| [X]            | ANNUAL      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |   |
|----------------|------------------------------------------------------------------------------------------|--------|
|           |                                                                                     |   |
|           | For      the fiscal year ended  August 31,  2008                               |
|           |                                                                                     |
| [  ] | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT     |   |
|           |                                                                                     |   |
|           | For the transition      period from _________ to ________                                |
|           |                                                                                     |   |
|           | Commission      file number:  333-138189                                       |

| Atheron      Inc.                                                   |
|---------------------------------------------------------------------|
| (Exact      name of registrant as specified in its charter)         |
|                                                                |   |
| Nevada                                                              | N/A |
| (State or other      jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |   |
| 3598 Durango St.,      Palanan, Makati City 1235, Philippines       |   |
| (Address      of principal executive offices)                       | (Zip      Code) |

| Registrant’s      telephone number:  011.63.2.728.1626 |
|------------------------------------------------------------------------|
|                                                                   |
| Securities      registered under Section 12(b) of the Exchange Act:    |
|                                                                   |
| Title      of each class                                               | Name      of each exchange on which registered |
| none                                                                   | not      applicable |
|                                                                   |   |
| Securities      registered under Section 12(g) of the Exchange Act:    |
|                                                                   |
| Title      of each class                                               | Name      of each exchange on which registered |
| none                                                                   | not      applicable |

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TABLE OFCONTENTS

|                      |                                                                                                                       | Page |
|---------------------------|----------------------------------------------------------------------------------------------------------------------------|------|
|  PART      I    |
| Item 1.                   | Business                                                                                                                   | 3    |
| Item 1A.                  | Risk Factors                                                                                                               | 12   |
| Item 1B.                  | Unresolved Staff Comments                                                                                                  | 12   |
| Item 2.                   | Properties                                                                                                                 | 12   |
| Item 3.                   | Legal Proceedings                                                                                                          | 12   |
| Item 4.                   | Submission of Matters to a Vote of Security      Holders                                                                   | 13   |
|  PART      II   |
| Item 5.                   | Market for Registrant’s Common Equity and Related Stockholder      Matters and Issuer Purchases of Equity Securities | 13   |
| Item 6.                   | Selected Financial Data                                                                                                    | 15   |
| Item 7.                   | Management’s Discussion and Analysis of Financial Condition and      Results of Operations                           | 15   |
| Item 7A.                  | Quantitative and Qualitative Disclosures About Market      Risk                                                            | 19   |
| Item 8.                   | Financial Statements and Supplementary Data                                                                                | 19   |
| Item 9.                   | Changes In and Disagreements With Accountants on Accounting and      Financial Disclosure                                  | 19   |
| Item 9A(T).               | Controls and Procedures                                                                                                    | 20   |
| Item 9B.                  | Other Information                                                                                                          | 21   |
|  PART      III  |
| Item 10.                  | Directors, Executive Officers and Corporate      Governance                                                                | 21   |
| Item 11.                  | Executive Compensation                                                                                                     | 22   |
| Item 12.                  | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters                        | 24   |
| Item 13.                  | Certain Relationships and Related Transactions, and Director      Independence                                             | 24   |
| Item 14.                  | Principal Accountant Fees and Services                                                                                     | 24   |
|  PART      IV   |
| Item 15.                  | Exhibits, Financial Statement Schedules                                                                                    | 25   |

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Item 1.   Business

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| §   | Light      oil, naphtha, straight-run gasoline:70-80% |
|--------------------|-------------------------------------------------------|

| §   | Ethanol:      8-20% |
|--------------------|---------------------|

| §   | Methyl      alcohol: 2-10% |
|--------------------|----------------------------|

| §   | Isobutyl      alcohol: 1-6% |
|--------------------|-----------------------------|

| §   | Carbon      nine solvent naphtha: 3-8% |
|--------------------|----------------------------------------|

| §   | Methylnaphthalene:      0.2-1% |
|--------------------|--------------------------------|

