                                |   | $      | 1,887,327 |   |

**16.           DEPOSITS**

|                                              |   | **June                  30, 2006****(Unaudited)** |      |  **December                  31, 2005** |   |
|---------------------------------------------------|--------|---------------------------------------------------|-----------|----------------------------------------------|--------|
|                                              |   |                                              |      |                                         |   |
| Deposits                  for patent              |   | $                                                 | 749,787   |                                         | $      | 910,138 |   |
| Deposits                  for plant and equipment |   |                                              | 1,095,382 |                                         |   | 1,003,930 |   |
| Deposits                  for land use right      |   |                                              | 1,332,105 |                                         |   | 341,999 |   |
| Deposits                  for acquisition         |   |                                              | 1,066,311 |                                         |   | 561,324 |   |
| Total                                             |   | $                                                 | 4,243,585 |                                         | $      | 2,817,391 |   |

----

**AIDA          PHARMACEUTICALS, INC. **

**(FORMERLY          BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS          OF JUNE 30, 2006**

**(UNAUDITED)**

**17.          LONG-TERM INVESTMENTS**

|                                                       | **Ownership****Interest** |   | **June                30, 2006****(Unaudited)** |   | **Ownership****Interest** |   | **December                31, 2005** |
|------------------------------------------------------------|---------------------------|--------|-------------------------------------------------|--------|---------------------------|--------|--------------------------------------|
| At                cost:                                    |                      |   |                                            |   |                      |   |                                 |
| Hangzhou                Longde Medical Machinery Co., Ltd. | 10.6%                     | $      | 101,233                                         |   | 10.6%                     | $      | 97,790                               |
| Zhejiang                Anglikang Pharmaceutical Co., Ltd. | -                         |   | -                                               |   | 8.33%                     |   | 120,815                              |
| Hangzhou                Jin'ou Medicine Co,. Ltd           | 50.0%                     |   | 187,603                                         |   |                      |   | -                                    |
|                                                       |                      | $      | 288,836                                         |   |                      | $      | 218,605                              |

**18.          **
**SHORT      -TERM DEBT**

|                                                                                                                                                                                                                                                                                                               |   | **June                30, 2006****(Unaudited)** |   | **December                31, 2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------------------------------------|--------|
| Loans                from Industrial and Commercial Bank of China Qingchun Branch, due                July 24,                2006, monthly interest only payments at 5.115% per annum, secured                by                assets owned by the Company. (subsequently repaid on its due                date) |   | $                                               | -      |                                 | $      | 743,476 |   |
|                                                                                                                                                                                                                                                                                                               |   |                                            |   |                                 |   |   |   |

----

**AIDA      PHARMACEUTICALS, INC. **

**(FORMERLY      BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS      OF JUNE 30, 2006**

**(UNAUDITED)**

|                                                                                                                                                                                                                                                                                                                              |   | **June                30, 2006****(Unaudited)** |      | **December                31, 2005** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------|--------|
| Loans                from Industrial and Commercial Bank of China Qingchun Branch, due                August                1, 2006, monthly interest only payments at 5.115% per annum, secured                by                assets owned by the Company. (subsequently repaid on its due                date)               |   |                                            | 875,482   |                                 |   | 867,389 |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loans                from Industrial and Commercial Bank of China Qingchun Branch, due                August                8, 2006, monthly interest only payments at 5.115% per annum, secured                by                assets owned by the Company. (subsequently repaid on its due                date)               |   |                                            | 781,680   |                                 |   | 774,454 |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loans                from Industrial and Commercial Bank of China Qingchun Branch, due                August                21, 2006, monthly interest only payments at 5.115% per annum, secured                by                assets owned by the Company.                                                                   |   |                                            | 625,344   |                                 |   | 619,563 |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loans                from Industrial and Commercial Bank of China Qingchun Branch, due                June 6,                2007, monthly interest only payments at 5.363% per annum, secured                by                assets owned by the Company                                                                       |   |                                            | 1,250,688 |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loans                from Industrial and Commercial Bank of China Qingchun Branch, due                June 27,                2007, monthly interest only payments at 5.363% per annum, secured                by                assets owned by the Company                                                                      |   |                                            | 750,413   |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Hangzhou Commercial Bank Gaoxin Branch due February 27, 2007,                monthly                interest only payments at 5.363% per annum, guaranteed by Xinchang                Guobang                Chemicals Co., Ltd..                                                                        |   |                                            | 1,250,688 |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Bank of China Kaiyuan Branch due April 17, 2006, monthly interest                only payments at 5.58% per annum, guaranteed by Xinchang Guobang                Chemicals                Co., Ltd. And Qiu Jiajun & Jin Biao (subsequently repaid on its due                date)                   |   |                                            | -         |                                 |   | 1,239,127 |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Hangzhou Commercial Bank Gaoxin Branch April 25, 2006, monthly                interest only payments at 5.115% per annum, guaranteed by Hangzhou                Jin’ou                And Xinchang Guobang Chemicals Co., Ltd. (subsequently repaid on                its due                date) |   |                                            | -         |                                 |   | 1,239,127 |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Industrial and Commercial Bank of China due April 10, 2006,                monthly                interest only payments at 4.575% per annum, secured by assets owned                by the                Company. (subsequently repaid on its due date)                                                |   |                                            | -         |                                 |   | 1,115,214 |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Bank of China Kaiyuan Branch due May 8, 2007, monthly interest                only                payments at 5.606% per annum, guaranteed by Xinchang Guobang Chemicals                Co., Ltd.                                                                                                        |   |                                            | 1,000,550 |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Bank of China Kaiyuan Branch due May 16, 2007, monthly interest                only                payments at 5.606% per annum, guaranteed by Xinchang Guobang Chemicals                Co., Ltd.                                                                                                       |   |                                            | 625,344   |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                              |   |                                            |      |                                 |   |   |   |
| Loan                from Bank of China Kaiyuan Branch due April 17, 2007, monthly interest                only payments at 5.348% per annum, guaranteed by Xinchang Guobang                Chemicals Co., Ltd.                                                                                                                    |   |                                            | 2,126,169 |                                 |   | - |   |

