----

----

| Nevada                                                        | 20-2066406          |
|---------------------------------------------------------------|---------------------|
|  (State or Other Jurisdiction of Incorporation           | (I.R.S. Employer    |
| or Organization)                                              | Identification No.) |
|                                                          |                |
| 400 South Beverly Drive, Suite 312, Beverly Hills, California | 90212               |
| (Address of Principal Executive Offices)            | (Zip Code)          |

----

| Large accelerated filer o | Accelerated filer o         |
|---------------------------|-----------------------------|
|                      |                        |
| Non-accelerated filer o   | Smaller reporting company x |

----

|                                                                                                                                                                                                                    | PAGE   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I – FINANCIAL INFORMATION                                                                                                                                                                                    |   |
|             ITEM 1.  FINANCIAL STATEMENTS                                                                                                         |   |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2012 |   |
|                             (UNAUDITED) AND DECEMBER 31, 2011               | 4      |
|                                                                                                                                                                                                                    |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) FOR THE THREE AND SIX MONTHSENDED JUNE 30, 2012 AND JUNE 30, 2011 ANDPERIOD FROM INCEPTION THROUGH JUNE 30, 2012                                                       | 6      |
|                                                                                                                                                                                                                    |   |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(UNAUDITED) FOR THE THREE AND SIX MONTHSENDED JUNE 30, 2012 AND JUNE 30, 2011 ANDPERIOD FROM INCEPTION THROUGH JUNE 30, 2012                                               | 8      |
|                                                                                                                                                                                                                    |   |
|                             CONSOLIDATED STATEMENTS OF CASH FLOWS           |   |
| (UNAUDITED) FOR THE SIX MONTHS ENDED                                                                                                                                                                                    |   |
| JUNE 30, 2012 AND JUNE 30, 2011 AND                                                                                                                                                                                     |   |
| PERIOD FROM INCEPTION THROUGH JUNE 30, 2012                                                                                                                                                                             | 9      |
|                                                                                                                                                                                                                    |   |
|                             NOTES TO UNAUDITED CONSOLIDATED                 |   |
| FINANCIAL STATEMENTS                                                                                                                                                                                                    | 12     |
|                                                                                                                                                                                                                    |   |
|             ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF                                                                                |   |
| FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                                                                                                                                           | 19     |
|                                                                                                                                                                                                                    |   |
|             ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES                                                                                                |   |
| ABOUT MARKET RISK                                                                                                                                                                                                       | 27     |
|                                                                                                                                                                                                                    |   |
|             ITEM 4.  CONTROLS AND PROCEDURES                                                                                                      | 27     |
|                                                                                                                                                                                                                    |   |
| PART II – OTHER INFORMATION                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                    |   |
|             ITEM 1.  LEGAL PROCEEDINGS                                                                                                            | 28     |
|                                                                                                                                                                                                                    |   |
|             ITEM 1A. RISK FACTORS                                                                                                                           | 28     |
|                                                                                                                                                                                                                    |   |
|             ITEM 2.  UNREGISTERED SALES OF EQUITY                                                                                                 |   |
|  SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                    | 29     |
|                                                                                                                                                                                                                    |   |
|             ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                                                                              | 29     |
|                                                                                                                                                                                                                    |   |
|             ITEM 4.  MINE SAFETY DISCLOSURES                                                                                                      | 29     |
|                                                                                                                                                                                                                    |   |
|             ITEM 5.  OTHER INFORMATION                                                                                                            | 29     |
|                                                                                                                                                                                                                    |   |
|             ITEM 6.  EXHIBITS                                                                                                                     | 32     |
|                                                                                                                                                                                                                    |   |
| SIGNATURE                                                                                                                                                                                                               | 32     |