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| §   | Dimethyl      ether: 1-5% |
|--------------------|---------------------------|

| §   | Nitrobenzene:      0.5-3.4% |
|--------------------|-----------------------------|

| §   | Mixed      benzene: 1-2% |
|--------------------|--------------------------|

| §   | Dispersing      agent: 0.3-0.8% |
|--------------------|---------------------------------|

| §   | Antiseptic:      0.2-0.8% |
|--------------------|---------------------------|

| §   | Lauryl      benzene sulfonic acid: 0.02-0.03% |
|--------------------|-----------------------------------------------|

| §   | Anti-knocking      compound: 0.03-0.06% |
|--------------------|-----------------------------------------|

| §   | C5      Petroleum Resins: 2-8% |
|--------------------|--------------------------------|

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| Serial                            | Examination      project              | Unit                               | Regular      Gas Specification | Target      Examination result |
|-----------------------------------|---------------------------------------|------------------------------------|--------------------------------|--------------------------------|
| 1                                 | Octane      value                     | /                                  | >=90                        | 90                             |
| 2                                 | Temperature      of Evaporation       | 10%      Evaporation               | C                              | <=70                        | 66 |
| 20%      Evaporation              | C                                     | <=120                           | 93                             |
| 50%      Evaporation              | C                                     | <=190                           | 185                            |
| Stop      point                   | C                                     | <=205                           | 200                            |
| Left      content                 | %                                     | <=2                             | 2.1                            |
| 3                                 | Steam      Barometric Pressure        | March      16 – September 15 | KPa                            | <=74                        | 70 |
| September      16 –March 15 | KPa                                   | <=88                            | 82                             |
| 4                                 | Sol                                   | Mg/100ml                           | <=5                         | 5                              |
| 5                                 | Sheet      copper corrosion (50C, 3h) | /                                  | <=1                         | 1                              |
| 6                                 | Water-soluble      acid and alkali    | /                                  | No                             | No                             |
| 7                                 | Mechanical      impurity              | /                                  | No                             | No                             |
| 8                                 | Water      content                    | m/m                                | <=0.15                      | 0.16                           |

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| Serial                            | Examination      project              | Unit                               | Regular      Gas Specification | Target      Examination result |
|-----------------------------------|---------------------------------------|------------------------------------|--------------------------------|--------------------------------|
| 1                                 | Octane      value                     | /                                  | >=90                        | 91                             |
| 2                                 | Temperature      of Evaporation       | 10%      Evaporation               | C                              | <=70                        | 56 |
| 20%      Evaporation              | C                                     | <=120                           | 90                             |
| 50%      Evaporation              | C                                     | <=190                           | 165                            |
| Stop      point                   | C                                     | <=205                           | 190                            |
| Left      content                 | %                                     | <=2                             | 1                              |
| 3                                 | Steam      Barometric Pressure        | March      16 – September 15 | KPa                            | <=74                        | 65 |
| September      16 –March 15 | KPa                                   | <=88                            | 78                             |
| 4                                 | Sol                                   | Mg/100ml                           | <=5                         | 4                              |
| 5                                 | Sheet      copper corrosion (50C, 3h) | /                                  | <=1                         | 1                              |
| 6                                 | Water-soluble      acid and alkali    | /                                  | No                             | No                             |
| 7                                 | Mechanical      impurity              | /                                  | No                             | No                             |
| 8                                 | Water      content                    | m/m                                | <=0.15                      | 0.13                           |

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| à   | Attending      Oil Gas Technology Trade Meetings, Promotional Events and Conferences: We      plan to attend a number of events attended by biotech institutions in      order to further expose our products. These events will include biotech      trade meetings and promotional events which are attended by oil gas      companies and related seminars andconferences. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| à   | Promoting      through Internet-Based and Traditional Media Advertising: We intend to use      Internet-based and traditional media to promote our technology and      products directly to petro chemical companies. We believe that by      increasing our consumer base we will attract petro chemical companies to      use our mixed gasoline formula. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| à   | travel      - $5,000 |
|--------------------|----------------------|

| à   | marketing      - $10,000 |
|--------------------|--------------------------|

| à   | research      and development - $30,000 |
|--------------------|-----------------------------------------|

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Item 1A.   Risk Factors.