----

**AIDA      PHARMACEUTICALS, INC. **

**(FORMERLY      BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS      OF JUNE 30, 2006**

**(UNAUDITED)**

|                                                                                                                                                                                                                                                                                                                                |   | **June                30, 2006****(Unaudited)** |      | **December                31, 2005** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|--------------------------------------|--------|
| Loan                from Industrial Bank due September 26, 2006, monthly interest only                payments at 5.115% per annum, respectively, guaranteed by Jin’ou Group                                                                                                                                                  |   |                                            | 1,250,688 |                                 |   | 1,239,127 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Huaxia Bank Wenhui Branch due April 3, 2007, monthly interest                only                payments at 5.348% per annum, guaranteed by Ningbo Tianheng Co.,                Ltd                                                                                                                       |   |                                            | 750,413   |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Bank of Communication Qingchun Branch, due June 5, 2007 monthly                interest only payments at 5.363% per annum, guaranteed by Nanwang                Information Industry Group Co., Ltd                                                                                                        |   |                                            | 1,250,688 |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Bank of Communication Qingchun Branch, due June 19, 2007 monthly                interest only payments at 5.363% per annum, guaranteed by Nanwang                Information Industry Group Co., Ltd                                                                                                       |   |                                            | 1,250,688 |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from China Development Bank Haikou Branch, due November 24, 2006,                monthly                interest only payments at 5.115% per annum, guaranteed by Haikou                Assure                Investment Ltd.                                                                                   |   |                                            | 187,603   |                                 |   | 371,738 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Changzhou Commercial Bank, due January 1, 2006, monthly interest                only                payments at 4.785% per annum, guaranteed by Xinchang Guobang Chemicals                Co.                Ltd. (subsequently repaid on its due date)                                                    |   |                                            | -         |                                 |   | 619,563 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Changzhou Commercial Bank, due February 15, 2006, monthly interest                only payments at 6.51% per annum, guaranteed by Changzhou High-tech                Development Co. Ltd. (subsequently repaid on its due date)                                                                            |   |                                            | -         |                                 |   | 619,563 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Huaxia Bank Wenhui Branch due March 16, 2006, monthly interest                only                payments at 4.8825% per annum, guaranteed by Xinchang Guobang Chemicals                Co., Ltd. and Ningbo Tianheng Pharm. Co. Ltd. (subsequently repaid                on its                due date) |   |                                            | -         |                                 |   | 743,476 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from China Citic Bank Hangzhou Branch, due January 22, 2006, monthly                interest only payments at 4.785% per annum, guaranteed by Xinchang                Guobang                Chemicals Co., Ltd. (subsequently repaid on its due date)                                                          |   |                                            | -         |                                 |   | 495,651 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loan                from Changzhou Commercial Bank, due January 21, 2006, monthly interest                only payments at 6.975% per annum, guaranteed by Changzhou High-tech                Development Co. Ltd. (subsequently repaid on its due date)                                                                            |   |                                            | -         |                                 |   | 3,097,817 |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loans                from Changzhou Commercial Bank, due December 26, 2006, monthly interest                only payments at 6.975% per annum, secured by assets owned by the                Company.                                                                                                                               |   |                                            | 250,138   |                                 |   | - |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                            |      |                                 |   |   |   |
| Loans                from Changzhou Commercial Bank, due June 20, 2007, monthly interest                only                payments at 6.975% per annum, secured by assets owned by the Company.                                                                                                                                   |   |                                            | 1,106,859 |                                 |   | - |   |