----

PART I – FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

CONSOLIDATED BALANCE SHEETS

|                                                          |   | June 30, 2012(Unaudited) |      |   | December 31, 2011 |   |
|---------------------------------------------------------------|--------|--------------------------|-----------|--------|-------------------|--------|
| ASSETS                                                        |   |                     |      |   |              |   |
| Current assets:                                               |   |                     |      |   |              |   |
|    Cash and cash equivalents                   |   | $                        | 14,268    |   |              | $      | 872 |   |
|    Accounts receivable                         |   |                     | 1,025,290 |   |              |   | 930,177 |   |
|       Total current assets      |   |                     | 1,039,558 |   |              |   | 931,049 |   |
|                                                          |   |                     |      |   |              |   |   |   |
| Property, plant and equipment                                 |   |                     | 25,179    |   |              |   | 35,098 |   |
| Intangible assets                                             |   |                     | 20,112    |   |              |   | 20,649 |   |
| Other assets                                                  |   |                     | 194,428   |   |              |   | 360,178 |   |
|                                                          |   |                     |      |   |              |   |   |   |
| Total assets                                                  |   | $                        | 1,279,277 |   |              | $      | 1,346,974 |   |
|                                                          |   |                     |      |   |              |   |   |   |
| LIABILITIES AND CAPITAL DEFFICIENCY                           |   |                     |      |   |              |   |   |   |
| Current liabilities:                                          |   |                     |      |   |              |   |   |   |
|    Accounts payable and accrued expenses       |   | $                        | 1,109,731 |   |              | $      | 1,180,879 |   |
|       Total current liabilities |   |                     | 1,109,731 |   |              |   | 1,180,879 |   |
|                                                          |   |                     |      |   |              |   |   |   |
| Long-term liabilities:                                        |   |                     |      |   |              |   |   |   |
|   Long-term debt                                    |   |                     | 715,902   |   |              |   | 550,312 |   |
|   Bank overdrafts                                   |   |                     | --        |   |              |   | 1 |   |
|                                                          |   |                     |      |   |              |   |   |   |
| Total liabilities                                             |   |                     | 1,825,633 |   |              |   | 1,731,192 |   |

----

|                                                                                                                                                                                                 |   | June 30, 2012(Unaudited) |       |   | December 31, 2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-------------------|--------|
| CAPITAL DEFFICIENCY                                                                                                                                                                                  |   |                     |       |   |              |   |
|                                                                                                                                                                                                 |   |                     |       |   |              |   |
| Andain Inc.'s Stockholders:                                                                                                                                                                          |   |                     |       |   |              |   |
|    Preferred stock, $0.001 par value, 10,000,000 authorized  shares; no shares issued and outstanding                                                                       |   |                     | --         |   |              |   | -- |   |
|    Common stock, $0.001 par value, 500,000,000 shares  authorized; 22,534,242 shares issued and outstanding at  June 30, 2012 and 22,034,242 at December 31, 2011 |   |                     | 22,534     |   |              |   | 22.034 |   |
|    Additional paid-in capital                                                                                                                                                         |   |                     | 3,939,954  |   |              |   | 3,890,219 |   |
|    Capital reserves                                                                                                                                                                   |   |                     | 197,443    |   |              |   | 383,989 | * |
|    Accumulated deficit during development stage                                                                                                                                       |   |                     | (4,566,533 | )      |              |   | (4,214,401 | ) * |
|    Accumulated other comprehensive income (loss)                                                                                                                                      |   |                     | (69,572    | )      |              |   | 923 |   |
| Total Andain, Inc. stockholders’ equity (deficiency)                                                                                                                                           |   |                     | (476,174   | )      |              |   | 82,764 |   |
|                                                                                                                                                                                                 |   |                     |       |   |              |   |   |   |
| Non-controlling interest                                                                                                                                                                             |   |                     | (70,182    | )      |              |   | (466,982 | ) |
|                                                                                                                                                                                                 |   |                     |       |   |              |   |   |   |
| Total capital deficiency                                                                                                                                                                             |   |                     | (546,356   | )      |              |   | (384,218 | ) |
|                                                                                                                                                                                                 |   |                     |       |   |              |   |   |   |
| Total liabilities and capital deficiency                                                                                                                                                             |   | $                        | 1,279,277  |   |              | $      | 1,346,974 |   |

----

ANDAIN, INC.