Item 1B.   Unresolved Staff Comments

Item 2.   Properties

Item 3.   Legal Proceedings

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Item 4.   Submission of Matters to a Vote of SecurityHolders

Item 5.    Market for Registrant’s Common Equity andRelated Stockholder Matters and Issuer Purchases of EquitySecurities

| Fiscal      Year Ending August 31, 2008 |
|-----------------------------------------|
| Quarter      Ended                      |   | High      $ |   | Low      $ |
| August      31, 2008                    |   | N/A |   | N/A |
| May      31, 2008                       |   | N/A |   | N/A |
| February      29, 2008                  |   | N/A |   | N/A |
| November      30, 2007                  |   | N/A |   | N/A |

| Fiscal      Year Ending August 31, 2007 |
|-----------------------------------------|
| Quarter      Ended                      |   | High      $ |   | Low      $ |
| August      31, 2007                    |   | N/A |   | N/A |
| May      31, 2007                       |   | N/A |   | N/A |
| February      28, 2007                  |   | N/A |   | N/A |
| November      30, 2006                  |   | N/A |   | N/A |

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| 1.   | we      would not be able to pay our debts as they become due in the usual course      of business, or; |
|----------------|---------------------------------------------------------------------------------------------------------|

| 2.   | our      total assets would be less than the sum of our total liabilities plus the      amount that would be needed to satisfy the rights of shareholders who have      preferential rights superior to those receiving the      distribution. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 6.   Selected Financial Data

Item 7.  Management’s Discussion and Analysis of FinancialCondition and Results of Operations

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| §   | Develop      the complete and commercial version of our proposed gasoline formula by      mid to late 2008. This will be the completed version of gasoline formula,      which will be marketed to potential customers in Philippines. Commence an      advertising campaign for our proposed gasoline formula following its      development. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Commence      development of prospects for higher standard gasoline formula by mid      2009. |
|--------------------|-----------------------------------------------------------------------------------------------|

| §   | Audit      fee, which consists primarily of accounting and auditing fees for the      yearend audit. We estimate that our audit fees for the next twelve months      will be approximately $10,000, which includes quarterly      reviews; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Bank      charges, which consist primarily of charges by our bank for processing      transactions through our checking account. We estimate that our bank      charges for the next twelve months will be approximately    $100; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Legal      fees, which consist primarily of fees paid by us regarding corporate and      securities advice and our reporting obligations under the 1934 Securities      and Exchange Act. We estimate that our legal fees for the next twelve      months will be approximately $15,000 to $20,000;  and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      operating expenses, which consist primarily of the expenses incurred for      further development of our proposed gasoline formula; for the advertising      campaign for our proposed gasoline formula; and for development of      prospects for third party applications for our proposed containment system      and other administrative expenses. We estimate that our other operating      expenses for the next twelve months will be approximately      $30,000. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 7A.   Quantitative and Qualitative Disclosures AboutMarket Risk

Item 8.   Financial Statements and SupplementaryData

Item9.   Changes In and Disagreements with Accountants on Accountingand Financial Disclosure

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Item 9A(T).  Controls and Procedures

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Item 9B.   Other Information

Item 10.  Directors, Executive Officers and CorporateGovernance

|  Name               |  Position      Held with the Company                                             |  Age | Date      First Elected or Appointed |
|--------------------------|---------------------------------------------------------------------------------------|-----------|--------------------------------------|
| Ms.      Susanna Hilario | President,      Director, Treasurer (Principal Accounting Officer) and      Secretary | 35        | May      8, 2006                     |
| Mr.      Rey V. Supera   | Director      and Chief Technology Officer                                       | 30        | May      8, 2006                     |

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Item 11.  Executive Compensation

| SUMMARY      COMPENSATION TABLE                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Nameandprincipalposition                                                                                                                                                                            | Year | Salary ($) | Bonus($) |  StockAwards($) | OptionAwards($) | Non-EquityIncentive      PlanCompensation($) | NonqualifiedDeferredCompensationEarnings      ($) | All      OtherCompensation($) | Total($) |
| Susanna      Hilario,President,      Chief Executive Officer, Principal Executive Officer,Chief      Financial Officer, Principal Financial Officer, Principal Accounting      Officer and Director | 20082007 | 00 | 00 | 00 | 00 | 00 | 00 | 00 | 00 |
| Rey Supera, CTO,      Director                                                                                                                                                                      | 20082007 | 00 | 00 | 00 | 00 | 00 | 00 | 00 | 00 |