----

**AIDA      PHARMACEUTICALS, INC. **

**(FORMERLY      BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS      OF JUNE 30, 2006**

**(UNAUDITED)**

|                                                                                                                                                                                              |   | **June                30, 2006****(Unaudited)** |       | **December                31, 2005** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|--------------------------------------|--------|
| Loans                from Changzhou Commercial Bank, due June 28, 2007, monthly interest                only                payments at 6.975% per annum, secured by assets owned by the Company. |   |  1,769,722                                 |       |  -                              |   |
|                                                                                                                                                                                              |   |                                            |       |                                 |   |
| Total                short-term bank loans                                                                                                                                                        |   | 17,103,157                                      |       | 13,785,285                           |   |
|                                                                                                                                                                                              |   |                                            |       |                                 |   |
|                                                                                                                                                                                              |   |                                            |       |                                 |   |
| Notes                payable to unrelated companies:                                                                                                                                              |   | **June                30, 2006****(Unaudited)** |       | **December                31, 2005** |   |
| Due                January 4, 2006 (subsequently repaid on its due date)                                                                                                                          |   | -                                               |       | 146,261                              |   |
| Due                April 5, 2007                                                                                                                                                                  |   | 312,672                                         |       | 309,781                              |   |
| Due                April 20, 2007                                                                                                                                                                 |   | 312,672                                         |       | 309,781                              |   |
| Due                April 29, 2006                                                                                                                                                                 |   | -                                               |       | 743,476                              |   |
| Due                May 1, 2006                                                                                                                                                                    |   | -                                               |       | 1,239,127                            |   |
| Due                May 9, 2006                                                                                                                                                                    |   | -                                               |       | 146,361                              |   |
| Due                May 25, 2006                                                                                                                                                                   |   | -                                               |       | 1,239,127                            |   |
| Due                August 31, 2006                                                                                                                                                                |   | 1,375,757                                       |       | 1,363,039                            |   |
| Due                November 30, 2006                                                                                                                                                              |   | 2,069,888                                       |       | 2,168,472                            |   |
| Due                October 29, 2006                                                                                                                                                               |   |                                            | 1,240,783  |                                 |   | - |   |
| Due                December 15, 2006                                                                                                                                                              |   |                                            | 1,250,688  |                                 |   | - |   |
| Total                notes payable                                                                                                                                                                |   |                                            | 6,562,460  |                                 |   | 7,665,425 |   |
| Total                short-term debt                                                                                                                                                              |   | $                                               | 23,665,617 |                                 | $      | 21,450,710 |   |
|                                                                                                                                                                                              |   |                                            |       |                                 |   |   |   |

**19.          **
**NOTES      PAYABLE**

|  Notes                payable to unrelated companies: |   |   | **June                30, 2006****(Unaudited** | **)**  |   | **December                31, 2005** |   |
|------------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                       |   |   |                                           |   |   |                                 |   |
| Due                December 31, 2009                       |   | $      | 875,481                                        |   | $      | -                                    |   |
| Due                February 20, 2009                       |   |   | 1,250,688                                      |   |   | -                                    |   |
| Total                                                      |   | $      | 2,126,169                                      |   | $      | -                                    |   |

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**20.          DISCONTINUED OPERATION**

|                                      |   | **For                the three Months Ended March 31, 2005****(Unaudited)** |       |
|-------------------------------------------|--------|-----------------------------------------------------------------------------|------------|
| Revenue                                   |   | $                                                                           | 3,776,980  |   |
| Cost                of goods sold         |   |                                                                        | (3,544,336 | ) |
| Gross                profit               |   |                                                                        | 232,644    |   |
| Selling                and distribution   |   |                                                                        | (37,254    | ) |
| General                and administrative |   |                                                                        | (26,679    | ) |
| Interest                expense           |   |                                                                        | (7,370     | ) |
| Income                tax expense         |   |                                                                        | -          |   |
| Net                income                 |   | $                                                                           | 161,341    |   |

|                                                        |   | **March                31, 2005 (date of disposal)****(Unaudited)** |       |
|-------------------------------------------------------------|--------|---------------------------------------------------------------------|------------|
| Cash                and cash equivalents                    |   | $                                                                   | 21,778     |   |
| Other                current assets                         |   |                                                                | 3,601,410  |   |
| Non-current                assets                           |   |                                                                | 1,245,583  |   |
| Current                liabilities                          |   |                                                                | (4,668,677 | ) |
| Total              net assets of the discontinued operation |   | $                                                                   | 200,094    |   |

**21.          **
**DEFERRED      COMPENSATION**

----

**AIDA        PHARMACEUTICALS, INC. **

**(FORMERLY        BAS CONSULTING, INC.) AND SUBSIDIARIES **

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS        OF JUNE 30, 2006**

**(UNAUDITED)**

**22.          **
**COMMITMENTS      AND CONTINGENCIES**

| Period                Ending June 30 |   | **Amount** |    |
|--------------------------------------|--------|------------|---------|
| 2007                                 |   | 54,901     |    |
| 2008                                 |   | 79,381     |    |
| 2009                                 |   | 70,041     |    |
| 2010                                 |   |       | 70,041  |   |
| 2011                                 |   |       | 70,041  |   |
| Thereafter                           |   |       | 145,918 |   |
| Total                                |   | $          | 490,323 |   |

| Period                Ending June 30 |   | **Amount** |      |
|--------------------------------------|--------|------------|-----------|
| 2007                                 |   |       | 2,157,962 |   |
| Total                                |   | $          | 2,157,962 |   |

**23.          **
**SUBSEQUENT      EVENTS**

|                                                     |   | **For                  the six****Months                  Ended****June                  30, 2006****(Unaudited)** |    |  **December                  31, 2005****(Unaudited)** |   |
|----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------|--------|
|                                                     |   |                                                                                                               |    |                                                        |   |
| Net                  income                              |   | $                                                                                                                  | 235,610 |                                                        | $      | 1,270,467 |   |
|                                                     |   |                                                                                                               |    |                                                        |   |   |   |
| Net                  income per share, basic and diluted |   | $                                                                                                                  | 0.01    |                                                        | $      | 0.05 |   |