|                                                        |   | For the three month periodended June 30, |     |   | For the six month periodended June 30, |   |     | For the period from Inception(July 23, 2004) to |   |
|-------------------------------------------------------------|--------|------------------------------------------|----------|--------|----------------------------------------|--------|----------|-------------------------------------------------|--------|
|                                                        |   | 2012                                     |     |   | 2011                                   |   |     | 2012                                            |   |   | 2011 |   |   | June 30, 2012 |   |
|                                                        |   | (unaudited)                              |     |   | (unaudited)                            |   |     | (unaudited)                                     |   |
| Revenue:                                                    |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |
| Government grants                                           |   | $                                        | --       |   |                                   | $      | 37,861   |                                            |   | $ | -- |   |   | $ | 141,993 |   |   | $ | 682,690 |   |
| Consulting income                                           |   |                                     | 31,597   |   |                                   |   | --       |                                            |   |   | 76,246 |   |   |   | 7,439 |   |   |   | 460,581 |   |
| Other income                                                |   |                                     |  -- |   |                                   |   |  -- |                                            |   |   |  -- |   |   |   |  -- |   |   |   |  15,000 |   |
|                                                        |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                                               |   |                                     | 31,597   |   |                                   |   | 37,861   |                                            |   |   | 76,246 |   |   |   | 149,432 |   |   |   | 1,158,271 |   |
|                                                        |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                         |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development                                    |   |                                     | (57,572  | )      |                                   |   | --       |                                            |   |   | (344,772 | ) |   |   | -- |   |   |   | (715,411 | ) |
| Depreciation                                                |   |                                     | (2,860   | )      |                                   |   | (1,163   | )                                               |   |   | 7,804 |   |   |   | (3,908 | ) |   |   | (48,429 | ) |
| General and administrative                                  |   |                                     | (40,868  | )      |                                   |   | (187,193 | )                                               |   |   | (113,949 | ) |   |   | (454,003 | ) |   |   | (4,268,656 | ) |
| Impairment of goodwill                                      |   |                                     | --       |   |                                   |   | --       |                                            |   |   | -- |   |   |   | -- |   |   |   | (412,699 | ) |
| Loss on disposal of associate                               |   |                                     | --       |   |                                   |   | --       |                                            |   |   | -- |   |   |   | -- |   |   |   | (135,424 | ) |
| Impairment loss                                             |   |                                     |  -- |   |                                   |   |  -- |                                            |   |   |  -- |   |   |   |  -- |   |   |   |  (177,729 | ) |
|                                                        |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                    |   |                                     | (101,300 | )      |                                   |   | (188,356 | )                                               |   |   | (466,525 | ) |   |   | (457,911 | ) |   |   | (5,758,348 | ) |
|                                                        |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                        |   |                                     | (69,703  | )      |                                   |   | (150,495 | )                                               |   |   | (390,279 | ) |   |   | (308,479 | ) |   |   | (4,600,077 | ) |
|                                                        |   |                                     |     |   |                                   |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial income                                            |   |                                     | --       |   |                                   |   | --       |                                            |   |   | 16,370 |   |   |   | -- |   |   |   | 62,045 |   |
| Financial expense                                           |   |                                     | (42,375  | )      |                                   |   | (3,874   | )                                               |   |   | (42,255 | ) |   |   | (3,874 | ) |   |   | (46,989 | ) |
| Share of loss of equity-accounted   Investee |   |                                     | --       |   |                                   |   | (9,160   | )                                               |   |   | -- |   |   |   |  (9,160 | ) |   |   |                        - |   |

----

|   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| Net loss                                                                             |   |   | (112,078           | )      |   |   | (163,529      | )      |   |   | (416,164     | )      |   |   | (321,513     | )      |   |   | (4,585,021    | )      |
|--------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|--------|---------------|--------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|--------|---------------|--------|
|                                                                                 |   |   |               |   |   |   |          |   |   |   |         |   |   |   |         |   |   |   |          |   |
| Add: Net (loss) profit attributable   to the non-controlling interest |   |   |   19,072 |   |   |   |  (13,016 | )      |   |   |  64,032 |   |   |   |  15,643 |   |   |   |  396,177 |   |
|                                                                                 |   |   |               |   |   |   |          |   |   |   |         |   |   |   |         |   |   |   |          |   |

| Net loss attributable to Andain, Inc.   stockholders                             |   | $      | (93,006    | )      |   | $      | (176,545   | )      |   | $      | (352,132   | )      |   | $      | (305,870   | )      |   | $      | (4,188,844 | )      |
|-------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                            |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Loss per share - basic:                                                                         |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
|    Net loss attributable to Andain, Inc.                                         |   |   | (0.01      | )      |   |   | (0.01      | )      |   |   | (0.02      | )      |   |   | (0.02      | )      |   |   |       |   |
|    Weighted average common shares      outstanding |   |   | 22,376,464 |   |   |   | 18,345,129 |   |   |   | 22,235,353 |   |   |   | 18,025,930 |   |   |   |       |   |

----

ANDAIN, INC.

|                                                                  |   | For the three month period endedJune 30, |          |   | For the six month period ended June 30, |   |     | For the period from Inception(July 23, 2004) to |   |
|-----------------------------------------------------------------------|--------|------------------------------------------|---------------|--------|-----------------------------------------|--------|----------|-------------------------------------------------|--------|
|                                                                  |   | 2012                                     |          |   | 2011                                    |   |     | 2012                                            |   |   | 2011 |   |   | June 30, 2012 |   |
| Net loss attributable to Andain, Inc.   stockholders   |   | $                                        | (93,006       | )      |                                    | $      | (176,545 | )                                               |   | $ | (352,132 | ) |   | $ | (305,870 | ) |   | $ | (4,188,844 | ) |
|                                                                  |   |                                     |          |   |                                    |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss:                                             |   |                                     |          |   |                                    |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                     |          |   |                                    |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency translation adjustment   of foreign operation |   |                                     | (86,232       | )      |                                    |   | (55,698  | )                                               |   |   | (85,148 | ) |   |   | (41,804 | ) |   |   | (84,225 | ) |
|                                                                  |   |                                     |          |   |                                    |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: Amount attributed to   non-controlling interest  |   |                                     |  (14,653 | )      |                                    |   |  -- |                                            |   |   |  (14,653 | ) |   |   |  -- |   |   |   |  (14,653 | ) |
|                                                                  |   |                                     |          |   |                                    |   |     |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net comprehensive loss for the   period                |   | $                                        | (164,585      | )      |                                    | $      | (232,243 | )                                               |   | $ | (422,627 | ) |   | $ | (347,674 | ) |   | $ | (4,258,416 | ) |