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| OUTSTANDING      EQUITY AWARDS AT FISCAL YEAR-END                            |
|------------------------------------------------------------------------------|
| OPTION      AWARDS                                                           | STOCK      AWARDS |
|             Name | Number      ofSecuritiesUnderlyingUnexercisedOptions(#)Exercisable | Number      ofSecuritiesUnderlyingUnexercisedOptions (#)Unexercisable | EquityIncentive PlanAwards:Number      ofSecuritiesUnderlyingUnexercisedUnearnedOptions(#) | OptionExercise Price ($) | OptionExpirationDate | NumberofSharesor      UnitsofStock      ThatHaveNotVested(#) | MarketValueofSharesorUnitsofStockThatHaveNotVested($) | EquityIncentivePlanAwards: NumberofUnearned Shares,Units      orOtherRightsThat      Have NotVested(#) | EquityIncentivePlanAwards:Market      orPayoutValue      ofUnearnedShares,Units      orOtherRightsThatHave      Not Vested(#) |
| Ms.      Susanna Hilario                                                     | - | - | - | - | - | - | - | - | - |
| Mr.      Rey V. Supera                                                       | - | - | - | - | - | - | - | - | - |

|                                            DIRECTOR      COMPENSATION |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name                                                                                                                                                                                                                                                                                    | Fees      Earned orPaid      inCash($) |   Stock      Awards($) |   Option      Awards($) | Non-EquityIncentivePlanCompensation($) | Non-QualifiedDeferredCompensationEarnings($) |  AllOtherCompensation($) |    Total($) |
| Ms.      Susanna Hilario                                                                                                                                                                                                                                                                     | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Mr.      Rey V. Supera                                                                                                                                                                                                                                                                       | 0 | 0 | 0 | 0 | 0 | 0 | 0 |

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Item12.  Security Ownership of Certain Beneficial Owners and Managementand Related StockholderMatters

| Title of class                                     | Name and address of beneficial      owner                                                                           | Amount of beneficial    ownership | Percent of class |
|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------|------------------|
| Common                                             | Ms.      Susanna Hilario7636      Guijo cor Sacred Heart Street, San Antonio Village, Makati City,      Philippines | 625,000                           | 29%              |
| Common                                             | Mr.      Rey V. Supera3596      Durango Street, Palanan, Makati City, Philippines                                   | 625,000                           | 29%              |
| Total      of all directors and executive officers | 1,250,000                                                                                                           | 58%                               |

Item 13.   Certain Relationships and RelatedTransactions, and Director Independence

Item 14.   Principal Accounting Fees andServices

| Financial      Statements for the Year Ended September 30 | Audit      Services | Audit      Related Fees | Tax      Fees | Other      Fees |
|-----------------------------------------------------------|---------------------|-------------------------|---------------|-----------------|
| 2008                                                      | $10,000             | $0                      | $0            | $0              |
| 2007                                                      | $10,000             | $0                      | $0            | $0              |

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Item 15.   Exhibits, Financial StatementsSchedules

| Audited      Financial Statements: |
|------------------------------------|
|                               |   |
| F-1                                | Report of Independent Registered Public Accounting      Firm |
|                               |   |
| F-2                                | Consolidated Balance Sheets as of August 31,      2008  and 2007; |
|                               |   |
| F-3                                | Statements of Operations for the years ended August 31, 2008,      and August, 2007, and the period from inception to August 31,      2008; |
|                               |   |
| F-4                                | Statement of Stockholders’ Deficit for period from inception to      August 31, 2008; |
|                               |   |
| F-5                                | Statements of Cash Flows for the years ended August 31, 2008,      and August 31, 2007, and the period from inception to August 31,      2008; |
|                               |   |
| F-6                                | Notes to FinancialStatements |

| Exhibit      Number | Description                                                                                                                                                                              |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                 | Articles      of Incorporation, as amended (1)                                                                                                                                           |
| 3.2                 | Bylaws,      as amended (1)                                                                                                                                                              |
| 23.1                | Consent of Maddox Ungar Silberstein, PLLC, Certified      Public Accountants                                                                                                             |
| 31.1                | Certification of Chief Executive Officer pursuant to      Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002    |
| 31.2                | Certification of Chief Financial Officer pursuant to      Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002    |
| 32.1                | Certification of Chief Executive Officer and Chief      Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant      to Section 906 of the Sarbanes-Oxley Act of  2002 |

| 1   | Incorporated      by reference to the Registration Statement on Form SB-2 filed on October      25, 2006. |
|---------------|-----------------------------------------------------------------------------------------------------------|