----

**Item      2. Management’s Discussion and Analysis or Plan of      Operation.**

**FORWARD-LOOKING      STATEMENTS**

**GENERAL**

**OUR      BUSINESS**

| a)   | Earjoy                Group Limited, (“Earjoy”) |
|----------------|-------------------------------------------------------------|

| b)   | Hangzhou                Aida Pharmaceutical Co., Ltd (“Hangzhou                Aida”); |
|----------------|----------------------------------------------------------------------------------------------------|

| c)   | Hangzhou                Boda Medical Research and Development Co., Ltd.                (“Boda”); |
|----------------|--------------------------------------------------------------------------------------------------------------|

| d)   | Hainan                Aike Pharmaceutical Co., Ltd. (“Aike”)                and; |
|----------------|----------------------------------------------------------------------------------------------|

| e)   | Changzhou                Fangyuan Pharmaceutical Co., Ltd.                (“Fangyuan”) |
|----------------|----------------------------------------------------------------------------------------------------|

----

----

**Products**

| Product                                          | Produced                By | Specification                          | Standard/Category                  |
|--------------------------------------------------|----------------------------|----------------------------------------|------------------------------------|
| Etimicin                Sulfate Injection Powder | Aida                       | 50mg,                100mg, 150mg      | National                Category-A |
| Etimicin                Sulfate Injection liquid | Fangyuan                   | 1ml,                2ml                | National                Category-A |
| Etimicin                Sulfate for transfusion  | Aike                       | 100ml(with                100mg/200mg) | National                Category-D |

**Etimicin      Sulfate**

|   | (i) | respiratory                infection, such as acute bronchitis, acute onset of chronic bronchitis                and                pulmonary |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | infections; |
|--------|--------|-------------|

|   | (ii) | kidney                and urinogenital infection, such as acute pyelonephritis or acute                onset of                chronic cystitis; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | soft                skin tissue infection; and |
|--------|-------|------------------------------------------------|

|   | (iv) | trauma                and operations (before and after) preventive uses. |
|--------|------|--------------------------------------------------------------------------|

----

**Products      Under Development**

| Ø   | **5-Deoxy-Fluorordine.**Aida                has developed a new liquid for injection type of drug generated from                5-fluroruacil that has displayed better anticancer results and fewer                side                effects. This new product has been under clinical testing since 1998.                Test                results showed that it has only nominal side effects, a broad spectrum                and                is highly effective. The Company has applied for production approval                of                5-deoxy-fluororidine for injection from State Food and Drug Administration                in the PRC. This new drug will have a 6-year protection period once                the                approval is obtained. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | **Apoptotic                Factor (rh-Apo2l).**                Rh-Apo2l is being evaluated in a Phase I trial as a potential cancer                therapeutic. The Phase I clinical trials was completed at the end                of June,                2006. Shanghai Qiaer Bio-Technology, which is acquired by Hangzhou                Aida,                has applied for three patents from the Chinese government authority.                One                patent has been granted and the other two are currently in process.                We                plans to complete the second and third stage clinical trials in the                second                half of 2007 and get production approval in the second half of                2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | **Methylcanthatidinimide                For Injection.**** **                It                is another new drug being developed by Fangyuan used for cancer treatment.                It will be a Category B new drug. The clinical tests are expected                to be                completed by the first half of 2008 and the production is expected                to                begin by the end of 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | **SYO2.**                Hangzhou Aida has created one medicine extracted from herbal essence,                called SYO2 that has exhibited bioactivity for brain anti-thrombosis.                The                drug, developed solely by an aligned research center of Hangzhou                Aida, has                shown to be safe, effective and without side effects. It is believed                that                stroke patients treated by SYO2 would be fully recovered after                administration of the drug. Aida has completed SYO2’s pharmacological                study and has applied for a patent. The Company plans to apply for                clinical tests within the next 18 months. Hangzhou Aida intends to                apply                for production approval by the end of 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | **Prodigiosin                to Treat Pancreatic Cancer.** Prodigiosin,                a naturally occurring red pigment, is currently in pre-clinical trials                for                the treatment of pancreatic cancer. Aida Pharmaceuticals is developing                a                method to utilize the biochemical properties of Prodigiosin to create                a                non-invasive treatment for pancreatic                cancer. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | **Anti-CD86                Monoclonal Antibody to Treat Immunity Diseases****.**Certain                immunity diseases activate T-cells (a type of white blood cell),                causing                them to unnecessarily attack healthy tissue. Aida’s goal in developing the                Anti-CD86 Monoclonal Antibody is to inhibit T-cells from harming                healthy                tissue.  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | **Anti-CTLA-4                Monoclonal Antibody to Inhibit Tumor Growth.** In                the case of certain cancers, tumors over-express self-proteins,                essentially hiding the tumor from the immune system. Aida Pharmaceuticals                is in the development stages of Anti-CTLA-4 Monoclonal Antibody which                may                relieve the inhibition of T-cells allowing them to identify the                over-expressed proteins and in turn naturally attack cancer cells                without                harming healthy tissues. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The                demand for international quality drugs by the Chinese populace has                historically increased as per capita income and the standard of living                increase continually; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The                sale of Hangzhou Aida’s Etimicin sulfate is estimated to grow continuously                for the next three years after several years of market                development; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Aida                is now planning to build up international business relationship with                global players gradually in future. The international markets should                increase the sales growth; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Aida                has achieved a monopoly status in this industry, with all types of                Etimicin products and from the material chain to the final product                chain.                This is a significant and unique advantage of Aida                and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES **

----

**RESULTS      OF OPERATIONS - THREE MONTHS ENDED JUNE 30, 2006 AS COMPARED TO THREE MONTHS      ENDED JUNE 30, 2005**

|                                            | Three                Months Ended June 30, |
|-------------------------------------------------|--------------------------------------------|
|                                            | 2006                                       | 2005 |
|                                            |                                       |   |
| Revenues                                        | 100.00%                                    | 100.00% |
| Cost                of goods sold               | (49.14)%                                   | (23.68)% |
| Gross                margin                     |                  50.86%               |                  76.32% |
| Research                and development         |                    0.00%    |                    0.00% |
| Selling                and distribution         | (25.58)%                                   | (57.50)% |
| General                and administrative       | (12.90)%                                   | (18.65)% |
| Other                income (expense)           |                  (4.08)%              |                  (5.13)% |
| Income                taxes                     |                  (1.79)%              |                  (1.25)% |
| Minority                interests               |                  (1.03)%              |                  (2.92)% |
| Gain                from discontinued operation |                    0.00%    |                    0.00% |
| Net                income                       |                    5.48%    |                  (3.30)% |

**Revenues,      Cost of Goods Sold and Gross Profit **

|                                                                                                                                                               |   | Three                Months Ended June 30, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|  Companies                                                                                                                                                    |   |  2006                                 |      |  2005 |   | Increase/(Decrease) |   |
|                                                                                                                                                               |   |                                       |      |   |   |   |   |
| Hangzhou                Aida PharmaceuticalCo.,                Ltd (“Hangzhou Aida”) specializesin                the production of Etimicinpowder     |   | $                                          | 2,735,648 |   | $ | 3,324,104 |   | $ | (588,456 | ) |
|                                                                                                                                                               |   |                                       |      |   |   |   |   |   |   |   |
| Hainan                Aike pharmaceuticalCo.,                Ltd (“Aike”) specializesin                the production of Etimicintransfusion           |   |                                       | 3,692,482 |   |   | 1,583,102 |   |   | 2,109,380 |   |
|                                                                                                                                                               |   |                                       |      |   |   |   |   |   |   |   |
| Hangzhou                Boda Medical Research and                Development Co., Ltd.(“Boda”)                                                    |   |                                       | -         |   |   | - |   |   | - |   |
|                                                                                                                                                               |   |                                       |      |   |   |   |   |   |   |   |
| Changzhou                Fangyuan Pharmaceutical Co.,Ltd.                (“Fangyuan”) specializesin                the production of Etimicininjection |   |                                       | 856,758   |   |   | 124,702 |   |   | 732,056 |   |
|                                                                                                                                                               |   |                                       |      |   |   |   |   |   |   |   |
| TOTAL                                                                                                                                                              |   | $                                          | 7,284,888 |   | $ | 5,031,908 |   | $ | 2,252,980 |   |

----

|                                                                                                                                                                  |   | Three                Months Ended June 30, |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|  Companies                                                                                                                                                       |   |  2006                                 |      |  2005 |   | Increase/(Decrease) |   |
|                                                                                                                                                                  |   |                                       |      |   |   |   |   |
| Hangzhou                Aida Pharmaceutical Co. Ltd (“Hangzhou                Aida”) specializes in the production                of Etimicin powder |   | $                                          | 532,665   |   | $ | 595,484 |   | $ | (62,819 | ) |
|                                                                                                                                                                  |   |                                       |      |   |   |   |   |   |   |   |
| Hainan                Aike pharmaceuticalCo. Ltd (“Aike”)                specializesin the production of                Etimicin transfusion         |   |                                       | 2,540,028 |   |   | 488,561 |   |   | 2,051,467 |   |
|                                                                                                                                                                  |   |                                       |      |   |   |   |   |   |   |   |
| Hangzhou                Boda Medical Research and                Development Co., (“Boda”)                                                           |   |                                       | -         |   |   | - |   |   | - |   |
|                                                                                                                                                                  |   |                                       |      |   |   |   |   |   |   |   |
| Changzhou                Fangyuan PharmaceuticalLtd.                (“Fangyuan”) specializesin the production                of Etimicininjection    |   |                                       | 507,007   |   |   | 107,499 |   |   | 399,508 |   |
|                                                                                                                                                                  |   |                                       |      |   |   |   |   |   |   |   |
| TOTAL                                                                                                                                                                 |   | $                                          | 3,579,700 |   | $ | 1,191,544 |   | $ | 2,388,156 |   |