----

ANDAIN, INC.

|                                                                                                                                                                                               |   | For the six month period ended June 30, |     |   | For the period from inception(July 23, 2004) to |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                               |   | 2012                                         |     |   | 2011                                            |   |   | June 30, 2012 |   |
|                                                                                                                                                                                               |   | (unaudited)                                  |     |   | (unaudited)                                     |   |
| Cash Flow from Operating activities:                                                                                                                                                               |   |                                         |     |   |                                            |   |
|   Net loss attributable to Andain, Inc.                                                                                                                                                  |   | $                                            | (352,132 | )      |                                            | $      | (321,513 | ) |   | $ | (4,188,844 | ) |
|                                                                                                                                                                                               |   |                                         |     |   |                                            |   |   |   |   |   |   |   |
|   Income charges/(credits) not effecting cash::                                                                                                                                          |   |                                         |     |   |                                            |   |   |   |   |   |   |   |
|          Depreciation                                                                                                                                 |   |                                         | 7,804    |   |                                            |   | 3,908 |   |   |   | 48,429 |   |
|          Loss from acquisition of subsidiary                                                                                                          |   |                                         | --       |   |                                            |   | -- |   |   |   | 135,424 |   |
|          Amortization of goodwill                                                                                                                     |   |                                         | --       |   |                                            |   | -- |   |   |   | 337,685 |   |
|          Impairment of loan                                                                                                                           |   |                                         | --       |   |                                            |   | -- |   |   |   | 177,729 |   |
|          Minority interest                                                                                                                            |   |                                         | 117,369  |   |                                            |   | 11,717 |   |   |   | (212,481 | ) |
|          Shares issued for professional services                                                                                                      |   |                                         | --       |   |                                            |   | -- |   |   |   | 11,910 |   |
|          Non-cash compensation expense                                                                                                                |   |                                         | --       |   |                                            |   | -- |   |   |   | 6,000 |   |
|          Equity-settled share-based payments                                                                                                          |   |                                         | 105,236  |   |                                            |   | -- |   |   |   | 465,536 |   |
|           Loss from equity-accounted investee                                                                                                    |   |                                         | --       |   |                                            |   | 9,160 |   |   |   | - |   |
|          Effect of movements in foreign             exchange rates on non-cash items |   |                                         | --       |   |                                            |   | (1,863 | ) |   |   | (5,785 | ) |
|   Changes in operating assets and liabilities:                                                                                                                                           |   |                                         |     |   |                                            |   |   |   |   |   |   |   |
|          Accounts payable                                                                                                                             |   |                                         | (42,767  | )      |                                            |   | (353,195 | ) |   |   | 1,133,135 |   |
|          Accounts receivable                                                                                                                          |   |                                         | (57,173  | )      |                                            |   | (118,767 | ) |   |   | (987,004 | ) |
|          Change in other assets                                                                                                                       |   |                                         | 54,584   |   |                                            |   | -- |   |   |   | 54,584 |   |
|          Accrued compensation                                                                                                                         |   |                                         | 180,000  |   |                                            |   | 180,000 |   |   |   | 2,460,000 |   |
|          Accrued expenses – stockholder                                                                                                         |   |                                         | --       |   |                                            |   | -- |   |   |   | 37,508 |   |
|          Accrued consulting fees – stockholder                                                                                                  |   |                                         | --       |   |                                            |   |  -- |   |   |   |  60,000 |   |
|                                                                                                                                                                                               |   |                                         |     |   |                                            |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                                                                                                                          |   |                                         | 12,921   |   |                                            |   | (590,553 | ) |   |   | (466,174 | ) |

|                                        |   |   |   |   |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash Flow from investing activities:        |   |   |   |   |   |   |   |   |   |
|    Purchase of equipment     |   |   | --     |   |   |   | (290   | )      |   |   | (70,838 | ) |
|    Acquisition of subsidiary |   |   | --     |   |   |   | --     |   |   |   | (578,502 | ) |