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| By:    | /s/Susanna Hilario                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Susanna      HilarioPresident,      Chief Executive Officer, Principal Executive Officer, Chief      Financial Officer, Principal Financial Officer, Principal Accounting      Officer and Director |
|   | December      2, 2008                                                                                                                                                                               |

| By:    | /s/Susanna Hilario                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Susanna      HilarioPresident,      Chief Executive Officer, Principal Executive Officer, Chief      Financial Officer, Principal Financial Officer, Principal Accounting      Officer and Director |
|   | December      2, 2008                                                                                                                                                                               |

| By:    | /s/Rey V. Supera                                                  |
|--------|-------------------------------------------------------------------|
|   | Rey      V. SuperaChief      Technology Officer and      Director |
|   | December      2, 2008                                             |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

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ATHERON, INC.

|                                                                                                                                  |                |           |                |
|---------------------------------------------------------------------------------------------------------------------------------------|---------------------|----------------|---------------------|
| ASSETS                                                                                                                                |                     |           |                     |
|                                                                                                                                  | August      31,2008 |           | August      31,2007 |
| Current      Assets                                                                                                                   |                |           |                |
|   Cash      and equivalents                                                                                                 | $                   | 0              |                | $ | 0 |
|   Prepaid      expenses                                                                                                     |                | 0              |                |   | 0 |
|                                                                                                                                  |                |           |                |   |   |
| TOTAL      ASSETS                                                                                                                     | $                   |  0        |                | $ |  0 |
|                                                                                                                                  |                |           |                |   |   |
| LIABILITIES      AND STOCKHOLDERS’ DEFICIT                                                                                      |                |           |                |   |   |
|                                                                                                                                  |                |           |                |   |   |
| Current      Liabilities                                                                                                              |                |           |                |   |   |
|   Loan      payable - related party                                                                                         | $                   |  34,985   |                | $ | 25,985 |
|                                                                                                                                  |                |           |                |   |   |
| Stockholders’      Deficit                                                                                                      |                |           |                |   |   |
|    Common      Stock, $.001 par value, 75,000,000 shares authorized, 2,150,000      shares issued and outstanding |                |  2,150    |                |   |  2,150 |
|    Additional      paid-in capital                                                                                     |                | 40,850         |                |   | 40,850 |
|    Deficit      accumulated during the development stage                                                               |                |  (77,985) |                |   | (68,985) |
|        Total      stockholders’ deficit                                                      |                |  (34,985) |                |   | (25,985) |
|                                                                                                                                  |                |           |                |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                | $                   |  0        |                | $ |  0 |

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ATHERON INC.

|                                            | YearendedAugust31,      2008 |      | YearendedAugust31,      2007 |   | Period      fromMay      8, 2006(Inception)      toAugust31,      2007 |
|-------------------------------------------------|------------------------------|-----------|------------------------------|--------|------------------------------------------------------------------------|
| Revenues                                        | $                            | 0         |                         | $      | 0                                                                      |   | $ | 0 |
|                                            |                         |      |                         |   |                                                                   |   |   |   |
| General      and administrative expenses:       |                         |      |                         |   |                                                                   |   |   |   |
|     Professional      fees  |                         | 9,000     |                         |   | 25,000                                                                 |   |   |  77,985 |
|                                            |                         |      |                         |   |                                                                   |   |   |   |
| Net      Loss                                   | $                            | (9,000)   |                         | $      | (25,000)                                                               |   | $ | (77,985) |
|                                            |                         |      |                         |   |                                                                   |   |   |   |
| Net      loss per share:                        |                         |      |                         |   |                                                                   |   |   |   |
|   Basic      and diluted              | $                            | (0.00)    |                         | $      | (0.01)                                                                 |   | $ | (0.03) |
|                                            |                         |      |                         |   |                                                                   |   |   |   |
|  Weighted      average shares outstanding: |                         |      |                         |   |                                                                   |   |   |   |
|     Basic      and diluted  |                         | 2,150,000 |                         |   | 2,150,000                                                              |   |   | 2,150,000 |

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ATHERON, INC.