----

**Research      and Developments**

**Selling      and Distribution**

|                                       |   | Three                Months Ended June 30, |      |   |   |
|--------------------------------------------|--------|--------------------------------------------|-----------|--------|--------|
|  Breakdown                of Expenses |   |                                       | 2006      |   |   | 2005 |   |   | Increase/(Decrease | ) |
|                                       |   |                                       |      |   |   |   |   |   |   |   |
| Traveling                expenses          |   | $                                          | 721,413   |   | $      | 1,506,425 |   | $ | (785,012 | ) |
| Sale                commissions            |   |                                       | 211,913   |   |   | 190,861 |   |   | 21,052 |   |
| Office                expenses             |   |                                       | 363,624   |   |   | 576,468 |   |   | (212,844 | ) |
| Payroll                                    |   |                                       | 101,527   |   |   | 98,042 |   |   | 3,485 |   |
| Conference                fees             |   |                                       | 55,931    |   |   | 65,606 |   |   | (9,675 | ) |
| Rent                                       |   |                                       | 35,115    |   |   | 36,495 |   |   | (1,380 | ) |
| Entertainment                              |   |                                       | 21,370    |   |   | 149,386 |   |   | (128,016 | ) |
| Other                expenses              |   |                                       | 196,326   |   |   | 249,617 |   |   | (53,291 | ) |
| Advertising                expenses        |   |                                       | 156,288   |   |   | 20,266 |   |   | 136,022 |   |
|                                       |   |                                       |      |   |   |   |   |   |   |   |
| TOTAL                                      |   | $                                          | 1,863,507 |   | $      | 2,893,166 |   | $ | (1,029,659 | ) |

**General      and Administrative **

----

|                                                   |   | Three                Months Ended June 30, |    |   |    |
|--------------------------------------------------------|--------|--------------------------------------------|---------|--------|---------|
|  Breakdown                of Expenses             |   |                                       | 2006    |   |    | 2005 |   |   | Increase/(Decrease | ) |
|                                                   |   |                                       |    |   |    |   |   |   |   |   |
| Traveling                expenses                      |   | $                                          | 88,409  |   |  $ | 82,346 |   | $ | 6,063 |   |
| Office                expenses                         |   |                                       | 51,337  |   |    | 48,583 |   |   | 2,754 |   |
| Payroll                                                |   |                                       | 164,277 |   |    | 96,575 |   |   | 67,702 |   |
| Conference                fees                         |   |                                       | 8,908   |   |    | 4,657 |   |   | 4,251 |   |
|  Bad                debt provision                |   |                                       | 13,377  |   |    | 324,509 |   |   | (311,132 | ) |
| Consultancy                fees                        |   |                                       | 74,292  |   |    | 30,905 |   |   | 43,387 |   |
| Entertainment                                          |   |                                       | 18,154  |   |    | 25,766 |   |   | (7,612 | ) |
| Depreciation                                           |   |                                       | 52,548  |   |    | 45,226 |   |   | 7,322 |   |
| Social                compensation                     |   |                                       | 28,250  |   |    | 30,292 |   |   | (2,042 | ) |
| Amortization                of other intangible assets |   |                                       | 97,515  |   |    | 64,367 |   |   | 33,148 |   |
| Amortization                of deferred expenses       |   |                                       | 45,833  |   |    | - |   |   | 45,833 |   |
| Other                expenses                          |   |                                       | 296,636 |   |    | 185,445 |   |   | 111,191 |   |
|                                                   |   |                                       |         |   |    |  |   |   |   |   |
| TOTAL                                                  |   | $                                          | 939,536 |   | $       | 938,671 |   | $ | 864 |   |

**Other      Income (Expenses)**

|                                                      |   | Three                Months Ended June 30, |     |
|-----------------------------------------------------------|--------|--------------------------------------------|----------|
|  Breakdown                of Other Income (Expenses) |   |                                       | 2006     |   |   | 2005 |   |   | Increase/(Decrease | ) |
|                                                      |   |                                       |     |   |   |   |   |   |   |   |
| Interest                expense, net                      |   | $                                          | (384,500 | ) | $ | (267,895 | ) | $ | 116,605 |   |
| Government                grants                          |   |                                       | 43,124   |   |   | 72,746 |   |   | (29,622 | ) |
| Investment                income                          |   |                                       | 12,490   |   |   | - |   |   | 12,490 |   |
| Gain                from nonmonetary transaction          |   |                                       | -        |   |   | - |   |   | - |   |
| Other                (loss) income, net                   |   |                                       | 31,403   |   |   | (63,203 | ) |   | 94,606 |   |
|                                                      |   |                                       |     |   |   |   |   |   |   |   |
| TOTAL                                                     |   | $                                          | (297,483 | ) | $ | (258,352 | ) | $ | (39,131 | ) |

----

**Income      Taxes **

**Net      Income **

**RESULTS      OF OPERATIONS - SIX MONTHS ENDED JUNE 30, 2006 AS COMPARED TO SIX MONTHS ENDED      JUNE 30, 2005**

|                                            | Six                Months Ended June 30, |
|-------------------------------------------------|------------------------------------------|
|                                            | 2006                                     | 2005 |
|                                            |                                     |   |
| Revenues                                        | 100.00%                                  | 100.00% |
| Cost                of goods sold               | (52.02)%                                 | (26.72)% |
| Gross                margin                     |                  47.98%             |                  73.28% |
| Research                and development         |                    0.00%  |  (1.23)% |
| Selling                and distribution         | (28.10)%                                 | (44.32)% |
| General                and administrative       | (12.59)%                                 | (15.90)% |
| Other                income (expense)           |                  (1.09)%            |                  (2.34)% |
| Income                taxes                     |                  (1.80)%            |                  (1.25)% |
| Minority                interests               |                  (1.13)%            |                  (2.33)% |
| Gain                from discontinued operation |     0.00%            |                    1.91% |
| Net                income                       |                    3.27%  |                    7.82% |