----

|   Disposal of interest in equity-accounted investee |   |   |  --       |   |   |   |  -- |   |   |   |  -- |   |
|----------------------------------------------------------|--------|--------|----------------|--------|--------|--------|----------|--------|--------|--------|----------|--------|
|                                                     |   |   |           |   |   |   |     |   |   |   |     |   |
| Acquisition of Patent                                    |   |   |   -- |   |   |   |  -- |   |   |   | (20,649  | )      |
| Net cash used in investing activities                    |   |   | --             |   |   |   | (290     | )      |   |   | (669,699 | )      |
|                                                     |   |   |           |   |   |   |     |   |   |   |     |   |

| Cash flow from financing activities:                                               |   |   |     |   |
|------------------------------------------------------------------------------------|--------|--------|----------|--------|
| Proceeds from bank overdrafts                                                      |   |   | --       |   |   |   | 1,654 |   |   |   | -- |   |
| Proceeds from stock issued for cash                                                |   |   | --       |   |   |   | 305,723 |   |   |   | 519,800 |   |
| Proceeds from other loans                                                          |   |   | --       |   |   |   | 351,572 |   |   |   | (59,520 | ) |
| Loan from greater than 10% stockholder                                             |   |   | --       |   |   |   | (710 | ) |   |   | (15,754 | ) |
| Loans from key management personnel                                                |   |   |  -- |   |   |   | (31,386 | ) |   |   |  704,217 |   |
|                                                                               |   |   |     |   |   |   |   |   |   |
| Net cash provided by financing activities                                          |   |   | --       |   |   |   | 626,853 |   |   |   | 1,148,743 |   |
|                                                                               |   |   |     |   |   |   |   |   |   |   |
| Increase in cash and cash equivalents                                              |   |   | 12,921   |   |   |   | 36,010 |   |   |   | 12,870 |   |
|                                                                               |   |   |     |   |   |   |   |   |   |   |   |   |
| Effects of exchange rate changes on the balance of cash held in foreign currencies |   |   | 475      |   |   |   | (15,538 | ) |   |   | 1,398 |   |
|                                                                               |   |   |     |   |   |   |   |   |   |
| Cash and cash equivalents at the   beginning of the period          |   |   | 872      |   |   |   | 23,672 |   |   |   |  -- |   |
|                                                                               |   |   |     |   |   |   |   |   |   |
| Cash and cash equivalents at the   end of the period                |   | $      | 14,268   |   |   | $ | 44,144 |   |   | $ | 14,268 |   |

----

| Supplementary schedule of  cash flow activities:                                                                                        |   |   |   |   |   |   |      |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|
| Non-cash investing and financing    activities:                                                                               |   |   |   |   |   |   |      |   |   |
|     Issuance of common stock for payment       of legal fees and various other services    |   | $      | 36,000 |   |   | $      | --        |   |   | $ | 566,514 |   |
|     Issuance of common stock for payment       of services of transfer agent               |   | $      | 69,235 |   |   | $      | --        |   |   | $ | 79,235 |   |
|     Issuance of common stock for payment       of rental expense                           |   | $      | --     |   |   | $      | --        |   |   | $ | 60,000 |   |
|     Issuance of common stock for payment       of management and consulting fees           |   | $      | --     |   |   | $      | 1,920,000 |   |   | $ | 1,921,900 |   |
|        Issuance of common stock for       purchase of intellectual property |   | $      | --     |   |   | $      | --        |   |   | $ | 4,500 |   |
|    Issuance of common stock for      purchase of subsidiary                                          |   | $      | --     |   |   | $      | --        |   |   | $ | 2,500 |   |
|    Issuance of common stock for payment      of management and consulting fees                            |   | $      | --     |   |   | $      | --        |   |   | $ | 300 |   |
|    Non-cash compensation expense                                                                                                   |   | $      | --     |   |   | $      | --        |   |   | $ | 6,000 |   |

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ANDAIN, INC.

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| Consolidated Balance Sheetas of December 31, 2011(Audited) |
|------------------------------------------------------------|

|                                             |   | As PreviouslyReported |       |   | Prior Period Adjustments (1) |   |     | As Restated |   |
|--------------------------------------------------|--------|-----------------------|------------|--------|------------------------------|--------|----------|-------------|--------|
|                                             |   |                  |       |   |                         |   |     |        |   |   |   |   |
| Accumulated Deficit During the Development Stage |   | $                     | (3,836,712 | )      |                         | $      | (377,689 | )           |   | $ | (4,214,401 | ) |
|                                             |   |                  |       |   |                         |   |     |        |   |   |   |   |
| Capital Reserves                                 |   | $                     | 6,300      |   |                         | $      | 377,689  |        |   | $ | 383,989 |   |

| Consolidated Balance Sheetas of March 31, 2012(Unaudited) |
|-----------------------------------------------------------|

|                                             |   | As PreviouslyReported |       |   | Prior Period Adjustments (2) |   |     | As Restated |   |
|--------------------------------------------------|--------|-----------------------|------------|--------|------------------------------|--------|----------|-------------|--------|
|                                             |   |                  |       |   |                         |   |     |        |   |
| Accumulated Deficit During the Development Stage |   | $                     | (3,924,428 | )      |                         | $      | (171,411 | )           |   | $ | (4,095,839 | ) |
|                                             |   |                  |       |   |                         |   |     |        |   |   |   |   |
| Non-controlling Interest                         |   | $                     | (189,145   | )      |                         | $      | (13,989  | )           |   | $ | (203,134 | ) |