|                                                          | Common      stock |   | Additional      paid-in |   |  Deficit      accumulated      during      thedevelopment |   |   |
|---------------------------------------------------------------|-------------------|--------|-------------------------|--------|----------------------------------------------------------------|--------|--------|
|                                                          | Shares            |   | Amount                  |   | capital                                                        |   | stage  |   | Total |
| Issuance      of common stock  for      cash @$.001 | 2,150,000         |   | $                       | 2,150  |                                                           | $      | 40,850 |   | $ | - |   | $ | 43,000 |
| Net      loss for the period ended August 31, 2006            | -                 |   |                    | -      |                                                           |   | -      |   |   | (43,985) |   |   | (43,985) |
| Balance      August 31, 2006                                  | 2,150,000         |   |                    | 2,150  |                                                           |   | 40,850 |   |   | (43,985) |   |   | ( 985) |
| Net      loss for the year ended August 31, 2007              | -                 |   |                    | -      |                                                           |   | -      |   |   | (25,000) |   |   | (25,000) |
| Balance      August 31, 2007                                  | 2,150,000         |   |                    | 2,150  |                                                           |   | 40,850 |   |   | (68,985) |   |   | (25,985) |
| Net      loss for the year ended August 31, 2008              | -                 |   |                    | -      |                                                           |   | -      |   |   | (9,000) |   |   | (9,000) |
| Balance      August 31, 2008                                  | 2,150,000         |   | $                       | 2,150  |                                                           | $      | 40,850 |   | $ | (77,985) |   | $ | (34,985) |

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ATHERON INC.

|                                                             | YearEndedAugust31,      2008 |              | YearEndedAugust31,      2007 |   | Period      FromMay      8, 2006(Inception)      toAugust31,      2008 |
|------------------------------------------------------------------|------------------------------|-------------------|------------------------------|--------|------------------------------------------------------------------------|
| CASH      FLOWS FROM OPERATING ACTIVITIES                        |                         |              |                         |   |                                                                   |
|   Net      loss                                        | $                            | (9,000)           |                         | $      | (25,000)                                                               |   | $ | (77,985) |
| Change      in non-cash working capital items                    |                         |              |                         |   |                                                                   |   |   |   |
|   Decrease      in prepaid expenses                    |                         |  0           |                         |   | 4,000                                                                  |   |   |  0 |
|                                                             |                         |              |                         |   |                                                                   |   |   |   |
| CASH      FLOWS USED BY OPERATING ACTIVITIES                     |                         | (9,000)           |                         |   | (21,000)                                                               |   |   | (77,985) |
|                                                             |                         |              |                         |   |                                                                   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                        |                         |              |                         |   |                                                                   |   |   |   |
|     Proceeds      from sales of common stock |                         | 0                 |                         |   | 0                                                                      |   |   | 43,000 |
|     Loan      from related party             |                         | 9,000             |                         |   | 6,000                                                                  |   |   |  34,985 |
| CASH      FLOWS PROVIDED BY FINANCING ACTIVITIES                 |                         |   9,000 |                         |   |  6,000                                                            |   |   |   77,985 |
|                                                             |                         |              |                         |   |                                                                   |   |   |   |
|   NET      (DECREASE) IN CASH                          |                         | 0                 |                         |   | (15,000)                                                               |   |   | 0 |
|                                                             |                         |              |                         |   |                                                                   |   |   |   |
|   Cash,      beginning of period                       |                         |  0           |                         |   |  15,000                                                           |   |   |  0 |
|   Cash,      end of period                             | $                            |  0           |                         | $      |  0                                                                |   | $ |  0 |
|                                                             |                         |              |                         |   |                                                                   |   |   |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION                     |                         |              |                         |   |                                                                   |   |   |   |
|     Interest      paid                       | $                            |  0           |                         | $      |  0                                                                |   | $ |  0 |
|     Income      taxes paid                   | $                            |  0           |                         | $      |  0                                                                |   | $ |  0 |

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ATHERON, INC.

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|                                                            | 2008   |
|-----------------------------------------------------------------|--------|
| Deferred      tax asset attributable to:                        |   |
|   Net      operating loss carryover                   | $      | 26,500 |
|   Valuation      allowance                            |   | (26,500) |
|       Net      deferred tax asset | $      | - |