----

**Revenues,      Cost of Goods Sold and Gross Profit **

|                                                                                                                                                               |   | Six                Months Ended June 30, |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|
|  Companies                                                                                                                                                    |   |  2006                               |       |  2005 |   | Increase/(Decrease) |   |
|                                                                                                                                                               |   |                                     |       |   |   |   |   |
| Hangzhou                Aida PharmaceuticalCo.,                Ltd (“Hangzhou Aida”) specializesin                the production of Etimicinpowder     |   | $                                        | 4,060,870  |   | $ | 5,681,335 |   | $ | (1,620,465 | ) |
|                                                                                                                                                               |   |                                     |       |   |   |   |   |   |   |   |
| Hainan                Aike pharmaceuticalCo.,                Ltd (“Aike”) specializesin                the production of Etimicintransfusion           |   |                                     | 6,747,519  |   |   | 3,622,018 |   |   | 3,125,501 |   |
|                                                                                                                                                               |   |                                     |       |   |   |   |   |   |   |   |
| Hangzhou                Boda Medical Research and                Development Co., Ltd.(“Boda”)                                                    |   |                                     | -          |   |   | - |   |   | - |   |
|                                                                                                                                                               |   |                                     |       |   |   |   |   |   |   |   |
| Changzhou                Fangyuan Pharmaceutical Co.,Ltd.                (“Fangyuan”) specializesin                the production of Etimicininjection |   |                                     | 1,791,305  |   |   | 529,226 |   |   | 1,262,079 |   |
|                                                                                                                                                               |   |                                     |       |   |   |   |   |   |   |   |
| TOTAL                                                                                                                                                              |   | $                                        | 12,599,694 |   | $ | 9,832,579 |   | $ | 2,767,115 |   |

----

|                                                                                                                                                                |   | Six                Months Ended June 30, |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-----------|
|  Companies                                                                                                                                                     |   |  2006                               |      |  2005 |   | Increase/(Decrease) |   |
|                                                                                                                                                                |   |                                     |      |   |   |   |   |
| Hangzhou                Aida Pharmaceutical Co. Ltd (“Hangzhou                Aida”) specializes in the production                of Etimicin powder    |   | $                                        | 1,014,030 |   | $ | 1,190,116 |   | $ | (176,086 | ) |
|                                                                                                                                                                |   |                                     |      |   |   |   |   |   |   |   |
| Hainan                Aike pharmaceuticalCo. Ltd (“Aike”)                specializesin the production of                Etimicin transfusion            |   |                                     | 4,219,665 |   |   | 969,396 |   |   | 3,250,269 |   |
|                                                                                                                                                                |   |                                     |      |   |   |   |   |   |   |   |
| Hangzhou                Boda Medical Research and                Development Co., (“Boda”)                                                         |   |                                     | -         |   |   | - |   |   | - |   |
|                                                                                                                                                                |   |                                     |      |   |   |   |   |   |   |   |
| Changzhou                Fangyuan Pharmaceutical Ltd. (“Fangyuan”)                specializesin the production of                Etimicininjection |   |                                     | 1,321,238 |   |   | 467,911 |   |   | 853,327 |   |
|                                                                                                                                                                |   |                                     |      |   |   |   |   |   |   |   |
| TOTAL                                                                                                                                                               |   | $                                        | 6,554,934 |   | $ | 2,627,422 |   | $ | 3,927,512 |   |

**Research      and Developments**

----

**Selling      and Distribution **

|                                             |   | Six                Months Ended June 30, |      |       |   |
|--------------------------------------------------|--------|------------------------------------------|-----------|------------|--------|
|  Breakdown                of Expenses       |   |  2006                               |      |  2005 |   | Increase/(Decrease) |   |
|                                             |   |                                     |      |       |   |   |   |
|                   Traveling expenses   |   | $                                        | 1,216,702 |       | $      | 1,986,712 |   | $ | (770,010 | ) |
|                   Sale commissions     |   |                                     | 428,877   |       |   | 321,488 |   |   | 107,389 |   |
|                   Office expenses      |   |                                     | 586,883   |       |   | 785,525 |   |   | (198,642 | ) |
|                   Payroll              |   |                                     | 195,740   |       |   | 269,673 |   |   | (73,933 | ) |
|                   Conference fees      |   |                                     | 125,025   |       |   | 213,890 |   |   | (88,865 | ) |
|                   Rent                 |   |                                     | 92,590    |       |   | 66,085 |   |   | 26,505 |   |
|    Entertainment                  |   |                                     | 74,457    |       |   | 215,280 |   |   | (140,823 | ) |
|                   Other expenses       |   |                                     | 417,635   |       |   | 429,698 |   |   | (12,063 | ) |
|                   Advertising expenses |   |                                     | 402,334   |       |   | 69,422 |   |   | 332,912 |   |
|                                             |   |                                     |      |       |   |   |   |   |   |   |
| TOTAL                                            |   | $                                        | 3,540,243 |       | $      | 4,357,773 |   | $ | (817,530 | ) |