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| Consolidated Statements of OperationsFor the Three Months Ended March 31, 2012(Unaudited) |
|-------------------------------------------------------------------------------------------|

|                                                               |   | As PreviouslyReported |     |   | Prior Period Adjustments (2) |   |    | As Restated |   |
|--------------------------------------------------------------------|--------|-----------------------|----------|--------|------------------------------|--------|---------|-------------|--------|
| Extraordinary gain on  forgiveness of debt               |   | $                     | (230,126 | )      |                         | $      | 230,126 |        |   |   | -- |   |
|                                                               |   |                  |     |   |                         |   |    |        |   |   |   |   |
| Net loss                                                           |   | $                     | 118,778  |   |                         | $      | 185,400 |        |   | $ | 304,178 |   |
|                                                               |   |                  |     |   |                         |   |    |        |   |   |   |   |
| Net loss attributable to  non-controlling interest       |   | $                     | 31,062   |   |                         | $      | 13,989  |        |   | $ | 45,051 |   |
|                                                               |   |                  |     |   |                         |   |    |        |   |   |   |   |
| Net loss attributable to  Andain, Inc. stockholders      |   | $                     | 87,716   |   |                         | $      | 171,411 |        |   | $ | 259,127 |   |
|                                                               |   |                  |     |   |                         |   |    |        |   |   |   |   |
| Net loss per share (basic)  attributable to Andain, Inc. |   | $                     | 0.00     |   |                         | $      | (0.01   | )           |   | $ | (0.01 | ) |

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|                                                          |   | For the Six Months  |     |   | For the Six Months  |   |
|---------------------------------------------------------------|--------|---------------------|----------|--------|---------------------|--------|
|                                                          |   | Ended June 30, 2012 |     |   | Ended June 30, 2011 |   |
|                                                          |   | (Unaudited)         |     |   | (Unaudited)         |   |
|                                                          |   | $                   |     |   | $                   |   |
| Income statements:                                            |   |                |     |   |                |   |   |   |
|   Directors’ remuneration                     |   |                | 180,000  |   |                |   | 180,000 |   |
|                                                          |   |                |     |   |                |   |   |   |
| Balance sheets:                                               |   |                |     |   |                |   |   |   |
|   Loans receivable from related companies           |   |                | --       |   |                |   | 278,423 |   |
|   Loans with related companies – other assets |   |                | 194,428  |   |                |   | 360,178 |   |
|   Loans – key management personnel            |   |                | (708,241 | )      |                |   | (357,443 | ) |
|   Loans owing to related companies                  |   |                | (7,661   | )      |                |   | (111,114 | ) |

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

| · | Miniature insulin pump |
|--------|------------------------|

| · | Targeted drug delivery nano-particles |
|--------|---------------------------------------|

| · | Stem cell therapy |
|--------|-------------------|

| · | Ultasonic catheter for brain cancer therapy |
|--------|---------------------------------------------|

| · | Peptide booster for anti-wrinkle cosmeceuticals |
|--------|-------------------------------------------------|

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| · | curtail operations significantly; |
|--------|-----------------------------------|

| · | sell significant assets; |
|--------|--------------------------|

| · | seek arrangements with strategic partners or other parties that may require the Company to relinquish significant rights to products, technologies or markets; or |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | explore other strategic alternatives including a merger or sale of the Company. |
|--------|---------------------------------------------------------------------------------|

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.  CONTROLS AND PROCEDURES.

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PART II – OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

ITEM 1A.  RISK FACTORS.

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ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

ITEM 4.  MINE SAFETY DISCLOSURES.

ITEM 5.  OTHER INFORMATION.

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| · | the sales were made exclusively to a sophisticated investor, as defined in Rule 502; |
|--------|-------------------------------------------------------------------------------------------|

| · | the purchaser was given the opportunity to ask questions and receive answers concerning the terms and conditions of the offering and to obtain any additional information which the Company possessed or could acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | at a reasonable time prior to the sale of securities, the purchaser was advised of the limitations on resale in the manner contained in Rule 502(d)2; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| · | neither the Company nor any person acting on its behalf sold the securities by any form of general solicitation or general advertising; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| · | all sales were made through Sam Shlomo Elimelech and Gai Mar-Chaim, directors of the Company. |
|--------|-----------------------------------------------------------------------------------------------|

| · | The purchaser is not a U.S. Person, as defined under Rule 902 of Regulation S. |
|--------|--------------------------------------------------------------------------------|