**General      and Administrative **

|                                                                  |   | Six                Months Ended June 30, |      |       |    |
|-----------------------------------------------------------------------|--------|------------------------------------------|-----------|------------|---------|
|  Breakdown                of Expenses                            |   |  2006                               |      |  2005 |    | Increase/(Decrease) |   |
|                                                                  |   |                                     |      |       |    |   |   |
|                    Traveling expenses                  |   | $                                        | 138,894   |       |  $ | 116,872 |   | $ | 22,022 |   |
|                    Office expenses                     |   |                                     | 86,795    |       |    | 71,572 |   |   | 15,223 |   |
|                    Payroll                             |   |                                     | 281,700   |       |    | 220,256 |   |   | 61,444 |   |
|                    Conference fees                     |   |                                     | 9,794     |       |    | 30,737 |   |   | (20,943 | ) |
|                    Bad debt provision                  |   |                                     | 13,773    |       |    | 324,509 |   |   | (310,736 | ) |
|                    Consultancy fees                    |   |                                     | 106,452   |       |    | 31,592 |   |   | 74,860 |   |
|                    Entertainment                       |   |                                     | 50,892    |       |    | 51,195 |   |   | (303 | ) |
|                    Social compensation                 |   |                                     | 53,861    |       |    | 70,224 |   |   | (16,363 | ) |
|                    Depreciation                        |   |                                     | 147,701   |       |    | 86,609 |   |   | 61,092 |   |
| Amortization                of other intangible                assets |   |                                     | 181,992   |       |    | 115,975 |   |   | 66,017 |   |
| Amortization                of deferred expenses                      |   |                                     | 45,833    |       |    | - |   |   | 45,833 |   |
| Other                expenses                                         |   |                                     | 468,594   |       |    | 443,711 |   |   | 24,883 |   |
|                                                                  |   |                                     |           |       |    |  |   |   |   |   |
| TOTAL                                                                 |   | $                                        | 1,586,281 |       | $       | 1,563,252 |   | $ | 23,029 |   |

----

**Other      Income (Expenses)**

|                                                      |   | Six                Months Ended June 30, |     |       |   |
|-----------------------------------------------------------|--------|------------------------------------------|----------|------------|--------|
|  Breakdown                of Other Income (Expenses) |   |  2006                               |     |  2005 |   | Increase/(Decrease) |   |
|                                                      |   |                                     |     |       |   |   |   |
| Interest                expense, net                      |   | $                                        | (653,191 | )          | $      | (481,877 | ) | $ | 171,314 |   |
| Government                grants                          |   |                                     | 503,587  |       |   | 121,640 |   |   | 381,947 |   |
| Investment                income                          |   |                                     | 12,490   |       |   | - |   |   | 12,490 |   |
| Gain                from nonmonetary transaction          |   |                                     | -        |       |   | 125,097 |   |   | (125,097 | ) |
| Other                (loss) income, net                   |   |                                     | 71       |       |   | 5041 |   |   | (4,970 | ) |
|                                                      |   |                                     |     |       |   |   |   |   |   |   |
| TOTAL                                                     |   | $                                        | (137,043 | )          | $      | (230,099 | ) | $ | 93,056 |   |

**Income      Taxes **

----

**Net      Income **

**LIQUIDITY      AND CAPITAL RESOURCES **

**Cash      **

**Working      Capital **

----

**Item      3. Controls and Procedures.**

**PART      II - OTHER INFORMATION**

**tem      1. Legal Proceedings.**

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

**Item      3. Defaults Upon Senior Securities**

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

**Item      5. Other Information**

----

**Item      6. Exhibits and Reports on Form 8-K.**

**Reports      on Form 8-K **

**Date**
**Form**
**Items      Reported**

**Exhibits      **

| **Exhibit                No.** | **SEC                Ref. No.** | **Title                of Document**                                     | **Location** |
|--------------------------------|---------------------------------|--------------------------------------------------------------------------|--------------|
|                           |                            |                                                                     |         |
| 1                              | 31.1                            | Certification                of the Principal Executive Officer          |         |
|                           |                            | pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002 | Attached     |
|                           |                            |                                                                     |         |
| 2.                             | 31.2                            | Certification                of the Principal Financial Officer          |         |
|                           |                            | pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002 | Attached     |
|                           |                            |                                                                     |         |
| 3                              | 32.1                            | Certification                of the Principal Executive Officer          |         |
|                           |                            | pursuant                to U.S.C. Section 1350 as adopted pursuant       |         |
|                           |                            | to                Section 906 of the Sarbanes-Oxley Act of 2002*         | Attached     |
|                           |                            |                                                                     |         |
| 4                              | 32.2                            | Certification                of the Principal Financial Officer          |         |
|                           |                            | pursuant                to U.S.C. Section 1350 as adopted pursuant       |         |
|                           |                            | to                Section 906 of the Sarbanes-Oxley Act of 2002*         | Attached     |

***      **

**SIGNATURES**

**AIDA      PHARMACEUTICALS, INC.**

|  Date:              August 14, 2006 | /s/              Biao Jin                  |   |
|-----------------------------------------------|--------------------------------------------|--------|
|                                          |  Mr. Biao Jin                         |   |
|                                          |  Chief Executive Officer              |   |
|                                          |                                       |   |
|                                          |                                       |   |
|  Date:              August 14, 2006 | /s/Hui              Lin                    |   |
|                                          |  Ms.              Hui Lin             |   |
|                                          |  Chief              Financial Officer |   |

----