| · | At the time of the origination of contact concerning the agreement and the date of the execution and delivery of the agreement, the purchaser was outside of the United States. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The purchaser will not, during the period commencing on the date of issuance of the shares and ending on the first anniversary of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law (“Restricted Period”), offer, sell, pledge or otherwise transfer the Shares in the United States, or to a U.S. Person for the account or benefit of a U.S. Person, or otherwise in a manner that is not in compliance with Regulation S. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | The purchaser will, after expiration of the Restricted Period, offer, sell, pledge or otherwise transfer the shares only pursuant to registration under the Securities Act or an available exemption therefrom and, in accordance with all applicable state and foreign securities laws. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The purchaser has not in the United States, engaged in, and prior to the expiration of the Restricted Period will not engage in, any short selling of or any hedging transaction with respect to the shares, including without limitation, any put, call or other option transaction, option writing or equity swap. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Neither the purchaser nor or any person acting on its behalf has engaged, nor will engage, in any directed selling efforts to U.S. Persons with respect to the shares and the purchaser and any person acting on its behalf have complied and will comply with the “offering restrictions” requirements of Regulation S under the Securities Act. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The transactions contemplated have not been pre-arranged with a buyer located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements of the Securities Act. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Neither the purchaser nor any person acting on its behalf has undertaken or carried out any activity for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States, its territories or possessions, for any of the shares.  The purchaser agrees not to cause any advertisement of the shares to be published in any newspaper or periodical or posted in any public place and not to issue any circular relating to the shares, except such advertisements that include the statements required by Regulation S under the Securities Act, and only offshore and not in the United States or its territories, and only incompliance with any local applicable securities laws. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Each certificate representing the shares is endorsed with a restrictive legend restricting their disposition. |
|--------|---------------------------------------------------------------------------------------------------------------|

| · | The purchaser consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company in order to implement the restrictions on transfer of the shares. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | all sales were made through Sam Shlomo Elimelech and Gai Mar-Chaim, directors of the Company. |
|--------|-----------------------------------------------------------------------------------------------|

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ITEM 6.  EXHIBITS.

SIGNATURE

|                                     | Andain, Inc. |                            |
|------------------------------------------|--------------|---------------------------------|
|                                     |         |                            |   |
| Dated: August 29, 2012    | By:          | /s/ Sam Shlomo Elimelech   |   |
|                                     |         | Sam Shlomo Elimelech, President |   |
|                                     |         | (principal executive officer)   |   |

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| Number | Description |
|--------|-------------|

| 3.1 | Articles of Incorporation, dated July 14, 2004 (incorporated by reference to Exhibit 3.1 of the Form 10-SB filed on March 24, 2005). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Bylaws, dated August 1, 2004 (incorporated by reference to Exhibit 3.2 of the Form 10-SB filed on March 24, 2005). |
|-----|--------------------------------------------------------------------------------------------------------------------|

| 4.1 | Option issued to 1568934 Ontario Limited by the Company, dated January 14, 2011 (incorporated by reference to Exhibit 10.6 of the Form 8-K filed on March 29, 2011). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Employee Stock Option Plan, dated January 15, 2011 (incorporated by reference to Exhibit 4.2 of the Form 10-Q filed on November 21, 2011). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Stock Option Grant to Sam Elimelech, dated January 20, 2011 (incorporated by reference to Exhibit 4.3 of the Form 10-Q filed on November 21, 2011). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Stock Option Grant to Gai Mar-Chaim, dated January 20, 2011 (incorporated by reference to Exhibit 4.4 of the Form 10-Q filed on November 21, 2011). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | 2011 Stock and Option Plan, dated July 26, 2011 (incorporated by reference to Exhibit 4 of the Form S-8 filed on July 26, 2011). |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | 2012 Stock and Option Plan, dated August 5, 2011 (incorporated by reference to Exhibit 4 of the Form S-8 filed on August 14, 2012). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Affiliation Agreement between the Impact Active Team Ltd. and P.O.C. High-Tech (1992) Ltd. Corporation, dated June 23, 2004 (incorporated by reference to Exhibit 10.8 of the Form SB-2 filed on February 13, 2007). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Consulting Agreement between the Company and Dr. Leonid Lurya, dated May 16, 2006 (incorporated by reference to Exhibit 10.2 of the Form 10-K filed on December 30, 2010). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Share Purchase Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (not including Schedule 1, Disclosure Schedule) (incorporated by reference to Exhibit 10.1 of the Form 8-K filed on July 5, 2006). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Technology Purchase Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (incorporated by reference to Exhibit 10.2 of the Form 8-K filed on July 5, 2006). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Finder’s Fee Agreement between the Company and Pangea Investments GmbH, dated June 11, 2006 (incorporated by reference to Exhibit 10.5 of the Form 8-K filed on July 5, 2006). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.6 | Consulting Agreement between the Company and Pangea Investments GmbH, dated July 3, 2006 (incorporated by reference to Exhibit 10.3 of the Form 8-K filed on July 5, 2006). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Business Development Services Agreement between the Company and Pangea Investments GmbH, dated July 3, 2006 (incorporated by reference to Exhibit 10.4 of the Form 8-K filed on July 5, 2006). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Employment Agreement between the Company and Sam Elimelech, dated July 3, 2006 (incorporated by reference to Exhibit 10.6 of the Form 8-K filed on July 5, 2006). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 | Employment Agreement between the Company and Gai Mar-Chaim, dated July 3, 2006 (incorporated by reference to Exhibit 10.7 of the Form 8-K filed on July 5, 2006). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated July 19, 2006 (incorporated by reference to Exhibit 10.11 of the Form 10-K/A filed on February 7, 2011). |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Consulting Agreement between the Company and Meizam - Advanced Enterprise Center Arad Ltd., dated October 25, 2006 (incorporated by reference to Exhibit 10.10 of the Form 10-K filed on December 30, 2010). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Employment Agreement between the Company and Sam Elimelech, dated January 1, 2011 (incorporated by reference to Exhibit 10.1 of the Form 8-K filed on March 29, 2011). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Employment Agreement between the Company and Gai Mar-Chaim, dated January 1, 2011 (incorporated by reference to Exhibit 10.2 of the Form 8-K filed on March 29, 2011). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | Regulation S Stock Purchase Agreement between the Company and Sam Elimelech, dated January 5, 2011 (incorporated by reference to Exhibit 10.3 of the Form 8-K filed on March 29, 2011). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 | Regulation S Stock Purchase Agreement between the Company and Gai Mar-Chaim, dated January 5, 2011 (incorporated by reference to Exhibit 10.4 of the Form 8-K filed on March 29, 2011). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated January 14, 2011 (incorporated by reference to Exhibit 10.5 of the Form 8-K filed on March 29, 2011). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.17 | Stock Purchase Agreement between the Company and Meizam Arad Investments Ltd., dated January 31, 2011 (incorporated by reference to Exhibit 10.7 of the Form 8-K filed on March 29, 2011). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 | Stock Purchase Agreement between Meizam – Advanced Enterprise Center Arad Ltd and Meizam Arad Investments Ltd., dated January 31, 2011 (incorporated by reference to Exhibit 10.8 of the Form 8-K filed on March 29, 2011). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated May 24, 2011 (incorporated by reference to Exhibit 10 of the Form 8-K filed on July 19, 2011) (excluding Schedules 2.4, 2.7, and 2.10). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated July 29, 2011 (incorporated by reference to Exhibit 10 of the Form 8-K filed on August 16, 2011) (excluding Schedules 2.4, 2.7, and 2.10). |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21 | Regulation S Stock Purchase Agreement between the Company and 1568934 Ontario Limited, dated December 26, 2011 (incorporated by reference to Exhibit 10 of the Form 8-K filed on February 6, 2012) (including Schedule 1.4 (Option to Purchase Shares of Common Stock) and Schedule 2.4 (Litigation); excluding Schedule 2.7). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22 | Corporate Office Services Agreement between the Company and 1568934 Ontario Limited, dated January 5, 2012 (filed herewith). |
|-------|------------------------------------------------------------------------------------------------------------------------------|

| 10.23 | Regulation S Stock Purchase Agreement between the Company and Eran Elimelech, dated July 29, 2012 (filed herewith). |
|-------|---------------------------------------------------------------------------------------------------------------------|

| 16.1 | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on January 5, 2006). |
|------|-------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on November 5, 2010). |
|------|--------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Letter on Change in Certifying Accountant (incorporated by reference to Exhibit 16 of the Form 8-K filed on July 24, 2012). |
|------|-----------------------------------------------------------------------------------------------------------------------------|

| 21 | Subsidiaries of the Company (incorporated by reference to Exhibit 21 of the Form 10-K filed on April 16, 2012). |
|----|-----------------------------------------------------------------------------------------------------------------|

| 23 | Consent of Dov Weinstein & Co. C.P.A. (Isr) (filed herewith). |
|----|-------------------------------------------------------------------|

| 31.1 | Rule 13a-14(a)/15d-14(a) Certification of Sam Shlomo Elimelech (filed herewith). |
|------|----------------------------------------------------------------------------------|

| 31.2 | Rule 13a-14(a)/15d-14(a) Certification of Gai Mar-Chaim (filed herewith). |
|------|---------------------------------------------------------------------------|

| 32 | Section 1350 Certification of Sam Shlomo Elimelech and Gai Mar-Chaim (filed herewith). |
|----|----------------------------------------------------------------------------------------|

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